Commercial Loans and Fun Blog

How To Underwrite Commercial Construction Loans - Fantastic!

Written by George Blackburne | Wed, Oct 24, 2018

All of my readers should read today's article, including commercial loan brokers, commercial brokers, real estate investors, and developers.

A couple of years ago I wrote a superb article that explains the entire commercial construction loan underwriting process in layman's English.  I teach the reader the five ratio's of commercial construction loan underwriting, including

  1. The Loan-to-Cost Ratio;
  2. The Loan-to-Value Ratio;
  3. The Debt Service Coverage Ratio;
  4. The Profit Ratio; and 
  5. The Net-Worth-to-Loan-Size Ratio

STOP!  Take 42 Seconds to View This Video.

 

Don't panic!  Don't fall asleep!  I make these ratios fun!

 

 

 

 

The article is written in a playful manner that I promise will have you chuckling.  We follow the story of Bubba, a developer of questionable morals, as he tries to convince his bank to make a construction loan to build an apartment building.

Prepare to learn more from this lesson than from any other training lesson that I have ever written:

https://www.c-loans.com/knowledge-base/underwriting-commercial-construction-loans