9. Tougher reselling standards: Lenders lend to make money. To lend out dollars again, they need to sell their loans quickly to be recapitalized. Selling mortgage pools in competitive markets means that standards are tough. Although more loans have been originated in the past few years, lenders are receiving fewer profit margins for their loan pools than they had received previously.

10. Other requirements and considerations: It’s helpful for borrowers to learn upfront that banks will increase a property’s total operating expense if property-owners manage the property themselves. In addition, reserves, added operating expenses, additional maintenance, capital improvements, future tenant rollover/loss and other variables can lead a lender to decrease a property’s pro forma revenues or increase expenses to analyze the risk more conservatively.

William Jones is a broker and partner with San Diego Lending Inc., a commercial-lending brokerage, and WJ Commercial Enterprises, a commercial real estate sales brokerage. He is based in Solana Beach, Calif. Jones works with clients to achieve their objectives in commercial real estate, usually through stable income streams and wealth-building opportunities in the Southwest. He can be reached at (858) 245-2111 or will@wjcommercial.com.

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