Community Forum

(question from an IREM member): What can Landlords/Property Managers do to help their tenants get financing?

screen for better tenants - if they can't get financing do you want them as a tenant?????

I would think that since retailers are most likely not going to see the revenue figures they need to be successful this year and well into 2009, Landlords may need to help their tenants (and also protect their bottom lines) by reducing rents or giving concessions so that some retailers can stay in business and not be forced to break their leases. The reduced rent, may help their balance sheet look a little better and could be the difference in whether or not the retailer could get loan approval.

The other, while very risky is for the Landlord not to record a lien for current monies owed. This should only be done with counsel's guidance.

My recommendation would be to work with tenants to help keep them in place throughout the upcoming year.

current economic times money is most certainly tight. there are different lenders for different types of situations. the best money source for individuals seeking to purchase properties is through government loan programs. FHA or VA. to meet the loan criteria borrowers must be able to provide paystubs, bank statements and tax returns. self employed borrowers will have to provide additional bank statements (in lieu of paystubs) two years of tax returns and possibly a profit and loss statement year to date. with interest rates at record lows homeowners are interested in refinancing their existing loans. yes these homeowners can reduce their current interest rates but, must be prepared that their property value might have dropped requiring that they bring money to the table to reduce their principal balance.

if an individual is seeking a commercial loan there are two sources for funding; mezzanine lenders and private money or hedge funds.

need any additional information call me Lynn Brock 941.313.1234

Every tenant should not get financed.... only the ones putting forth an effort, with an initiative and very willing to do their part. Too many are made impotent from the props readily given out in this nation.... it handicaps! Financing is a reward for those responsible and disciplined. We ALL (including me) need to go back to WAITING until we have enough saved for a sizable down payment and the balance could then be done through financing without the strain.

Review your selectrion criteria and adjust it based in actual economy.
If in the past you only accepted 600+ scoring, you might want to lower the standar to 500 and see in detail their credit, many people have not the best credit and many is due to foreclosures, short sales, loosing their jobs or have been late 60, 90 days and are now current. But remeber that late payments affect a lot the credit scoring.

We've recently partnered with an SBA Lender with regard to the sale of retail/restaurant condos. I will also suggest SBA financing for tenants seeking funds for equipment and fixtures, etc.