Cambridge CEO emphasizes quality of packaging
By COCO SALAZAR
2/19/2004

Smart loan talk is not sufficient to obtain financing in today's credit market; the real solution lies in the written presentation, touts one commercial originator.

While eloquent dialogue helps in the many instances when prospective borrowers are asked to discuss various aspects of their loan application, it is also true that "choppy or poor verbal dialogue can be detrimental to the process," according to Jeffrey Davis, founder and chairman of Cambridge Realty Capital Companies -- a national senior housing/healthcare capital provider based in Chicago.

"Lenders and bankers like to hear positive things, and to get the sense that the borrower understands every element of the transaction," said Davis, in a written statement. However, "talk doesn't make deals. Successful applications are all about quality paperwork and data."

Commercial owners and investors must be prepared to provide requested information in a well organized written format, the company advised.

At Cambridge, which reported senior housing/healthcare originations of $3.3 billion during 2003, about 5% of applications are denied for a loan, said company spokeswoman Kathryn Burau. Although poor quality presentation is not the sole reason for denial, there were times when a one-page summary was submitted as an application package, which was not very helpful, she said.

"The more information that we receive and the more detailed it is, the better," Burau said.

Davis said there are no fast rules to what constitutes a quality written presentation, as this depends on the lender. He recommends that borrowers consult directly with the funding source to learn what can be important organizational tools and what is expected of them.

Sometimes, said Davis, an agenda of attachments may be helpful, as well as tabs that organize the presentation in logical sections.

Article © MortgageDaily.com All Rights Reserved