Today more than ever you must be able to understand and correlate the numbers in your loan package. Lenders today want more specific data as to cash flow analysis, debt service coverage, and return on investment than ever before. If you are not able to tell a lender precisely how much that you can borrow, and how much you need to borrow, which may be two different things, the lenders may say no to your total loan request.
What we are seeing now is that if you want $10,000,000.00 for example and the project only generates $6,000,000.00 The lenders are not coming back and offering six million they are just denying the inital loan request. You may say that this is unfair, but what I believe now is occurring is that the lenders only want to deal with sophisticated borrowers and sophisticated financial brokers/mortgage brokers.
If the broker that you are using is not able to determine the appropriate loan sizing then they are not the right ones for you.
The game my friends has changed drastically within the last three months. Knowledge is power more than ever. To determine Return on Investment for your project you need to understand cash flow, it as simple as that.
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