Q: Who would provide Fresno Properties with outside financing?
A: Whether an outside lender would provide financing to Freson Properties may well depend on how thoroughly it conducts an assessment of the potential borrower. If it stopped with assessing whether the property’s net operating income exceeded debt service by an acceptable margin – based on appraisal report “what if” values – it may decide to finance the acquisition without any further analysis.
In addition, potential lenders frequently review the list of other lenders currently providing financing to the potential borrower. If the other lenders were highly respectable, it may well decide that their participation was all the evidence they needed to go forward with the transaction.
Course overview: Global Cash Flow