Our rates are low, our application is quick and easy! We can get you clear to close in as little as 10 days!
NMLS ID # NMLS # 228246
William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.
Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.
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đŚ How Lenders Evaluate CRE Deals | Key Metrics Every Investor Must Know đ
đź Commercial Real Estate Loan Underwriting Explained | What Banks & Lenders Look For đ˘
When it comes to commercial real estate (CRE) financing, securing the right loan often comes down to how well your deal holds up under a lenderâs microscope. Lenders donât just look at the property itselfâthey analyze a combination of financial metrics, market conditions, sponsor strength, and risk factors to decide whether to approve your loan.
As a mortgage brokerage, Medallion Funds works with investors, developers, and business owners every day to package their deals in a way that lenders want to see. Letâs break down the key elements lenders evaluate in CRE deals so you can position yourself for success.
One of the first things a lender reviews is the Loan-to-Value (LTV) ratio, which measures the loan amount compared to the propertyâs value.
¡Typical LTVs:
oMultifamily/Industrial: 70â80%
oRetail/Office: 65â75%
¡Lower LTV = lower risk for the lender.
Tip: A strong appraisal and showing equity skin in the game increase your approval chances.
The DSCR shows how well the propertyâs income can cover the loan payments. Most lenders require:
¡1.20â1.25 DSCR for stabilized assets
¡Higher DSCR for riskier deals like retail or new construction
Formula: Net Operating Income (NOI) á Debt Service = DSCR
Tip: If your DSCR is tight, consider improving NOI by cutting expenses or raising rents before applying.
Lenders want to know whoâs behind the deal:
¡Net worth and liquidity relative to loan size
¡Real estate experience and track record
¡Business plan execution ability
Tip: Partnering with a strong co-sponsor can help if youâre light on experience.
Lenders evaluate both the asset class and the location market:
¡Industrial and multifamily: typically favored
¡Office and retail: scrutinized more heavily
¡Submarket vacancy rates, absorption trends, and local economic drivers
Tip: Be ready to explain why your property and market are positioned for success despite broader trends.
Expect requests for:
¡Rent rolls & operating statements
¡Leases & tenant financials (for retail/office)
¡Appraisal, Phase I ESA, and PCA (Property Condition Assessment)
Tip: Organize your documents early. A clean, complete package signals professionalism and reduces lender hesitation.
Finally, lenders consider what could go wrong and how youâll protect against it.
¡Lease rollover risk
¡Construction cost overruns
¡Market downturns
Theyâll also ask: Whatâs your exit plan? (refinance, sale, or long-term hold).
Understanding how lenders evaluate CRE deals allows you to structure stronger loan requests and move through underwriting faster. At Medallion Funds, we help investors and business owners present deals in the best possible lightâmaximizing approvals and negotiating the most competitive terms.
đ Ready to finance your next project? Contact Medallion Funds today for tailored CRE financing solutions.
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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
Copyright Š2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright Š 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright Š2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/
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