Castle Commercial Mortgage: Review the Profit in your Real Estate Deal

Our underwriters review many different types of real estate proposals. Whether that is a Fix & Flip; new construction; land development, etc., when reviewing a deal, the basic question is: How Much Profit is in this Deal?

The reason we, as lenders, ask this question, of course is to ensure ourselves of the probability of your success. If your deal has 10%-20% profit, we do not generally think that is enough. You should be making more in the deal.

In a recent Mortgage Brokers industry magazine, it said: To help ensure profitability, they (real estate investor) should not pay more than 65 percent of the After Repair Value to purchase and rehab a property. The article goes on to encourage any good mortgage broker to advise real estate investors to walk away from weak deals.

What if you experience: time over runs, cost over runs, or, market supply problems; the 10-20% profit margin may not be enough profit for your real estate deal to be successful.

The best thing we as a lender can say: NO!

Castle Commercial Mortgage is on your side. Our market analysis is another independent view of your Real Estate Deal--your success is our success, after all! We will use our resources to help you evaluate your proposed real estate deals.

Castle Commercial Mortgage Co. wants you to be successful and re-pay our loan. We DO NOT want your property.

To do this we would normally expect your deal to have a profit margin of more like 25%-30% or more. We know from our successful experienced investors - what they are doing. They are repeat customers of the Castle United companies. We want to help you to do the same - be successful.

Isn\'t that what you want from your lender? To be your advisor and giving an honest review a deal--if it a good deal or if it\'s too slim. Call Castle Commercial Mortgage Co. at 303-756-0277 about your next real estate deal. We look forward to helping you build your wealth!

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