While the headline for this post could easily be "DUH," the content is as current today as it was a decade ago.
If you're pursuing a CRE transaction, disclose any known financial issues up front. Yes, there are lenders that will put your various body parts through the proverbial ringer. But knowing any "defects" in a financial statement upfront will go a LONG way toward moving a transaction along. I routinely counsel my buyers looking at investment properties on this very subject. Often asking some hard questions. And I'm not talking about the individual or two-doc LLC looking to buy a small building. Financial "issues" during the Great Recession have impacted buyers at all levels.
Steve Bram of George Smith Partners reiterates this common sense theme in a bylined article appearing at GlobeSt.com this week. Now, I do take exception to his saying we are out of the Recession. But that's my personal professional opinion. Nevertheless, the main theme is right on!
His bottom line? Like mine. Disclose everything to potential lenders. Surprises freak them out.
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