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Looking for a proven method on how to read tax returns or a more reliable way on how to analyze tax returns? You have found it. This ebook is all about how to prescreen loan requests so you don't waste weeks or even months of your time on unfundable deals. If your not in the mortgage business, than check out the two accounting books to the left. The Accounting For Non Accountants book is highly recommended, and it is geared for business/understanding financial reports etc.
In this market you have to be an expert at qualifying deals or you will simply run out of money. Without being overly obvious, if you KNEW from the beginning of a deal that it was impossible to close - would you work on it? Of course not! Many brokers though don't take the time to learn how to screen deals and they pay for this the hard way.
How to Analyze Tax Returns - and close more loans
Even today, there is an incredible amount of money you can make in this business. Many commercial mortgage brokers make mid six figures, and a few make over $1,000,000 per year. All without having any real fixed expenses or little to no support staff. Many brokers are making millions while working out of their home, quietly closing millions per month. And, this is still happening today - even in this market.
However, there are a few essential skills you need to master in order to dominate in this field.
1. You have to have a rock solid lender network - you need more than a few names or just a lender list. You need real relationships where the lenders respect you and value your business. Otherwise your loan package will be on the bottom of their pile and your deals will slowly evaporate. Sounds dramatic, but it's true. Everyone in this business is alway thinking about saving time. Also, you have to know their programs inside and out. You have to know them cold.
2. The second main skill set you need is the ability to screen loan applications quickly - i.e knowing how to read tax returns and financial statements. You need to be an EXPERT at analyzing tax returns to figure out what the real NET INCOME is and if you can close the prospective loan - before you put a lot of time into it. You need to be able to decide to work on a deal or walk from it.
We can help you with screening deals which again is really all about knowing how to read tax returns and pulling out ALL income that can be used to pay the proposed commercial mortgage.
Bottom line, if you cannot sit down and in 20 minutes review (i.e. read the borrowers tax returns) and decide to work on a deal or throw it in the "round file", you will have a very difficult time making money in this business. You will be operating at half speed. You will be throwing shit against the wall HOPING some of it will stick. And when it does, you will not know why. You can easily waste hundreds of hours on a single transaction, that could never fund in the first place. The reality is that there are many deals that are just not fund-able. If I were to take a guess at it, probably 50% of the loans we review are not doable.
Analyze Tax Returns
What we have done here is writen a commercial training book as a case study, on two loans we recently closed. The example is a purchase, retail, 6 units with a purchase price of $700,000. The borrower occupies 60% of the building with their own business. So, what makes this a good example is that the borrower has three sources of income 1. the business that will occupy the space 2. the tenants that occupy the other 40% of the building and 3. the borrower has a separate W-2 job, all of this income gets to be included to figure out the Global Income.
The second deal is a cash out refinance at $1,780,000 on a medical office building. It was a complicated transaction in that our borrower, a doctor, had a lot going on financially. He had three sets of tax returns that we had to work with.
After reading this eBook, you will have an organized method for calculating ALL income on a deal that can be used to service the debt of the proposed loan. And you will know how to read a tax return to better pre screen your deals.
How to Analyze a Tax Return
In the book, we:
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Go through both borrowers 2007 tax returns, page by page, and highlight every source of income that can be used, and explain why.
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We present 2 Debt Coverage Ratio Analysis on the subject property. The first shows the properties income without the borrowers rental income. The second shows how the property cash flows with the rental income included.
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We calculate the borrowers personal expenses and subtract out what has already been reported on other sections of the tax returns.
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We provide spread sheets that organise all sources of income and expenses and show how we calculated the total Net Operating Income of the deals(Global Income) and how we calculated the Debt Coverage Ratio's.
Buy Now and the commercial mortgage broker training manual will be emailed to you instantly. Now only $19.95. Will go back to $39.95 soon. And yes there is a 100% money back guarantee.
Jeff Rauth
President
This ebook will teach
you how to close more
loans! Get it now! |
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P.S. Remember, YOU risk NOTHING. I'm giving you a 100% money back guarantee and taking all the risk. So buy it now! Read our book over and over. Soak it up. At the end of it if you don't agree its worth every penny, send me an email and we'll refund it. And you are free to keep your manual just for taking a chance in working with us.
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