Opening: "I'm Laura Munoz and welcome to Let's Talk Commercial Real Estate a newly created video blog covering topics of interest for commercial brokers and borrowers sponsored by American Life Financial. We'll be chatting with members of the real estate community asking them questions that you use submit on social media."
Laura Munoz: "I'm Laura Munoz- welcome back to Let's Talk Commercial Real Estate. Today we have Joe Landin, he is the CEO of Everstream Capital. Joe is visiting us from Texas, welcome Joe."
Joe Landin: "Thank you glad to be here."
Laura Munoz: "Thank you for coming. Well we have several questions for you today. I think the first thing that we wanted to ask you is if you could just talk to us a little bit about the credit, the importance of credit when you're applying for a loan."
Joe Landin: "Very important question in because loans is like the work tool you know a tool can be a saw hammer, nail. So there's credit and then there's alternative loans and depending on the job you want, credit can determine which tool you get. And if you want the best terms, the best loans, best finance options those are normally going to be found with banks but you got to be bank lendable and I've discovered four major reasons why business owners can't get credit with bank."
Laura Munoz: "Okay, so I'm looking forward to hearing about this."
Joe Landin: "Okay go in."
Laura Munoz: "Well you mentioned how important it is to have credit we've heard it's not important to have credit can you talk on this."
Joe Landin: "Yeah, yeah it's okay. So with if you're gonna go after bank financing which usually are the best terms best rates then credit is everything but when you can't qualify for that then we have to get the alternative money okay and that's not necessarily a bad thing but you can't feel the burn like if you're walking on hot coals so."
Laura Munoz: "Nobody wants to feel that. Yeah that's great okay. So you seem pretty excited you're telling us you have a couple advice or some warning."
Joe Landin: "Sure."
Laura Munoz: "And why don't you start with your number one advice that you can give us."
Joe Landin: "Number one is showing no profitability on your tax return from your but tax return that is the number one reason why I see business owners being disqualified from getting access to bank money. You show a million dollar gross income but then on line 31 on your tax return there's a negative forty one thousand no profitability."
Laura Munoz: "HA."
Joe Landin: "Yeah."
Laura Munoz: "That's a little weird. Why would we not want to put that we have a profit?"
Joe Landin: "Because people just don't want to pay taxes. I'm not gonna go into their intense okay but all I but here's what I tell them if you're a business owner listening to this show you got to understand one thing okay, when a bank underwriter sees a negative on your tax return they don't see you as trying to save on your taxes they're going oh you're going out of business."
Laura Munoz: "Good point."
Joe Landin: "Banks cannot lend into a negative."
Laura Munoz: "Right of course, good point."
Joe Landin: "Yeah."
Laura Munoz: "Well it was so great to have you today. I know we're cut for time but we will have you back because I want to hear the rest of your advice."
Joe Landin: "Looking forward to it."
Laura Munoz: "Thank you."
Closing: "Have topics or questions you'd like covered on let's talk commercial real estate? Or if you'd like to be a guest on Let's Talk Commercial Real Estate, please contact us at email@example.com. Like us, follow us and share us on social media."
Joe Landin, CEO of Everstream Capital, joins Laura Munoz on set to discuss what he feels are the 4 biggest and most common mistakes borrowers make when preparing for the loan process. Don’t worry too much they can be corrected!