Borrowers give us a lot of pushback when we ask for property income and expense statements to be provided in Excel. We ask for property income and expenses at the beginning of a loan transaction in order to perform cash flow analysis to determine property value and debt service coverage. For CMBS conduit loans, we do not underwrite from property tax returns. Once the analysis is completed, we can issue a Term Sheet with a high degree of certainty that the loan will close.
Most accounting systems are designed to print out income and expense reports on a printer. Typically, the results are then scanned and sent to us as a .pdf document. Alternatively, most accounting systems will save a report as a .pdf that is then emailed to us. But many borrowers do not seem to be aware that every accounting software system has the ability to save or export income and expense reports to Excel.
It is critical that ValueXpress receives property income and expense reports in Excel format. Why? We can import Excel reports directly into our loan analysis software (known as loan “sizing”), which tells us — in 5 minutes — the amount of loan that can be provided! Income and expense reports that are provided in .pdf format need to be manually input into our loan sizing model. This can take up to a day to complete. Needless to say, transactions in which income and expenses are provided in .pdf format go to the bottom of our pile. For a quick response on a transaction, please provide us with income and expense reports in Excel.
For a free, no-obligation loan sizing and loan quote, contact Jim Brett, head of underwriting at ValueXpress, at email@example.com.