Sometimes when talking about the vision we’re bringing to life in commercial financing, we use the term “transparency” — but what does that really mean? What it doesn’t mean is that a borrower’s confidential information on StackSource is somehow viewable to the world, or even our entire network of lenders. Loans arranged on our platform aren’t entirely private, shared with only the most relevant parties to make a deal. What we’re actually getting at with transparency is that as a property owner or developer, when you set out to borrow money against your property, you shouldn’t have to fight to understand:
We love bringing transparency to this commercial mortgage process through simple, intuitive tools. So today we’re happy to make two announcements.
This advanced loan quote analysis screen is now live for every sponsor (borrower) using StackSource. We learned from some major property owners that they were manually performing a lot of these checks in Excel for every deal they finance. We also learned there are a lot of property investors that simply relied on “back of the napkin” math to evaluate their loan options. This tool is meant to replace both.
Upon providing your assumptions on Net Operating Income and Exit Scenario, the tool allows you to quickly size up your financial returns using Leveraged IRR, Equity Multiple, and a visual representation of cash flows, debt service coverage, and more over the life of the loan. The real power of the tool is seen when you are weighing multiple competitive loan quotes from the StackSource marketplace, and you can even compare to your own (offline) lender quotes.
Need to know if you should choose the lender at 5% higher leverage at a floating rate vs the lender offering a long-term fixed? StackSource loan quote analysis crunches the numbers so you can focus on strategy.
We’ve always been up front on how our platform makes money, and now we’re including those fees we collect directly into this analysis tool and the existing loan comparison tool so you can truly see the whole picture at a glance.
As always, our incentives are aligned with our clients — we don’t collect a dime until you close with a great loan from one of our lenders. With the addition of these free features on the platform, we’re addressing pain points for the real estate investment community and breaking down barriers in accessing debt capital for commercial real estate.