Your Trusted Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Your Trusted Katy / Fulshear & Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Looking to invest, buy, sell or lease? We can help.

Looking to invest, buy, sell or lease? We can help.

OUR FEATURED TENANTS & CLIENTS

eXp Commercial - Viking Enterprise Team's real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the Katy- Houston area. Our knowledge, experience, and reputation sets us apart from many firms.


A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

Reviews

šŸ¦ Inside the Mind of a Lender: How CRE Financing Decisions Are Made šŸ¤”

šŸ“Š How Lenders Evaluate Commercial Real Estate Deals šŸ’¼ | Top CRE Loan Tips

June 25, 2025•2 min read


šŸ“Š How Lenders Evaluate Commercial Real Estate Deals šŸ’¼ | Top CRE Loan Tips


šŸ¦ Inside the Mind of a Lender: How CRE Financing Decisions Are Made šŸ¤”


šŸ¦ How Lenders Evaluate CRE Deals: What Every Investor Should Know

When you apply for a commercial real estate (CRE) loan, lenders don’t just glance at your credit score and greenlight the deal. Instead, they dive deep into the property’s income potential, your financial profile, and overall deal structure.

In this guide, we’ll break down how lenders evaluate CRE deals and what you can do to increase your chances of approval—whether you're acquiring retail, office, multifamily, or industrial property.

šŸ” Key Factors Lenders Analyze:

1. Debt Service Coverage Ratio (DSCR)

The DSCR is the gold standard for commercial lending. It measures a property’s cash flow relative to its debt payments. Most lenders look for a DSCR of at least 1.25x, meaning the property generates 25% more income than its debt obligation.

Formula:
Net Operating Income (NOI) Ć· Annual Debt Service

2. Loan-to-Value Ratio (LTV)

LTV compares the loan amount to the property’s appraised value. Most commercial lenders max out around 70-75% LTV. The lower your LTV, the less risk the lender perceives—and the better your terms.

3. Borrower Strength

This includes your:

Ā·         Personal credit score

Ā·         Net worth

Ā·         Liquidity

Ā·         CRE experience

Ā·         Global cash flow (especially on full-recourse loans)

If the deal gets shaky, lenders want confidence you can step in.

4. Property Type & Location

Multifamily and industrial properties often receive favorable treatment. Specialized asset classes like hotels or restaurants may face tighter scrutiny unless backed by strong sponsors. Location in a stable or growing market, like Katy or Fulshear, TX, can significantly improve lender confidence.

5. Lease Profile or Rent Roll

For income-producing properties, lenders will evaluate:

Ā·         Lease terms and expiration dates

Ā·         Tenant quality and diversification

Ā·         Vacancy rates

Ā·         Market rent comparisons

6. Exit Strategy

Lenders want to know how they’ll get paid back. Will you refinance in 5 years? Sell to a 1031 exchange buyer? Your strategy must align with the loan’s term and risk profile.


🧠 Tips to Improve Financing Odds:

Ā·         Present a clean pro forma with conservative income and expenses.

Ā·         Disclose all debts, assets, and contingencies.

Ā·         Work with a broker who can match you with the right lender.

Ā·         Consider bridge or SBA loans if you don’t meet conventional criteria.


Whether you’re a first-time buyer or a seasoned investor, understanding a lender’s mindset will help you package stronger deals and secure better terms. Ready to discuss your next acquisition or refinance? Let’s talk.


https://www.houstonrealestatebrokerage.com/

https://www.houstonrealestatebrokerage.com/houston-cre-navigator

https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

https://app.bullpenre.com/profile/1742476177701x437444415125976000

https://author.billrapponline.com/

https://www.amazon.com/dp/B0F32Z5BH2


Ā© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team


Commercial real estate financingCRE Loan underwritingDebt service coverage ratioloan to value ratioHow lenders evaluate real estate dealsCommercial loan approval process
blog author image

Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

Back to Blog

eXp Commercial - Viking Enterprise team real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the greater Katy & Houston MSA area. Our knowledge, experience, and reputation sets us apart from many firms.

A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

Find the perfect location for your business.

Let us help your business succeed.

šŸ¦ Inside the Mind of a Lender: How CRE Financing Decisions Are Made šŸ¤”

šŸ“Š How Lenders Evaluate Commercial Real Estate Deals šŸ’¼ | Top CRE Loan Tips

June 25, 2025•2 min read


šŸ“Š How Lenders Evaluate Commercial Real Estate Deals šŸ’¼ | Top CRE Loan Tips


šŸ¦ Inside the Mind of a Lender: How CRE Financing Decisions Are Made šŸ¤”


šŸ¦ How Lenders Evaluate CRE Deals: What Every Investor Should Know

When you apply for a commercial real estate (CRE) loan, lenders don’t just glance at your credit score and greenlight the deal. Instead, they dive deep into the property’s income potential, your financial profile, and overall deal structure.

In this guide, we’ll break down how lenders evaluate CRE deals and what you can do to increase your chances of approval—whether you're acquiring retail, office, multifamily, or industrial property.

šŸ” Key Factors Lenders Analyze:

1. Debt Service Coverage Ratio (DSCR)

The DSCR is the gold standard for commercial lending. It measures a property’s cash flow relative to its debt payments. Most lenders look for a DSCR of at least 1.25x, meaning the property generates 25% more income than its debt obligation.

Formula:
Net Operating Income (NOI) Ć· Annual Debt Service

2. Loan-to-Value Ratio (LTV)

LTV compares the loan amount to the property’s appraised value. Most commercial lenders max out around 70-75% LTV. The lower your LTV, the less risk the lender perceives—and the better your terms.

3. Borrower Strength

This includes your:

Ā·         Personal credit score

Ā·         Net worth

Ā·         Liquidity

Ā·         CRE experience

Ā·         Global cash flow (especially on full-recourse loans)

If the deal gets shaky, lenders want confidence you can step in.

4. Property Type & Location

Multifamily and industrial properties often receive favorable treatment. Specialized asset classes like hotels or restaurants may face tighter scrutiny unless backed by strong sponsors. Location in a stable or growing market, like Katy or Fulshear, TX, can significantly improve lender confidence.

5. Lease Profile or Rent Roll

For income-producing properties, lenders will evaluate:

Ā·         Lease terms and expiration dates

Ā·         Tenant quality and diversification

Ā·         Vacancy rates

Ā·         Market rent comparisons

6. Exit Strategy

Lenders want to know how they’ll get paid back. Will you refinance in 5 years? Sell to a 1031 exchange buyer? Your strategy must align with the loan’s term and risk profile.


🧠 Tips to Improve Financing Odds:

Ā·         Present a clean pro forma with conservative income and expenses.

Ā·         Disclose all debts, assets, and contingencies.

Ā·         Work with a broker who can match you with the right lender.

Ā·         Consider bridge or SBA loans if you don’t meet conventional criteria.


Whether you’re a first-time buyer or a seasoned investor, understanding a lender’s mindset will help you package stronger deals and secure better terms. Ready to discuss your next acquisition or refinance? Let’s talk.


https://www.houstonrealestatebrokerage.com/

https://www.houstonrealestatebrokerage.com/houston-cre-navigator

https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

https://app.bullpenre.com/profile/1742476177701x437444415125976000

https://author.billrapponline.com/

https://www.amazon.com/dp/B0F32Z5BH2


Ā© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team


Commercial real estate financingCRE Loan underwritingDebt service coverage ratioloan to value ratioHow lenders evaluate real estate dealsCommercial loan approval process
blog author image

Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

Back to Blog

Find the perfect location for your business.

Let us help your business succeed.

Sign up to receive the latest news on property investment and commercial real estate listings.

Resources


Contact Us

27815 Astoria Brook Ln

Katy, TX 77494 USA


9600 Great Hills Trail, Suite 150w Austin, TX 78759 |
855.450.0324 xx255

Texas Real Estate Commission Consumer Protection Notice Texas Real Estate Commission

Information About Brokerage Services eXp Commercial LLC #9010212

Viking Enterprise LLC #9009614

Sign up to receive the latest news on property investment and commercial real estate listings.


Contact Us

27815 Astoria Brook Ln

Katy, TX 77494 USA

901 S Mopac Expwy, Bldg 2, Suite 350 Austin, TX 78746 | 512.474.5557Texas Real Estate Commission

Consumer Protection Notice Texas Real Estate Commission Information About Brokerage Services Reliance Retail, LLC #603091

Texas RS, LLC #9003193 | RESOLUT RE Is Licensed In Louisiana #0995694083