Some BDOs Fail Before They Even Start | Ep. #66

In this episode, Ray shares the common mistakes made during the BDO interviewing process and how they can lead to an unsuccessful BDO hire - and no one wants that! Tune in to learn how banks and BDO’s can avoid this in the first place.    26 questions Ray asked a previous potential employer during the interview process:   Funding sources and restrictions (non-bank lenders) Construction lending appetite Existing portfolio make up / issues  Approval process / signature or committee? Geographical restrictions or preferences  Any limits on unsecured exposure  Property type restrictions Industry restrictions Does all RE get discounted to 85% (other than vacant land?) How often do you go GP? What are the advance rates on multi-use, hotels, other special purpose real estate, business acquisitions, and start up? Are there any hard and fast rules on personal credit or is it case by case? Any rules of thumb for Post-close liquidity  Do you allow gifts of funds for equity injection? How do you assess the need for working capital in a transaction? Do you do any projection based lending?  DSC requirements Equity requirements (100% financing?) Business acquisition lending philosophy  Is seller financing required to be a part of the transactions? Is direct industry experience required? How do you view add backs? Do you use a 25 year term on a transaction where 51% of proceeds are RE and 49% are business goodwill? Do you ever refinance other SBA 7a loans? Start up franchise guidelines  How is due diligence ordered?