ATTENTION: For Those who are serious about Getting Pre-Qualified FAST!
Bill Rapp, Mortgage Originator: NMLS 228246
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HERE'S WHAT MY CLIENTS SAY:
What People Are Saying:
Excellent Service
Bill is an exceptional loan officer. He helped us to purchase our home with very personal and professional service. He helped us navigate the whole process from start to closing without any problems. We didn't think we're qualified to purchase a house, but Bill went above and beyond to find a way to help us achieve our goal. He always responded very quickly with our requests, he would come back with different options with comparison chart to clearly indicate how much we need for down payment, monthly payments, interest rates, closing costs etc.
We would highly recommend Bill to anyone in need of lending services. In fact, we have already recommended Bill to one of our friends on purchasing a house.
--- David Chan - Houston, TX
Bank Statement Lending!
William Rapp of Network Funding, L. P. was very professional and I felt comfortable in dealing with him. I will definitely recommend him to family and friends.
--- Ian F - Missouri City, TX
Professionalism - Expert In Home Style Loan
Bill is an expert in the topic, his explanations and online material make a difference and he is always there from the beginning to the end. He is committed to make thing happen.
--- Felipe Caldern & Carolina Angel Gutierrez
Great Service!
Bill Rapp's handling of our loan (even though out of state) was unparalleled to any service I have been through prior, including 3 different real estate transactions and multiple refinances. Extremely quick close, with great options and flexibility for my families needs. All around A+
--- Chris & Beth Sheehan - San Jose, CA
Knowledgeable and Responsive!
Bill was a pleasure to work with and he made the loan process fairly easy. He answered all questions I had very quickly and was straight forward in doing it. I would recommend Bill to others.
--- Wes Brady - Richmond, TX
Very professional and always returned our calls!
Bill takes a lot of pride in his job and is very dependable. They were very patient and understanding. He went out of his way and explained all my questions and concerns. They were very professional and returned my phone calls and emails. He did a great job and I fully recommend him.
--- Therese, Malcom & Shirley Teixeira - Katy, TX
Great Job!
Bill helped us out from beginning to end of loan process. The loan closed in a timely manner as Bill worked hard with bank to get our to the final steps.
--- Kamal & Theresa Wilson - Hartford, CT
Avid Problem-Solver and Absolute Pleasure to Work With!
Bill Rapp worked very hard to ensure that we closed our loan and were able to move into our new home. He always had alternatives to any problems we encountered while closing. He worked with us from the beginning identifying solutions to any problems that we were having. He was an absolute pleasure to work with!
--- Nikita Rayani & Sanit Tejani - Houston, TX
Awesome to work with!
Being a first-time buyer I came in with lots of questions and concerns. Bill was always available for any questions I had and answered everything to my satisfaction. Bill made the loan process so painless that I could still concentrate on other things. We ended up closing early which made things even better. If you are in need of a lender and want someone who is very approachable and stays on top of your loan then Bill is your guy.
--- Cesar Raya - Richmond, TX
Loan Declined by my bank, and he saved the day!
Bill, did an amazing job helping me close on my house. He took the reigns and reassured me the best route to take to help close. He was accountable, thorough and trustworthy. I will continue to work with Network Funding, L.P. when it comes to home buying in the future because of the quality of service Bill gave.
--- Jacob Smith - Boerne, TX
Bill Rapp Will Definitely Make It Happen!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Corinne Wilson - Roselle, NJ
Knowledgeable, Honest, Trustworthy, and Reliable!
"I will definitely keep you in mind. If anyone I know needs financing, I will send them your way!"
--- Jon & Andrea Saleem, CRPC Financial Advisor - Houston, TX
Best Dam Mortgage Guy a man could know!
"Hands down the best loan experience to date!"
--- Gabe & Chelsea Jackson - Pearland, TX
Phenomenal, Hard Working and Never Quits!
Had a stupid foreclosure that could have been avoided if ex’s attny would have sent my buy out offer. So Bill was able to push this through with a 4 year foreclosure. He worked his butt off, was very diligent with his communication; and was very professional talking to me even when I was screaming and/or crying at him. Highly recommend this lender. He really go to the ends of the earth to help you!
--- Liz Keeter - Harlingen, TX
Exceptional customer service!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Isha Lopez & Mauricio Garcia - Houston, TX
Service with a capitol S
Bill went above and beyond at every turn. He worked late on Saturday, he worked late all the time. We wanted to close ASAP and he really helped make it happen for us.
--- Jeff & Wendy Heger - Houston, TX
Best Buying Experience!
I would would highly recommend going with Network Funding LP. As a first time home buyer I didn't know what to expect. Bill Rapp was very helpful in answering all my questions and guided me through all ghe steps. I couldn't have asked for a better buying experience!
--- Tabitha Turner - Humble, TX
Would recommend him and use him again!
Very involved and professional . Kept me informed and up to date on everything that was going on Went with me closing and was very helpful and knowledgeable.
--- Kathy Ward - Houston, TX
Great experience!
Well I meet bill back in December 2016 he got recommended by my real estate agent we had a house in sight and started the process to get approved but we fail due to my work history and credit bill told me not to give up and put me in contact with a credit repair company they help me bring my score up and bill walk me thru the process of getting a new line so this time around we got approved before looking for our house after we found it we still had a couple of hick up but with bills help on Sunday 6-18-17 to be exact Father's Day bill called me to give me the great news that we had got approved and the closing date was as scheduled bill was more than just a lender to my family he became a friend and I'm alway going to have him in mind for any other financial situation.
--- Alejandres Felimon - Richmond, TX
I really liked his attitude!
I wouldn't usually say this but the way he had handled my mortgage was really pleasant. I personally enjoyed the time spent with him while we discussed feasible rates. He's a great man with a great personality and he offered really low interests as well. Definitely recommend him to others.
--- Tom Troiano - Atlantic City, NJ
He's nothing short of a miracle!
I'm a self-employed businessman and had him figure out the mortgage of the house after 30% down payment. The interest rates I received were incredibly low given what I had thought of earlier. One other important thing to note was that I hadn't really taken any loans earlier, so I had no credit history. He helped me out with all that as well so I can't really call him anything else but a miracle.
--- Fran Suarez - Cleveland, OH
He's really helpful!
I made a bid to him and the very same day he gave me an offer which I couldn't resist. It was too intimidating with those incredibly low interest rates and all, thoroughly recommend him.
--- Kenny Mickle - Houston, TX
Expeditious!
Bill was very expeditious and made it real easy going through the loan process. I felt he was on top of things.
I deal with investment properties and will more than likely call on him again.
--- Wayne King - Pensacola, FL
Bill was great!
Bill made us feel like a friend all the way thru the process. He was patient and explained everything he needed clearly. He was available ANYTIME we had questions or needed more information. Hopefully we won’t go thru this process again anytime soon, but if we do - we’d choose Bill! =)
--- Barbra & Nick Grimmer - Austin, TX
Great broker!
Bill was a great broker to work with. As first time home buyers we had many questions about the process, Bill took the time to help us even calling us back on weekends with answers. I would not hesitate to recommend him to anyone looking for a broker to work with.
--- Murray & Lisa Turner - Pensacola, FL
Outstanding service!
I couldn't have been more pleased with Bill's level of service. He made what is typically a lengthy, arduous process far quicker and easier at every turn. I'm extremely comfortable recommending Bill to friends and family, and will definitely utilize his services again!
--- Jim Lipari - Austin, TX
FHA 203 H Loan Product
The Section 203(h) program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
Purpose:
Through Section 203(h), the Federal Government helps victims in Presidentially designated disaster areas recover by making it easier for them to get mortgages and become homeowners or re-establish themselves as homeowners.
Type of Assistance:
This program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified disaster victims. Individuals are eligible for this program if their homes are located in an area that was designated by the President as a disaster area and if their homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary. Insured mortgages may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner. Like the basic FHA mortgage insurance program it resembles (Section 203(b) Mortgage Insurance for One to Four Family Homes), Section 203(h) offers features that make recovery from a disaster easier for homeowners:
No down payment is required. The borrower is eligible for 100 percent financing. Closing costs and prepaid expenses must be paid by the borrower in cash or paid through premium pricing or by the seller, subject to a 6 percent limitation on seller concessions.
FHA mortgage insurance is not free. Mortgagees collect from the borrowers an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.
HUD sets limits on the amount that may be insured. To make sure that its programs serve low and moderate income people, FHA sets limits on the dollar value of the mortgage. The current FHA mortgage limit can be viewed online. These figures vary over time and by place, depending on the cost of living and other factors (higher limits also exist for two to four family properties).
Eligible Customers:
Anyone whose home has been destroyed or severely damaged in a Presidentially declared disaster area is eligible to apply for mortgage insurance under this program.
Application:
The borrower's application for mortgage insurance must be submitted to the lender within one year of the President's declaration of the disaster. Applications are made through an FHA approved lending institution, who make their requests through a provision known as "Direct Endorsement," which authorizes them to consider applications without submitting paperwork to HUD. Mortgage insurance processing and administration for this and other FHA single family mortgage insurance products are handled through HUD's Homeownership Centers.
My best advice to you is to call Bill Rapp, the Mortgage Viking, to discuss your options today 281-222-0433.
🏬 How Vacant Space Changes a Shopping Center Loan: What CRE Investors Need to Know 💰
🏬 How Vacant Space Changes a Shopping Center Loan: What CRE Investors Need to Know 💰
⚠️ Shopping Center Financing: How Vacancy Impacts NOI, DSCR, Loan Proceeds & Value 🏦
How Vacant Space Changes a Shopping Center Loan
A shopping center can look like an attractive commercial real estate investment: strong location, good traffic, established tenants, and upside from leasing vacant suites.
But when it comes time to finance the acquisition or refinance the property, vacant space can materially change the loan.
Commercial real estate lenders generally aren't financing the building based solely on what it could earn when fully occupied. They are evaluating the property's existing and sustainable cash flow, collateral value, tenant quality, lease structure, borrower strength, and ability to service debt.
That makes vacancy one of the most important issues to understand when financing a retail shopping center.
Vacancy Directly Affects NOI
The first issue is straightforward: an empty suite generally isn't producing contractual base rent.
Suppose a 50,000-square-foot shopping center is 90% occupied. That remaining 5,000 square feet may represent substantial future upside to the investor, but a lender must determine how much—if any—of that potential income can reasonably be incorporated into underwriting.
Bank regulatory guidance describes stabilized NOI analysis as beginning with potential gross income and then applying an appropriate vacancy factor to determine effective gross income. Importantly, that vacancy assumption can differ from the property's current physical vacancy and should reflect expected vacancy and comparable market conditions.
This creates an important distinction:
Investors often buy future upside. Lenders primarily underwrite supportable repayment capacity.
Vacancy Can Reduce DSCR
Debt Service Coverage Ratio, or DSCR, is one of the core measurements used in commercial mortgage underwriting.
The basic calculation is:
DSCR = Net Operating Income ÷ Annual Debt Service
The OCC describes DSCR as a measure of a property's ability to service its debt and notes that the appropriate coverage level depends partly on cash-flow stability.
Consider a simplified example.
If a shopping center generates $500,000 of underwritten NOI and annual mortgage payments are $400,000:
$500,000 ÷ $400,000 = 1.25x DSCR
Now assume vacancy and underwriting adjustments reduce recognized NOI to $440,000:
$440,000 ÷ $400,000 = 1.10x DSCR
The real estate hasn't physically changed—but its ability to support the proposed debt has.
The result could be a smaller loan, additional equity requirement, different pricing or structure, or potentially a different capital source.
Physical Vacancy Isn't the Only Vacancy That Matters
A sophisticated shopping center underwriting analysis goes beyond simply calculating the percentage of empty square footage.
Lenders may evaluate:
·Current physical occupancy and economic occupancy
·Historical vacancy and tenant turnover
·Lease expirations and rollover concentration
·Tenant credit quality and operating history
·Anchor versus inline tenant exposure
·Rent collections and delinquencies
·Market rents compared with contractual rents
·Leasing commissions and tenant-improvement requirements
·Local retail vacancy and competing centers
·Remaining lease terms and renewal options
A center that is 90% occupied with diversified, established tenants can present a very different credit profile from a 90%-occupied property where several major leases expire next year.
Federal banking guidance specifically identifies factors including property cash flow, DSCR, LTV, borrower equity, tenant concentration and stress testing as relevant CRE credit considerations.
Vacancy Can Affect Property Value
Vacancy can also influence the appraisal.
A buyer may believe an empty suite can quickly be leased at $30 per square foot. The lender and appraiser, however, must determine whether that assumption is supported by the market.
They may consider the time required to lease the space, achievable rent, concessions, free rent, tenant improvements, leasing commissions and stabilization costs.
Therefore, $100,000 of potential additional rent does not necessarily translate immediately into $100,000 of underwritten NOI.
Until that income is sufficiently supportable, the lender may take a more conservative position.
Vacancy Can Reduce Loan Proceeds in Two Ways
This is where investors need to pay close attention.
Vacancy can potentially hit a transaction from both the income side and the valuation side.
Lower underwritten NOI can constrain proceeds through DSCR or debt-yield requirements. A lower appraised value can separately constrain proceeds through LTV.
Debt yield is particularly useful because it compares NOI directly with the loan balance and is independent of interest rate and amortization assumptions.
That means an investor shouldn't ask only:
"What LTV will the lender offer?"
A better question is:
"Which underwriting constraint actually determines my maximum loan proceeds?"
Not All Vacancy Is Equal
A vacant 1,500-square-foot inline suite in an otherwise thriving grocery-anchored center isn't necessarily equivalent to losing a 30,000-square-foot anchor.
Lenders want the story behind the vacancy.
Was the tenant recently lost?
Is the suite actively being marketed?
Are there signed LOIs?
Is a replacement tenant negotiating a lease?
How long has the space been vacant?
What are comparable spaces achieving?
How much capital is required to deliver the suite?
Vacancy accompanied by credible leasing momentum can present a much stronger financing story than long-term vacancy with no leasing activity.
Leasing Vacant Space Before Financing Can Be Powerful
Owners preparing for a refinance should think strategically about timing.
Signing a strong tenant before the loan process can potentially improve the financing story—but a signed lease doesn't automatically mean a lender will recognize 100% of the new rent.
The lender may examine whether the tenant has taken possession, whether tenant improvements are complete, whether rent has commenced, whether concessions remain, and the tenant's financial strength.
Still, converting speculative future income into contractual income can materially improve how lenders view the asset.
What Investors Should Prepare Before Approaching Lenders
For a shopping center with meaningful vacancy, prepare a financing package that explains the property's current performance and its path toward stabilization.
Useful documentation can include the current rent roll, trailing-12-month operating statement, historical operating statements, copies of major leases, lease-expiration schedule, tenant sales information when available, leasing pipeline, signed LOIs, market leasing comparables, tenant-improvement estimates and borrower financial information.
The objective is to turn vacancy from an unexplained risk into a quantifiable business plan.
The Bottom Line
Vacant space doesn't automatically make a shopping center unfinanceable.
It changes the underwriting conversation.
A lender needs to determine how vacancy affects NOI, DSCR, debt yield, property value, tenant risk and ultimately loan proceeds.
For investors, that creates an important opportunity: don't simply shop for the lowest advertised commercial mortgage rate. Find the capital source whose underwriting approach best matches the actual property.
At CommLoan, the objective is to evaluate the transaction and identify financing structures and potential capital sources that fit the deal rather than assuming every shopping center belongs in the same lending box.
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Bill Rapp, CCIM
Director | CommLoan
📞 281-222-0433
📧 [email protected]
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Commercial Real Estate Financing Nationwide
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