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5 Areas that Qualify a Commercial Real Estate Hard Money Loan

Before getting involved in commercial real estate lending process. Read the qualifiers to obtaining a commercial real estate hard money loan. https://bit.ly/37HUGeM

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5 Areas that Qualify a Commercial Real Estate Hard Money Loan

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  1. 5AREASTHAT QUALIFY A COMMERCIAL REAL ESTATE HARD MONEY LOAN 2625 EAST 14 ST. SUITE209 BROOKLYN, NY, UNITED STATES 11235 INFO@EXPRESSCAPITALFINANCING.COM www.expresscapitalfinancing.co

  2. Although you may be familiar with residential real estate lending, securing a commercial real estatehard money loan involves excellence in key financial areas. Before you start the commercial loan process, take some time to review the five areas that can make a difference between successful qualification and unfortunaterejection.

  3. 1. Total NetWorth You may have heard that it takes money to make money, and in the world of commercial real estate this often thecase. When reviewing qualifications for a commercial loan the lender places a heavier emphasis on a net worth that what you see with residential loans. In general, a net worth that is equal to the requested loan amount isrecommended. 2. LiquidAssets Even with a high net worth, if your real estate down payment wipes out your easily accessible cash flow a lender may consider that a liability. Lenders want to know that after the loan closes you will still have quick access to cash in case of an emergency to ensure you don’t miss apayment.

  4. 3. PreviousExperience Although residential lenders look at employment history for stability purposes,commercial hard money lenders take it one step further and look for prior management experience or previous experience as an owner. A proven track record as a landlord or previous commercial property owner can increase lender confidence in your ability to handle the rigors of commercialownership. 4. IncomeStream Many commercial property owners are self-employed, so commercial real estate hard money lenders need to seethe big picture of an income stream to providefunding. Commercial lenders are less concerned with debt-to-income ratio than residential lenders. Potential owners that are not self-employed should be prepared to provide W-2 forms for several years and other documentation to show any other incomestreams

  5. 5. CreditHistory When it comes to lending, most people think that a good credit score carries the most weight. This may be true with residential lending, but commercial lenders are less concerned with the potential property owner’s personal credit score and more concerned with other areas of qualification like net worth, liquidity, income, and previous ownershipexperience. In some ways, the commercial real estate lending process works similarly to obtaining a residential real estate hard money loan. There are key differences that potential commercial property owners need to become familiar with before beginning the loan process to make sure that their overall financial picture shows readiness to take on theproject.

  6. Thank You! 2625 EAST 14 ST. SUITE209 BROOKLYN, NY, UNITED STATES 11235 INFO@EXPRESSCAPITALFINANCING.COM www.expresscapitalfinancing.co

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