Question On Financing Commercial Real Estate
I am looking into purchasing commercial real estate as it relates to 5+ apartment rentals. However, I have not so good credit scores (currently working on cleaning that up). Meanwhile, I have heard that loans for commercial properties are "easier" to qualify for because the lenders base their loan off of the earning potential of the property and not the owners personal credit scores. First of all is this true, partly true.
What steps would you recommend for a person in my situation to follow as far as purchasing and financing commercial property? I am looking to get started in the commercial market.
What should be included in my package to the lender?
Hello
Now 580 middle fico score, will be considered to get approved in commercial loans. (70% LTV max -for multifamily).
Also you have the option to negotiate with the seller a second loan up to 20% and get 90% CLTV.
Edd
Quote:
On 2005-09-26 16:04, CBuford wrote:
I am looking into purchasing commercial real estate as it relates to 5+ apartment rentals. However, I have not so good credit scores (currently working on cleaning that up). Meanwhile, I have heard that loans for commercial properties are "easier" to qualify for because the lenders base their loan off of the earning potential of the property and not the owners personal credit scores. First of all is this true, partly true.
What steps would you recommend for a person in my situation to follow as far as purchasing and financing commercial property? I am looking to get started in the commercial market.
What should be included in my package to the lender?
100k can come from equity in your own home, other equity or partners in the deal. The 90% probably includes the seller carry something.