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What type of documentation are you going to have to be prepared with to get a commercial loan?
Number one, you’re going to need your taxes. So unless you’re getting a no doc loan and you’re going to a traditional lender and not a hard money lender, you’re going to have to disclose your personal income as well as your other obligations. Whether that is what other properties you own, any assets you may have outside of cash in your bank.
Number two, you’re going to have to show bank statements. To get loans these days you go through a rigorous underwriting process, so that someone can identify your credit worthiness to get a loan.
Number three, the bank is going to want to assess the property’s value and the income of the property. The valuable thing about buying commercial real estate is that they take into account what is the income coming in from that asset, how many tenants are paying, how many tenants are paying on time, and what is the opportunity. If you have vacancies, those factors are all a part of the due diligence that goes into getting you pre-approved for a mortgage for your commercial property.
So if you’re looking to buy commercial real estate not only should you have a conversation with a broker about what pricing you’re going to have to look to buy in, you’re going to absolutely need to find a trusted lender so that you can know how much property you can buy. So if you’re looking to buy a commercial real estate property, let me know and I can put you in touch with someone.