It takes the ability more than ever to prove your ability to repay the loan. commercial loans are based on risk. terms for a commercial loan use to have somewhat a standard in terms, but now terms can not even be quoted without seeing the project and history of it. 3 years personal and business financials are a must, a credit report with a score of at least 660, YTD financials, YTD P&L on the property, and depending if it is owner occupied or investment-the current rent rolls.
However, if you can pull it all together everything along with an Executive Summary of the project, terms can still be very favorable. Unlike residential financing, non owner occupied rates and terms are traditionally better than owner occupied. Why? Because the risk is less having multiple rent options than the risk to the investor having one tenant (such as an owner occupant) making the payment. IT IS ALL ABOUT RISK!
Brett Swearingen
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