Commercial vs conventional loans

[Donald Cooley]

What are the differences in qualifying and getting a commercial loan rather than a conventional loan? I'd like to see how difficult it would be to get one in order to get into some larger multi family properties. Any input would be greatly appreciated. 

[Mike Garland]

@Donald Cooley - One more very important thing to remember and @Brandon Turner has mentioned this in podcasts:

When you go to a community bank for commercial financing - go in with loan folder, nice and neat with labels including the following items:

1.  Details on you loan request and the property being used as collateral - address,          size, cost, etc.

2.  3 years business tax returns

3.  3 years personal tax returns 

4.  Current Personal Financial Statement (less than 3 months old)

5.  Some analysis on the property - Use the BP Calculators!  The generate great looking        reports.

6.  Bio or resume on yourself

7.  A real estate portfolio Spreadsheet on your properties (Addresses, Costs, Values, Loan            Balances, Equity, Gross Income, Expenses, Net Income, Loan Payment).

By doing this, you will be providing something that 85% of all people that go into a bank looking for financing DO NOT BRING.  I would fall outta my office chair if someone came in with this information initially without me asking for it.  Seriously!

Good luck, feel free to PM me.