How do CRE lenders calculate "net-worth" to qualify post deal?

[John Acheson]

I'm just getting started in CRE research and am focusing on understanding traditional financing. From what I understand so far, the asset matters more than the borrower's income BUT many lenders have a "net-worth" requirement. Curiously, if an investor has LLCs with business credit such as credit cards, LOCs, etc. when the lender pulls the borrower's credit do they also pull the LLC debts to calculate personal "net-worth" or do they just use FICO data, etc?

[Steve Hall]

@John Acheson

Your single member LLC's net worth is pass thru to you. A SMLLC's assets are yours, as are it's liabilities. Sounds like you are referring to a non-recourse loan, like a Fannie Mae or Freddie Mac Small Balance Loan. If so, then your FICO score is irrelevant.

Unlike when qualifying for "accredited" status, most lenders include the equity in your home as part of your net worth.

Also worth mentioning, if your net worth is 800k, you could partner/JV with someone whose net worth is $700k and together you could get a $1.5m loan.