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Updated almost 4 years ago on . Most recent reply
Net Worth Commercial Loan Requirement
How strict are banks on the requirement of net worth being >= loan amount for commercial loans? is there a way to bypass it without having a partner?
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Evan Polaski
#5 Multi-Family and Apartment Investing Contributor
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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Evan Polaski
#5 Multi-Family and Apartment Investing Contributor
Pro Member
#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@James LaFarr, to add to Wenda's comment, it will also depend on the actual lender. Every lender and broker I have ever dealt with for non-recourse and/or agency debt is strict on the net worth covenant. You could potentially find recourse loan options that are not looking at net worth, but in my experience those lenders have much stricter other covenants, i.e. 1.50 DSCR and higher reserve requirements.