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Updated almost 2 years ago on . Most recent reply

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39
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3
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Akash Sky
  • Burbank, CA
3
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39
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How can I prepare myself to get a million dollar loan?

Akash Sky
  • Burbank, CA
Posted

Let me preface this by saying one thing: I don't want to get a million dollar loan right now, but I do want to get a million dollar loan the next time the real estate market corrects itself.

That being said, I've decided that when the housing market goes down, I want to invest a million dollars into a commercial real estate property.

I know that right now, there is no way any bank would loan me a million dollars, but what are some of the things that I can do right now to increase my capacity for debt?

Some things I'd like some insight on: importance of credit score, what experience I'll need, type of lenders I should approach, down-payment I should have ready, things I can do to appear less risky to banks, etc.

Most Popular Reply

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9,934
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Chris Mason
  • Lender
  • California
10,790
Votes |
9,934
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Chris Mason
  • Lender
  • California
ModeratorReplied
Originally posted by @Akash Sky:

Let me preface this by saying one thing: I don't want to get a million dollar loan right now, but I do want to get a million dollar loan the next time the real estate market corrects itself.

That being said, I've decided that when the housing market goes down, I want to invest a million dollars into a commercial real estate property.

I know that right now, there is no way any bank would loan me a million dollars, but what are some of the things that I can do right now to increase my capacity for debt?

Some things I'd like some insight on: importance of credit score, what experience I'll need, type of lenders I should approach, down-payment I should have ready, things I can do to appear less risky to banks, etc.

 If there is some sort of massive real estate correction, whatever commercial lending requirements apply today, will not apply at that point in the future. Lending follows the market (bad things happen when lending LEADS the market), and gets conservative when things are down, liberal when things are up.

But, yeah, it'll always be easier to have commercial credit extended to you with solid credit, relevant experience, and a strong down payment. It's just that the bar for "solid," "relevant," and "strong" may be set higher than it is today, as commercial lenders are looking to take less risk when things are trending downward. 

  • Chris Mason
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