Commercial Loan Limited Experience

[Derek G.]

Hi All !!

I currently own and rent a few SFR. Lets say I want to secure a commercial loan for a small apartment complex (Lets also say the selling price is around $900K and I put 50% down). Doesn't really matter. I should qualify for all the major inquiries the bank would have except one. I don't have the experience running an apartment complex. I use property managers for this. Would the PM's experience be enough to move the hypothetical loan forward? Thanks in advance!

[Henry Perez]

@Derek G. Hi Derek. Much like what @Jessie Niu and @Ronald Rohde have commented, having a strong and competent PM lined up to managed the property will go a long way to helping you get the commercial loan. 

As @Jessie Niu commented, having a well-prepared presentation makes a HUGE difference when applying for a loan. Those couple of hours you put in to create a package which lays out all of the details (local market trends, thorough and well planned out P&L, CapEx schedules - if repairs/improvements are needed, etc.) makes you look professional and makes you stand out not only to the banker you're working with but also to the underwriter(s) who will be reviewing your loan application.

in the near future I intend to share my presentation package openly with the BP world after I have purchased my next multi-unit complex. There are some things I would like to tweak in it and once I do, I would like to share it with everyone else so that they too can leverage it and use it for their own investment opportunities.