What is needed to qualify for a non-recourse loan for commercial?

[Mario Broughton]

Im interested in procuring a non recourse loan for commercial investment purpose. What would be the expectations and qualifications for me as the investor?

[Brian Burke]

Requirements vary widely, but generally you need:

• A property with in-place cash flow producing adequate debt service coverage ratio (net income divided by the loan payment, generally looking for 1.25+).
• Potentially, minimum trailing occupancy rates.
• Well thought-out financial projections / business plan.
• Enough relevant experience to give the lender comfort that you can successfully execute the business plan.
• A net worth equal to some percentage of the loan amount.  100% is not unusual, but varies by lender.
• Cash reserves that range from a certain number of months of debt service to percentages of the loan amount.
• Good credit and track record.