Logistics of Getting a Commercial Loan as First Ever Loan

[Sean O'Dowd]

I am really interested in the idea of purchasing a multi-family property, likely in the Chicago area. 

I have found many properties in the 250,000-500,000 price range. 

As a commercial loan, my guess is that I have to get it at a bank, with 25% down for a 75% LTV.

At that point, I'm lost! Could someone walk me through the next steps from when I walk into the bank to get this loan, and when I take possession of the property?

[Jeremy Zindel]

I agree with @Joel Owens that if you aren't looking to owner occupy then your best bet is small local/regional bank.  I have used these types of banks for all of my long term financing. 

You definitely want to show that you have put some thought into it when you go to meet someone from the bank.  These guys require more than just a credit score to get a loan so take the time to fill out a personal financial statement and get your last 2-3 years of tax return pulled together (I've never not been asked for these things and it looks good when you can just pull them right out and not have to send them in later).

Also, if you have any prior real estate holdings or deals, put together a summary of those to showcase any experience that you have.  I have even went so far as to putting together an executive summary of my real estate goals/plans and even laid out a prospective deal to highlight exactly what I was looking to do. 

From my experience a high level of professionalism goes a long way with the people in these types of banks so anything you can do in that regard will be a big help.