pre approval commercial lending

[Mark Neiger]

So I've been looking at properties and I'm ready to start shopping for lenders. Any advice on who or where to look. Should I just Google commercial lenders, call the big guys (BOA, Wells Fargo, etc.) or go to my local bank? Any insight?

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[Chris Simmons]

Net worth is nice.  your dad could be another guarantor in addition to yourself.

The weakness with your dad and many others that own real estate or business is liquidity or lack there of.

Let's say your dad guaranties a loan that gets in trouble.  I will call him up, sometimes before I direct counsel to file suit...sometimes after.  I would advise him that I accelerated the note and that the full balance was due.  Ideally, he would say fine, I will pay the full balance tomorrow because I have that much money in the bank.

If he is not liquid and has a private business with accounts receivable...a viable, but non liquid asset, or real estate....he will say I can't pay anything now, but I can try and sell my $500,000 property....but the market is weak so maybe i will only get $300,000.  I won't wait.  I want it now.

If the bank has to foreclose, it will get even less.  

So....liquidity is key.  Cash is king.  Always have some liquidity.  $2,000,000 in real estate with $12,000 in the bank is not good.  

Another thing.....mentions are nice.  Votes are better.