Steps towards obtaining a commercial loan

[Pavlos Kasselouris]

What are the steps for e relative new investor for obtaining commercial loan in the future? What can I do today in order to set good foundations to be able to go after an apartment building in the future, and how long will it take?

[Jeff Kehl]

I find that commercial bankers are most interested in financing a good solid deal so if you find one they will likely be interested in talking to you regardless of other factors.

But I've found that the two other most important things that help when meeting a new commercial banker are 1) A personal financial statement which is essentially a personal balance sheet listing all of your Assets and Liabilities and totaling to your net worth. 2) Profit/Loss statements on your existing properties for the last couple years to show your track record. Even if it's just a single family home or two it shows some rental experience.

I would also give them copies of your tax returns for the last 2 years.

Wrap this in a package with an executive summary of you and the property opportunity and you're ready to meet with them.