Commercial loan conditions
we are purchasing a 16 door unit. Received loan docs and there are the following conditions. Wondering if this is normal as its our first commercial loan.
Provide yearly tax returns
Provide leases and tenants information and books every year
Contact lender if we change, sell or alter any of our personal or business assets for approval. (Sounds to me like I have to ok anything we do personally with them eventhough the loan was done on the financials of the property)
We are supposed to close Tuesday and these conditions just came up. I am hesitant but wondering if these are normal conditions for a commercial loan.
Any information would be helpful.
Most Popular Reply
This is typical.
Most lenders will at least want regular property reporting, specifically rent rolls and operating statements. In addition, the loan documents will typically call for regular financial reporting from the principals, including things like tax returns.
Whether your lender asks for it or not, many loan documents generally allow lenders to ask for any documents they feel are relevant to the transaction.
See below for an example from Fannie Mae's multifamily documents: