What I learned about $10M+ loans from a former commercial lender

[Reggie Wright]

I have a tidbit to share. Last night after class I was speaking to my finance professor about real estate. He's a smart guy (he has an MBA, MPA and a Doctorate in Finance) that used to work for a commercial bank approving big loans. 

I asked him what would it take to secure financing for a real estate project costing big bucks, like $10, 20 or $50 million dollars. He explained it like this - he wants the numbers and evidence backing the numbers. If you say that you will sell the entire subdivision within 3 years he wants to know why you think that. Same goes for how you will cover the loan payments. 

He said for the most part it doesn't matter who you are as long as the numbers work out - he even once caught some flak for turning down a developer who was related to some of the top executives at the bank. 

Now I'm sure there's much more to the actual process of getting a $10+ million dollar loan, but it was cool to hear straight from the horse's mouth that it's not rocket science.