Availability of commercial financing

[Patrick Thorp]

Hey there BP peoples! Can I get commercial financing for the purchase of MF properties if I have plenty of assets, great credit, but no income? Any advice would be greatly appreciated.

[Dan Wallace]

From a financing perspective, you don't technically have to have an outside source of income. More important is whether you have other sources of income or assets to maintain your personal and/or other obligations. In underwriting of commercial projects, the underwriters will primarily be concerned with the subject property but will want to see the strength of the sponsors. If you have a ton of personal or other debt, that may impact the underwriting since it may be determined you will need to make excess draws from the subject commercial project to satisfy your other obligations.

Underwriting is not an exact science but to answer your initial question, no, you don't necessarily have to have an outside source of income.