Thanks for checking out my 5-day crash course on:
**HOW TO GET APPROVED FOR A COMMERCIAL MORTGAGE**
My goal for this course is to provide you with new techniques, approaches, knowledge and show you the best way for getting approved for commercial mortgage financing, while keeping them as actionable and succinct as possible.
And today’s lesson we will look at…..
**HOW MUCH DO I NEED TO PUT DOWN?**
Well there is no clear answer. There are a lot of variables that determine how much you should put down. It will depend on the type of loan that you want to get approved for. For instance..if you are looking for an Small Business Association (SBA) loan (a loan that you will own 51% of the building) . You can put down 5% of the purchase price.
For a conventional lender on a non SBA property we are seeing 35-40% downpayment requirements. A lot depends on the quality of asset, your financials, and the strength of the current tenants. If a deal is not plain vanilla, most banks do not want to touch the deal. There are alternatives available to conventional financing: private lenders, hard money lenders, etc… that could be an option depending on the scenario.
If it’s an investment property you’ll need at least 35%. Quality properties with quality tenants are always easier to finance. Debt service coverage is important (DCR). The loan to value is a consideration. Just depends on the Lenders DCR. If it has a good CAP Rate
PLEASE REVIEW THIS WHITE PAPER to get more information on what ADM Financial Group can do for you.
This email course will provide you with actionable tips on how you can:
MAKE SURE YOU WILL QUALIFY …More on that later…
Tomorrow, we’ll be delving into:
WHAT IS A DEBT SERVICE COVERAGE RATIO (DSCR)?
If you have any questions in the meantime, please hit the reply button and drop me a line. I will respond personally to every email.
**JOKE OF THE DAY**
As I drove into a parking lot, I noticed that a pickup truck with a dog sitting behind the wheel was rolling toward a female pedestrian. She seemed oblivious, so I hit my horn to get her attention. She looked up just in time to jump out of the way of the truck’s path, and the vehicle bumped harmlessly into the curb and stopped. I rushed to the woman’s side to see if she was all right. “I’m fine,” she assured me, “but if that dog hadn’t honked…”