Do you want to get into commercial real estate?
Arguably, one of the 1st steps in commercial is to have a seasoned LLC to be able to get financing. I've been researching the main differences between traditional mortgages for residential and commercial lending and just found this great website at a lender website titled,
"Commercial Loan Requirements"https://onenevada.org/loans/commercial-real-estate...
A current financial statement and a minimum of two years of tax returns (so you're going to have to wait til Year 3 before you can apply so better start that LLC NOW or look into buying an aged one) to include K1s on each borrower/guarantor. If the borrower is a business entity, please provide a copy of the articles of incorporation/partnership and operating agreement or copy of the trust agreement.
We will need a minimum of two years of income and expense statements, a current rent roll, copy of all leases and a copy of the fire insurance policy on the subject property (the things to ask from the selling broker).
The following third party reports will be required to complete the loan request, obtain loan approval and fund the loan. The borrower will pay for the following items:
- MAI Appraisal?
- Phase I Environmental Report?
- Escrow and Title
- UCC Search and Recording?
- Flood Search/ Flood Insurance (if required)
- Credit Reports (as in borrower, entity or tenant/s?)
What would be your game plan for getting into commercial financing?