Solutions for Net Worth Requirement on Commercial Financing
One of the things I keep hearing regarding commercial loans is that lenders typically want your (the borrower) to have a net worth that exceeds the amount of the loan. Is this something that investors are getting a pass on for their first larger MF property? Or are they working around it in other ways?
If I were to "partner" with a higher net worth individual, who's only contribution would be bringing their net worth and signature to a deal, does that fly? If I'm not borrowing from them, or relying on them for anything else, what would be fair compensation?
Thanks all!