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Multi-Family and Apartment Investing

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Jason V.
  • Investor
  • Rochester, NY
426
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477
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Solutions for Net Worth Requirement on Commercial Financing

Jason V.
  • Investor
  • Rochester, NY
Posted Feb 13 2017, 18:28

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!

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