5 Areas that Qualify a Commercial Real Estate Hard Money Loan
                     5 AREAS
THAT  QUALIFY
A   
COMMERCIAL  
REAL ESTATE  
HARD MONEY  
LOAN
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Although you may be familiar with residential real estate  
lending, securing a commercial real estate hard money loan  
involves excellence in key financial areas. Before you start the  
commercial loan process, take some time to review the five  
areas that can make a difference between successful  
qualification and unfortunate rejection.
1. Total Net 
Worth
You may have heard that it takes money to make money, and  
in the world of commercial real estate this often the case.
When reviewing qualifications for a commercial loan the lender  
places a heavier emphasis on a net worth that what you see  
with residential loans. In general, a net worth that is equal to  
the requested loan amount is recommended.
2. Liquid 
Assets
Even with a high net worth, if your real estate down payment  
wipes out your easily accessible cash flow a lender may  
consider that a liability. Lenders want to know that after the  
loan closes you will still have quick access to cash in case of an  
emergency to ensure you don’t miss a payment.
3. Previous 
Experience
Although residential lenders look at employment history for  
stability purposes, commercial hard money lenders take it one  
step further and look for prior management experience or  
previous experience as an owner. A proven track record as a  
landlord or previous commercial property owner can increase  
lender confidence in your ability to handle the rigors of  
commercial ownership.
4. Income 
Stream
Many commercial property owners are self-employed, so  
commercial real estate hard money lenders need to see the  
big picture of an income stream to provide funding.
Commercial lenders are less concerned with debt-to-income  
ratio than residential lenders. Potential owners that are not  
self-employed should be prepared to provide W-2 forms for  
several years and other documentation to show any other  
income streams
5. Credit 
History
When it comes to lending, most people think that a good credit  
score carries the most weight. This may be true with residential  
lending, but commercial lenders are less concerned with the  
potential property owner’s personal credit score and more  
concerned with other areas of qualification like net worth,  
liquidity, income, and previous ownership experience.
In some ways, the commercial real estate lending process  
works similarly to obtaining a residential real estate hard  
money loan. There are key differences that potential  
commercial property owners need to become familiar with  
before beginning the loan process to make sure that their  
overall financial picture shows readiness to take on the project.
Thank
You!
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B R O O K LY N ,  N Y,  U N I T E D  S TAT E S   
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I N F O @  
E X P R E S S C A P I TA L F I N A N C I N G .  
C O M
www. 
expresscapitalfinancing. co