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A 2mil loan is hard to get so that's why you need to assure the bank that the building you buy is worth at least 2mil and you have the money to pay it back with
by WheelsAtLarge 9y ago
A 2mil loan is hard to get so that's why you need to assure the bank that the building you buy is worth at least 2mil and you have the money to pay it back with cash flow. Banks are happy to tell you why they won't lend to you so learn from it. Experience is the best teacher. Your BIG advantage is that you have 500k. That's a good amount of cash to work with. Also be very, very careful who you listen to. Make sure you read and learn before you start. You're a sheep going to visit a wolf. Make sure you don't get eaten.
- brudgers 9y agoA bank will also look at the track record of a person who is proposing to pay off a loan with cash flow from a commercial property. The bank will generally not rely heavily assurances by a potential loanee regarding property value. Typically a bank will require the use of a property appraiser who appraises the property according to standard practices for appraising property based on income.
- WheelsAtLarge 9y agoYes, they're not going to take anyone's word without backup. They want to stay in business to. They'll tell you exactly what they want.