Most commercial mortgage lenders are maintaining a low profile in these challenging economic times. The lenders have obviously backed away from risky deals and are putting borrowers under intense scrutiny prior to approving any loans. The criteria for approval from commercial mortgage lenders has become increasingly stringent. Lack of available funds will certainly effect the plans of investors and other business people. Even in these lean years, with sound preparation prior to application, you should be able to secure a loan from commercial money lenders.  Be aware that a number of these banks and lenders are involved in a liquidity crisis themselves. The dollars they now have tied up in commercial mortgage loans have already put a strain on them, so your deal must be solid and you need to be prepared to show proof that you can pay the loan off in a timely manner.  A thoughtfully crafted and detailed business plan is the first step.  Demonstrate how your project will flow and the anticipated outlay of any additional cash. 

The commercial mortgage lenders will want to see a record of success, both in the proposed project’s outcome, andin any past similar business dealings as evidence of your stability. You will be asked to present personal financial information to show that you have the ability to cover the payment and the cash flow to manage it.  If you are not able to produce such documentation, you will not get financing through commercial mortgage lenders and may have to go to a private source.  Hard money commercial loans are indispensable in a case like this.  Private lenders will be more equity-based and deciding on your loan will not be based entirely on the borrower’s credit history.  This lender will probably lend as much as 70% of the purchase price.  Be prepared for a greater down payment and some cash in the deal.  Most hard money lenders prefer income producing commercial property, but may be willing to look and consider other types.  In either case, having your plan completed and your personal finances in pristine order will help you secure a loan from the hard money lender or from the commercial mortgage lenders.  Careful preparation is the key to your success.