If you’re ready to get into commercial real estate investing, then you need to understand what it takes to be approved for a commercial loan. Fortunately, there are a few basic rules that can help you understand how to qualify for commercial loans.

Net Worth

One of the first things that the lender will look at is your net worth. Net worth is the difference between your liabilities and assets. Most lenders want you to have a net worth equal or greater than the loan, but this isn’t always the case. Some financing companies have different requirements in order to qualify.

Credit Score

If you’re used to managing residential properties, then you are probably used to credit scores matter the most. This isn’t necessarily the case when it comes to commercial properties. The entire loan does not hinge on your credit score. Now, you do need to make sure that it is a decent score, but you don’t have to worry about it being the most important factor. Still, be sure to have a credit score of at least 600.

Ownership Experience

Ownership and management experience matter to lenders. If you have a large portfolio of rentals, then lenders will be more likely to offer you financing options. The lender wants to know that you are able to manage your commercial real estate. Do you know how to lease a property? Can you perform a credit or background check? These answers will matter towards the result.


Liquidity requirements vary from lender to lender, but generally, you need to make sure that you have liquid cash. Your down payment should not exhaust all of your liquid cash. Lenders do not want you to use up all of your cash in closing.


The lender is always going to ask about your income. He or she will want to know if you’re self-employed or if you are a W2 employee. The point of asking for your income is to make sure that if you end up having a hardship on one property that you will be able to move cash around so that you can continue to pay your debts.

When it comes to commercial real estate investing, a few different factors go into whether you qualify for financing. While every lender has their own specifications, there are some general factors that go into real estate investing and receiving the financing for it.