W2 Income for commercial property loan in industrial real estate value add
Looking to acquire industrial property for value-add investing. Will I have a better chance of getting a bank loan if I work a 9 to 5 W-2 job?
[{"id": "iiar5sx", "text": "Depends on a size, scope, and your current financial condition.  If you want a $500,000 loan and make a good wage income it definitely helps that you could potentially make the payments out of outside cash flow.  If you are already leveraged to the hilt personal then it won't. This doesn't matter as much if you want $10 million because unless your a partner in a law/accounting/doctor firm pulling down close to a million a year you can't reasonably service that size debt.\n\nScope also matters. If you have no experience in value add real estate projects you better be planning on &amp; accounting for hiring some one. Project management is a profession and people that already have a profession paying them a good wage *generally* don't have the bandwidth &amp; time to do all the things that need to be done in a timely manner to keep a value add play on schedule &amp; budget.", "replies": [], "depth": 1}, {"id": "iij8ad9", "text": "Commercial lender here. Yes of course it helps. But in commercial most lenders will look at the specific project. If it\u2019s a pretty garbage property, then you\u2019re going to have to make a hell of a lot of money or look at a different property. Value add of course implies that it doesn\u2019t quite cash flow today and requires capital injection, so this one sounds tricky.", "replies": [], "depth": 1}]