What is commercial loan due diligence?

In Buying Property - Asked by Winston R. - Mar 18, 2017
Report Abuse
Answer this Question

Answer(s)

Todd W.
Owner/Investor
San Diego, CA

Consumer protection laws applicable to home purchases seldom apply to commercial real estate transactions. The $TRICT rule that a Buyer must examine, judge, and test for himself, applies to the purchase of commercial real estate.
With a max of 5000 characters we can't just dive into the granular details here unfortunately but this link for you to study from will help answer where to get started. Another caveat, It's not at all easy. Let's get started by going here. This is a great article but doesn't represent every single thing you may encounter along your journey.
http://www.scotsmanguide.com/Commercial/Articles/2007/01/Commercial-Due-Diligence-Checklist/

Mar 20, 2017
Report Abuse
Juanita A.
Broker/Agent
Hollywood, FL

Commercial loan due diligence is the analysis made by a lender that will give a loan on commercial property. The lender will have specific criteria to look at, including income produced by the asset, expertise of the buyer/owner in the activity the asset will be used for, clear title, restrictions of use, zoning regulations, condition of the asset, environmental regulation, etc. The lender wants to know that the asset is a sound investment and will support the loan they are issuing.

Mar 21, 2017
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question