How to Secure a $10 Million Commercial Property Loan: A Comprehensive Guide

When you’re in the market for commercial real estate, the ability to secure financing can make all the difference. For significant ventures, like acquiring a $10 million property, it’s crucial to understand the lending landscape and have a solid game plan in place. Drawing insights from platforms such as, here’s a step-by-step guide to help you navigate this journey.

**1. Understand the Basics of Commercial Loans** 

Unlike residential loans, commercial property loans often come with shorter terms (5-20 years), higher interest rates, and require a larger down payment. They are primarily based on the property’s value and its ability to generate income, rather than the borrower’s creditworthiness alone.

**2. Determine Your Loan Type**

There are several types of commercial loans:

– **Traditional Mortgages:** Offered by banks, they typically have the lowest rates but the strictest requirements.

– **SBA Loans:** Government-backed loans that are designed for small businesses. They come with favorable terms but have rigorous qualification standards.

– **Hard Money Loans:** Ideal for short-term financing or for properties in need of renovation. They have higher interest rates and are more flexible with lending criteria.

– **Bridge Loans:** Short-term loans to “bridge” the gap between buying a new property and selling another.

Identify which type is best suited for your needs and financial situation.

**3. Prepare a Solid Business Plan**

Lenders want to know that the property will generate enough income to cover the loan payments. A detailed business plan showcasing the property’s profitability potential, backed by market research and financial projections, can significantly boost your approval chances.

**4. Check Your Creditworthiness**

Although the property’s income potential is crucial, lenders will still assess your credit score, history, and overall financial health. Ensure your credit report is error-free and work on improving your score if necessary.

**5. Gather Required Documentation**

This typically includes:

– Personal and business financial statements

– Tax returns (last 2-3 years)

– Property details, including appraisals and income projections

– Lease agreements, if applicable

– Business plan and profitability forecasts


**6. Scout for the Right Lender**

Explore different lenders, from traditional banks to private lenders. Platforms like can be invaluable in this step, offering a comparative view of various lenders and their terms.

**7. Negotiate Terms**

Once you have potential lenders, don’t be afraid to negotiate. This can include interest rates, down payment percentages, and loan durations. A slight adjustment can save you significant money over the loan’s lifespan.

**8. Prepare for the Down Payment**

Commercial property loans typically require down payments of 20-30%. For a $10 million property, this means setting aside $2-3 million upfront. Ensure you have this capital ready to avoid any hitches during the loan acquisition.

**9. Get a Property Appraisal**

Lenders will want an independent appraisal of the property’s value. This helps them gauge the loan amount they’re willing to offer and ensures that the property is worth the price you’re paying.

**10. Review and Sign**

Once approved, go over the terms with a fine-tooth comb, preferably with legal counsel, ensuring that you understand and agree with every detail.

In conclusion, securing a $10 million commercial property loan is no small feat. But with diligent preparation, a clear understanding of the lending landscape, and leveraging tools like, you’ll be well-positioned to turn your commercial real estate dreams into reality.

Kenner French, is a former small business contributor at, author of three books, an executive at AI-focused and, a keynote speaker, and a Dave Matthews Band fan!




Kenner French

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...of ABC's Shark Tank says in this video that Kenner is using AI "in an innovative way to help (entrepreneurs) save on taxes." Kenner has saved hundreds (if not thousands) of entrepreneurs IRS/tax dollars, increase wealth, and protect their financial legacy. His strategy can work for you as it has so many entrepreneurs across the globe!
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