So you’ve decided to dive into commercial real estate. Maybe you’ve even found the perfect property with great bones and a dreamy location (bonus points if it has decent parking). You’re buzzing with potential. But before you can get your hands on the keys and start imagining what kind of coffee machine you’ll put in the break room—there’s one tiny detail to handle: getting the money.
Let’s talk about CRE loans—and more importantly, how not to blow it before you even begin.
Enter Reality #5: Be Prepared Before You Approach a Lender
According to Rob Johnston’s Get Rich Slow—specifically page 25, which should honestly be printed out and taped to every commercial investor’s bathroom mirror—you’ve gotta get your financial ducks in a row before you so much as whisper to a bank about a loan.
That’s right, folks. The money gods (aka your CRE lender) are not big fans of surprises. If you come in waving a half-filled Excel sheet and muttering something about “figuring it out as you go,” they’ll smile politely and send you packing faster than you can say “loan denied.”
The Fast Lane to Preapproval (Yes, There Is One)
Here’s the cool part: if you do give your lender everything they ask for—like, say, your P&L statements, tax returns, and that elusive personal financial statement—they could hand you a preapproval letter within 48 hours. That’s right. Two days. Just enough time to binge-watch a docuseries and grab a celebratory latte.
With a preapproval in hand, you and your broker (hopefully someone awesome from Johnston Pacific Commercial Real Estate, just saying) can finally focus on the properties you can actually afford. No more falling in love with a seven-figure unicorn only to find out you qualify for a lemonade stand.
What You’ll Need (Spoiler: It’s More Than Vibes)
If you want to impress your lender and move things along quickly, here’s your grocery list for preapproval:
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✅ Three years of business tax returns
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✅ Three years of personal tax returns
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✅ Personal financial statement
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✅ Business debt schedule
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✅ Year-to-date interim financials (P&L and balance sheet)
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✅ Current paystubs for all owners and their spouses
It’s not rocket science, but it does require effort and, dare we say it, being prepared. The upside? You’re now armed with everything a lender needs to give your application the green light.
Why It Matters: CRE Loans Due Diligence Isn’t Optional
Let’s be real—commercial real estate is no place for “winging it.” Lenders are cautious by nature. They’re not just betting on your property; they’re betting on you. And if you can’t show that you’ve done your homework, they’ll assume you didn’t bring a pencil.
This is where CRE loans due diligence comes into play. It’s more than just handing over paperwork. It’s about demonstrating that you understand the stakes, that you’ve assessed your business risks, and that you’re serious about making this investment work.
As Rob Johnston wisely puts it, “It doesn’t make good business sense for you or your broker to begin looking until you’ve been prequalified for a specific loan amount.” Translation? Don’t start shopping until you know your credit card limit.
Your Broker Will Thank You Later
A quick pro tip from the team at Johnston Pacific Commercial Real Estate: preapproval isn’t just for lenders—it helps your broker help you. If they know exactly what you can spend, they can skip the fluff and get straight to showing you real contenders. Everyone wins. (Especially you.)
Final Thoughts: Get Your Act Together (Nicely, Of Course)
No judgment here—we’ve all left paperwork until the last minute at some point. But when it comes to CRE loans, procrastination is a deal-killer. So pour yourself a strong cup of coffee, gather your documents, and get yourself organized. Future You (and your lender) will be high-fiving you in no time.
Because in commercial real estate, the prepared investor is the successful investor. And that’s a reality worth facing head-on.
Looking to take the next step? The pros at Johnston Pacific Commercial Real Estate have seen it all, and they’re ready to guide you through every stage of the CRE journey—from paperwork to property tours. Bring your A-game (and your financials), and let’s get to work.
