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Build Your Wealth Before Getting a Commercial Mortgage

July 15, 2014

This applies strongly to the experienced apartment complex investor as well as the inexperienced apartment complex investor.

You may ask why this applies strongly to the experienced apartment complex investor.

The answer is simple and is best presented in the story of what many commercial lenders experience: The experienced investor applies for a commercial mortgage and is declined because of not having enough cash to do the loan.

This experienced apartment complex investor, owning quite a few apartment complexes, has spread himself too thin financially – he applies for a commercial mortgage to purchase another multifamily property, but he doesn’t have enough money to cover the down payment, closing costs, and reserves needed to qualify for the loan.

Many investors purchase multifamily properties and try to purchase as many as they can.

They barely have enough money to cover expenses. The biggest problem with this is that they are violating basic economic laws and could be setting themselves up for a financial catastrophe.

The same thing is true of those who are too lean financially and inexperienced in multifamily investing, yet they want to purchase a multifamily property. If they could manage to get such a property, they are leaving themselves financially vulnerable.

Many people have the problem of not deferring gratification. It is a quintessential success trait, yet it is counter-intuitive for quite a few people. This is because of the following paradox pertaining to how to get some of the most important things you want in life – “Put off what you want to do, so you get to do what you want to do.”

For our “feel good” culture this seems treasonous because feeling good is no longer the “God” to worship. Those who win in life allow themselves to feel bad at times by putting off what they want to do and by doing things for others when they’d rather do something for themselves.

They can still get to do things they want to do (fun things) each day, but they have productive things they do as well, which involve putting off fun things for a good part of the day.

They can then discover that the “feel good” life is an empty and lonely existence containing more pain than the pain of “putting off what you want to do, so you get to do what you want to do.” The “feel good” life is self focused and isolating, while the latter tends to lead to more of a balanced life – opening the doors to close relationships, prosperity, happiness, and an all around more meaningful existence.

The irony is that you start to feel really good when you “put off what you want to do, so you get to do what you want to do” long enough. It’s the artist who makes herself finish a work of art – she has periods where it’s difficult to get herself to paint, but after months of artistic focus, she is suddenly overwhelmed with ecstasy as she sees in front of her – a great masterpiece. She loses her breath, and tears stream down her face as she is flooded with the beauty of the canvas.

You may have noticed that the above article can be separated into two parts. The first is about building enough wealth before purchasing your first or an additional multifamily property. The second part has to do with developing the attitude to put off what you want when needed in order to get what you want.

Call or email me if you have questions concerning this article, apartment loans or other types of commercial loans. You can reach me at 214-695-7310 and

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Bruce Painter, Director of Marketing, Business Loan Store