As a business owner or company executive, your property is most likely your biggest asset, so when it comes to financing or refinancing an important piece of your business, it is important you understand the process and how these financing options work. Here are 5 major points to understand and consider before obtaining a loan for your business real estate.
1. When to obtain a Commercial Real Estate Loan:
- Looking to purchase new property
- Refinancing an existing loan on your business property
- Renovating your existing property
- Funding new construction or development of your commercial property
- Looking for a bridge fund to help with real estate improvements and projects
2. What loans can you use?
- SBA 504
- Bridge Loan
- CMBS Loans
- Mezzanine Financing
- HUD & FHA Loans
To learn more about the details and rates of these loans, visit our Commercial Real Estate Financing program.
3. What is the difference between Recourse & Non Recourse Real Estate Finance?
- Recourse Commercial Real Estate Financing requires the borrower to guarantee the commercial mortgage for the financing process, in case of default.
- Non Recourse Commercial Real Estate Financing DOES NOT require the borrower to guarantee the commercial mortgage and instead applies all the risk to the lender.
4. Where can you find financing?
Alternative Loan Brokers & Lenders are a great outlet for securing a commercial mortgage loan. Traditional lending channels such as banks, have tightened their qualification and approval process for new or small businesses looking to fund their business property. Alternative lending options provide various and more flexible funding sources to choose from, to best fit your commercial real estate financing needs.
5. How to choose optimal business real estate:
When purchasing new real estate for your business or even expanding upon the property you already own, there are a few factors to take into consideration. First, your location whether new or old should be consistent with your brand target. Make sure your business location is readily and easily accessible to the audience your are looking to produce for as well as for your suppliers. Secondly, be mindful of how close your competitors are, and what areas they are targeting their products for. Third, always plan for future growth and make sure you have the space to accommodate expansion. Lastly, be sure research any zoning regulations that may apply to your commercial property.
Extra Commercial Real Estate & Commercial Mortgage Resources
• Commercial IQ: Search Commercial property listings.
• Commercial Real Estate Direct: Commercial Real Estate Market News & Updates
• Bank Rate Commercial Loan Calculator
• Bull Realty General Real Estate Loan & Investment Calculators