Commercial Construction Financing

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If you’re looking to enter the commercial real estate market and you’re not sure of the type of loan you need – you can look at quite a few options with commercial construction financing being one of them.

Commercial real estate loans can be looked at and divided into a few particular groups and categories. For one, there could be the usual private money loans and funding; whereas the lender wouldn’t care about which use you’ll have the funds for.

Another would be machinery and equipment loans where borrowers would typically need to provide proof of purchase. Lastly, we have commercial construction financing – and how exactly does this differ from the other two?


Understanding Commercial Construction Financing

Let’s imagine that you are a contractor or a property developer – you construct, build, renovate, design, and even rehabilitate properties for a living.

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Before you begin on a project, you would need funds, right? Let’s say you have the funds – would you be 100% willing to let out the funds needed just for you to be able to construct? Of course not – you would need security, you would need a loan.

That’s where a commercial construction financing company comes in. In a nutshell, you can understand it as simple as this: a commercial construction loan is a loan that you can get to cover all the costs and expenses that are in connection or in relation to building, construction, renovation, or the rehabilitation of a commercial building or establishment.

Reasons Why You Should Take Out a Commercial Construction Loan

Apart from the example, we gave about you having the money or the funds to finance the project, what are better and more sensible reasons why you should take out commercial construction financing?

Imagine, you’ll be able to get complete and comprehensive financial aid and assistance without actually having to share the project with other people. Now, take into account asking an investor for it, and the investor might ask for a 5% profit on the returns it give, indefinitely. With commercial construction financing, you would only have to settle and/or pay the principal amount plus the interest and you’ll be all good.

Lenders would typically provide these construction financing or loans progressively. Instead of giving you the lump sum amount, they’ll usually give you the funds in a progressive manner. In addition to that, they’ll also take care of how they would divide the funds from labor, materials, land development – even the fees and permits.

This is so you can save money on costs and other types of expenses. Now those two (2) are the customary reasons why it’s recommended to take out a commercial construction loan even if you have the funds. After knowing those, let’s do a quick rundown of how these commercial construction funding or financing programs work:

How Does a Commercial Construction Financing Work?

So, let us assume that the lender was successful in giving you a full-on investigation and review, which includes the property type, the borrower review, review of the builder, and all necessary reviews and investigations. You’re ready to receive the amount for the first phase of construction, which is for the sourcing of material. However, you’re shocked to see that you were only given enough amount for it – not the entire loan.

This is because commercial construction financing programs also help and assist you to have complete control over your funds in a more positive and more workable way. In this regard, the lender would partially give you the funds, based on the plan or where the project is currently.

What’s good about that is the fact that you would only have to pay for the amount you used. So, for instance, you have been approved a loan amounting to $300,000. You only used up $200,000 – the project is finished and it’s now occupied and there are funds of $100,000 remaining.

You’ll only have to pay for and settle the $200,000 that you used! You wouldn’t be forced and obliged to pay for the entire loan amount! That’s how good, disciplined, and careful taking out commercial construction funding is.

So, for your next project, forget about banks and their long repayment terms under a fixed rate. They’re a lot lower, but would you be willing to wait for more than a month just to get approval?

Instead, go and tap us here at Florida Commercial Real Estate Loan Group to help you with the commercial construction financing you need.

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Who Are We?

Across the entire state of Florida, only at Florida Commercial Real Estate Loan Group will you be able to get excellent-quality loans in the best, the most favorable, and the most flexible repayment schemes in the market. The commercial construction funding loan programs that we offer will definitely astound you when you put it side-by-side with a bank loan.

If you ever find yourself in need of a commercial construction financing program, you can absolutely bank and count on us here at Florida Commercial Real Estate Loan Group.  We’ll get you the commercial construction loans you need in the best, the most flexible, and the most appropriate interest rates you will find.

Work With Us Today!

What are you waiting for? Give us a quick buzz and tell us about the type of funding or financing you need. Contacting us today can get you pre-qualification and pre-approval the next day – and for the loan approval proper, we can do it in just a week!

Don’t ever hesitate to give us a dial or to send us an email – we will be ecstatic and more than happy to assist and to provide aid to you for the development and the overall construction of your commercial property or project.

Reach out to us today! We’ll even get you a free sample computation of the commercial construction financing you are about to take so that you know what to expect! Work with us and experience honesty and transparency on a whole new level!

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