Commercial Real Estate Loans
Most, if not all business owners want to expand and develop their businesses. If you are a business owner and you’re looking to develop through renovation or expansion, then what you’ll need is a commercial real estate loan.
In case you’re not sure of what that is, we’ll briefly walk you through what a commercial real estate loan is, how you can get one, and where you can get the most value!
Understanding Commercial Real Estate Loans
A commercial real estate loan is not actually different from what a regular residential loan is. However, 9 times out of 10, lenders require the purchase or the property to be occupied at least 51% by the business or the owner.
Should the majority of the property wouldn’t be occupied, then the borrower can opt to get an investment loan instead.
What Can You Do With Commercial Real Estate Loans?
Many business owners and entrepreneurs use commercial real estate loans to renovate, expand, and develop their current business establishments. To illustrate, if you are an owner of a grocery store and you want to expand your business by adding more shelves, you can take out a commercial real estate loan to increase the land area of your store to be able to build more shelves!
Apart from that example, you can also use commercial real estate loans to furnish and rehabilitate a certain establishment.
Those aren’t the only things you can do with a commercial real estate loan, you could also choose to:
- Purchase other commercial property
- Renovate and change up the aesthetics of a commercial establishment
- Bridge and cover loans
- And many more!
You can ask your financier or the lending company you’ll work with what else you could do with the commercial real estate loan they’re trying to get.
Different Types of Commercial Real Estate Loans
Commercial real estate loans aren’t just tied up to one category. In fact, you can choose from different kinds and types, namely:
Instead of paying monthly, it’s the type of loan that is ballooned or at the end of the term. NOTE: This is for businesses expecting a large payment in the future. From its term alone, refinancing is the type of loan where you’ll be able to use the loan that you’ll take out to refinance a current or a smaller loan that you have. It’s the commercial version of the residential mortgage loan that you know of! But, it’s used on a commercial property and it’s usually up 20 to 30 years for repayment! These aren’t your only options for commercial real estate loans – there are others! Try to find a financer and explore the different options they have for commercial real estate loans!
Instead of paying monthly, it’s the type of loan that is ballooned or at the end of the term.
NOTE: This is for businesses expecting a large payment in the future.
From its term alone, refinancing is the type of loan where you’ll be able to use the loan that you’ll take out to refinance a current or a smaller loan that you have.
It’s the commercial version of the residential mortgage loan that you know of! But, it’s used on a commercial property and it’s usually up 20 to 30 years for repayment!
These aren’t your only options for commercial real estate loans – there are others! Try to find a financer and explore the different options they have for commercial real estate loans!
Who Can Take a Commercial Real Estate Loan?
Similar to residential real estate loans, individuals can apply for one, too. However, some businesses and entities are also offered this financing service to help them with the development and the improvement they’re looking for with their commercial property.
So, you’ll be asked for a couple of financial information such as credit history (although this wouldn’t be a big deal or a big issue), bank statements, assets and liabilities, etc. This brings us to our next topic, which is…
Requirements You Need to Take a Commercial Real Estate Loan Out
Different banks and financing agencies will ask for different requirements. But, the most common would be the ones we mentioned above. When it comes to those that do not documents, such as down payment, eligibility, and others, it’ll depend on:
- The type of business you have
- Lender or bank you’ll be working with
- Projection of sales and finances
To give you the most average and the most general type of commercial real estate loan, it’s the fixed 30-year mortgage loan. It’s the type of loan where you’ll have to repay everything back in 30 years. The good news out of it is that you wouldn’t have to worry about how to pay because it’s going to be paid by your business.
The drawback is that if your business performs, but only on average, then you wouldn’t be able to take home anything from what your business earned.
So, what solution can you have for this dilemma? Would you be able to change the facts on what a commercial real estate loan is?
The best and the most viable solution is to find a real estate loan group or company that has a considerate rate for interest and that would have flexible repayment terms for you.
Here in Florida, no other company is trusted but us at Florida Commercial Real Estate Loan Group. Being the best and the most trusted commercial real estate loan provider, we’re able to give you the guarantee that you’ll get the loans you need!
Not only that, but we can also save you the stress of having to pay back – we have a ton of flexible repayment terms that we can specify and tailor to your needs!
Florida Commercial Real Estate Loan Group vs. Bank Commercial Real Estate Loans
Unlike banks, the real estate loans that we have are much more lucrative. We would never short you with the amount we can give.
As a matter of fact, we’ll work our ways to give you the loan amount that you wish to have! Although our interest rates are subtly higher than those of banks, you can be sure that your loans will be approved in the fastest and the most urgent times possible!
Get a Free Estimate of Your Loans Now!
Not sure how much you’re required to spend? We can give you a free estimate of the loan that you can get if you do it with us!
In addition, we can also present other versions and computations of the loan, all crafted and depending on your needs. Reach out to us via our contact numbers or our email address and we’ll be more than happy to answer and accommodate all your requests.
Work with Florida Commercial Real Estate Loan Group and get the best value for the commercial real estate loan that you are trying to find!
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: