Why You Need To Know More About Commercial Real Estate Loans

This page will let you discover that financing is really an important aspect in order to secure a commercial business location in a lot of cases. That is why you should take note on all the options and how you can qualify for a financing. You can view here for more of the different kinds of commercial real estate loans out there, check it out!

There are actually 28 million small businesses in the US and that statistic will still grow in the future.

Looking for a place where you can successfully run your business is a good step to do if you are planning to start your own business. There are actually so many different commercial real estate loans that you need to be aware of. And it can be a little hard for you to know which loan you will qualify for.

So below are some of the commercial real estate loans that you can qualify for, read more below.

Traditional commercial mortgages – this type of commercial loan is similar to the usual home mortgage. You can get these loans from a lending company or the bank. You will be able to refinance or buy a property in order for you to start your own business by using the traditional commercial loan.

There is no maximum loan amount when it comes to the traditional commercial loan. But the loan should not be exceeding 85 percent of the ratio of loan-to-value of the property. The down payment for the property must be provided by the buyer for at least 15 percent of the property’s value. The specific loan amount should will be based on each of the lender.

Multifamily Loans – these are loans for properties that have more than five units. Condominiums or apartments are the perfect business for this type of commercial real estate loan. This commercial real estate loan is good for construction, refinancing of existing properties, and acquisitions.

There are some important factors that you need to keep in mind in order for you to qualify for a multifamily loan.

Hard money loans – a hard money loan will be secured to the commercial real estate property. The hard money loan is the same as a cash advance and is not used to buy.

Joint venture loans – this is a kind of loan that is an agreement of two or more parties. All of the resources by the parties will be combined in order to create a finance.

Participating mortgages – this is a kind of loan that will happen once the lender will be an equal partner in the business. If you will use a participating mortgage, then that will mean that the lender will be sharing the profit of the business.

SBA7(a) Loans is actually a very common type of commercial real estate loan.

You will be able to refinance or buy any existing commercial property if you will be using a SBA7(a) Loan.