The Available Commercial Real Estate Loans For You
You should learn that in order for you to secure a good commercial business location, in most cases you will really need financing. That is the reason why you must know how to qualify for one and what are the options. You can click here for more about all the types of commercial real estate loans that you can avail.
There are already about 28 million small businesses in the US and there will be more in the future.
An important step to start your own business is to secure a place where you will be able toyou’re your business. You should know more about the number of various commercial real estate loans that you can avail. And it can be really difficult for you to choose what loan you would qualify for.
You can read more below some of the commercial real estate loans that you can choose from.
Traditional commercial mortgages – this are the mortgages that are similar to the usual home mortgage. You can get these loans from a lending company or the bank. The traditional commercial loan can be used in order for you to refinance or buy a property where you can place your own business.
The traditional commercial loan does not have a maximum loan amount. But take note that the loan must not exceed 85 percent of the loan-to-value ratio 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 – properties with more than five units are perfect for this kind of commercial loan. This type of loan is perfect for those who are planning to put up a condominium or apartment. These are the type of loans that are available 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. You do not need to use the hard money loan for buying and is the same as a cash advance.
Joint venture loans – this is a type of loan that is agreed by two or more groups. 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. The profit of the business will be shared also by the lender if you will be using a participating mortgage.
SBA 7(a) Loans – read more here to know the most common types of commercial real estate loans out there.
You will be able to refinance or buy any existing commercial property if you will be using a SBA7(a) Loan.