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 why it is important for you to know more info about the options and the requirements. You can click here for more about all the types of commercial real estate loans that you can avail.
In the United States alone, there are 28 million small businesses and that number will still continue to grow.
An important step to start your own business is to secure a place where you will be able toyou’re your business. There are actually so many different commercial real estate loans that you need to be aware of. 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. The bank or a lending company can provide you with these loans. 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.
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 buyer should provide at least 15 percent of the value oif the property as the down payment. The certain loan amount will be up to each of the person that will be lending.
Multifamily loans – are perfect for the properties that have more than 5 units. This type of commercial real estate loan is most of the time used for condominiums and apartments. 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 – this type of loan is secured to a commercial real estate property. You will not use the hard money loan for buying a property and is the same as a cash advance.
Joint venture loans – this is a kind of loan that is an agreement of two or more parties. In order to create a finance, the parties will choose to combine all of their resources.
Participating mortgages – every time the lender will become an equal partner of the business, then this loan will happen. 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 – this is one of the commercial real estate loans that is very common in the industry.
A SBA7(a) Loan will let you refinance or buy any commercial property that is existing.