Commercial real estate loans are those which can help you
buy, build or refinance commercial properties owned by you or your company.
Such loans are designed to help acquire, construct or simplify payments for
residential income properties, like apartment buildings, commercial business
properties (offices), retail and warehouses and development projects like a
condominium and subdivision projects. Thus commercial real estate loans are
available for all types of income-producing and commercial properties,
including Shopping centers; apartments and Motels; Office buildings; automobile
dealerships; Health care facilities; Owner occupied buildings; Manufacturing
facilities and more. Commercial real estate loans can also be used to refinance
existing debt.
There are a whole lot of free commercial mortgage lender
databases online to help you find out mortgage lenders and commercial
construction lenders who will process your application. These search
directories can be an effective tool if you know how to use them. As a general
rule, you should only use commercial mortgage lender databases that give you
direct links to the lenders and not to the brokers by doing so you cut the
paper trail and do business directly with the lender.
Almost all the commercial mortgage lender databases require
you to fill out the basic commercial loan application. After you submit your
application, the database matches your data with several commercial mortgage
financing programs. The results of the search will depend on your area of
location and the type of commercial real estate loan you are looking.
Your application will be matched with commercial lenders who
best meet the information you have provided. You can compare rates and choose
lenders whom you think will work for you. If you use commercial mortgage lender
databases to your benefit, you can easily secure loans for virtually any
commercial property purpose.
Most of the traditional banks will require several years of
tax returns in order to qualify for a commercial real estate loan. This is
being considered as one of the problems that ought to be avoided while applying
for a commercial real estate loan. Also, business acquisition loans for
commercial properties such as bars, restaurants, and auto service businesses
are frequently hard to find. Under most circumstances, commercial borrowers
should not use a lender that requires a business plan. Another problem is that
many traditional banks require 3 to 9 months to close a commercial mortgage.
Commercial real estate differs from residential real estate.
Unlike residential real estate, commercial property has extra fees and costs.
The thing is that these may not be immediately apparent. So try your best to
have a thorough understanding regarding the terms, conditions and all before
you commit a deal. Expenses usually include property taxes, management fees,
insurance, tenant improvements, replacement reserves, leasing commission etc.
It can happen at times that banks may turn down business
owners even if they have great credit and a positive cash flow. Reasons for
this include portfolio management, loan size etc. Usually, there are 2 main
types of commercial real Country side estate loans- short term and long term. Short-term
loans consist of bridge loans that are used to keep the business running until
larger and longer-term loans can be obtained. Long-term loans are for larger
amounts and typically last for the life of the commercial real estate property.
Commercial real estate loans are really essential for the growth and expansion
of companies.
