This website will let you know how important financing is in order for you to get 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 read here for more of the different types of commercial real estate loans that are available for you.
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 really difficult for you to choose what loan you would qualify for.
So below are some of the commercial real estate loans that you can qualify for, read more below.
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.
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 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. Condominiums or apartments are the perfect business for this type of commercial real estate loan. These are the type of loans that are available for construction, refinancing of existing properties, and acquisitions.
You need to keep in mind some important metrics so that you can qualify for a multifamily loan.
Hard money loan – read more now and know the type of loan that will be secured to your 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 type of loan that is agreed by two or more groups. The two or parties will be combining all of their resources in order to create a finance.
Participating mortgages – this will happen if the lender will be an equal partner in the business that you will put up. 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.
A SBA7(a) Loan will let you refinance or buy any commercial property that is existing.