CHAPTER 5 How to Finance Your Pur our Purchase
One of the first steps to buying commercial property is making sure that you or your business can get approved for a loan. This type of lending is based on risk. If you or your company don’t have solid financial standing, the risk is higher and it is harder to borrow money. There are high standards that you and your business need to meet to get approved for most loans. There are also a number of different types of loans you can receive. If you are using a broker, they may refer you to a specific lender. I suggest you check that option, as it can be a special hook-up. Applying for the right type of loan goes a long way to determining how successful your new search for property will be. What you apply for will also determine how much time you use applying for loans and working on paperwork. Knowing the types of loans and what matches your business history in needs before you start will save you a lot of time while making sure you don’t waste any. The amounts, length, terms, interest, and other rates of these types of loans vary. Here are the different types of commercial real estate loans.
TRADITIONAL COMMERCIAL REAL ES AL REAL ESTATE LOAN
This is a standard loan from a bank. It is often the first place businesses go to for funding. A bank can sometimes lend the most amount of money with the lowest interest, but it can also be the toughest loan to get approved for. 25
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