Commercial Land Loans
If you are a company looking to build its own premise or commercial property, first, you need to think about where you will perform this project. Acquiring an already built property isn’t the same as looking for land, which applies to the credit you will need as well: commercial land loans.
Commercial loans have a different way to work compared to residential ones. The first difference is not the purpose but rather the amount of money you need to carry out your project and make sure it doesn’t affect your finances as a business. The second one is the purpose of the loan.
Overall, both residential and commercial credits focus on acquiring a new property—leaving aside for what it will be—, but this can be achieved in different ways. You can either choose to build it or acquire a new one that doesn’t require any work or maybe just a few renovations for it to meet all the requirements you have in mind. And here’s when things get a bit more complicated: you don’t use the same loan for building a property as for buying an existing one.
If you are aiming to build a new property for your business, you will need to worry about paying for labor and materials while going for the acquisition of one means the required funds to pay for it. Following the fact of the construction, you need to consider how much you need to spend on land, or if you are just looking for it and you’re not interested in building the property. Just as you need a different credit for commercial or residential property as well as construction or purchase purposes, you can decide to go for a commercial land loan in order to have space for your business.
This loan doesn’t follow the same principle of considering the materials and structure but rather just the condition of the land. But why would you, a business, want to acquire a loan to buy land? Because you probably have a large project that requires enough space to take place.
Acquiring land can be as expensive as buying a small commercial property, which means it isn’t a simple investment nor cheap. If this is your situation, you can rely on the loan and use your capital for saving purposes or invest it in order aspects.
At Commercial Real Estate Loan Pros of West Palm Beach, we can help you by providing accessible terms and conditions for you to access the loan you need. Unlike banks or similar lenders, we don’t work around a long list of requirements but rather just the essential ones. Such as your personal finances, commercial ones, and credit score.
If you don’t have a credit score or you are a new business trying to get land, we will keep in mind other aspects that adjust better to your situation.
What does a commercial land loan cover?
Unlike what most people believe, it isn’t about the acquisition of the land alone. When you apply for this type of credit in a bank or any other private lender, you are considering the expenses of purchasing the land but also preparing it for use. Like adding infrastructure or repairing and enhancing the existing one.
Therefore, you have to include how much you will spend in the entire project of buying the land but also preparing it for future use. Although most lenders do not provide the funds to cover all the costs, they do consider how much you will spend in total to give you an approximate amount and determine if it is worth what you’re planning to invest.
In the case of going for a commercial land loan and have our team as the lender, you need to think about the condition of the land and its features. Then, think about how much it will cost to repair or prepare it. Where there’s an already existing structure in the land that provides basic services or just a simple infrastructure, an evaluation will be required.
Our team at Commercial Real Estate Loan Pros of West Palm Beach will either approve or deny your credit based on the land more than the personal requirements we request. This actually makes it easier to have it approved since most lands and projects of this nature can be handled and are viable. Therefore, expect the credit to cover most of the expenses when purchasing the land and making sure it is ready for use.
Types of commercial land loans
Usually, you would go for the usual credit that consists of getting the total amount of the loan and repay it over the years with monthly payments. However, commercial land loans work with a similar process as construction credits: the lender provides the funds according to the stages of the project and you—the borrower—pays an interest rate until the project is finished.
Once it is over, you start to pay the real loan. Now, some lenders work with the traditional and usual method since most of the process involves purchasing the land and preparing it.
On the other hand, you can work around a hard-money loan which is a short-term credit that is common for properties and they are based on the value of the real estate. In the case of lands, the value of the land is what determines everything.
At Commercial Real Estate Loan Pros of West Palm Beach, we prefer to work with either a more traditional loan or go for the commercial construction loan system. With that said, our interest rates vary according to the type of loan, the amount you need, and how long it will take to pay.
We keep it basic, but we assure you that our rates are much lower and reasonable for any business looking to acquire its own land. Let us know if you have a preference for the type of loan you decide to acquire so we can work around your needs and what you would rather go for.
Or leave it to our experts to decide what the best option is for you.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: