Commercial Real Estate Loans
As a small, new business or even one that has been operating for a while, you must be worried about purchasing your own premises, which is usually impossible unless you obtain a commercial real estate loan. After all, if you want to invest in real estate either if it is a small or large property, you need to have enough capital for it, and this applies even more if you are interested in building a career around it.
Having enough money is basic for individuals and companies in this industry but obtaining it isn’t as simple as mentioning this fact.
In the case of businesses or companies, obtaining the required amount of money will either have to come from their own bank accounts or different sources that end up being part of their own income. It isn’t a bad option to start a business based on your capital, but having enough funds to invest in your own commercial property or to expand an existing one is ideal if you want to have enough resources for it.
On the other hand, it isn’t a good idea to continue this investment based on your income in the long-term. Instead, you should aim for loans that allow you to access more and with enough time to return them. This is when commercial loans come in handy and in the last 10 years ago, they became crucial for any business in order to acquire their own properties and save on rental expenses. To acquire them, banks, insurances, and pension funds were the most common sources, but the number of requirements and time it took for a loan to get either approved or denied was and continues to be too long for commercial real estate purposes.
As a result, businesses ended up going back to the first option: investing their own capital or money. In the real estate industry and for any company, time is more valuable than money itself since prices, aspects, and opportunities change or disappear in no time. Therefore, being able to acquire the loan in a shorter period of time and with good conditions in the process, is what you should aim for.
We at Commercial Real Estate Loan Pros of West Palm Beach can offer you the commercial real estate loans you need for your own property or to expand the one you already acquired.
Since the amount of money required for projects of such magnitude is larger, we understand your needs and rest assured the conditions around your application and the loan to be accepted will be created focused on your situation. We do have general requirements, but they are quite simple and we are confident everyone can meet them. However, extra conditions will be established based on your needs and the amount of the loan.
How to know if you need a commercial real estate loan
The first sign would be: you don’t have enough money for your own business property or the project you have in mind. If you aren’t familiar with this type of loan, we suggest you look at them as residential ones. When you apply for one for residential purposes, you are focused on using it to either purchase a property or renovate one as an investment to then, sell it again.
This is what real estate is about most of the time: you buy a property, renovate it, and put it to sale again. When it comes to the commercial aspect, the method isn’t too different but the purpose of the commercial loan differs a bit from the residential one. How? Although commercial real estate loans can be used in the same way, businesses that are looking for a self-investment in order to grow are the ones that request them the most.
Therefore, we can say they are good options and definitely crucial for real estate investors but also for businesses that are looking for capital to invest in their own projects. You definitely need one if you want to purchase a commercial property or need to invest in an existing one. Nothing more, nothing less. Just make sure to choose the right credit for your needs. Thinking about a commercial credit is quite generic since there are many options in the same group.
However, the amortization and payment periods vary according to your capabilities of repayment. You can either choose a loan that allows you to pay it over 5 years or less, or add more time for it. Credits are a great way to have the money you need for your projects, but keep in mind they can be difficult to control unless you have planned how you will repay them despite the future of your real estate investment. With all this clear, we can summarize it:
- If you want to purchase your own business property or premise, or aiming to renovate and expand one.
- You are capable of repaying the credit based on your company’s revenue or your personal income.
- You are looking for longer amortization periods that are longer than the term of the loan.
Common requirements to apply for a commercial real estate loan
Before, we mentioned the conditions and requirements will vary but also that there are a few generic ones. Most private lenders like us focus on how capable the company or real estate investor is when it comes to repaying the credit. However, we prefer to make our decisions of approving or not a loan based on other aspects.
Such as your goals and for what you will be using the credit—more like, in what property you will invest it. Of course, we also care about your financial history, asset and liabilities statements, tax returns, and your business-financial records—if there’s any. When reaching out to our team at Commercial Real Estate Loan Pros of West Palm Beach, keep in mind these requirements for your application, but don’t feel limited because of them.
You can reach out to us and have the opportunity to acquire the credit you need. We are compressive and understand your limits, which is why we have very accessible conditions that, as we mentioned, will be focused on your needs and business situations. Although the previous common requirements are mostly mandatory, we can work with you to find a middle option that is beneficial for us—the lender—, and you—the borrower.
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: