Shopping for a Commercial Real Estate Loan?
Shopping for a Commercial Real Estate Loan?
Commercial Real Estate (CRE) loans open the doors for small businesses to procure offices, warehouses, retail spaces, and more without having to manage the substantial upfront cost of a new property.
Loan Overview
CRE loans help your business do business, whether you’re housing your staff or tenants. Properties big and small can qualify for CRE financing with affordable rates and favorable terms.
Buying commercial property is an investment in your business’s future. It can be a short-term investment that helps you generate revenue or a long-term investment that builds equity.
Hotels, motels, multi-family housing, offices, and retail centers are considered income-generating properties that bring in revenue from tenants month after month. Warehouses, offices, and special purpose facilities can be used for your business’s operations while building value you can leverage later on.
CRE loans typically have terms between 5 and 20 years, with a longer amortization period. That means lower monthly or quarterly payments with a balloon payment due at maturity. Loans are available from banks, private lenders, and the government with rates that vary by property size and use. When applying for a CRE loan, you’ll need to submit at least three years of financial statements and tax returns. Lenders also use your Debt Service Coverage Ratio (DSCR) and the Loan-to-Value (LTV) ratio when deciding on the loan. We can point you to the right lender and help you gather everything you need to make a successful application.
RETAIL
Why throw your profits away on rent when you can own retail space? With a retail CRE loan, you can build equity and have an asset you can leverage down the road. Free your business from restrictive leases, difficult landlords, and added expenses. Take the step into ownership today by talking with a qualified broker.
INDUSTRIAL
Industrial use properties like warehouses, manufacturing facilities, and commercial research laboratories can be hundreds of thousands of square feet. Real estate that size can come at a considerable cost. But CRE loans break down that cost into easily manageable payments so you don’t have to miss out on essential workspace.
OFFICE
Whether you want a class A space in a high-rise or a class C in a suburban office park, a CRE loan can help you get it. Find a home for your conferences, computing, and staff without dropping thousands or millions of dollars upfront. Use the equity you build to bolster your corporate plans for the future.
MULTI – FAMILY
Buildings meant to house four or more families are considered multi-family residential properties. With this type of CRE, you can expect to see regular monthly income from your tenants. This can not only offset the cost of your loan but build your bank account year after year. Find out how we can help today.
SPECIAL PURPOSE
ADVANTAGES
CRE Loans make commercial property affordable.
Gain tax incentives by getting a CRE Loan.
Timely loan payments boost credit scores.
Commercial properties earn more than residential.
DIS-ADVANTAGES
Typically more expensive than residential loans.
Higher down payments than residential loans.
Balloon payments may be difficult to manage.