November 10, 2021
Purchasing a commercial building requires investing your time and financial resources. However, most people don’t have enough expendable cash to pay for a property upfront. Fortunately, commercial real estate loans offer a financial solution.
If you are looking to invest in commercial real estate, Rakow Commercial Realty Group can help. Here we have created a guide designed to help you learn more about obtaining a commercial real estate loan.
As you prepare to secure a commercial real estate loan, you should first evaluate your current financial circumstances. A lender will require detailed information about both your personal and business finances. When it comes to personal finances, a commercial real estate lender will run a credit score check and verify that you do not have any existing tax liens, defaults on previous loans, or foreclosures on your record. When it comes to business finances, lenders need to evaluate your current debt-to-income ratio as well as check your business credit score.
When completing your commercial real estate loan application, provide your lender details about the property you intend to purchase. Some factors that the lender will need to consider are:
It’s worth noting that most commercial real estate loans require applicants to be an owner-occupant. This means that your business will need to occupy at least 51% of the building to purchase it. You should make sure that the property you intend to purchase will work for your own business needs and act as a viable investment to attract other business owners to lease space.
There are various types of lenders available that offer commercial real estate loans. You should consider the differences between them and select a lender that will meet your needs and circumstances.
The most common commercial real estate lenders include:
Once you have selected a lender, you should proceed with filling out the application. To increase your chances of approval, you will want to offer a large down payment or ask someone (a friend, family member, or colleague) to co-sign your application. This gives the lender more confidence in your ability to pay back the entirety of the loan on time.
By following these simple steps and our tips for gaining approval, you will be on your way to commercial real estate ownership in no time. For more information on how to become involved in commercial real estate investments, contact RakowGroup today.
November 11, 2021
Before you list your commercial building for sale and begin to accept offers, you need to make some preparations. The process of selling a commercial building is a bit different than selling residential real estate. Because of this, it’s important to understand how the process works and what you can do to successfully sell your […]
November 2, 2021
If you are in the market for a new commercial property, then you are likely considering a wide range of criteria for your next purchase. Not only do you need to consider the location and size of a commercial building, but you will also need to focus on the price point. Although there are […]
July 2, 2021
Did you find the perfect commercial retail space? Then the next step is to negotiate the lease. Read on to learn everything you need to know about negotiating a commercial lease for retail space: Familiarize Yourself With Commercial Lease Types The type of commercial lease you have will determine exactly what your monthly […]
© 2019 Rakow Commercial Realty Group | 10 New King Street - Suite 212 White Plains, NY 10604 Phone: (914) 758-0220 Ext 13 | 6 Landmark Square - 4th Floor Stamford, CT 06901 Phone: (203) 769-9940 Ext 13 | 50 Tice Blvd Suite# 340 - Woodcliff Lake, NJ 07677 Phone: (914) 422-0102
Digital Solutions by Zero Gravity Marketing