There are a lot of industry terms used when discussing finance.
At capital Direct Funding, we strive to simplify the process for you and help you understand the different types of loans and how they work.
Choose from the list below and follow the link to read more about each type of loan. If you need help, Call us at 1-877-273-7823
- Conventional Business Lending
- Commercial Stated Income Loan Programs
- Mezzanine Financing
- International Commercial Lending
- Corporate Business Lending
- 1031 Exchange
- Full Documentation Lending
- Commercial Cash Out Refinance Lending
- Commercial Business Loans
- Hard Money Commercial Lending
- Fixed Rate Commercial Mortgage Lending
- Commercial Construction and Development Lending
- Land Acquisition and Development Lending
- Commercial Equity Lending
- Commercial Renovations and Construction Lending
- Private Funding Programs for Joint Ventures
- Green Energy Lending
- Foreign National Lending Programs
- Cross Collateralization Lending
- Distressed Commercial Lending
- Commercial Bridge Lending
- Land Development Lending
- Office Building Finance
The lender has a lot of things to consider before giving you the commercial real estate loan that you want, so they all have specific requirements that you have to follow during the loan process, especially if you need quick approval.
Each type of commercial loan has its’ own requirements. If you would like to review the different types of commercial real estate loans before proceeding, click here.
There is some documentation you need to provide the lender during the application process, so before you apply for a commercial real estate loan, make sure you have all of these available.
At Capital Direct Funding Hard Money for example;
Documents Needed to Fund Your Loan
Each funding scenario is different and will require different documentation. To help you prepare, Capital Funding Hard Money has developed a list of items most common to the commercial real estate funding process:
- Completed loan application with borrower name – an individual, corporation or group.
- Title of signor with address, phone number
- Stated income, asset liabilities, schedule of assets
- Down payment and source of funds
- Personal guarantee (if applicable)
- Seller carry-back information (if applicable)
- Address and legal description of subject property
- Other collateral or cross-collateral – with legal description/address
If you need help gathering all the documentation for a specific type of commercial loan you are seeking, feel free to call us for help at 1-877-273-7823. we will be happy to guide you through the process. When you are ready to apply for your commercial loan, you can do that online by clicking here.
When developing your real estate investment strategy, you must formulate a clear picture of the types of commercial properties that you will pursue. It’s important to carefully consider all your options, because investing in the wrong type can end up costing you more than you intended to pay. This article discusses some ideas and provides commercial real estate advice, to help you make the best choices.
If you are viewing more than one property, you may wish to create a checklist for each site. Accept the proposal responses during the first round, but before going further, notify all the property owners involved. Don’t hesitate to let it be known that you are entertaining other options. You might walk away with more money in your pocket.
When choosing between two similar commercial properties, think large scale. It’s just as difficult to obtain adequate financing for a 10 unit apartment complex as it is for a 20 unit building. However, buying several units will cause the price of an individual unit to decrease.
Choose simple, strongly constructed buildings if your plan is to purchase real estate for the sole purpose of renting or leasing it. Tenants are more likely to move in when they know the property is well taken care of. They are also easier to keep in good repair and require less repairs, which will save you and your tenants money over time.
The commercial space you want to rent may need some changes before you can move in. It could be something simple, such as paining walls, rearranging appliances or furniture or hanging things. However, in other cases, reconfiguration of the walls will be required. Negotiate in advance who pays for these improvements or try to get the landlord to pay for at least a portion of the costs.
Learn how to see through superficial perks or staging to recognize the real deal. Real estate experts are able to know a solid investment immediately. The secret to a good deal for experienced investors is to have a way out, meaning if they do not like the deal, they will walk away. Professional investors can spot any property damage as well as how much it would cost to fix the damage. They can also use a financial calculator to ensure their investment goals can be attained with the property.
One counterintuitive fact about the apartment market is that many experts recommend avoiding properties with fewer than ten units, as they are actually more of a pain to deal with than large complexes. Of course, every property is different, so you should rely more on your research to make the appropriate decision.
Let people know the exact amount of square footage available. A commercial property’s square footage can be measured two different ways. The first way is usable square footage which is the amount of square footage that can be used for business purposes. The other is total square feet which includes all square footage including square footage that cannot be currently used. Know how many square feet for both, so that you can can make the process run smoothly.
Learn all things from the firm you’re dealing with including how they measure results. Learn how they will determine how much space you will need, property selection criteria, negotiation methods and other details that will affect you at the end of the day. It is important to know these answers before you engage them to work for you.
When purchasing commercial real estate, always keep your goals in mind. Determine what you’re going to do with the property ahead of time. For example, decide whether you’re going to use the property for your own business or if you want to lease it to other business owners. Having specified objectives prior to seeking out a commercial property saves you time and labor, since foresight and vision narrow down your search.
Always have an inspector look over your commercial property before you put it out on the market. If there is anything wrong with your property, have it fixed right away.
Make sure that the advertisements for your commercial real estate reach both local and non-local audiences. A lot of people do not think that people from out of town will want to buy their commercial real estate. There are many investors who are interested in financing properties which are outside their area as long as they are a great deal.
As the article you have just read illustrates, success in the commercial real estate market is indeed possible with the right knowledge and assistance. Making money in the commercial real estate market is a combination of having the right info, having the right talent, and a nice helping of luck, as well. Remember that real estate is a risky activity and you will have to apply everything you learned to increase your chances of being successful.