Some Ideas For Financing Commercial Real Estate Deals
Financing commercial real estate deals can be a daunting task for many investors considering entering this realm of real estate investing. However, the information provided in this article should give you some ideas on how to proceed in securing the financing you most likely will need to do deals of this magnitude. Enjoy and happy investing.
Typically, you will need to secure a loan for financing commercial real estate deals due to the size of the deal and type of property. While this probably makes sense, what you may not consider is where to look for this financing. Most if not all investors would probably consider going to large banks because of their overall size and assets. But read on to see why this might not be your best option and where you should probably be looking instead.
A small bank that has their charter as a community bank is a better bet. A community bank is formed under what is called the Community Banking Act (CBA). It usually furnishes a certificate of need, just like a hospital would do to get into the community. Their certificate indicates the particular niche of the market on which they are focused. Also, one of the great benefits of a small bank is the loan approval process. They usually donít have to wait for a committee to meet to discuss your loan. They see each other every day and make decisions quickly, since there are only two or three persons on the loan committee.
And how about this for a twist you may not have considered before. When you find a local bank with whom you enjoy a thriving relationship, consider trying to make them your tenants. Imagine having the community bank that you use for most of your accounts being downstairs in the lobby of your building. You could go down when your representative is not busy, or even visit with one of the officers to see what they think about a particular deal youíre considering. Certainly, this would give you an edge over your competition if there is such a thing when dealing with banks. But surely it couldn't hurt to have such a relationship.
is another source for financing commercial real estate deals you may
not have considered before.
Finance Company Suggestions:
So in summary, I hope this provides you with some valuable information perhaps you had not considered prior. By opening your eyes to some additional resources for financing commercial real estate deals, it may be an area you will want to consider for your investing portfolio moving forward.
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ABOUT THE AUTHOR
One Deal to Financial Freedom? Gary Tharp invites you to get access to ask the real estate experts who are mentors to millionaires today! Attend the next free commercial real estate webinar with some of the nation's leading real estate experts: Real Deal Commercial Webinar
Gary is widely regarded in commercial real estate, having developed tools and systems of commercial property evaluation that have become industry standards used by professionals nationwide.Gary is a Florida Partner for the Lynxs Group, national developer of air cargo facilities, Fellow of the faculty of the CCIM Institute, and Board of Advisor with HIS Real Estate Network, commercial real estate buying group.