Free Articles, Free Web Content, Reprint Articles
Monday, May 20, 2019
 
Free Articles, Free Web Content, Reprint ArticlesRegisterAll CategoriesTop AuthorsSubmit Article (Article Submission)ContactSubscribe Free Articles, Free Web Content, Reprint Articles
 

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.

Obtaining Bank Loans:
It is preferable to deal with small, rather than large, banks. Big banks have more money, but not necessarily for you. Also, itís easier to get lost in a big bank, because those employees may get promoted to a different location or a different department suddenly, your contact may no longer be there when you need them most, like in the middle of a deal.


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.


Here is another source for financing commercial real estate deals you may not have considered before.

Finance Company Loans:
Finance companies are capable of doing things that conventional banks can not do due to government regulations or the internal workings of the institution itself. The first thing a person thinks of when this type of company is mentioned, is usually Household Finance or Family Finance. And while these are certainly finance companies, they arenít the ones you need to be contacting. The types of finance companies you want to contact are the ones with vast real estate financial dealings. Below are three of the larger companies that do this type of business, but you could certainly find others with all of the resources available to us today to locate information.


Some Finance Company Suggestions:
ē GE Capital
ē Westinghouse
ē Ford Credit


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.

Source: Free Articles from ArticlesFactory.com

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.



Health
Business
Finance
Travel
Technology
Home Repair
Computers
Marketing
Autos
Family
Entertainment
Law
Education
Communication
Other
Sports
ECommerce
Home Business
Self Help
Internet
Partners


Page loaded in 0.885 seconds