The focus of this commercial mortgage business loan article is on four commercial loan and commercial real estate investment property loan problems often ignored by borrowers and lenders.
Finalizing a Small Business Administration loan (SBA loan) and refinancing a small business loan can frequently be among the most difficult commercial mortgage and business finance circumstances for a business investment borrower. There are successful business financing and commercial real estate loan strategies for both commercial loan situations.
Commercial real estate and commercial real estate loans have a lot of “moving parts” and the approach that commercial lenders take is far different from those in residential lending. What is commercial mortgage planning? Which is the best loan? This way: “The best commercial mortgage is the one that best fits the commercial investor’s short and long term goals, risk tolerance, investment style and the investment at hand.”
For loan amounts up to $1.5MM on commercial properties, we can get the Loan-to-Value (LTV) as high as 90% in some cases regardless of the property's cash flow. So even if the borrower made an extra million dollars a year, traditional lenders wouldn't increase a commercial loan amount past their guidelines.
Business borrowers have more commercial mortgage and business loan alternatives than they realize. We can refer to these commercial loan alternatives as "Thinking Outside the Bank" because a typical commercial borrower probably believes that a bank is the best source for a commercial real estate loan and business financing.
Choosing a commercial mortgage is an important part of the process of purchasing commercial real estate. There are three types of mortgages to consider- the fixed rate loan, the adjustable rate loan and the convertible rate loan.
In terms of arranging the business financing, efforts to buy a business opportunity are almost always described by commercial borrowers as excessively confusing and difficult. When buying a business opportunity that does not include commercial property, borrowers should realize that commercial loan options will be significantly different when compared to a business purchase that can be acquired with a commercial real estate loan.
Are you facing the prospect of commercial property foreclosure? One of your best options is commercial loan restructuring. This could save your property but you have to know that the process can be very difficult.
By avoiding key commercial real estate loan mistakes, commercial borrowers will eliminate critical business finance problems and obtain better commercial mortgage terms. Doing so is easier said than done and is likely to require specialized investment strategies.
The availability of business finance funding has been generally decreasing during recent economic turmoil, and this situation is especially evident for construction financing and commercial mortgages. The commercial loan issues described in this article are applicable to construction loan financing for commercial property throughout the United States.
When Banks say, "NO" look to Commercial Loan Brokers for your business capital.
My home loan is at 6% and you are telling me that a lender wants over 10% for a land loan? The loan is made to the borrower, not the property. Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Not so, land.
What can your commercial mortgage broker do for you? If you have not ever met with your commercial mortgage broker now is a good time too. A commercial mortgage broker can offer you a wide variety of products and services - such as a commercial mortgage or a commercial bridge loan - to fit the needs of your company, whether you are rapidly growing or just chugging along slowly but surely.
This article will offer an overview of several serious but relatively unknown commercial loan and business financing problems. The difficulties apply to commercial real estate investment property loans, business cash advance situations and business opportunity financing.
Avoiding key business financing mistakes is not an easy task. However, by avoiding such mistakes, commercial borrowers will eliminate critical business finance problems and obtain better commercial loan terms.