What You Need to Know about Commercial Real Estate Loans
When starting a business, it is always very important to ensure that you’re doing everything right for example, getting your own premises. There are very many small businesses that have been recorded since, statistics show that there are 28 million businesses and that the number of these businesses has continued to grow. For you to secure that kind of business that is going to be of benefit to you, you always need to ensure that these are commercial premises that you have money for. Many of the individuals that are interested in opening businesses usually prefer to get loans. If you are able to qualify for a loan that is going to allow you to get to those commercial premises where you are going to start your business, you will be up and running in a very short time and this is good for you. There are several types of commercial real estate loans that you are able to get order to qualify for but, understanding which one is good for you can be difficult. By reading this article, it would be possible for you to understand how to get the loans that are good for you.
One of the options that you can be able to use in order to get the financing will be the traditional commercial mortgage that is usually the same as your house mortgage. this kind of mortgage has a number of very interesting qualifications and that’s why, many people would prefer to use this kind. Lending institutions are the ones that usually provide these loans or, even banks. One of the interesting things about these loans is that they do not have a maximum limits when it comes to the amount of money you can qualify for. According to the rules that are going to be given, the person who is going to buy the property must lay down a 15% down payment from their own money. 85% of the property value is the maximum amount of money that can be paid by the banks or lending institutions that will be willing to help you. The duration through which you can be able to get the loan will be about 5 to 20 years and they usually have very low interest rates such that you can pay them.
One of the other types of loans that you could be able to get from the institutions is now known as the multifamily loan that involves the parties that have several units. Other types of loans that are available include the hard money loans and also joint venture loans.