So, the main difference is the purpose of the land. You will need to consult with your local council for all permitting needs for the property if subdividing or rezoning is necessary. This means that it won’t be used as your primary residence. When you are ready to start the process of initiating a commercial loan you need to reach out to your commercial property mortgage broker to find out what financing terms you could get depending on your business type and financial history.Ī commercial property loan is something that your commercial property mortgage broker can help you obtain when you are looking to acquire real estate or improve real estate for the purposes of a business. Most of it depends on the collateral or lack thereof for the initial loan. These are standard but there are areas with lots of room for negotiation. You will see different interest rates and different repayment terms. It could also be a new development, like subdividing your land to construct a design-build home to sell.Ĭommercial properties are dealt differently than your personal home and therefore the loan structures and commitments are different as well. It could be as simple as a bed and breakfast or a parking garage. Further, commercial property doesn’t need to be a large commercial business venture like a small retail mall or large big box retail chain. This may sound daunting, but you don’t need to be a mogul to be a commercial property investor. Commercial property loans are the main tool for the entrepreneur to fund a new venture.
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