Straight forward business loans to fuel your business real estate purchasing needs. Do you need funds for purchasing, renovating, investing, or planning for new construction? We can help.
Business Real Estate Loans
Purchasing Power.
Details
We’re in the business of helping you grow your business.
As a business owner, your top priority is to grow your business. Purchasing real estate, renovating a property you already own, or refinancing real estate debt can be a great way to do that. If you’re considering a business real estate loan, here’s a few things to consider before you apply.
How Commercial Real Estate Loans work:
Commercial real estate loans are designed to help businesses purchase or renovate income-producing properties or refinance real estate debt on a property you already own. They’re mortgage loans secured by liens on the commercial real estate you’re purchasing, instead of on residential property.
When you take out a commercial real estate loan, you should expect to have a lien put on your business property. You should also be prepared to make a down payment on your commercial real estate loan. We’ll typically require a down payment between 20-30% of the property purchase price.
The Application Process:
Commercial mortgages tend to have a more rigorous underwriting process than residential loans do. With commercial real estate loans, having a clear and detailed business plan is helpful. We’ll look at your financial information and carefully consider the property you intend to buy and your plans for using it.
Depending on the size of the commercial loan, you’ll also need to provide documentation on your personal and business financial strength. Be prepared to submit 3 to 5 years of financial documents, like your asset statements, tax returns, corporate accounting reports, and any other relevant information. You’ll also need to provide your personal financial statement and we will review your personal credit history.
OWNER OCCUPIED VS. INVESTMENT PROPERTY
Owner Occupied
A Permanent Home for Your Business
Are you looking for a new place to locate your business? Or, are you considering the purchase of the building your business currently occupies? An owner-occupied commercial real estate loan can help secure financing for the acquisition of a building, the refinancing of an existing property, or for making improvements to your existing property.
What is an Owner-Occupied Loan?
It is a loan secured by property for which the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the party, or an affiliate of the party, who owns the property.
Types of Owner-Occupied Commercial Real Estate Loans
Conventional Loan
- Term loan up to 10 years with amortizations up to 20 years depending on the age and condition of the property
- 80% maximum loan to value
- Includes tenant improvements, purchase, and refinance of existing properties
SBA 504 Loan for Commercial Real Estate Acquisition
- Term loan up to 25 years for up to $11.25 million
- Includes tenant improvement and equipment funding
SBA 7a Loan for Commercial Real Estate Acquisition
- Term loan up to 25 years for up to $5 million
- Includes tenant improvement, equipment funding, and working capital funding
Investment Real Estate
Finance an Investment Property
There are many reasons to invest in real estate. There are also many perks associated with owning an investment property. Becoming a landlord may be a smart way to generate a steady passive income stream, but it does take some cash to get started. We will typically require a down payment between 20-30% of property purchase price.
What is an Investment Loan?
It is a loan secured by property where the primary source of repayment is derived from rental income associated with the property or the proceeds of the sale, refinancing, or permanent financing of the property.
Conventional Investment Loan
- Term loan up to 10 years with amortizations up to 20 years depending on the age, condition of the property, and term of the leases
- 80% maximum loan to value
- Includes tenant improvements, purchase, and refinance of existing properties