What are the purposes that you could use a commercial mortgage for? Well there are many ways to utilize a commercial mortgage when seeking commercial property for sale is to finance those commercial real estate properties. There are several different types of commercial property financing programs. So let’s take a few moments to see what types of property qualify for a commercial mortgage loan. However not all commercial real estate investments are created equal. The risk for for each type needs to be taken into consideration. Various banks and financial institutions have different appetites for risk factors. While one lender may offer some program for a certain type of property, the other may not. Feel free to contact us and speak with one of our lending partners to discover what program will best fit your needs.
As of the time of this writing (2018), apartment buildings a an amazing investment opportunity. Actually I see this as always being a great investment as people will always need a place to live. Apartment buildings and complexes serve as an amazing form of securitization for a commercial mortgage loan. If you want an investment that builds equity over time and produces monthly cash flow, then this should be taken into consideration. Especially if a property has a high occupancy rate and is well managed.
Health Care Facility Loans
If you plan on investing and financing health care facilities, then a commercial mortgage loan can assist you with that. There are 2 distinctive advantages to this type of real estate investment. The first advantage is that you will be entering a traditional type of business that also contains an ever growing base of patients. Secondly when investing into health care facilities, it will appreciate in value over time which results into a long term positive equity build. The lenders we have relationships with are experienced and can make the process for getting this type of loan easy for you.
Industrial Property Loans
While the industrial property space may not be alluring or exciting, these types of property can certainly be valuable. There are lending programs out there for this type of investment. There is always a need for industrial properties and because these are a good investment loan programs will always be available.
If you are operating a manufacturing facility or even lease your current space running that type of business then a Manufacturing facility commercial mortgage will fill that need. Some facilities use this type of loan to expand as they are in need of more space for their current operations.
In order for a business, that houses inventory, to expand and grow their revenues should then consider getting a warehouse loan. This will work well for those businesses that lack sufficient space available and want to get to the next level. Commercial lenders have a loan program referred to as a finance warehouse expansion loan. This is perfect for those that need a bigger warehouse space to store inventory and are ready to expand.
Retail Building Structures
For those retailers who certainly want to grow their business, boost their accessibility and build new stores should consider a commercial mortgage loan for retail property.
Office Building Loans
A commercial mortgage property loan is what is used to finance this type of building. I have noticed in my dealings with commercial real estate agents and even tenants that occupancy rates are better in office buildings that in retail spaces. For a savvy investor, this could be a better investment option.
So as you can see in this post that investing into commercial real estate may be a good idea. Keep in mind that it is usually the income of the property that is looked at for loan qualification and not necessarily the borrower. If you are thinking about doing something like this then talk to one of our preferred lenders. These guys have been around a long time and understand the underwriting process for qualification for all commercial property types.
These days I am seeing loan processing times from when the ink hits the loan application (1003) to funding at closing taking 30 to 60 days on average. In some cases for bigger deals it could be even longer, depending on the underwriting requirements and how quickly a borrower responds for requested items.
A lender will be able to provide you with loan details, rates for commercial mortgages, and other important details that you should know about. Many lenders and commercial mortgage brokers belong to commercial lending associations as to be a part of an important community. As well as to maintain education standards and to provide information on news within the industry.