90 LTC now available for construction loans – rolling closing costs – terms up to 20 years.
We are expanding the services we that offer for commercial real estate development projects that being new commercial construction loans. We are able to offer financing to commercial real estate developers with loan amounts as much as you need. We have a relationship with a lender that a 90 LTC loan to cost in addition to some other items not available anywhere else.
Since I had a little free time on my hands to day I’d thought I would make a post about developing commercial real estate. This industry can be challenging as there are many aspects that one should have an understanding that you are dealing with a significant financial investment. So being aware of requirements that tenants may have, project management and knowledge of zoning laws are required, just to name a few.
Developing commercial real estate is a challenging business endeavor that requires not only a significant financial investment, but also a sound understanding of commercial tenant’s requirements, as well as zoning laws and project management.
In commercial real estate everything is negotiated. So having good negotiation and communication skills are necessary because you will be dealing with real estate agents, developers, architectural designs companies, contractors and many other entities. We generally speak with real estate investors and developers who seek construction loans for CRE or commercial mortgages for their development project.
Getting involved with the development of commercial real estate can be a rewarding career for entrepreneurs that may have a skill set and resources to be successful as this career is very rewarding and lucrative. Below are some tips on how to get started in developing commercial real estate.
You should have an idea of the type of commercial real estate that you would like to develop.
The business types that purchase or lease property will have their own criteria for a subject property. So by being able to offer trustworthy contractors, great locations to develop and even property management service are things your client may want to know about.
Here is a list of the most common types of commercial property developments.
Office buildings, multi family, assisted living centers, office parks, medical buildings, industrial and warehouse real estate, hospitals, retail centers and storage facilities just to name a few.
So as you look at all the categories of potential developments, some may be more or less appealing depending on the investor’s appetite. When you contact us we can provide more information about commercial construction loan rates.
Have a Good Plan
Before you get involved with any type of deals for a property to be developed, do some careful planning ahead of time. To improve your chances of success, doing proper planning from the beginning will certainly help. So before purchasing commercial property do some research on it before hand. I would even go has far as inquiring with local people about problems or accessibility of the area that you should know about.
Get financing to develop commercial real estate
There are many ways and there is no shortage of banks, commercial mortgage brokers, private investors or investment companies who would like to finance commercial real estate. However expect an average LTC of 60 to 70.
Here at Commvestor Funding we can do much better than that and our commercial construction loans can be 90 LTC in addition to some other benefits to get a deal done while saving the investor / developer money. Contact us if you are a developer and want to know more about it.
Selecting locations zoned for commercial development
For zoning requirements you will need to check in with your city’s or the city that the property is located in, zoning and planning division. Check to see if your future subject property has easy access for traffic that can be received for this development project.
When you start to create a development for a commercial property, the following should also be considered. Are there any new streets or highways planned? Any other nearby development projects planned as well? So having a new road will allow for more traffic and ease of access which will be beneficial for the property. Also look at any plans for the demolishing of any current properties where residences or parks may be built near by as this could negatively affect your commercial development.
Your property will need to be surveyed by a reputable company. This is because you will want to know about the geographic particulars of where the subject property is located that may affect the construction. This could be something like are there structures below the top soil or understanding the ground quality.
Zoning and Permits
Depending on the type of construction a developer wants to do and the location of the project, zoning will have to be looked at to see if it is allowed. When beginning a project permits for developing will be required from the city. Some of these permits can be for waste removal, construction and maybe even parking.
When a developer knows what they want to be built then it will be time to hire an architect to design what they want constructed. Explain in detail what the project will be as well as building requirements, time and budget.
Once a developer is satisfied with the plans that are laid out, they can be approved.
Contractors will be needed to do the construction and landscaping. Have the contractors provide weekly progress reports. They should also be in communication with the architect overseeing the project.
Once the structure is built and the grounds are completed it will be time for an inspector to come out to the site and look at it. The city has inspectors that will do this and will determine if the commercial property is up to code and complies with local building requirements.
What is the goal of this commercial real estate development project? Hire a commercial real estate agent with experience to help you lease space. When it comes for financing this these types of properties please be sure to contact us about a commercial construction loan that I believe you will want to know about.
Commercial Property Developers and Commercial Real Estate Acquisition…