Own Your Workspace
When you lease business property, you could be subject to rent hikes every time your lease expires. In today’s economic climate, rental fees are becoming less and less affordable for small businesses. Make the switch to owning your business property and use your monthly payments to build equity instead.
Construction Loans
There’s no better way to ensure a property meets your needs than to build it yourself from the ground up. Construction loans make building real estate affordable. From the floorboards to the flashing, a construction loan has you covered. To discover the most experienced construction lenders in your area, speak with our professional brokers and get a great deal on your next project.
Construction loans aren’t like other real estate loans. Instead of paying out as a lump sum before the project begins, construction loan payouts are based on milestones. Once the first milestone is reached, the second round of funding gets released, and so on. If something goes wrong with the project, you’re only liable for the part of the loan that’s been released, not the full amount. Construction loans can also cover just the cost of renovations, so you don’t need a large project to qualify for financing.
Owner-Occupied Loans
Owner-Occupied properties are those that you plan to use for your own business operations. Unlike leased properties, owner-occupied real estate doesn’t rely on income from other businesses or tenants. While you can typically rent out some of the property to another company, some lenders require you to utilize a minimum of 51% of the available space.
The advantage of an owner-occupied loan is usually a lower interest rate than a standard CRE loan. Because you plan to occupy the space yourself, you represent a lower risk to lenders. Since they don’t need to compensate for that risk with a high interest rate, you can get a better deal on the loan. Ask us for more details on owner-occupied loans today.
If you’re not ready to invest in CRE just yet, try these alternatives:
Start Here
Construction Loans
Bridge Loans
Land Acquisition & Development Loans
Just like starting a business, building real estate requires a stable foundation. Before you can get started on your newest construction project, the land has to be ready. If you’re beginning with raw land, the cost of preparing for construction can be substantial. Land acquisition and development loans are the first step in getting construction underway. Prepare land, handle permitting, hire engineers, and install utility infrastructure all under the same loan from one of our network lenders.
Whether you’re looking to build a corner store or an entire subdivision, we’ll help you find a loan to cover it all. Our lenders are experienced professionals who can help you hire the right contractors and avoid scams. We’ll connect you with a lender who knows your neighborhood and offers the most competitive rates around. To learn more about land acquisition and development loans, speak with our brokers today.
Term to Perm
Real estate loans are a great way to finance property for your small business. But, traditional loans can take weeks or months to be approved and even longer to be funded. When you want to get started right away, ask us about term to perm loans. Term to perm loans give you the cash you need to get moving. Pay only interest during the life of the term loan. When the term expires, and the principal comes due, you can convert the loan to a perm loan and pay the principal down over time.
Instead of using one loan to construct property and another loan to fund the mortgage, you can roll both loans into one. The “permanent” portion of the loan lets you cover the cost of the building itself with a low interest rate. Although perm loans aren’t forever, you can finance for 12 months or longer at 100%. Find out if a term-to-perm loan is right for your business. Call us today.
Lending Overview
When you buy and hold real estate to use for your business, you need financing tailored to fit. Loan terms for owner-occupied properties can be very different from financing for other investment properties. Lenders view owners who plan to use the space for their own business as lower risk. This perspective means you can get a lower rate on a CRE loan when you occupy it yourself. Most lenders require you use only a portion of the building’s available space yourself, meaning you can lease the remainder out to other businesses.
The Process Is Simple
Step 1:
Know your credit score and debt to income ratio. Each lender should make it easy to find out their minimum requirements to be approved for a loan. If you don’t know if you qualify, we’ll help you find out.
Step 2:
Provide a detailed business plan and a complete construction plan. Most lenders want to see an exit strategy, a list of proposed contractors, and itemized material costs.
Step 3:
Talk to a professional broker who knows real estate financing in your area. We’ll help you find a lender with the terms and rates to match your goals.