Some Specialize In Office Real Estate

Category: Finance, Real Estate.

If you are looking for a commercial property loan, and it is your first time getting commercial real estate financing, you are in for some big surprises. One of the biggest differences is that you have to do more to convince the lender that this is a good deal for them.

This is a whole different deal from borrowing to buy a home. Commercial real estate financiers are going to be looking hard at what you can offer them as a borrower. Since dealing with lenders is more complicated with commercial real estate, let s have a look at who might be lending you the money. They may ask lots of specific questions about the nature of your business, your plans for the money, and other things that may not seem to be related to the matter at hand. Lenders for commercial real estate financing include banks, savings and loans institutions, mortgage brokerage firms, insurance companies and private lenders. Of course there is no single fit for every situation, and any of the above could offer you a great deal with good interest rates. Which kind of lender is best?

What you should really be worried about is the loan officer, more than the actual lending institution. When choosing a loan officer, look for someone with good experience. It is the loan officer s work that will ultimately make the lending process either go smoothly or not. The best place to find an experienced professional is through your realtor. There are also certain lenders who specialize in specific business types. They will usually have one they have used in the past, whose work they have always been happy with. For example, some specialize in financing warehouses.

This can be a great advantage. Some specialize in office real estate. With commercial real estate financing, lenders want to know everything they can about the place you are buying or refinancing. The income the property has been making. So that you won t be surprised at some of the questions, some typical ones follow. They will want to see income statements and expense statements. They ll want to know about the owners of the property.

This might be the# 1 consideration, more even than your income. You ll have to provide financial statements for all the people who own the business. Because they are concerned with a return on their investment, they want to know that the business will be run by competent, experienced managers. You may have to provide information about the managers or whoever will be running the place. They will definitely check the borrower s credit history. The lender will want to know how much the property is worth, according to an official appraisal.

This will be a less important factor than the financial history of the property, but it can still be a deciding factor in whether or not you get the loan. You should tell them about any plans you have for building or changing the property in any way. When dealing with lenders, always remember that risk is the# 1 consideration for them. For example, if you plan to do any construction, they will want to know that. While you re building or improving your business, and you re thinking about all the great things coming your way, all they are thinking about is the possibility of failure. You can find commercial real estate financing, just look for a good loan officer, and be prepared to provide whatever information they request from you. To them, it s just a matter of whether they will get the money back or not.

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