Prospective clients with questions concerning their commercial real estate financing options can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com
One typical way for people to acquire business property is to procure a loan, also known as a mortgage. When they are going to be using the property for business functions, the loan will be a commercial mortgage. These types of loans can be used to buy a structure where specialists will operate the business. The other choice is to acquire a house or apartment building that will be leased to other people.
Options for Professionals
Some people may be able to obtain a mortgage with no money down. These people are generally professionals who will use the property to perform services for their clients. Instead of a down payment, these professionals can offer the lender an asset that will be collateral for these 100 percent loans. In these cases, the lenders are offering a secured loan that is less risky for them because they will be able to sell the asset offered as collateral if the borrower cannot make the payments on the loan.
Because there is no down payment required for these 100 percent mortgages, the interest rate will be higher, but these types of loans can be advantageous to those who have not started their businesses yet. These professionals may need to have cash to begin setting up their practices, and they will have the opportunity to do that with no money down.
Mortgages for Other Purposes
The other type of commercial mortgage requires that the property be placed as collateral for the loan. The terms of these loans will be different from the typical mortgage that can have a term as long as 30 years. With loans used to purchase commercial property, the term can be much shorter, a couple of days, or it can also be 30 years. The business owners will make monthly payments just like for their residential properties, but they will, most likely, have a balloon payment after a determined number of years.
For example, if the term for the loan is 10 years, the business owners will make monthly payments for this amount of time. At the end of the term, the full balance will be owed to the lender, called the balloon payment.
Qualifying for the Loan
Qualifying for these loans also is similar to obtaining a loan for a home because the business will need to have a credit check. Although a lower credit score will not necessarily disqualify a business from borrowing money, a higher credit score is preferable for lenders.
What is very important to lenders is how well the business is currently performing. If the business has been very profitable up until the present time, it will be easier for these business owners to receive the money they need to purchase their properties. The lenders may also require that business owners offer them a business plan that will demonstrate how their businesses are going to benefit from the purchase of the property. If the plan can show that business profits will increase, lenders can be secure that they will receive the money back that they lend to these business owners, an important factor in deciding whether or not to lend business owners money.
Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243
Winston Rowe & Associates has commercial real estate loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming
