If you are looking for a mortgage loan or other kind of financing for your company, then you need to resort to commercial loans for real estate. In fact, solvent companies opt for these loans to purchase commercial properties or for commercial enterprises. Commercial real estate’s ranges from hotels, housing development, condominiums to some of the retail sales buildings like shopping center's and malls. Additionally, you can also get commercial loans on warehouse, storage, and manufacturing facilities, hospitals and medical facilities; restaurants, recreation parks, and raw land. A commercial loan for real estate is a boon to those planning to purchase or renovate a property; this deal is ideal for them. Here, we will discuss the important aspects and types of a commercial loan for real estate.

Commercial Loans for Real Estate

Important Facts about Commercial Loans for Real Estate:

• If you have your own company and want to buy a property, then you can take a mortgage
• In order to opt for the commercial loan for real estate, you need to mortgage your own property where you reside
•  If your mortgage property is a joint property having co-owners, it is preferred to opt for investment property loan instead
• This loan is the best choice for purchasing or renovating properties like office buildings, retail or shopping centres, apartment buildings, hotels, restaurants, or industrial buildings
• However, the terms and loan rates can vary widely. So, it is important to check the rates before applying for the loan
• Most importantly the down payments on properties stretch from 10% to 50%, and sometimes even more
• The repayment terms can also range from 5 years to the least, to 25 years maximum
• The interest rates can be fixed or varies; it is vital to enquire about the rates before planning for this commercial loan

Different Categories of Commercial Loans for Real Estate:

• Ordinary Commercial Estate Loans: It is similar to residential mortgage financing, and popularly known as permanent loans. Whenever you are availing for a residential mortgage loan to buy your desired property, you need to give loan collateral.  This is a similar situation with commercial loans too. You can opt for commercial loans easily with this type if you can give some collateral in the form of equipment, inventory, any other property the company possesses or the most secured collateral is your deposit account.

• Seller-Financed Loans: The second type of commercial loan is seller-financed loans, where the person looking for finance to buy commercial property can directly get from the seller. This is more convenient than getting a loan from conventional commercial banks as the rate of interest is comparatively low and more flexible. This mode of loans is ideal for the purchase of income-producing properties, for example, any apartment or when a company purchases a property from an individual, not from any another organization.

• Bridge Loans: If you intend for a short-term commercial real estate loan, then this is the best bid. Usually, bridge loans stretch in between six months to two years. The perks of this loan are that the buyer expects to sell the property within the stipulated time, or they expect you can boost your credit rating. Commercial developers mostly opt for these loans to purchase property to sell it to another party.

• Hard Money Loans: Some private investors or private lending companies offer commercial loans. You can get loans from a commercial bank, credit union, or traditional lenders to deal with any financial trouble you might have. However, it is a bit difficult to get a loan from conventional banks because of endless formalities. So, hard loans can come to your rescue to handle for your immediate need for cash flow or debt service. These loans last for a year.

Commercial Loans for Real Estate

Conclusion

Finally, these are the various commercial real estate loans available for you to opt from. Hen it comes yo choosing the right type of loan, then you must emphasize on choosing the one which comes at the best rate and also calculates other charges. You can also seek the assistance of a mortgage broker who will help you assess the right type of loan. Choose the commercial loan as per your need on a long or short term basis.