COMMERCIAL REAL ESTATE LOAN
When the Banks Say No, Maven Financial Takes Care of Easy & Flexible Commercial Real Estate Loans in Florida.
Maven Financial is one of the most credible alternative financing companies that offer commercial real estate loans in Florida. We do our best to assist corporations and investors who own commercial real estate explore financial options and provide the best financial package that best suits their needs.
How Commercial Real Estate Loans work
A commercial real estate is any income-generating property like offices, retail, apartments, and hotels. Commercial real estate owners lease out space and basically earn through rent paid by businesses who operate in that property. The financing for this venture is made possible through commercial real estate loans.
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Commercial real estate loans are a mortgage secured by a lien on any commercial property. These are usually offered to investors for the acquisition, development, and construction of these sites for the purpose of producing income.
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As compared to residential loans, commercial real estate loans are typically shorter but can be more expensive. It ranges from 5 years to 20 years and the amortization period is usually longer than the loan term. A downpayment can range from 20%- 50% of the purchase price.
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How it works is that a borrower makes a monthly payment for a certain number of years and the amount per month is determined based on the amortization period. It can be followed by a “balloon” payment that covers the remaining balance of the loan.
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In lending, certain points for evaluation are considered as the collateral of the property and the credibility of the entity is considered. It also takes into account financial ratios, three to five years of financial statements, and income tax returns.
Types of Commercial Real Estate Loans
Permanent Loans - This type of commercial real estate loan is repaid on incremental payments made over time usually at least five (5) years. It’s the first mortgage on a commercial property, has a fixed interest rate, and one that needs some amortization.
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SBA Loans - There are different kinds of Small Business Administration or SBA loans and each kind would cater to different types of borrowers. It is written by non -traditional and traditional lenders guaranteed by the SBA. To qualify, you must have a strong credit score. This can be used for startups, equipment purchases, expansion, or working capital.
Bridge Loans - This is a short-term first mortgage loan that usually runs from a term of six months to three years. Bridge loans are an option for borrowers who are waiting for long-term financing.