Saturday, April 28, 2012

Commercial Real Estate Lender

If you have a commercial property you would like to acquire, you will need the help of a commercial real estate lender. A commercial real estate lender will offer you the money you need to expand your business property. There are several things the lenders will consider when they are considering you for a loan. The loan rates they will provide you with are based on the duration of the loan along with the amount of financing you are seeking.

To help you find a good commercial real estate lender, it helps to hire a mortgage broker. A mortgage broker will provide you with several lending options to consider. Having someone else do all the searching for you is the best option as you only need to compare the loan terms and rates to decide which one is the best for your needs. The nice thing about a commercial real estate broker is that they often have ins with some of the lenders so they can offer you the money you need at a better rate than you can acquire on your own.

Your corporate credit will be looked at when the lender is trying to determine if you are worthy of the loan. They need to check and see if you can afford to take on more debt and if you can repay it in a timely manner. Here are some of the other things they will ask you for:

1. Cash flow statements and financial records. The lender needs to make sure you have the money available for the commercial real estate loan. They will ask to see your monthly sales average along with future cash flow projections that will give them some insight into how your company is being run and if you are going to make enough money for the loan.

2. Down payment. Most lenders will ask for a 20 percent down payment on a commercial real estate loan. This reduces their risk burden and helps to provide them with security that you will pay back the money you have acquired from them.

3. Negotiate the fees and charges. There are a lot of lenders that try to hide the fees and charges that you will need to pay with their loans. Always discuss and inquire on this before you acquire the loan or you will struggle to repay the loan in a timely manner for a cost that is affordable.

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