Exceptional Commercial Lending with
Property loans are the bedrock of real estate financing, making it possible for businesses to turn their property aspirations into reality. Whether you’re a seasoned investor in commercial real estate, a prospective land developer, or simply seeking a new lot loan for your upstart business, understanding property loans is key.
Exploring Different Property Loan Types
- Construction Loans: Construction loans are designed to fund the building or renovation of commercial properties. They typically disburse funds in stages as the project progresses and can often be converted into long-term mortgages once the construction phase is completed.
- Investment Property Loans: Ideal for those looking to invest in income-generating properties such as rental apartments or commercial complexes. These loans vary in terms, interest rates, and eligibility criteria depending on your specific investment goals.
- Land Loans: Land loans are sought after by developers and investors for the purchase of undeveloped land or lots with future development in mind. The terms and interest rates of land loans depend on factors like location and the borrower’s financial profile.
Frequently Asked Questions
Yes, each loan will require a downpayment. The size of the downpayment is mostly determined by the type of loan you use (conventional commercial mortgage, hard money loan, etc).
Yes. Outside of the cost of construction and closing costs, other variable costs to consider include property taxes, utility connections, land development costs, ongoing maintenance expenses throughout the life of the building. Zoning and regulatory expenses may also need to be considered.
It depends. Renting a property allows for stronger flexibility, tax deductions, in lower up-front costs. However owning the properly allows for additional equity growth, stronger control of the building space, and potential rental income for others businesses looking to rent.