The Types of Commercial Real Estate Loans That You Can Get
When starting a business, it is always very important to ensure that you’re doing everything right for example, getting your own premises. There are very many small businesses that have been recorded since, statistics show that there are 28 million businesses and that the number of these businesses has continued to grow. For you to get the premises that you’re interested in, you are need to think about the amount of money that you will need to raise. Getting a loan that is going to allow you to get those premises will be very important and it’s the option that many people consider. If you are able to qualify for a loan that is going to allow you to get to those commercial premises where you are going to start your business, you will be up and running in a very short time and this is good for you. You may find it to be very difficult to qualify for some of the loans that you’re interested in because you do not have enough information, this is a problem that many people face. By reading this article, it would be possible for you to understand how to get the loans that are good for you.
If you’re interested in refinancing, it is possible to get a traditional commercial mortgage that has the same properties as the house mortgage. this is a method that has been used by people for quite a while and it has a number of unique qualities. For you to get these kinds of loans, you need to get them from banks or other kinds of lending institutions. One of the interesting things about these loans is that they do not have a maximum limits when it comes to the amount of money you can qualify for. For the lending institutions to help you to pay for the property, you have to use for your money to pay 15% of the down payment. 85% of the property value is the maximum amount of money that can be paid by the banks or lending institutions that will be willing to help you. The duration through which you can be able to get the loan will be about 5 to 20 years and they usually have very low interest rates such that you can pay them.
Another kind of loan that is available for you is another multifamily loan and this is a loan that is going to be taken when you want to buy a property that has several units. Other types of loans that are available include the hard money loans and also joint venture loans.