Thousands of businesses and individuals invest in commercial real estate each year. To secure a property for business purposes, a commercial real estate loan is used.

Why Invest in Commercial Real Estate? 

Certainly, there are many good reasons to invest in commercial real estate. As expected, the primary goal for most is to generate high income. There are plenty of good investment opportunities, with many more on the horizon. Additionally, there are tax benefits that come from depreciation and property management expenses. With 1031 exchanges, capital gains taxes can be avoided. Which is done by “exchanging” profits on the sale of a property when buying another business property. Above all, commercial real estate can make one’s investment portfolio more diverse and it is a success-proven investment approach. 

What Can Commercial Real Estate Loans Be Used For?

In other words, commercial real estate loans help investors finance the purchase or renovation of commercial properties. From office buildings, retail stores, shopping centers, hotels, apartment buildings, industrial and warehouse buildings, restaurants, and more. 

How to Qualify for a Commercial Real Estate Loan? 

Lenders will look at the following before providing a business loan to an investor: 

Business finances to determine that the investor has enough cash to repay the loan. 

Your business credit. This will assess the investor’s access to an interest rate, down payment, and payback period. 

Your personal finances, credit score, and financial history. 

The purchased properties characteristics. If the property will be owner-occupied, it qualifies for a commercial real estate loan. If not occupied, it can qualify for an investment property loan. 

Where to Get a Commercial Real Estate Loan? 

The lending sources include most banks. SBA-backed lenders, non-bank commercial lenders, private hard-money lenders, conduit lenders, and crowdfunding platforms. It is important to compare interest rates and terms to determine which is best. 

Seek Expert Financing Assistance 

Contact Means Commercial Capital to learn more about our business and commercial loans. Here to ensure you have the capital to achieve your investment goals.