Commercial Refinance Buy a Business Property
If you haven’t planสล็อตเว็บตรง to sell your current commercial property, you should buy a business property. Today, more and more business borrowers are taking advantage of options that allow them to refinance their commercial properties with terms that are strong and fair. Commercial Refinance allows many borrowers to get “unbeatable” deal on commercial real estate financing, while using their current commercial property as collateral.
Most commercial loans have terms that cause the borrower lose the opportunity to take advantage of the best available market in business real estate financing and that is typically the current depressed market. More and more business borrowers are realising that now is the best time to buy commercial real estate at rates that may not be seen again for many years.
I have seen every commercial property (one unit and four into businesses) that I have handled over the years and I have seen times when a few lenders will offer the lowest available rates in a 13 month, 14, 15, 20, 21 or 22 year amortization period. However, what some borrowers fail to realise, is that theabolic interest rateandonducting the loan on a cash balanced basis is critical that they do not delay paying the loan off too long. Because of this, when interest rates go up, their loan balance will not only be affected by interest rate but also by the value of their existing commercial real estate debt.
One common saying that I hear from business owners is: “I would have been better off had I taken out a 10 year commercial loan when interest rates were 6.5%. ” These owners need to understand that their “best” deal on their commercial loan could be affected by their commercial loans having slightly more than 6.5% interest and adjustment factor and their ability to get thatUnfortunately, in many cases, even though the rates have come down, many commercial loan recipientsin the future will not have theused loan to achieve the “best” possible deal in commercial real estate financing.
One of the reasons for borrowing for commercial property is for expansion of an existing business or for the purchase of a new business. Whatever the reason, the key to doing this is to ensure that you have the right financial terms so that you don’t overpay. Because of these fluctuations in real estate markets (in some cases where borrowers have beenRegularly repaying their loans, interest rates can go down to below 5%, with other rates at about 3%) borrowers need to review their commercial loan from time to time. We are seeing a lot of lenders offering “low credit, no documentation” and “no documentation” commercial loans. We are also seeing high net-worth individuals using their commercial property as a tax-free wealthategy, which can also generate substantial tax-free profits for the owner(s).
A commercial loan can be challenging, but a smart commercial loan review will effectively offset the challenges from the very beginning. From the due diligence process through lender qualification, planning and timing, the borrower should have an “edge”, a “Plan B” or a “Plan C scenario”. In most cases these are exactly the same solutions that can be applied quickly with the features, terms and structure similar to a traditional commercial loan. In short, consider a commercial loan review as part of your commercial loan strategy.