By chris
Acquiring commercial property is different from buying a residential home. When you’re preparing to buy a warehouse, office space, a retail center, or some other commercial property, you’ll need to decide how to finance that purchase. Some investors pay in cash, but the purchase price is often too high for a lot of cash offers. You’ll need a lender who specializes in commercial real estate loans. The process of applying is not dissimilar to the process you go through when applying for a mortgage to fund your home. However, expect higher standards and additional required information.
You’ll have to demonstrate that you’re a good credit risk. Make sure you know where you stand financially. Commercial lenders will not want to approve a loan if you have a history of bankruptcies and foreclosures. You’ll also need documentation that your income is enough that you can cover the loan payments. Work with a lender or broker you trust.
