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When looking for a commercial real estate loan lender, you have many options to choose from. The best lenders are those that strictly specialize in offering loans for commercial property. According to the National Association of Realtors, large structures that cost over $2.5 million sell more in the commercial sector. This indicates that the larger your property is and the higher the price tag, the better off you will be. Here are some important considerations to look for when finding a lender to finance your commercial real estate project.

The Type of Loan Offered

There are two types of commercial real estate loans. These include hard money loans and conventional loans.

Hard money loans are short-term loans that can range from one to three years. They are usually used for smaller projects like single-family homes or small apartment complexes.

Conventional loans are long-term loans that can last for up to ten years. This type of loan is typically used for medium-sized buildings such as office parks and shopping centers.

The best type of loan between these two options should be based on what you need. For example, if you buy an apartment, a hard money loan would make sense. But if you purchase a large building with multiple tenants, then a conventional loan would be ideal.

The Size of the Loan

The amount of loan you apply for will determine your interest. If you have an exisiting memebership with a bank, that bank may give you a lower rate than a new bank simply because they have a relationship with you. Once you get comfortable with the process, you can increase the amount of money you borrow.

The Property’s Location

When searching for a lender, try to find one with branches near where you plan to build your property. This way, you can go directly to them to discuss financing options. Also, make sure that the branch is open during regular business hours. Most banks do not work outside of normal business hours.

The Reputation of the Lender

You must research the company thoroughly before applying for any loan with them. Speak with loved ones who have experience with that bank, or with taking out commercial loans, in general. They can help you identify red flags. Make sure that the lender is reputable and has a good track record for commercial real estate loans. You can check online reviews and call the Better Business Bureau to see their reports.

There is a lot to consider when looking for commercial real estate loans and choosing a lending firm. However, they can provide you with money you need to realize your real-estate goals. For streamlined financing options and high-quality service, turn to West Coast Commercial Capital LLC. Visit our website or call today for more information.o