As a business owner, you need access to capital and money to build and run your business. In some cases, you may need to purchase or renovate the property they want to run your business in if you don’t already own one. A commercial real estate loan can help make this process easier.
These are special loans designed for business owners. According to the May 2021 RCA CPPI U.S. summary report, U.S. commercial real estate prices rose at a 1.3% annual rate from April 2020 to 2021. It pays off for business owners to understand how commercial real estate loans work in this changing real estate environment. Keep reading to learn more.
Understanding Commercial Real Estate Loans
In America, business owners are the backbone of the economy. The U.S. government and financial institutions want to help business owners in any way possible so that they can build and grow their businesses. Commercial real estate lenders provide CRE loans to help finance the property these business owners need for their companies. These properties could include shopping malls, warehouses, apartment complexes, and office buildings. CRE loans can be used to either buy a new property, do renovations on existing property, or refinance debt on the property.
These loans can either be taken out by the business owner, a developer, or a trust. Individuals can also borrow money through a CRE loan. However, it’s often required that the property be owner-occupied by your business in at least 51% of the building.
The Benefits CRE Loans
Commercial real estate lenders can provide business owners with many benefits through these types of loans. Often, CRE loans qualify for reduced interest rates. The exact terms of the loan will be determined by the commercial real estate lenders, but on the whole, these loans are designed to be easy to obtain if you have the right qualifications.
There are also many different versions of these loans so businesses can have their unique needs met. CRE loans can include hard money loans and bridge loans. However, these types of loans still have closing costs and other expenses associated with them. To learn more, you should contact commercial real estate lenders in your area.
If you are looking to buy commercial real estate for your business and you’re looking for the right commercial real estate lenders to work with, look no further than our team at West Coast Commercial Capital LLC. We will be happy to help make your business ownership dreams come true.