Commercial Real Estate

Interim Construction Loans

There’s essentially two loans. The first loan is for the construction and the second is the mortgage after you move in to pay off the construction debt.

Interim Construction to Permanent

You borrow to pay for construction. Then when you move in, the lender converts the loan balance into a permanent mortgage.

RV Parks

Specialty financing are typically not offered by traditional banks. Loans can cover the purchase cost, using the RV Park itself as security. Some loans cover up to 80% of the total purchase price with terms of 10 to 15 years.

Storage Facilities

Similar financing to the RV Parks, where the company is able to use the loan to cover the purchase cost and use the Storage Facility as security. Some loans cover up to 80% of the total purchase price with terms of 10 to 15 years too.

Franchise Financing

Often times, a franchisee looking to open their first franchise will fit nicely into a Small Business Administration (SBA) loan product. SBA loans are made by banks or other participating lenders. Most of that money is for franchise entry fees, improvements or working capital. Borrowers must be creditworthy, typically must contribute some equity, and are expected to repay the SBA loan out of the franchise’s cash flow. Many SBA loans carry fluctuating interest rates.

Bridge Loans

A bridge loan is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Also known as a swing loan, gap financing, or interim financing, a bridge loan is typically good for a six month period, but can extend up to 12 months. loans are secured by the current property to pay off the mortgage and the rest can go towards closing costs, fees, and a down payment on the new home. They are a short-term loan, usually no more than for 6-12 months. While requirements can vary from lender to lender, you commonly need to meet the following criteria for a bridge loan:

Excellent credit.
A low debt-to-income ratio.
Significant home equity of 20 percent or more.

Mortgages

A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property. Terms are typically 10-20 years on commercial mortgages. Unlike residential loans, the terms of commercial loans typically range from five years (or less) to 20 years, and the amortization period is often longer than the term of the loan. A lender, for example, might make a commercial loan for a term of seven years with an amortization period of 30 years.

Development Loans

A loan used to develop real property, which includes not just construction of the improvements, but also excavation work, infrastructure such as storm sewers and roads, and the holding costs of the property until such time as it can be sold or can support fully amortizing permanent financing. Development finance works differently to traditional mortgages. Usually, lenders assess the value of the property and then offer a loan based on that value and the borrower’s eligibility. For development loans, lenders assess the predicted value of the property once the development project is complete.