The plans for that new wing look great, but how are you going to pay for it? You’ve been hearing about different lenders who can help you out with commercial mortgage loans for new construction, but how do you go about getting approved for something like that? Aren’t lenders much stricter now when it comes to giving out money for small business ventures? At least, that’s what you’ve heard. The truth is slightly different. There are many lenders out there willing to write a first or second mortgage to finance that new construction. Here at iBank, we have a list of them.

 

Fill out one application form and you’ll be able to entertain proposals from multiple lenders who all have reasonable terms and decent interest rates available. It’s not the commercial mortgage loans that have become harder to come by, it’s the residential mortgages. There are vacancies in commercial units across America due to companies that closed up during the recession, but many of them are filling up quickly now as we come out of it. The home vacancy rate is much higher and will take more time.

 

If there are people around you telling you it’s a bad idea to build right now, ask them why. There’s a good chance that they have no idea. They’re just parroting what they hear on the news. If you want to venture into a new construction project, do it the same way you would have ten years ago. Assess the value and use of the new building, the likelihood of its success, and the cost of the construction. Remember that taking a second mortgage puts the first property at risk also, so make sure you have a back-up strategy if things don’t go according to plan.

 

The lenders we give you access to are credible banks and mortgage brokers that will ask you for a business plan and inquire about your intentions for the new development. Make sure you can answer these questions directly and thoroughly, providing cost projections, expected profitability, and repayment options. Here at iBank.com, we can find you the lender, but you’ll need a plan to justify the loan.