You would think that investing in a single tenant warehouse would be less risky than buying a multi-tenant unit, but they are actually more of a gamble. If you're going to be the tenant, a bank or commercial mortgage lender will want reassurance that your business can handle the additional overhead. If you're going to lease the space, you run a higher risk of vacancy since there's only one tenant. In order to be approved for a commercial mortgage for a single tenant warehouse, you'll need to provide the bank reassurances on either or both of these issues.

 

Create a business plan. If you're planning on occupying the building yourself, outline detailed plans for meeting your expenses, particularly the mortgage payment. Explain why you feel this is a good investment and back it up with some facts and figures. Statements like "I have a gut instinct" and "I'm really good at my job" don't carry much weight with the banks. They want to see evidence that you have the ways and means to repay the loan, not hear inspiring stories about your dreams and aspirations. Go with dollar and cents, industry trends and markets, and real estate values instead.

 

The system here at iBank is designed for the small business owner who wants more than one option when applying for a commercial mortgage. That is what we offer, a diverse selection of lenders and private investors who can help you get your business off the ground. Each of them has different criteria, terms and conditions, but all of them have one thing in common. If they lend you money, they expect to get it back at some point. Before they give it to you they'll want to make sure they're able to do that. That's where a solid business plan can help you.

 

The rest of the process is simple. Once your business plan is ready, fill out the iBank application form and let us do the legwork for you. What's the hardest thing you have to do after that? Wait. There will be multiple offers coming in so exercise a little patience and make sure you get the best deal possible. If your plan is solid and your investment seems sound to one lender, there will be many others making offers to you. Take the best one, not the first one. That's the advantage of doing business with iBank.