Business Condo by Tom Markel
Small business owners aren't looking for simple office space anymore. If you're going to spend long hours in the office everyday, you want a bit more than just four walls and a water cooler. Business condos offer kitchens, full baths, decks or verandas to get some fresh air, and often a parking garage for your car. They're more expensive than a standard office, but they're well worth the price you pay for them. If you're the individual or company that owns the business condo, you're in possession of one of the most sought-after pieces of commercial real estate on the market. If you're buying for the first time, that demand is a plus for you when you apply for a commercial mortgage.
There are two ways to get into the condo business. You can buy existing units and either lease them out or re-sell them. You can also buy a building and convert it into business condos. The first option requires a simple commercial mortgage, something you can apply for here at iBank. The second option may require a development or construction loan, both of which you can also apply for here at iBank. For any of these finance options, all you need to do is fill out our iBank loan application form and we'll shop your request to different banks and lenders for you.
Once you know what type of building you want to buy, create a business plan outlining how you will handle the leasing, renting, or construction process. Make sure you include a list of costs and exact numbers on what the return will be if you have full occupancy. You'll also want to do some numbers using different vacancy rates. If you're buying an existing business condo complex, use the current vacancy rate to create one set of numbers, a zero vacancy rate for another, and a worst case scenario for a third. The bank will want assurance that you're be able to make your mortgage payments, so have a plan and several back-up plans to show them.
We'll take care of getting your loan request out there. That's what we do here at iBank. Your job after that's done will be to field offers and answer questions from the bank or financial institution that you're seeking a loan or mortgage from. They will want to know that you fully understand the investment you're making and are able to explain how you will make that investment pay off for you. Have those answers ready and you should have no problem getting a commercial mortgage for business condos.