Other (Office Building Loans) by Tom Markel
There are many other office building set-ups and complexes that you could conceivably need a commercial mortgage for. The rules are always the same, and the process for getting approved always involves a solid business plan and knowledge of the industry you're venturing into. If you want to be a commercial landlord, you need to know something about property, demand, vacancy rates, and average rents for the area you're buying in. If the building you buy is intended for a specific use, like a medical building or automotive repair shop, you should know something about those industries.
Knowledge of how to run the businesses of each of your tenants in an office building is not required for you to be successful, but if you're hoping to appeal to a certain class of people or profession you will want to do some research into what they want. This knowledge is valuable in the loan process. Banks and mortgage brokers will often ask questions that don't seem to apply to your transaction with them, but they do relate to your ability to pay them back. If you own and manage a building designed for young professionals, how will you reach that market and avoid high vacancy rates? What are the new generation of doctors, lawyers, and accountants looking for in office space?
A bank wants to know two things before they approve you for a commercial mortgage. The first is whether or not you can afford to make the purchase. That's determined by your available assets, knowledge of the business, and your business plan. The second is whether or not you'll pay them back. Credit score, payment histories, and the credit rating of your business will help them determine that. You're not in control of the second factor because your past is already written, but you can write a better business plan and learn more about your industry or market.
What do we do for you? Here at iBank, we have compiled the largest list of banks, private financiers, and financial institutions on the internet. All you need to do is fill out one application and we submit it to all of them. Do your part and create a solid business plan. We'll do ours and get it in front of the people who can help you. Within a few weeks, you should have the money you need to buy that office building.