Other Commercial Loan by Tom Markel
In this section you'll find advice and instructions on how to apply for a commercial mortgage for Auto Malls/Dealerships, Churches, Condos/PUDs/Co-ops, Gas Stations, Golf Courses, Historic Rehabs, Land (Agriculture), Marina/Dockominiums, Mini Storage, Mixed-Use Projects, Mobile Home Parks, Parking Garages, and Restaurant Real Estate. The process is similar for each of them, but the factors that affect each of these industries need to be taken into consideration before a bank will approve your loan request. Demand, vacancy rates, median pricing, and regulation are a few of them.
Supply and demand in real estate is determined by the availability of office space in the region you're buying in, the median rental pricing, and the current vacancy rate of the area. If you're buying a building in an area that has sixty percent commercial vacancy rates, like Detroit for instance, you could end up with an empty building. The price you pay for it won't matter. If no one rents, it's an expense, not an investment. Do your homework about the area you're buying in and don't think you're getting a great deal just because the price is low. You get what you pay for.
Median sale pricing will tell you whether or not your commercial investment is under-priced. If it is, find out why. If we're in a bad economy the old owners might just be looking to get out from under, but why aren't they turning a profit on the building now? Ask these questions before you hear from the bank loan officer with questions about your prospective investment. They examine these factors too. Do your homework and you'll find that the process goes a lot smoother. Lenders want to lend you money, but they need assurances that they'll get paid back.
Fill out the iBank commercial mortgage application form and make sure your intentions are clear. If you're buying a specific type of building, let the lender know that and outline the reasons why. Have a business plan that makes sense and a back-up plan just in case the first one fails. We'll take care of getting your application out to as many lenders as possible. All you need to do is fill out the form and have some answers ready when the bank calls.