Community Center by Tom Markel
Here at iBank we support the efforts of all community organizations that have a primary purpose of providing services and resources to children, seniors, and low income individuals and families. Many of those organizations have filled out our iBank application form and were approved for commercial mortgages to buy community centers. These centers are often non-profit organizations that stay afloat with grants and contributions from the community. In other cases, they are part of a health or rehabilitative network that has private funding available.
The source of funding or income is a very important factor in the eyes of the bank or lender being asked to write a commercial mortgage for a community center. Non-profit entities need to show clear long-term funding commitments from foundations or private contributors. Health services companies, Rehab Centers, and private corporations can present a financial history and bank account statements. Both need to be able to show a pattern of good faith in credit arrangements. Even non-profits need to have some credit history and references from venders or previous lenders.
Prepare a business plan. A non-profit will have a board of directors that needs to approve any actions made by the director or chairperson on the center's behalf. If you're a private entity or acting in the interests of a corporation, list all funding sources and profit making ventures that will be conducted at the new community center. For best results, it's a good idea to have a mix of investor, grant, and independent sources of income such as a retail store or tenants. The bank will look on either of those as a back-up plan in the event that other funding dries up.
Once your business plan is complete, fill out the iBank loan application for a commercial mortgage. We'll shop it around to banks, mortgage brokers, and investment firms that specialize in community projects or non-profit ventures. If you've done your homework properly, you should receive a number of offers from different sources. Take your time sorting through them and bounce them off of board members, partners, or peers before you sign anything. A community center is more than just an investment; it's something the community will be counting on. Make sure you start off on the right foot.