Commercial Real Estate Funding

If you’re new to commercial real estate financing, you’ll want to get a firm understanding that commercial mortgages are based on the debt coverage service ratio formula to qualify.  This means that to qualify for a commercial loan, you’ll have to know what your projected return on investment (ROI) will be when making a commercial property purchase or refinance.  The cash flow generated from your commercial real estate property will be one of the factors in determining both the value of the property as well as future return.  

The type and amount of your commercial loan is also dependent on other factors.  Those include your business and personal credit history, your net worth/financial strength, the type of property and its overall condition, property cash flow, the geographical location of the property, and the general economic outlook of the local market. 

The first step to purchasing or refinancing your commercial property is to know how you’ll use the property and what you want out of the property.  How will the property be used to improve your cash flow and financial goals?  How long will you hold the property?  Will you be an owner/tenant or just an investor?  Do you have an exit strategy?  

These are all questions you’ll want to think about and you will also need to let us know if the property is in need of any repairs.  

Once you’ve established a need for a commercial loan, you’ll want to give us a call.

We’ll help you get started and obtain the right answers to your questions and concerns.