Commercial real estate generally refers to real estate that can produce income and bring in cash flow. That's why they have another name called "Income Producing Properties". Commercial real estates are seen in each and every industry. Therefore, application and approval of commercial mortgages are oftentimes affected by which industry the commercial properties belong to. For example, the approval of commercial mortgages for hotels is based on different sets of metrics from those for industrial real estate .
The uses of these commercial properties also vary widely, and lenders have different requirements for owner-occupied and for investment purpose when it comes to loan approval.
The main types of commercial real estate include:
Land loans and construction mortgages are very different from commercial real estate loans on the left column: they do not generate income!
On the contrary, land acquisition and services, as well as construction projects, require a lot of capital investment, and also require a relatively longer period for development and construction, which increases uncertainty and contains higher risks!
Land loans mainly include:
Construction loans, for the reasons mentioned above, do not generate income, and the development and construction need to span several years. Therefore, the lender needs to see certain advantages of the project and be able to mitigate risks. For example:
Like real estate, business is yet another vehicle for creating and accumulating wealth.
But starting a business is not easy! Even a business in the traditional sense, such as opening a restaurant, a kindergarten, or a convenience store, requires a large amount of start-up capital! We can help entrepreneurs solve this problem.
A business operating loan is a loan for the day-to-day operation, acquisition and expansion of a business, which can be secured or unsecured.
For secured business operating loans, the collateral can be real estate and other fixed assets such as equipment, or sometimes current assets such as Accounts Receivables and Inventory. The latter are often referred to as working capital loans.
Most unsecured business operating loans are small and revolving in nature, such as business credit cards and lines of credit. Larger unsecured business operating loans can sometimes be made based on cash flow.
There are also relatively complex business loan arrangements that are not traditional loans but a mix of debt and equity, depending on their terms and conditions and how events play out.
Many commercial properties are purpose-built, such as golf courses, gas stations, ski resorts, wineries, farms, etc. Their use is difficult to change, so lenders are relatively picky about these commercial properties, and we'll help you find the right lender.
No Matter you purchase a property, a business, Equipment, or Inventory, we could get the money you need.
From land assembly, land servicing, to construction, you could get money at any stage to cover your expenditure, even for soft costs.
You can renovate your investment property, and your workplace, even it's a leased property. And we could get you the money to cover most of your costs, regardless of its ownership.
At the maturity of an existing mortgage, or upon request by your existing lender, transfer it to another mortgage lender
Have too many loans to manage? Resulted in too much cash outflow? You may need to consolidate your loans into a single one.
One of the benefits of real estate investments is to grow your equity over time. At certain point of time you could take your equity out for other uses, such as buying another commercial Property.
Bridge Financing, or Interim Financing, is to provide you short term loans to bridge the gap between buy & sell properties, or till new signing of a lease agreement, or other similar situations.
For the purpose to fund your working capital, and/or expand to a new location/market.
When you already have a mortgage and don't want to touch it, but you need money for some reason that may or may not be related to the above situations, second mortgage is one of the solution you could think of.
Commercial Mortgage, Construction Mortgage
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