Benefits of Small Businesses Applying for Commercial Real Estate Loans

It is an exciting time for any small business, looking into commercial real estate loans. But it can also be very stressful. The more you know, the more prepared you can be for the long and grueling process.

It may take a lot of time researching commercial real estate loans and everything that comes with it, but there are many benefits to it. Navigating through the process and knowing what to expect will help the entire process be less daunting. That is why it is so important to work with someone that you can trust and that will answer all of your questions and concerns.

Commercial real estate loans can be used for many different things like a new location, renovation or even an expansion. Any real estate used for business purposes qualifies for these types of loans. Additional financing can help with the purchasing process, which is often needed. Most properties usually come with a hefty price tag, so some businesses need all the help that they can get.

Depending on your type of business along with your credit history and financial situation, interest rates can vary. You are going to most likely pay higher interest rate with these types of loans compared to the interest rate you will pay on a residential mortgage. The average interest rate with these loans can fluctuate, but usually differ between 3.35 percent to around 6 percent and it can also depend on the lender that you are working.

Commercial real estate loans are there when you need a helping hand, but can come with a fee

You cannot only expect to pay higher interest rates on commercial real estate loans, but also higher additional costs and fees. There are going to be upfront fees that need to be paid and these are extremely common. These fees usually include legal costs, loan application, survey fees and property appraisal, just to name a few. Some do allow for you to pay an annual fee, in a payment format and some require that you pay these fees before the loan is even approved.

A successful lender will explain all you need to know when it comes to commercial real estate loans

These types of loans can be full of tons of information that you may not have any experience with or are not familiar with. A should find a lender that will communicate with you and will always be open about all of the terms including all of the fees that come with borrowing. Also, be prepared that you might be responsible for paying some additional fees if you are going to pay off your loan early. This is why open and honest communication with your lender is so important, you never want to come across hidden fees or hidden terms. That is why you are working closely with a lender, to address all of your questions and concerns.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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