Youtor
The Commercial Real Estate Loan amp How They Work
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=x3cGUQEXTF0
What Is a Commercial Real Estate Loan? • CRE loans exist to finance property that’s used for business-related purposes, such as shopping malls, warehouses, apartment complexes and office buildings. A CRE loan can be used to buy new property, renovate existing income-producing property or refinance debt on a commercial property you already own. • Often, CRE loans are made to a business entity such as a corporation, developer or trust, though an individual can borrow one as well. Most of these loans require that the property is owner-occupied, meaning your business resides in at least 51% of the building. • How Commercial Real Estate Loans Work • Commercial real estate loans work similarly to mortgage loans for personal real estate. One of the main differences is that the loan is secured by a lien against the commercial property rather than a residential property. A lien is a legal claim to a property that can be used as collateral if a loan goes unpaid. In the case of a commercial loan, the lender removes the lien once the loan is paid off. • The exact terms of a commercial real estate loan depend on the specific type of loan, lender, property financed and more. Some common types of commercial real estate loans include: • Permanent loan: This is essentially a first mortgage on a commercial property. It involves some amortization and has a term of at least five years. • Small Business Administration (SBA) loan: These loans include two main commercial loan programs offered through the SBA—7(a) loans and 504 loans. • Hard money loan: These loans are provided by private companies and are designed for borrowers who can’t qualify for traditional financing. Though the approval process is often more lenient, the costs can be much higher. • Bridge loan: These loans work as short-term financing solutions for when you need cash flow to improve or refinance an existing property or work on getting longer-term financing. • The Secondary Market loan / Wholesale Lenders: These are loan programs that are typically invisible to the average borrower. They deploy capital through mortgage brokers. These programs are between bank type best rates and high interest rate hard money. They have longer loan terms out to 25 years and even offer incredible programs such as Stated / low document where you don’t need to submit tax returns. • APPLY TODAY WWW.ENVESTION.COM • #realestate #realestateinvestor #lending #creloans
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