Many businesses would not be as successful as they are if it weren’t for their prime location! With that being said, a real estate loan can absolutely make or break a business – making the choice of loan all the more important.
There are quite a few different funding options when it comes to commercial real estate, so capital brokers need to understand their clients’ needs and wants from the get-go. Here are just a few of the options out there:
- Hard Money Loans: These loans are often a great choice for businesses with low credit scores and tend to be secured with physical property. Hard money loans are not provided by every single lending institution, so finding one can sometimes be difficult.
- Construction Loans: When the perfect building for your client’s business is only going to be found if they build it themselves, a construction loan might be the way to go. Often secured through a mortgage, this type of loan can be used to the building construction as it progresses. After it is done, typically a permanent financing option is found.
- Fix & Flip Lines of Credit: Just as it sounds, this type of funding allows people to find, improve upon, and then sell a property for a profit. Lenders can have strict requirements for these types of loans, but they can be well worth it in the long run.
Knowing the pros and cons of each type of real estate funding option out there can be extremely beneficial to your clients (and ultimately, your business). Since each client is different, we encourage you to take a one-on-one approach for each loan decision!