Getting Commercial Real Estate Finance

2007-03-22 16:46:53

( Business )



Acquiring a commercial real estate property requires a huge amount of money. Unless you are extremely well off, you will need financing to do this. Commercial real estate finance will only be granted to you if you provide enough evidence for lending institutions to trust you.

The documents needed for commercial real estate finance applications are no different from the ones needed when applying for small business financing and commercial truck financing. The only difference perhaps is the amount of investment. Commercial real estate finance loans involve much larger sums compared to the money needed for the latter two. So you need to have vital documents which are up to date and are very convincing.

Just like small business financing, commercial real estate finance requires you to provide lenders with a concrete business plan. Your business plan should defend your financing application beyond reasonable doubt. You should be able to assure lenders of minimal risks through a sound and workable business plan. You should make these investors feel confident about investing in your venture.

Also prepare your own money to invest in your acquisition before applying for a commercial real estate finance loan or scheme. Remember that you are applying for financing to share the load of investment not to let your lender carry the total amount. This will boost your investors’ confidence since it will be apparent that you are willing to take some share of the financial burden yourself. A financial statement for you and your business will go a long way to help your lenders see your ability to take your rightful part in your commercial real estate financing for small business.

Always employ the help of experts before presenting your business plan to commercial real estate finance institutions. An attorney who is an expert in real estate investments or an established real estate investor would be able to help you ensure that your business plan is solid and reliable. Theses experts could also provide you expert advice in managing your real estate finances after you have acquired a commercial real estate finance loan from your lender or investor.


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