Purchasing commercial property is a major transaction. Several common mistakes can make financing more difficult. Signing a contract with insufficient time Commercial financing may require an appraisal, environmental review, underwriting, title work, and legal documentation. The purchase contract should include [...]
When financing owner-occupied commercial property, lenders evaluate both the real estate and the operating business. Business cash flow The business must demonstrate that it can afford the proposed loan payments while continuing to cover operating expenses. Lenders frequently review the [...]
Business owners commonly use conventional commercial loans, SBA 7(a) loans, or SBA 504 loans to purchase owner-occupied real estate. Conventional commercial loans Conventional loans may work well for established businesses with strong cash flow, good credit, and sufficient equity. These [...]
Owner-occupied commercial real estate is property purchased primarily for use by the buyer’s own operating business. Examples include: A medical practice buying an office A distributor purchasing a warehouse A restaurant purchasing its location A manufacturer acquiring an industrial building [...]