Commercial real estate loans help businesses renovate or purchase a particular property and finance it with the help of a loan. Multiple companies can use such loans to finance different properties, including retail or shopping centres, office buildings, restaurants, apartment buildings, industrial buildings, and hotels.
Types of small
commercial loans
SBA 7(a) Loan
The 7(a) Loan is highly useful in purchasing buildings or
lands, renovate an existing property, or construct a new property. These loans
are entirely amortized, which means that each month's payment will remain the
same until the loan is paid off.
SBA 504 Loan
The 504 Loans comprises of two different sets of loans i.e.,
a CDC or certified development company for up to 40%of loan amount and from a
bank for 50% or more of the loan value.
Conduit/CMBS loans
These are commercial mortgages that are pooled together and
are then sold in the secondary market to the investors. The interest rates on
Conduit loans are typically fixed and considerably cheaper than a traditional
mortgage.
Bottom line
An investor makes use of commercial loans in leasing out
space, purchasing property, and even collect rent from such businesses that
hold their operations within the property. Businesses interested in Small commercial real estate loans can get
in touch with JBN capital.
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