Want To Invest In Commercial Real Estate? Here’s How To Get A Loan
The real estate market is hot right now and many people have dreams of investing in it. But of course, investing takes one thing: money. And not everyone has a lot of it, so they may have to take other routes to get a hold of it. Namely, loans.
If you can get a high-dollar loan at a good interest rate, you’re golden. Getting approved for such a loan, however, is easier said than done. You have to get qualified for a loan based on your credit score, income, and other factors.
Looking to get approved for a commercial real estate loan? Here are some ways to improve your chances.
Know What Lenders Are Looking For
Lenders want to be sure that you’ll make timely payments on your commercial real estate loan, so they’ll want to get a full picture of all your assets. They will scrutinize your business and personal finances to see if there is anything that looks risky. They will also want information about the property itself, since the property will act as collateral for the loan. This will include any plans you have for it.
Get Organized
Lenders like to see organized business owners. If you can have detailed records of your investments and business records readily available, it will make the process much easier. Plus, lenders will be more impressed. Lenders deal with so many disorganized business owners. If you don’t have the information your lender needs, they may be cautious about approving your loan.
Eliminate Negative Factors
When determining your eligibility for a loan, lenders will look at things such as high debt and poor credit. You can get rid of these negative factors by paying down debt and increasing cash flow. However, it can be hard to improve your credit score in such a short amount of time. You may have to pay a larger down payment or get a co-signer.
Communicate Honestly
Your chances of getting approved for a loan increase if you can be open and honest with your lender. If you try to hide things or cause delays in getting back to the lender, that just makes matters worse.
Your lender may need more information from you, so when they do, do your best to respond promptly. Don’t leave them hanging. If you need extra time to find certain documents, for example, let them know. By communicating effectively, you can gain your lender’s trust. They’ll then be more likely to approve your loan.
Learn More About Commercial Real Estate
Commercial real estate can be highly profitable, but there are a lot of legal concerns to deal with. Find out how to invest in it without making mistakes.
Orlando commercial real estate lawyer B.F. Godfrey from Godfrey Legal can guide you through the process. We’ll help you reduce the amount of time and money spent buying or selling property so you can focus on more important matters. Schedule a consultation by filling out the online form or calling (407) 890-0023.
Source:
forbes.com/sites/forbesbusinesscouncil/2022/04/22/five-ways-to-improve-your-chances-of-getting-a-commercial-real-estate-loan/?sh=6118576c3045
