What are Real Estate Loans?
Real Estate loans or commercial real estate loans refer to loans that are received from financial lending institutions like banks and credit unions, at interest rates that could be fixed or floating and is payable within a specified period; with real estate as collateral.
An additional source of income may be required at certain times to revamp your business or to even purchase machinery. A real estate loan is a good option for additional income to further improve the status of any business.
Our real estate loans will cover any form of real estate you may intend to acquire. They may include hotels/motels, medical buildings, office buildings, commercial and industrial buildings, religious institutions, shopping malls, etc.
The Benefits of Real Estate Loans
Though there might be potential prepayment penalties as well as heavy closing costs, there are other features that make the real estate loan a better option for business financing. These features may include:
- Pre-defined payment structure
- Comparatively lower monthly payments to short terms
- Comparatively longer repayment terms to short terms
Also, our real estate loan gives you access to a loan amount of above $50 million with loan amortization of 10 – 30 years. And at a competitive interest rate of less than 12%, you are certain of having a loan within a period of 2 weeks and an origination fee as low as 1%.
- Who Qualifies for a Real Estate Loan
- How Term Loans Work?
- How to Apply for a Real Estate Loan
- What it will Cost you
Who Qualifies for a Real Estate Loan
Anyone is eligible for a real estate loan. However, it is important that the business has been operational for at least 2 years and has been generating revenue for this period of time.
Having a fair credit score of 580 and above qualifies any business organization for a real estate loan. But the credit score is not enough to decide if a person actually qualifies for a loan.
The annual revenue becomes an index as the business must be able to service the loan. Having annual revenue of over $200,000 makes you a perfect candidate for a real estate loan.
How Real Estate Loans Work?
Real estate loans maintain the same method of operation like other forms of loans but just a slight difference in the nature of the collateral that is involved.
With a real estate loan, you are able to purchase, develop and construct real estates. You can also use it to pay off existing debts.
The collateral in real estate loan is usually a real estate. This means that when the organization defaults in the loan payment as agreed, they will eventually lose the real estate.
Whatever form of building you wish to own, we facilitate the process ensuring that you have your exact desire within days.
How to Apply for a Real Estate Loan
You get to face a lot of bottlenecks and bureaucracies when you try to get a real estate loan from other traditional financial institutions. We however try to facilitate the process to ensure that these limitations are erased.
To ensure a speedy and smooth real estate loan process, a few stipulations will be required of you. These stipulations include:
- A valid driver’s license
- Bank statements
- Profit and loss statements
- Voided business check
- Business and personal tax returns
- Balance sheets
What it will Cost you
It is necessary to go through the terms and policies of a real estate loan before you put pen to paper. Doing this enables you to be sure of the exact cost of the loan you are applying for.
Loan terms and interest rates affect the overall cost of the loan in the long run. Asking the lender to clear all grey areas is important so as you know how a real estate loan affects your business financials.