Commercial Loans for Strip Malls
Have you ever come across a strip mall that looks like the perfect place to open a business? If you answered yes to this question, you are in luck. Being that strip malls are increasing in popularity, available retail space is becoming more common every year. But before you take advantage of this space and start moving in, you will need to become familiar with commercial loans. Even though you may have taken out a mortgage in the past on a home, you probably do not have a detailed experience when it comes to commercial loans. The good thing is that commercial loans are not difficult to understand, and with a little bit of knowledge anybody can get the space that they need in a local strip mall.
The first thing that you will need to do when searching for commercial loans is to determine if the property you are looking at is eligible. The best way to do this is by simply calling around to lenders and explaining your situation to them. There are many banks and finance centers that will be able to give you the commercial loans that you need in order to get started.
After finding an institution that will give you a loan, you will then need to look into the terms that they offer. In other words, you will have to determine how long you will have to pay back the loan, the interest rate, and also the loan limit. Remember, if you are looking for commercial loans on strip mall properties you may have to borrow a lot of money. In some of the newly built strip malls, you may need a loan in excess of one million dollars in order to secure a property.
When you are searching for commercial loans that you can use on strip mall properties you will need to know what benefits to search for. If you do not, you may end up getting yourself into a situation that you cannot get out of.
Commercial loans on strip mall properties are often times referred to as loans on income properties. They are referred to as income properties because you will be using the space to set up a store that will produce income on a regular basis.
Commercial loans that offer a fixed rate are often times the best choice. The reason that you may want to find a fixed rate loan is so that you know what your payment is going to be every month. This is especially helpful during the start up phase of your business when you are not sure on how much income you will be generating.
Commercial loans that offer flexible underwriting terms are also desirable. This is important so that you can get the best options on the property that you are considering.
Overall, commercial loans are a necessity if you are in the market for a piece of property in a strip mall. By knowing the details of commercial loans you will be able to get a great deal on your next purchase.
|About the author:|
David gaIan has been in the real estate business for over 10 years. Beginning with a single rental he now buys houses for cash, can stop foreclosure, and provides information for commercial properties. David gaIan is the owner and operator of houseoption.com a website dedicated to helping homeowners facing foreclosure and other house related problems. You are free to publish this article unedited on your site as long as all links back to us remain in tact. We Buy Houses
e-mail: david_commercial at houseoption.com