Details of a Commercial Bridging Loan
If you have never heard of a commercial bridging loan you are not alone. But just because this type of loan is not common, that does not mean that they cannot be useful to a certain group of the population.
A commercial bridging loan is quite easy to understand. They are designed for investors to use who are in need of financial help when buying a commercial property. A commercial property is one that serves the business sector, and can include offices buildings as well as retail space.
If you are interested in getting a commercial bridging loan, there are a few details that you will need to know about before you can get started.
1. If you are taking out a commercial bridging loan, you should know that it is a secured loan. In other words, you will need to put up some sort of collateral in order to get the loan. This protects the safety of the lender. The main advantage of a commercial bridging loan as far as collateral is concerned is that the property you are buying can be used as a secure. In other words, you will not have to put up any personal belongings or properties.
2. When you get a commercial bridging loan, you should be prepared to deal with a high interest rate. The reason that a commercial bridging loan has a high rate is because they are usually short term. Without a high rate, the lender would not be able to make as much money due to the short amount of time that the loan is for. Of course credit history and the value of the collateral will also go a long way in determining your rate.
3. A commercial bridging loan can be used for more than just buying a commercial property. A commercial bridging loan can also be used by anybody that needs money to renovate a commercial property.
4. You can borrow as much money as you need when dealing with a commercial bridging loan; but there are limits to this. If you have a bad credit history, and the collateral you are using is not very valuable, you cannot expect to get a large loan. But on the other hand if you have a worthy credit score, and have a high valued collateral, you will be able to secure a loan that is quite large.
5. Read the details of your commercial bridging loan very carefully. You will want to make sure that you know every detail of the loan before signing on the dotted line. If there are details that you are not familiar with, be sure to get them clarified right away.
Overall, a commercial bridging loan can be a great way to buy or renovate the property of your dreams. Get started today by finding a reputable lender that offers commercial bridging loans.
|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