Taking a loan for residential property is a common thing nowadays but there are many people who want to take a loan for an office space or for an outlet but they are not able to get one as they have very limited knowledge on it. It is possible to get commercial property lending as some banks provide this facility. But there are differences when you go for a residential property lending and commercial property lending which you should know.
Features of Commercial Property Loans
With Commercial property lending, one can purchase or lease a new or existing clinic, office or an outlet space. Under commercial property loan funding for the extension, improvement or construction of an office or clinic or outlet can also be provided. Loans for transferring or renovating a commercial property can also be availed under this loan.
You can get a commercial property loan to serve either of the two purposes, for an office space or for outlets. These two categories can be further categorized into two – ready to occupy and under construction. A majority of lenders hesitate to lend for commercial properties because most of the people who apply for a commercial property loan are investors. The lenders are happier to lend a commercial property loan to the individuals who want this loan for their own business. Same is applicable for an under construction property.
Borrowing for commercial real estate lending is costlier due to low tenure and high-interest rates, and also follows a tougher process as compared to borrowing for a residential property. But the return on investment is much higher for a commercial property than it is for a residential property.
Here at Real Estate Funding Solutions we have over 20 years of experience in the industry and want to apply that to your commercial property lending journey. Visit us at our website www.realestatefundingsolutions.com or send us an email at firstname.lastname@example.org for more information!