If you’re interested in learning about smarter commercial property financing for small businesses, then you’ve come to the right place. Owning commercial property is one of the quickest ways for business owners to create wealth, and there are many financing options available. Many people earn a significant return on their Commercial property investments.
Depending on the situation, proper commercial property financing can be one of the most challenging sources of capital to locate and secure for your business. The scope of commercial property sales is significantly smaller than the residential market. Shopping around can greatly enhance your choices and options of mortgages and loans available.
There are many ways to finance your property purchase, be it from mortgage banking firms, savings and loan institutions, regional banks, insurance companies, and private investors. It is not advisable to pay 100 percent for your commercial real estate purchase. In the current economic climate, you can get up to 75 percent financing.
Banks will require you to meet their debt ratio standard. The banks will also expect you to provide tenant information, credit history, use of property in case an environmental study is required and of course have a down payment equal to at least 25% of value. There are many factors involved in commercial financing and it definitely is a good practice to shop around and see what options are available for your investment property.
Although there are many types of financing available, investors should assess their level of risk. Ask yourself, can you afford the property? What is your cash position like? Are you looking to just pay 25 percent first and take a bank loan for the remaining 75 percent? Will you have sufficient cash to buffer yourself during an economic downturn? Can you afford the fluctuating bank interest rates? Going through all the possible commercial factors will help you eliminate your risks and anticipate any shocks in the market.
The Commercial Building Inspector provides inspection services to most of Southern Ontario. With the experience of inspecting Plaza’s, Industrial Buildings, Warehouses, Offices, Combined Occupancies, strip plaza’s, churches, schools and hospitals, the Commercial Building Inspector can provide the expertise to protect your Commercial Property investment. As a Certified Building Code Official with the Ontario Building Officials Association and an experienced Thermographer in infrared technology your inspection will be detailed and comprehensive. Visit www.commercialbuildinginspector.ca for purchases in Southern Ontario Region.
Locate the Barrie Home Inspector’s Sample Report for all your purchases. Try the Barrie Building Inspector Services and protect your financial future.
