When looking to buy real property, developing or expanding your current premises, you should consider taking out a precise advance. It would be great to get an Atlanta commercial property loan to help you in making your dreams true. It would be important to learn some important facts about this option though.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can offer a building, apartment complex, land or warehouse as your security. The proceeds you get from these properties will then be used to offset the loans repayments. If you utilize these premises for mixed use than the institution offering you the facility will determine the kind of credit options that are available for you.
You must also show that your business and personal credit record is great. Lending companies consider this credit history to decide whether you have the ability to pay back or the assets that can be sold to cover the outstanding loans you have in case you were to default. Your business profitability should also be proved.
You must be prepared to offer some down payments that are often large due to the amount of risk involved. They usually demand that you provide an average of 30 to 40 percent of the total amount then they finance the rest. This is usually the common credit to value ratio used by most commercial lenders.
If you also want to prepay the outstanding amount and do away with the credit advanced to you, you will also require understanding the restrictions usually set for such instances. They are usually there to protect the lending company not to lose the profits it stood to make had the whole agreement reached its maturity date. You will be forced to pay some money as prepayment penalties.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can offer a building, apartment complex, land or warehouse as your security. The proceeds you get from these properties will then be used to offset the loans repayments. If you utilize these premises for mixed use than the institution offering you the facility will determine the kind of credit options that are available for you.
You must also show that your business and personal credit record is great. Lending companies consider this credit history to decide whether you have the ability to pay back or the assets that can be sold to cover the outstanding loans you have in case you were to default. Your business profitability should also be proved.
You must be prepared to offer some down payments that are often large due to the amount of risk involved. They usually demand that you provide an average of 30 to 40 percent of the total amount then they finance the rest. This is usually the common credit to value ratio used by most commercial lenders.
If you also want to prepay the outstanding amount and do away with the credit advanced to you, you will also require understanding the restrictions usually set for such instances. They are usually there to protect the lending company not to lose the profits it stood to make had the whole agreement reached its maturity date. You will be forced to pay some money as prepayment penalties.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Best Atlanta Commercial Finance Brokers he recommends you check out www.ifundinternational.com.
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