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A commercial mortgage could be the foundation of your small business.
Use your commercial mortgage for just about any property need.
A commercial mortgage is almost as flexible as an Olympic gymnast. Brand new to the entrepreneur life? Put down just 10% and buy your first location. Been in business a few years? Use your commercial mortgage to add a second location or get cash for upgrades. Been around even longer than that? Refinance to reduce your monthly payments. Whether you need office, restaurant, retail, or warehouse space, a commercial mortgage will help you put a nice roof over your heads.
Here’s everything you can use a commercial mortgage for:
- Buy – Get out of that lease and get into property ownership. Leverage financing to buy that business location you’ve had your eye on.
- Build – Can’t find the right space for your business? Create one! A commercial mortgage can cover all your construction costs.
- Expand – Your location needs to grow with your business. Add more square footage when you’ve outgrown your current space.
- Remodel – Renovate an older or outdated location to attract more customers. This works wonders for restaurants and retailers.
- Refinance – Extend your payment term and adjust your interest rate by refinancing with a commercial mortgage.
You can qualify - as long as you have a blueprint for how you’ll use the cash
Because a commercial mortgage is an asset-based loan, the loan amount and rate of your commercial mortgage will largely be based on your credit and the value of the property you’re using as collateral. So a prime retail space in Los Angeles may be easier to finance than a rural storage unit a few hours outside of Fargo, North Dakota. Take this into consideration when choosing where you’ll buy or build… If you’re planning on making upgrades to a property, your lender will want to know about them. For full-scale property renovations, your lender will also want to assess the after-repair value (commonly called ARV) of the property. Be sure you have a plan for how you’ll use the mortgage before you apply – that way you’ll have answers to all the lender’s questions.
Some of the property-related documents you may be asked to provide include:
- Purchase contract
- Property blueprints
- Market analysis for the property
- Project budget and scope of work
- Assessment of the property’s existing condition
P.S. While you’re rounding up those documents, why not see what your commercial mortgage options are? You can use our online application to compare options from 75+ lenders. Don’t worry, there’s no cost or obligation.