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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 be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
It will be important to make sure that your personal and business record is also at an all time high. Credit history is vital for these companies and they always consider it plus the assets you own to decide if they will be sufficient to cover the total credit amount that will be left when you default. You must also prove the profitability of your business.
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 were to consider prepaying your credit before the maturity date is due, you will need to understand their restrictions. They are set in place in order to shield the company from losing out on the anticipated profits they expected to make from you. You must pay some certain amount of money in prepayment penalty.
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 be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
It will be important to make sure that your personal and business record is also at an all time high. Credit history is vital for these companies and they always consider it plus the assets you own to decide if they will be sufficient to cover the total credit amount that will be left when you default. You must also prove the profitability of your business.
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 were to consider prepaying your credit before the maturity date is due, you will need to understand their restrictions. They are set in place in order to shield the company from losing out on the anticipated profits they expected to make from you. You must pay some certain amount of money in prepayment penalty.
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 Construction Loan he recommends you check out www.ifundinternational.com.
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