Both buying and renovating commercial real estate is the mark of a giant step for your small business. However, it can be extremely stressful. It is imperative you completely understand the process—this will take a lot of stress off of you.
Very few small business owners have enough cash on hand to support any type of project with their own money—they will have to take out a loan. Fortunately, there are Arizona commercial real estate loans that can help make the project go much smoother.
There are many options when it comes to Arizona commercial real estate loans. The decision you make will affect the success of your project. Some options take much longer to close, and some require a large amount of time spent of application and paperwork.
DIFFERENT TYPES OF ARIZONA COMMERCIAL REAL ESATE LOANS
What is commercial real estate? It is any type of property that is used for business purposes. Some examples are a shopping center, a movie theater or an office building. Actually, any building that uses 51% of the building for business can be considered commercial real estate.
Purchasing new or existing commercial real estate or rehabbing said property makes a borrower eligible for a commercial real estate loan. Commercial Real Estate Loans in Arizona can vary. There are multiple types of loans that vary in their application processes, rates, fees and loan terms.
The first loan that springs to mind for most borrowers is a traditional commercial real estate loan. These come from a bank or credit union. These loans generally fund the largest amounts of money at the smallest interest rate. However, these are very hard loans to get. Traditional Commercial Real Estate Loans in Arizona are generally given to businesses that have the best track record of profit and have the highest credit score. Even then, these loans are infamous for being painfully slow with tons of paperwork and documentation.
Hard money Commercial Real Estate Loans in Arizona are short-term loans from Texas Hard Money Lenders who are private investors. Private investors are not one size fits all. There are some who won’t give out amounts as large as a bank loan would—and others that can give out even more than a bank would. Texas Hard Money Lenders will charge a higher interest rate than a traditional lending institution. However, the payoff comes with the application process. These are much easier to qualify for than bank loans. Although, a hard money lender will look into your credit score—they will not base their decision simply on your credit score. These are loans backed by the property. Many startup businesses work with Texas Hard Money Lenders. You can typically apply for, be approved and receive funds in less than two weeks.
Real Estate Crowdfunding is a real estate loan platform. With crowdfunding many people lend small amounts of money to the business owner for their project. For example, instead of receiving a $100,000 loan from a bank or hard money lender you will receive many small loans that add up to $100,000. Real estate crowdfunding has similar terms as hard money lending does. However, you will be dealing with many people you have to pay back versus just one.
When it comes to Commercial Real Estate Loans in Arizona borrowers have many options.
Your options will depend on how long you have been in business, if you are startup business, what your credit score is and how much you can pay per month on your loan when it comes to deciding which real estate commercial loan will work for you.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.