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If you are interested in buying some real property, extending or developing your own commercial premises, you can realize your dreams fast by securing a specific loan. You should consider getting an Atlanta commercial property loan to assist you realize your dreams. Before you take out this particular financing option, you should know a few facts about it.
As the party borrowing from the commercial lender, you will be free to select the most suitable repayment schedule for you that could be between 2 and 30 years. It would also be necessary to make sure that you have a security that you will use to secure your advance. It would be important to know that you will be able to get only a fraction of the money that your security will be worth.
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.
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.
It will be important to prepare to pay off some huge down payment before you access the facility you need due to the high risks involved. Most institutions demand for about 30 to 40 percent of the whole value of the purchase and get financing on the rest. This is the most common ratio of credit to value used by most lenders.
If you opt for prepayment before the maturity date of the financing agreement, you will need to know the various restrictions set by the lending institution. These restrictions are usually designed in order to preserve the anticipated yield from the credit that was advanced to you by the lender. You will have to pay certain prepayment penalties.
It is also important to note that before your loan application will be approved, you would also need to demonstrate an income stream that is solid. You will also need to show a good profile of your management team and the building plans and blueprints of your premises. In case you have leased out the premises to a sole tenant then they must demonstrate that they have a financial strength that is sound and solid as they are also considered as business.
As the party borrowing from the commercial lender, you will be free to select the most suitable repayment schedule for you that could be between 2 and 30 years. It would also be necessary to make sure that you have a security that you will use to secure your advance. It would be important to know that you will be able to get only a fraction of the money that your security will be worth.
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.
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.
It will be important to prepare to pay off some huge down payment before you access the facility you need due to the high risks involved. Most institutions demand for about 30 to 40 percent of the whole value of the purchase and get financing on the rest. This is the most common ratio of credit to value used by most lenders.
If you opt for prepayment before the maturity date of the financing agreement, you will need to know the various restrictions set by the lending institution. These restrictions are usually designed in order to preserve the anticipated yield from the credit that was advanced to you by the lender. You will have to pay certain prepayment penalties.
It is also important to note that before your loan application will be approved, you would also need to demonstrate an income stream that is solid. You will also need to show a good profile of your management team and the building plans and blueprints of your premises. In case you have leased out the premises to a sole tenant then they must demonstrate that they have a financial strength that is sound and solid as they are also considered as 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 Commercial Bridging Loan he recommends you check out www.ifundinternational.com.
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