It has never been so difficult to purchase small commercial properties as people are thinking about. If you have to intend to buy a small commercial property, chances are that the financial institution will not ask for income verification and about your flawless credit records on your part to finance you. In simple term for commercial property is any property which is worth $1 million or above.
What should I be aware about
A loan is sanction upon deciding what type of commercial property you are willing to buy. If you are already a owner of a small commercial property then you can opt for a cash back facility.
- Shopping mall
- Restaurant & Bars
- Entertainment center etc
Never just stick yourself to small office space or Business Centers.
Small Commercial Property purchase Loan is much higher than residential properties. As still in the market very few investors and poping in small commercial properties, you have a brighter chance to invest in commercial properties where still the competition is less.
From Bank, you can avail about the commercial property loan process. You can also talk with your old clients about their property and can make a proper decision on your commercial dealings. You can see some establishment who are renting their properties those will be your best option for you to talk to them.
Small commercial property purchase loan needs extensive paperwork and deed documentation with your presence and your lawyers signature on it. The bank always tries to approach their customer to extend their loan process, for them to see if the property value will increase or no in the form of cash flow, this is the major reason why banks or financial institution don't see your credit records.
Detail information needs to be passed on to the lender before extending your commercial property purchase loan like rents, operating plans, and leases etc.
You as a property lender has a variety of options to opt for commercial property purchase loan like
- - Banks
- - Residential Lenders
- - Credit Companies
- - NBFCs - loan companies
Most credit lending companies ask for a proper documentation appraisal for small commercial property purchase loan, by either using full narrative reports that intake income, profit, and loss, cost or on a 71B article act. Some institute does an internal evaluation for fast processing.
It a right time for you to invest in small commercial property,
- - more efficient credit criteria
- - demands are driven by entrepreneurs
- - the government has sanctioned easy loan for startup companies
in addition, the interest rates of the commercial property purchase loan are much lesser than compared with residential properties. All these factors make small commercial property purchase loan more effective to real estate and small businesses.