FINANCING

Most buyers and investors are familiar with financing for residential properties. A lot of information is available online and at traditional banks regarding financing for the purchase of a single family home, condo, or resort property, etc.. Getting straight answers about commercial financing can be a bit more difficult. Here are a few types of commercial mortgages, in general terms:

• When purchasing a Business with Property, including but not limited to, a car wash, gas station, bottle depot or motel, commercial mortgage lenders generally require buyers have a 35-40% cash down payment. In some cases, it could be more, and in other cases less. The determining factors are the financial position of the buyer, and the financial position of the business being purchased. Lenders will require buyers and sellers provide at least three (3) years of financial statements for the business being purchased, as well an appraisal report, a full equipment list, and an environmental report. We can guide you through the other important details specific to the type of property being purchased, and put you in contact with our qualified partners in this industry.
• When purchasing an Investment Property, including but not limited to a multi-family condo/apartment building, a retail strip mall, or an office building, commercial mortgage lenders generally require buyers have 20-25% cash down payment.
• When purchasing a Business without Property – a business that is operating in a leased building, which includes but is not limited to, hair salon, restaurant, franchise business, grocery store, generally buyers require 50% of more cash down payment. In many cases, a lender will not finance the goodwill portion of the business, only the assets. If the business purchase price is primarily goodwill, the lender may require more than 50% cash down.

It is important to note that commercial mortgage INTEREST RATES and TERMS for financing are higher than for residential mortgages. These can vary greatly depending upon the buyer’s financial position, the financial position of the business, and the economy. We have the best commercial financing contacts in the industry. When you work with us, we will ensure you get the best possible financing rates and terms.