Best 2 Commercial Real Estate Loan Options
There are many reasons a company could be in the market for commercially used real estate. Maybe they are looking to purchase real estate to rent to other organizations, but it is likely that they are purchasing commercially used real estate to serve as a hub for their business. Regardless of the reason, commercially used real estate can be exceedingly expensive. The best way to offset those costs is by applying for financing services. Here are the best 3 commercial real estate loan options to finance your real estate.
SBA 504 Loan
The undisputed best option available for financing your commercial real estate transaction is an SBA 504 loan, or really any SBA loan. SBA loans are one of the best financing options in the industry because they are operated by the Small Business Administration of the Federal Government of the United States of America. Because of this, they can offer loan terms that no other institution can. SBA loans offer the lowest interest rates of any type of loan in the industry, as well as the longest repayment terms available anywhere. These are the main reasons that SBA 504 loans are excellent for real estate transactions, which are typically high-value and high-risk. By applying for an SBA 504 loan, you can be assured that you are receiving the best deal the industry has to offer.
Another excellent option for commercially used real estate transactions is a bridge loan. A bridge loan is usually a small loan with a short repayment period, that is designed to bridge the gap between two more significant financing plans. These are especially advantageous for commercially used real estate transactions, as they can provide benefits that no other loan type can. Because of their short repayment terms, you will not have to worry about a drawn-out financial strain on your business, which can have negative effects on your cash flow. Another advantage of bridge loans, is that they can fill in the gaps between an SBA 504 loan and a standard bank loan, so you can be protected for longer, and more completely.
These are the 2 best types of commercially used real estate loans. Commercial real estate can really take a toll on the finances of your business, to avoid that struggle, consider applying for one of the two options outlined above, and you can be assured that you are setting your business up for success.