How to Get the Best Investment Loan Rates to Acquire a Commercial Property

Posted on: May 20, 2012

Categories: Buy

Author: Buy Fix and Profit (Guest)

Perhaps one of the most profitable kinds of investment is the commercial property. However, it is more detail-oriented and as they say, more difficult to acquire. It is also harder to finance a commercial property, especially if you are just starting out. What more if you are looking for low investment loan rates? Is it difficult? Yes. Is it impossible? No.

Investment Loan Rates How to Get the Best Investment Loan Rates to Acquire a Commercial Property

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Difference in Getting Low Investment Rates for Commercial versus Home Loans

Getting financing for your commercial investments is way different than getting the common home loans. In standard home loans usually, they are just after the borrower’s credit report and background. In commercial loans on the other hand, there are plenty of requirements and evaluations needed not only with your credit history but also with the property’s value and estimated profit. This means that you must be certain that the property you are buying is really going to rake in money.

If you are on your way to meet a loans agent for a commercial loan be sure that you are ready for an interview. You should know the numbers, the profits, the expenditures and all the other things about the property. Research and feasibility studies are highly important because you should be able to defend and sell the property to them to convince them that it is a good investment. When they see that you will likely get a return of investment fast and you can pay them consistently, then you have the best chance at low investment loan rates. The loan rate that companies can give depends on how profitable and how secure they are that their investment in you and your acquisition will return. Aside from that, the interview will help them determine your business acumen, since this will determine the success of your investment.

Decreasing Your Commercial Investment Loan Rates

Reasonably priced loans are not easy to get; again, it does require work and lots of preparation. But these two things are not the only factors in getting the best rates for a commercial loan. Another way of obtaining cheaper investment loan rates, and perhaps the most effective, is by giving a huge down payment. You might think that it defeats the purpose of getting a loan, however, it does not. Giving out a down payment that’s 20 to 30 percent of the total price will already drastically impact your monthly loan payments. If you are sold to the idea of investing in a commercial property, then you should start saving up some money in order to take advantage of low interest rates.

Unless you already have other commercial properties which you have already paid for successfully to prove your ability and history, or you have an outstanding real estate portfolio, it will be quite difficult to borrow. However, with proper research, preparation and confidence in the property you’re buying, you can surely get the best loan rates even if you are just starting out. Ensure you know your numbers, and you have money on hand for the down payment and you will have a better chance of getting the lowest investment loan rates in the industry.

pixel How to Get the Best Investment Loan Rates to Acquire a Commercial Property

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