When it comes to purchasing, renovating or expanding commercial real estate, there are a number of financial options available. Compare these popular financial options today to discover how you can grow your investment and secure the commercial property you need for your business or your investment portfolio.
If you already own a commercial property and need additional financing for renovations or another investment opportunity, refinancing your mortgage can be an excellent opportunity. A mortgage refinance works in one of two ways. First, you can shop around for another lender who is willing to purchase your mortgage at a lower rate. This frees up monthly capital to invest in maintenance and renovation projects.
Another option is to leverage your property’s equity to take out additional financing. If you owe less than your real estate is worth, you may be eligible for a cash loan equal to the difference. This flexible loan is backed by your real estate, so you can enjoy low interest rates, long loan terms and the freedom to invest it however you see fit.
An excellent short-term financing option is a bridge loan. This type of loan is best used to purchase and renovate a property that you’re planning on selling or refinancing quickly. Bridge loans typically come with high interest rates and a short term length, but they are easy to apply for and often offer fast, flexible financing.
Hard Money Loans
Similar to a bridge loan, a hard money loan is a short-term, flexible option. A hard money loan can be backed by your real estate or another expensive asset. The interest rate is typically higher than a traditional loan, but a hard money typically comes with little or no restrictions on spending.
Finally, a construction loan is a specialized loan designed for new buildings. If you’re planning on building a new commercial property, a construction loan can fund the materials, labor and other expenses until the project is completed. Once completed, refinance for better rates and a long-term, traditional mortgage.
Find the Best Option Today
Because of the diverse range of commercial real estate options available it can be difficult to determine the best option for your investment strategy. Consider whether you’re looking for a short-term or long-term option, and discuss your real estate strategy with a lender today to determine the best course of action. With the right loan, you can expand your business and investment portfolio with confidence and flexible working capital.