Retail Property Loans

Retail property loans are loans that are given to small businesses that want to expand their operations. As a business person, you can easily access the loan by either accessing the lending institution directly or by using a broker. If you opt to go directly to the lending institution, you will come across technical aspects that maybe puzzling at first. The good side is that most of the language used is not difficult to understand and you can always discuss with your lender in case there are things that you can’t understand. On the other hand, when you use the broker, you don’t need to understand most of the technical language. The broker will come with a readymade proposal that you only need to sign. Although, the brokers make your work easier, the main setback of the broker is that you need to pay them. This could be an extra expense on your side.

Qualifications for the Retail Property Loans

For you to qualify for the retail property loans, you need to satisfy certain regulations:
  • The property that you want to purchase must have high traffic potential. The property must have high visibility i.e., many people should be able to access the property. The more people that are able to access the property, the more money that you will make.
  • The property that you want to purchase must have direct access to the major highways in the area. Again this is to ensure that the property is easily accessible to as many people as possible.
  • Moreover, the desired property must have the potential to bring about profits. Properties that have great potential of reaping profits include: petrol stations, convenience stores, markets, groceries, restaurants and other business properties.
  • In addition to having a strategically located property, you must have a business with a proven track record. A money lender will be happy to fund a business that has been in operation for 2-3 years and has great potential for growth.

Properties of Retail Property Loans

  • As mentioned above, the loan is only available for property that is strategically located in an area where there is great potential for growth.
  • Most of the lending institutions offer a minimum of $500,000
  • If you want to get the loan using your property as collateral, the lending institutions will give you a loan that is 80% of the value of your property.
  • To access the loan, you must give proof that you are capable of paying the loan; you need to give out balance sheets, financial statements, operating statement and any other documents that demonstrate your ability to repay the loan.

Advantages of Retail Property Loans

The single most advantage of the retail property loans is that you will be paying a loan for a property that you now own. As a result of the loan, you will no longer be renting the retail space (if you were renting before). Retail property loans are a vital component for any expanding business. Although, taking the loan will put you into debt, the value of the property that you will buy far outweighs the value of the loan.

Retail Property Loans

Retail property loans are loans that are given to small businesses that want to expand their operations. As a business person, you can easily access the loan by either accessing the lending institution directly or by using a broker.
Retail Property Loans Highlights
Retail Property Loans Requirements

What are Retail Property Loans

A commercial loan is a form of debt-based funding arrangement that takes place between a business and a bank. Used for funding major capital expenditures and other expenses or operational costs that the company couldn’t afford, commercial property finances are the best option. Under a commercial land loan, the bank issues the loan to the borrower where the borrower needs to pay back the principal loan amounts, interest, or any other applicable fees within the mentioned time duration.

At Custom Mortgage, all our commercial loans services are backed by a team of specialists who have years of experience in the commercial property financing industry.

How to Qualify for a Commercial Loans?

Commercial loans programs are provided by medium to large banks or other financial institutions. The borrower needs to have a strong profile with a credit score of 680 or above, minimum $250,000 in annual revenues and for the businesses who have a good experience in that industry. Moreover, these loan programs demand some degree of collateral to be pledged against the loan in case of default.

After checking the eligibility parameters and available options for commercial financing, you must choose the best loan program for your business needs. You can connect with our experts to discuss your requirements and decide that which commercial property finance program is best for your business needs.

Apartment Loan Financing

Retail Property Loans

Hospitality & Hotel Loans

Office Building Loans

Gas Station Loans

Conduit Loans

Commercial Construction Loans

Unlock a world of possibilities, fulfill your future plans today!

Assets used to collateralize commercial loans include: 

– Real Estate 
– Receivables from bills 
– Equipment or supplies 

The majority of the startups, as well as large businesses, go for commercial land loans or fund other business initiatives including- purchasing equipment and inventory, and all other regular business activities. Luckily, today there are many alternatives available for people to go beyond the traditional banks and other sources to get a commercial loan.

Due to the difficult eligibility criteria and other parameters in traditional loans, people are taking other alternatives as mainstream and even many borrowers have made commercial loans their first priority. Custom Mortgage is a leading vendor that assists people around the globe with financing services including commercial property finance, commercial land loan, commercial lending, and a lot of other services.

Common Types of Commercial Loans

Commercial Property Loan

Never one-size-fits-all, these kinds of loan programs vary from lender to lender and borrower to borrower while depending on various parameters including- terms, rates, uses, and so on. Out of the wide range of commercial loan programs that are available today, you can choose the best one that fits your requirements and for which you are eligible.

 

In contrast to other financing programs, hard money loans directly come from private investors who take the lending risks depending on the commercial property, while ignoring the credit rating of the borrower who is seeking the loan. This loan program has the loan term of 6-24 months and an interest rate of around 10% to 18% with high-upfront fees.

Interest-only Payment Loan

Commonly referred as “balloon loans,” these loan programs are the best fit for the ones who expect a large payout in the future instead of a steady revenue at the outset. Payments will occur on the lower interest rate, having a full balloon payment due at the end of the term. Borrowers who wish to build up, or construct a commercial property with a plan to refinance the end-term sum later can go for an interest-only payment loan.

Refinance Loan

 

Going for a home mortgage, borrowers like to fetch benefits of lower interest rates from a commercial property loan. Refinancing can fuel profit flow via improving or expansion of commercial properties, it even helps to pay off looming expenses, similar to the final payment on an interest-only loan.

Long-term Fixed Interest Loan

The interest rates on commercial property loan generally ranges between 4.75% and 6.75%; while it may vary with market trends and go slightly up and down. In this loan program, the interest and payment will remain static.

Bridge Loan

 

A bridge loan is a softer form of hard loan and has a lower interest rate of 6.5% to 9% and longer terms and short approval to funding wait of around 15 to 45 days. Borrowers must have a credit score of a minimum 650 and must be able to cover a 10-20% down payment.

Construction Loan

Construction loan programs that covers the material and labor costs for building a property structure like offices, retail fronts, and so on. In case an undeveloped piece of land is already purchased, it can be used as collateral for the construction loan. These loan programs range from 18 to 36 months.

Blanket Loan

In a commercial real estate, borrowers can fold numerous properties into single financing arrangements. Like if a person has eight properties covered under a blanket loan and plans to sell two out of them, he can do that without incurring penalties and therefore use the profit to invest somewhere else.

Commercial Loans and Property Financing Overview:

If you are looking for expansion of your business, or the cost of renting business premises has become too high, you should consider applying for commercial loans.

Ultimately, the choice of fixed or variable rates will depend on the free cash flow your business generates once you have paid all of your expenses, including any previous commercial loan payments.

If the real estate increases in value, your capital will be increased and commercial mortgage interest will be tax deductible. Borrowers can borrower the down payment for a commercial property from investors who base the financing on the company’s shareholding dividends or income. If your company is not regularly certified by one of the larger CPA companies, you can opt for a loan with a slightly higher interest rate and no income verification.

You are at a disadvantage if you are looking for financing small businesses for a retail, service or hospitality company, especially if you are looking for funding to start up a business. If you do not have a credit history or collateral due to divorce or are a new immigrant or because you are young, or because you have poor creditworthiness, Custom Mortgage hard money programs and sub prime Commercial property mortgages are available.

Despite the guarantees provided, most programs will also require a General Security Agreement (GSA) on ownership and all corporate assets. If you want a commercial real estate mortgage but have not been in business for long, niche programs we offer can be your best bet, because these programs are often available for shorter trading periods and have lower Debt Service requirements (1 DSCR).

Custom Mortgage will look more closely at your previous experience in investing in commercial real estate, when underwriting your commercial property financing application. Our hard money-based commercial property financing options are considered short-term loans that are used for the purchase and sometimes renovation of a commercial real estate used by the owner for refinancing to a long-term mortgage. 

During our underwriting process for commercial property financing, Custom Mortgage requires you to submit regular financial reports in good time. After sending us all the documents and understanding what you want, we will search for the best program that you may qualify for with your credit on commercial real estate with favorable terms at competitive interest rates.

In most cases, even if you provide a brief summary, you must have a complete business plan in place as soon as we request it. If you are thinking of refinancing commercial credit, you can simply take care of lowering your interest rates.

Have you been looking for financing opportunities for your new business plans, are you looking for a loan to expand your existing business, are you in a precarious situation with unpaid invoices and are you not sure where or where to turn?

While qualifying for financing is usually easier for big, well-established businesses, some smaller businesses may be eligible for commercial financing from the Small Business Administration (SBA). The SBA may provide either financing or insure a lender who takes a risk on a business to supply fund. Businesses can seek the assistance of Custom Mortgage in structuring and sourcing of commercial fund. We provide the following types of loans.

Retail Property Loans Loan Territories

StateCityCounty
ALBirminghamJefferson
ALHuntsvilleMadison
ALMobileMobile
ALMontgomeryMontgomery
ALTuscaloosaTuscaloosa
AKAnchorageAnchorage Borough
AKFairbanksFairbanks North Star
AZChandlerMaricopa
AZGilbertMaricopa
AZGlendaleMaricopa
AZMesaMaricopa
AZPeoriaMaricopa
AZPhoenixMaricopa
AZScottsdaleMaricopa
AZSurpriseMaricopa
AZTempeMaricopa
AZTucsonPima
AZYumaYuma
ARFort SmithSebastian
ARLittle RockPulaski
CAAgoura HillsLos Angeles
CAAnaheimOrange County
CAAntiochContra Costa
CABakersfieldKern
CABerkeleyAlameda County
CABeverly HillsLos Angeles
CABurbankLos Angeles
CACalabasasLos Angeles
CACarlsbadSan Diego
CACarsonLos Angeles
CAChicoButte
CAChula VistaSan Diego
CAClovisFresno
CAComptonLos Angeles
CAConcordContra Costa
CACoronaRiverside
CACoronadoSan Diego
CACosta MesaOrange County
CADaly CitySan Mateo
CADowneyLos Angeles
CAEl CajonSan Diego
CAEl MonteLos Angeles
CAElk GroveSacramento
CAEscondidoSan Diego
CAFairfieldSolano
CAFontanaSan Bernardino
CAFremontAlameda
CAFresnoFresno
CAFullertonOrange
CAGarden GroveOrange
CAGlendaleLos Angeles
CAHaywardAlameda
CAHuntington BeachOrange
CAInglewoodLos Angeles
CAIrvineOrange
CALagunaOrange
CALancasterLos Angeles
CALong BeachLos Angeles
CALos AngelesLos Angeles
CAMalibuLos Angeles
CAMarina Del ReyLos Angeles
CAMillbraeSan Mateo
CAMission ViejoOrange
CAModestoStranislaus
CAMoreno ValleyRiverside
CAMurrietaRiverside
CANewportOrange
CANorwalkLos Angeles
CAOaklandAlameda
CAOceansideSan Diego
CAOntarioSan Bernardino
CAOrangeOrange
CAOxnardVentura
CAPalmdaleLos Angeles
CAPasadenaLos Angeles
CAPomonaLos Angeles
CARancho CucamongaSan Bernardino
CARancho Palos VerdesLos Angeles
CARialtoSan Bernardino
CARichmondContra Costa
CARiversideRiverside
CARolling Hills EstatesLos Angeles
CARosevillePlacer
CASacramentoSacramento
CASalinasMonterey
CASan BernardinoSan Bernardino
CASan DiegoSan Diego
CASan FranciscoSan Francisco
CASan JoseSanta Clara
CASan MateoSan Mateo
CASanta AnaOrange
CASanta BarbaraSanta Barbara
CASanta ClaraSanta Clara
CASanta ClaritaLos Angeles
CASanta CruzSanta Cruz
CASanta MariaSanta Barbara
CASan MarinoLos Angeles
CASanta MonicaLos Angeles
CASanta RosaSonoma
CASausalitoMarin
CASimi ValleyVentura
CASolana BeachSolano
CASouth GateLos Angeles
CAStocktonSan Joaquin
CASunnyvaleSanta Clara
CATemeculaRiverside
CAThousand OaksVentura
CATorranceLos Angeles
CAVacavilleSolano
CAVallejoSolano
CAVenturaVentura
CAVictorvilleSan Bernardino
CAVisaliaTulare County
CAVistaSan Diego
CAWest CovinaLos Angeles
CAWestlake VillageLos Angeles
CAWestminsterOrange
COArvadaJefferson
COAuroraDouglas
COBoulderBoulder
COCentennialArapahoe
COColorado SpringsEl Paso
CODenverArapahoe
COFort CollinsLarimer
COGreeleyWeld
COLakewoodJefferson
COLongmontBoulder
COPuebloPueblo
COThorntonAdams
COWestminsterAdams
CTBridgeportFairfield
CTHartfordHartford
CTNew HavenNew Haven
CTStamfordFairfield
CTWaterburyNew Haven
DEDewey BeachSussex
DEDoverKent
DENewarkNew Castle
DEMiddletonNew Castle
DENorth StarNew Castle
DERehoboth BeachSussex
DEWilmingtonNew Castle
FLBoca RatonPalm Beach
FLCape CoralLee
FLClearwaterPinellas
FLCoral SpringsBroward
FLDavieBroward
FLFort LauderdaleBroward
FLGainesvilleAlachua
FLHialeahMiami-Dade
FLHollywoodBroward
FLJacksonvilleDuval
FLLakelandPolk
FLMiami BeachMiami-Dade
FLMiami GardensMiami-Dade
FLMiamiMiami-Dade
FLMiramarBroward
FLOcalaMarion
FLOrlandoOrange
FLPalm BayBrevard
FLPalm BeachPalm Beach
FLPembroke PinesBroward
FLPincrestMiami-Dade
FLPlantationBroward
FLPompano BeachBroward
FLPort Saint LucieSaint Lucie
FLSaint PetersburgPinellas
FLSunriseBroward
FLTallahasseeLeon
FLTampaHillsborough
FLWest Palm BeachPalm Beach
GAAthens-ClarkeClarke
GAAtlantaFulton
GAAugustaAugusta-Richmond
GAColumbusMuscogee
GARoswellFulton
GASandy SpringsFulton
GASavannahChatham
HIHonoluluHonolulu
IDBoiseAda
ILAuroraKane
ILChicagoCook
ILElginKane
ILJolietKendall
ILNapervilleDuPage
ILPeoriaPeoria
ILRockfordWinnebago
ILSpringfieldSangamon
ILWaukeganLake
INFort WayneAllen
INIndianapolisMarion
IACedar RapidsLinn
IADavenportPolk
IADes MoinesPolk
KSOverland ParkJohnson
KSWichitaSedgwick
KYLexingtonFayette
KYLouisvilleJefferson
LABaton RougeMarshall
LANew OrleansOrleans Parish
LAShreveportCaddo Parish
MEPortlandCumberland
MDBaltimoreBaltimore
MABostonSuffolk
MABrocktonPlymouth
MACambridgeMiddlesex
MAFall RiverBristol
MALowellMiddlesex
MALynnEssex
MANew BedfordBristol
MAQuincyNorfolk
MASpringfieldHampton
MAWorcesterWorcester
MIAnn ArborWashtenaw
MIDearbornWayne
MIDetroitWayne
MIFlintGenesee
MIGrand RapidsKent
MILansingIngham
MILivoniaWayne
MISterling HeightsMacomb
MIWarrenMacomb
MNMinneapolisHennepin
MNSaint PaulRamsey
MSJacksonHinds
MOKansas CityWyandotte
MOSpringfieldGreene
MOSaint LouisSaint Louis
MTBozemanGallatin
NELincolnLancaster
NEOmahaDouglas
NVHendersonClark
NVLas VegasClark
NVNorth Las VegasClark
NVRenoWashoe
NHManchesterHillsborough
NJElizabethUnion
NJJersey CityHudson
NJNewarkEssex
NJPatersonPassaic
NMAlbuquerqueBernalillo
NYAlbanyAlbany
NYBuffaloErie
NYNew YorkNew York
NYRochesterMonroe
NYYonkersWestchester
NCCaryChatham
NCCharlotteMecklenburg
NCDurhamDurham
NCFayettevilleCumberland
NCGreensboroGuilford
NCHigh PointGuilford
NCRaleighWake
NCWilmingtonNew Hanover
NCWinston-SalemForsyth
NDWillistonWilliams
OHAkronSummit
OHCincinnatiHamilton
OHClevelandCuyahoga
OHColumbusFranklin
OHDaytonMontgomery
OHToledoLucas
OKBroken ArrowTulsa
OKNormanCleveland
OKOklahoma CityOklamhoma
OKTulsaTulsa
ORBeavertonWashington
OREugeneLane
ORGreshamMultnomah
ORHillsboroWashington
ORPortlandMultnomah
ORSalemMarion
PAAllentownLehigh
PAErieErie
PAPhiladelphiaCentre
PAPittsburghAllenheny
RIProvidenceProvidence
SCCharlestonCharleston
SCNorth CharlestonBerkleley
SDSioux FallsMinnehaha
TNKnoxvilleKnox
TNMemphisShelby
TNMurfreesboroRutherford
TNNashvilleDavidson
TXAllenCollin
TXAmarilloPotter
TXArlingtonTarrant
TXAustinTravis
TXCarrolltonDallas
TXCorpus ChristiNueces
TXDallasDallas
TXDentonDenton
TXEl PasoEl Paso
TXFort WorthTarrant
TXFriscoCollin
TXGarlandDallas
TXGrand PrairieDallas
TXHoustonHarris
TXIrvingDallas
TXLaredoWebb
TXMcKinneyCollin
TXMesquiteDallas
TXPlanoCollin
TXRichardsonDallas
TXSan AntonioBexar
UTSalt Lake CitySalt Lake
VTBurlingtonAlamance
VAAlexandriaFairfax
VAChesapeakeChesapeake
VAHamptonElizabeth City
VANewport NewsWarwick
VANorfolkNorfolk
VAPortsmouthPortsmouth
VARichmondChesterfield
VARoanokeRoanoke
VAVirginia BeachVirgina Beach
WABellevueKing
WAEverettSnohomish
WAFederal WayKing
WAKentKing
WARentonKing
WASeattleKing
WASpokane ValleySpokane
WASpokaneSpokane
WATacomaPierce
WAVancouverClark
WAWashington, D.C.Washington
WAYakimaFerguson
WVCharlestonKanawha
WIGreen BayBrown
WIKenoshaKenosha
WIMadisonDane
WIMilwaukeeMilwaukee
WYGilletteCampbell