What is a Commercial Loan?
A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank, typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford, as opposed to a loan made to an individual.
- Executed Purchase Contract
- 3 Months of Bank Statements – Business and Personal
- 3 years of tax returns for both Business and Personal
- Rent Roll (if applicable)
- Lease Agreement (if applicable)
- Commercial Loan Application
- Permits (If applicable)
- More documents might be requested by the Underwriter.
Type of Commercial Loans
Hard Money Loans
A hard money lender is an investor who makes loans secured by real estate, typically charging higher rates than banks but also making loans that banks would not make, funding more quickly than banks and/or requiring less documentation than banks.
Refinancing replaces an existing loan with a new loan that pays off the debt of the old loan. The new loan should have better terms or features that improve your finances.
New Construction Residential and Commercial.
Serving the Continental 48
Commercial Real Estate Properties
Strip Center: Strip centers are smaller retail properties that may or may not contain anchor tenants. An anchor tenant is simply a larger retail tenant which usually serves to draw customers into the property. Examples of anchor tenants are Wal-Mart, Publix, or Home Depot. Strip centers typical contain a mix of small retail stores like Chinese restaurants, dry cleaners, nail salons, etc.
Community Retail Center: Community retail centers are normally in the range of 150,000-350,000 square feet. Multiple anchors occupy community centers, such as grocery stores and drug stores. Additionally, it is common to find one or more restaurants located in a community retail center.
Power Center: A power center generally has several smaller, inline retail stores, but is distinguished by the presence of a few major box retailers, such as Wal-Mart, Lowes, Staples, Best Buy, etc. Each big box retailer usually occupies between 30,000-200,000 square feet, and these retail centers typically contain several out parcels.
Regional Mall: Malls range from 400,000-2,000,000 square feet and generally have a handful of anchor tenants such as department stores or big box retailers like Barnes & Noble or Best Buy.
Out parcel: Most larger retail centers contain one or more out parcels, which are parcels of land set aside for individual tenants such as fast-food restaurants or banks.
Heavy manufacturing: This category of industrial property is really a special use category that most large manufacturer’s would fall under. These types of properties are heavily customized with machinery for the end user, and usually require substantial renovation to re-purpose for another tenant.
Light Assembly: These structures are much simpler than the above heavy manufacturing properties, and usually can be easily reconfigured. Typical uses include storage, product assembly, and office space.
Flex Warehouse: Flex space is industrial property that can be easily converted and normally includes a mix of both industrial and office space.
Bulk Warehouse: These properties are very large, normally in the range of 50,000-1,000,000 square feet. Often these properties are used for regional distribution of products and require easy access by trucks entering and exiting highway systems.
Classification: Office buildings are usually loosely grouped into one of three categories: Class A, Class B, or Class C.
Central Business District (CBD): Office buildings located in the central business district are in the heart of a city.
Suburban Office Buildings: This classification of office space generally includes midrise structures of 80,000-400,000 square feet located outside of a city center.
Garden Apartments: Suburban garden apartments started popping up in the 1960s and 1970s, as young people moved from urban centers to the suburbs. Garden apartments are typically 3-4 stories with 50-400 units, no elevators, and surface parking.
Mid-rise Apartments: These properties are usually 5-9 stories, with between 30-110 units, and elevator service. These are often constructed in urban infill locations.
High-rise Apartments: High-rise apartments are found in larger markets, usually have 100+ units, and are professionally managed.
Full Service Hotels: Full service hotels are usually located in central business districts or tourist areas,
Limited Service Hotels: Hotels in the limited service category are usually boutique properties. These hotels are smaller and don’t normally provide amenities such as room service, on-site restaurants, or convention space.
Extended Stay Hotels: These hotels have larger rooms, small kitchens, and are designed for people staying a week or more.
Greenfield Land: Greenfield land refers to undeveloperd land such as a farm or pasture.
Infill Land: Infill land is located in a city has has usually already been developed, but is now vacant.
Brownfield Land: Brownfield’s are parcels of land previously used for industrial or commercial purposes, but are now available for re-use.