If your business is ready to open a brick-and-mortar location, a property purchase is in your future. How will you finance such an investment? Commercial real estate legal services DC can assist you through the process of obtaining a commercial real estate loan. Here’s how you can get started.
Explore Financing Options
Choose a loan that suits your project’s needs. If you are flipping a property, consider a hard money loan. These usually have short time frames and high interest rates and can be obtained through private lenders. Businesses that do not qualify for a conventional loan should consider a bridge loan or a Small Business Administration (SBA) real estate loan.
When looking at potential lenders, know how they will assess you and your project. Typically, lenders will investigate your credit, your business and the nature of the property you will purchase. Some lenders are picker than others. You will save valuable time by knowing the qualifications a lender seeks in a loan applicant before you apply.
Prepare and Submit Your Loan Application
The loan application process requires patience and attention to detail. In addition to completing paperwork about the property, your business and yourself, you will likely provide legal documents and up to five years of tax returns. The application may also require a business plan, business balance sheet and property appraisal performed by a third party. The lender may take several weeks to process your paperwork and approve your loan.
Close After Approval
Closing takes place after the lender approves your loan application. This final step can move quickly for a short-term loan. Closing can take time if you are approved for an SBA loan or any other long-term funding.
With proper research and appropriate legal counsel, this exciting new chapter for your business can begin.