Commercial Real Estate Loans: From Start Up To Small Business

Is it time to
expand your growing business? Then, let’s go over all things commercial.
By now you know the benefits of starting your company
can be two-fold—you get to be your own boss and you are following your dreams.
Well, the good news is if you are in the market for commercial
real estate loans than chances are you
are doing something right.
Generally,  the first thing you
need to know about
commercial real estate loans is  whether or not you are in
the market for owner-occupied loan options or investment property loans.

Owner-occupied loan options typically refers to a loan
for a commercial building that will have more than 51% of the space occupied by
the owner (
hint: since you are making the
transition from startup to small business, owner-occupied loan options will
often help keep the cost low due to the additional tenants
). An investment
property loan for a commercial building, multi-unit store front or office
complex, on the other hand, can be used to buy or refinance. This particular
type of commercial loan generally has higher rates and a balloon payment that
tends to be due sooner rather than later. But, nevertheless, an investment loan
is just that an investment. In other words, you would typically consider this
loan option if you were not interested in occupying the property.

Generally, when making the transition from startup to
small business, as previously mentioned, it is all about the owner-occupied
loan options. Thus, with that being said, the next step in all things
commercial is deciding if the benefits outweigh the costs (literally).

The Benefits of Owning Your Business Location

If you have already done a little bit of research then
you are more than likely aware of the numerous benefits of owning commercial
real estate such as the lucrative tax advantages, asset appreciation, leverage,
high cash yield and of course a clear indication of overhead costs i.e. your
business is essentially rent controlled. These benefits are even more lucrative
for a startup or small business as owning your business location will allow you
to create capital for a variety of business expenses as well as foster an image
of progression and durability in your brand. The best way to purchase commercial space is with commercial real estate loans.

Of course, that’s not to say there
are no disadvantages to owning your business location, especially when you are
first starting out. Remember, commercial loans involve additional costs and
fees, title work, appraisals as well as full documentation. In fact, many
startups and small businesses simply may not be ready to take own the financial
responsibility (various fees, depreciation, borrowing capacity, etc.) or the
property management and maintenance that comes with commercial ownership.
Consequently, it is always in your best interest to weight the pros and cons
before you make your next venture.

If you are ready to take the next step with commercial real estate loans, call our office today!

Well if you decide commercial real estate loans are right for you. Then your next step
is to reach out people that know the business. This means working with a real
estate company that can not only meet your needs but one that ultimately
understands your needs. 

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:      (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

 You Tube
Face Book 

 Active Rain 

 Linked In

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.