| If you are hoping to purchase commercial real estate | | | | the table. |
| property, then you are most likely going to need | | | | 5) You will need financial statements for either |
| financing in order to do this. That is unless you were | | | | yourself or your business. This is a no brainer, but |
| born fabulously and independently wealthy. There are | | | | you would be surprised by how many are really |
| certain things that lending institutions expect from | | | | shocked when they are asked for this information. |
| those they are getting ready to summarily hand large | | | | Banks are lending you a large sum of money they |
| sums of money to. Hopefully, the following tips will | | | | want to be assured that you are fiscally responsible |
| help insure that you get the best possible financing | | | | and somewhat solvent. |
| for your commercial real estate investment. | | | | 6) Have an attorney who specializes in real estate |
| 1) Make sure you have all the documents you need | | | | investments go over everything with a fine-toothed |
| and that they are accurate and up to date. You need | | | | comb. You need someone who knows the business |
| to have a solid business plan in place with facts, | | | | and will be an aggressive advocate on your behalf. |
| figures, estimates, and forecasts. Lenders are making | | | | 7) Be absolutely certain that you can afford to keep |
| an investment and taking a huge risk when dealing | | | | your business operating and still make the payments |
| with commercial real estate. If you don't have a | | | | on the business. If you can't do this, or you aren't |
| business plan that indicates that you have put a | | | | certain of your ability to do so, then either now is |
| great amount of time, effort, energy, and thought | | | | not the best time for you, or this is not the right |
| into your business, they are going to be less than | | | | investment for you. |
| enthusiastic about the prospect of taking that risk. | | | | 8) Check with your local small business administration |
| 2) Have money of your own to invest in the | | | | and see what services they have available to first |
| property. For most commercial real estate | | | | time business investors and/or small business owners. |
| investments you will need a down payment, closing | | | | They have a wealth of resources available it would |
| costs, earnest money, and points that may be | | | | be a shame to miss out on a potential grant or low |
| required. Banks want to share the risk not absorb it. | | | | interest loan simply because you neglected to check |
| By taking some of the risk upon yourself, you are | | | | with them from the start. |
| actually lessening their risks while increasing their | | | | 9) Negotiate. You do not have to take the first offer |
| confidence in your ability to make good on your debt | | | | you get. Be an aggressive advocate for yourself and |
| to them. | | | | your business. Learn this skill early and it will serve |
| 3) Have paperwork that shows the solidity of this | | | | you well in your business. |
| property as an investment. You need to have your | | | | 10) Check out several lenders and go with the one |
| business plan, financial records, forecasts and | | | | that offers you the best deal. Remember this is a |
| projections, history of income on the property, and | | | | hefty investment and an unfavorable loan could |
| the appraisal of the property when you approach | | | | increase the burden greatly. |
| lending institutions. This lets the bank know that you | | | | This is your investment in your future; protect it |
| take this venture seriously and that you are | | | | aggressively. These tips should help you get the |
| organized. | | | | financing that is so vitally necessary when purchasing |
| 4) Come into the deal with a current appraisal of the | | | | commercial real estate. |
| property. This can make all the difference in the | | | | Apply For A Business or Commercial Real Estate Loan |
| world. Even if the bank requires you to have another | | | | using our FREE Loan Application - compare rates and |
| appraisal, it is a good idea to have your own appraisal | | | | contact multiple lenders. We have over 300 |
| of the property before you even make an offer on | | | | commercial, business and construction lenders as well |
| the property. An appraisal will provide you with and | | | | as private equity groups waiting to help you. Best of |
| unbiased estimate of what the property is truly | | | | all, GlobalBX is FREE! |
| worth and it will help you determine what kind of risk | | | | © 2006 GlobalBX. All Rights Reserved. |
| you are really taking before you've put money on | | | | |