Tell me the basics about Commercial Real Estate Financing.
Commercial Real Estate, abbreviated as CRE, is real estate that is used specifically for business. CRE can include real estate such as hotels, factories, apartment buildings, and office complexes. Many lenders and groups will lend money to companies who want to own their own CRE. This is called Commercial Real Estate Financing.
How much money can I borrow?
Commercial Real Estate Funding through The Credit Express begins at around $500,000 and maxes out at $50 million. In certain cases, we can fund endeavors which fall outside this range.
What’s the minimum size of apartment building you allow?
Apartment buildings have to have at least 5 units to be funded.
How can The Credit Express decrease my financing costs?
We help people save on financing costs through our multistep approach. We first assess the property’s merits from the viewpoint of a commercial lender. Then, we present our finding to a large group of lenders. They give us an idea of what terms the market can sustain. Since many lenders will reduce processing and origination fees when companies use expeditors like us, we can get our compensation and help you get a better deal at the same time.
Why shouldn’t I go to a bank myself?
Well, you definitely can. However, banks often are constrained by quotas and underwriting requirements. This means that they might reject you, regardless of how worthy your CRE bid may be. To make matters worse, there may be a limit to how many banks you can approach about a Commercial Real Estate Loan. With us, those constraints don’t exist. We also can go to as many lenders as we want, and that puts pressure on them to lower their rates. In other words, you get a better shot at approval and a lower chance of being gouged by high interest rates.
How do you know all these lenders?
We work hard to maintain relationships with local and national lenders. Lenders really have a difficult time finding borrowers who have eligible projects, which means that they are actually pretty relieved when they hear from us.
Do I have to have collateral?
The loan is secured by the property you’re buying.
Can I get a fixed rate program?
You sure can! Our lenders offer both fixed and adjustable rates.
Can I use this to establish a line of credit?
You can, but certain restrictions may apply. Ask us about it if you need more information.
Should I hire a real estate broker and real estate lawyer?
We strongly suggest that you do. Brokers are great at negotiating on your behalf, and lawyers can help you navigate the often-difficult world of CRE regulations. They do a great job of preventing legal problems from arising during these sensitive transactions. Should anything become an issue, they will be the ones to help you out.
How can I qualify?
Lenders who offer this kind of financing want to see a number of things. They want to see a good guarantor, and they want to see good projects. They also want to see a LTV (loan-to-value) rate or a LTC (loan-to-cost) rate that is under 80%. They need to see that you, the borrower, can put the difference of as a down payment in cash. Since these are income-producing projects, they want to make sure that the income will be at least 1.2 times the amount of the total debt service.
How long does it take a loan to be pushed through?
It can take anywhere from 30 to 90 days, with a typical outcome of around 45 to 60 days.
What’s my role?
We need you to give us documentation and information in a timely manner, and to answer any questions we may have. The more timely you are about this, the faster you can get a loan.
What do I have to pay for your service?
Nada. Zilch. Diddly squat.
We do not ask for a single cent of your money. Lenders pay us.
Since I’m buying this for my company, do I have to get an Environmental Site Assessment?
Some lenders will require this as a stipulation for receiving funding. Even if you don’t want to do it or don’t need to do it, you still should consider getting it assessed. It may reveal serious issues that need to be addressed before the property changes hands.
Do I need an attorney’s assistance?
It’s never harmful to speak with an attorney regarding personal and business matters, and often times, it may be the best thing you can do if you think that an attorney’s advice can help you. Although we aren’t a law firm and we cannot provide anyone with any legal advice, you are more than welcome to speak with an attorney that we use for our company. We truly want to get familiar with our clients, and help them in any way we can. Simply send an email to info@thecreditexpress.org and we’ll be sure to forward it.
Still need help? If you have a question that isn’t answered here, or if you feel like you could use advice when it comes to the best route of financing for your business, we are here to help you make the best choice for your company! You may call us at (678) 983-4555 or email: info@thecreditexpress.org. You’re also more than welcome to visit our office. Evening and weekend appointments are available.