Alternatives to Traditional
Commercial Real Estate
in Southern California
Do you need a commercial real estate lending solution in Southern California?
The right commercial real estate lending solutions can allow your business to take advantage of opportunities and acquire properties needed to expand and grow. Exploring all your available business real estate loan options can help you save money while ensuring you receive the funding needed to achieve your goals. Here are some of the most important facts to remember when looking for a commercial mortgage in the Southern California real estate market.
Traditional loans are not right for every business.
Loan Amount * $295,000 Rate * 9.89% Appraised Value * $590,000 Term * 36 months, IO Lien Position * First Our Borrower acquired this real estate with seller carry back financing. The loan had matured and we were able to provide a bridge loan while the Borrower...read more
Traditional real estate loans for commercial properties have strict approval requirements.
- For example, loans backed by the Small Business Administration (SBA) generally require a business credit score of 680, at least two years in business and occupancy of the property by the mortgage holder. SBA-backed loans can take up to 90 days for approval and funding.
- Traditional bank-offered mortgages may require an even higher business credit score of 700 and a larger down payment of at least 15 percent of the purchase price. These loans are available to businesses that have been in operation for at least two years and can take up to 90 days for approval and disbursement of funds.
Most commercial mortgage lenders take a one-size-fits-all approach when designing loans for their clients. If you need a more customized lending experience, however, a number of alternative commercial real estate lending options are available to suit your needs more effectively.
Why should you consider an alternative real estate lending company in Southern California?
Alternative commercial mortgages offer exceptional flexibility for your business, especially if you have had credit difficulties in the past or have only recently started your company. By exploring available alternatives to the big banks and government-backed lending arrangements, you can derive significant benefits that include some or all of the following:
- Lending arrangements that are tailored to suit the needs of your business and your cash-flow requirements
- High-tech options for filing and updating paperwork and securing your confidential financial information
- Easier credit terms that can increase your chances of approval for your business real estate loan
- Faster approval and disbursement of funds, allowing you to take advantage of opportunities in the fast-paced Southern California real estate market
- Less paperwork required to document your eligibility for these loans
Some of the best options for small businesses are found in the alternative lending sector of the financial industry. By considering these options when planning your real estate acquisitions, you can make the best choice for your business and your financial bottom line.
Loan Amount: $585,000 Rate: 8.49% Appraisal Value: $1,600,000 Term: 24 months Lien Position: First The borrower purchased the building and restaurant with a seller carryback on a land lease in a large shopping center. Our loan paid off the seller carryback and...read more
Alternative commercial real estate loans could provide the right solutions for your business.
Choosing the right Southern California real estate mortgage arrangement can help you obtain the funds needed for your acquisition. Some of the most popular options include the following:
- Bridge loans are a type of short-term financial arrangement that can help you navigate cash-flow issues that can occur during the sale of one property and the acquisition of another.
- Development loans are ideal for construction companies that require investment capital to complete their building projects. Funds from development loans are available for use to improve properties intended for sale or lease in the Southern California real estate marketplace.
- Private money loans sometimes require higher interest rates to compensate for the higher degree of risk assumed by investors. These loans may be made available by individual investors or groups.
- Hard money loans are usually based solely on the value of the property to be purchased rather than on the credit history of the borrower or the business. If you have had credit problems in the past, this approach can allow you to get the funding you need to acquire new properties in Southern California.
If you are looking for the most appropriate commercial mortgage for your needs, considering alternative lending options could help you achieve your goals more quickly and easily.
Can you afford to overlook alternative commercial mortgage lenders?
Making sure you can access the lending arrangements needed to expand your territory and grow your business is essential to your ongoing success. By exploring traditional and alternative lending options and choosing the most cost-effective solution for your company, you can achieve greater profitability and increased revenues in the competitive Southern California economy.
If you are in need of an alternative lender in the Southern California area, be sure to contact ReProp Financial today!