Financing Tips

Once you have made the decision to purchase a building space. It s a good idea to determine how you will be paying for the property before getting too involved in the process. There are numerous sources and means to fund the purchase. Some of the more popular methods are listed below.

Adjustable Commercial Mortgage
A commercial loan in which the interest rate is adjusted periodically to a specific index such as Prime or T-Bill.

Construction Loan & Take-Out
A commercial construction loan tied in with a pre-arranged takeout loan in place.

Fixed Rate Commercial Mortgage
An interest rate that remains constant throughout the term or the commercial mortgage.

Hard Money Loan
Commercial loans from private lenders based primarily on the property value.

Bridge Loan
A short term, interim or project type commercial loan usually 2 years or less.

Joint Venture
A financial partner who has a financial interest in the development or ownership of the property.

Sale-Leaseback
Lender purchases land and leases back to borrow for a fixed rent plus other considerations. This type of commercial mortgage can produce more dollars than a typical commercial mortgage depending on strength of the borrower.

Second Mortgage
A commercial loan secured by equity, but behind that of the first lien.

Wraparound Mortgage
Lender makes a second mortgage and assumes the first mortgage.

Sharlet Hakimi Services Clients All Over the Chicago Suburbs:

Palatine, Rolling Meadows, Arlington Heights, Barrington, South Barrington, North Barrington, Barrington Hills, Inverness, Hoffman Estates, Schaumburg, Mt. Prospect, Prospect Heights, Buffalo Grove, Long Grove, Lake Zurich, Wheeling, Mundelein, Kildeer, Deer Park, Des Plaines, Elk Grove Village, Streamwood, Lake Barrington, Park Ridge, Northfield, Northbrook, Carol Stream, Wood Dale, Bensenville, Rosemont, Downers Grove, Lombard, Bartlett, Hanover Park, Deerfield, Glenview, Skokie, Glencoe, Winnetka, Evanston