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
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