Commercial real estate is a great business investment for the long term. Historically, commercial real estate provides a good return on your investment and is a secure asset. If you plan on having tenants, then the property will be a steady source of income.
Commercial properties cover a lot of different kinds of buildings and land such as retail spaces, undeveloped parcels, warehouses, office buildings and apartment buildings. Adding these kinds of assets is an excellent strategy for growing your financial portfolio for your company.
When you do decide to invest in commercial property, choose the lender that helps you achieve your investment goals without the hassle. Acala Investments is a hard money lender with a lending process based on common sense, not the yards of red tape that you have to deal with when borrowing from a bank. We underwrite commercial loans for all kinds of real estate with quick closings and fast financing.
Buying Commercial Real Estate: Commercial Loan Basics
Investing in commercial real estate is similar to buying a residential property, except the cost is generally much higher. Most investors require the assistance of a commercial loan to make the purchase because of the expense. It’s common for commercial real estate investors to be a business entity such as a registered corporation, rather than an individual.
The commercial loan is a mortgage that uses the lien as the lending mechanism. A contract is drawn up between the buyer, in this case, your business entity, and the lender. If the loan isn’t repaid, then the lender takes over the lien. While there are different kinds of commercial loans, the details of the loan are the same.
Your principal amount is what you’ve borrowed to put towards the purchase of the property. You will be offered an interest rate based on your creditworthiness. The repayment schedule is another important part of your loan, which will give you the schedule of monthly payments and the amount that is to be paid each time.
It’s important to review every portion of your loan documents to make sure you understand all of the details, and that the information is correct before you sign the contract. We’ll answer any questions you have and make the funding and closing process as easy as possible.
Applying for a Commercial Real Estate Loan
With a conventional mortgage loan, your business comes under a lot of scrutiny. You can expect the lender to inspect your company’s financial records and to check your debt service coverage ratio, a way to see if it’s viable for your business to repay the loan. The ratio is calculated by dividing your net operating income by your annual total debt service.
With Acala Investments, the process is a little different (and much easier) because we are not a conventional mortgage lender. We don’t require your FICO score, and we offer more reasonable terms than you would get from many lenders. We’re happy to deal with trusts, LLCs and corporate borrowers.
Your Commercial Real Estate Lending Experts in El Paso
At Acala Investments, we help businesses of all kinds to secure loans for their commercial real estate, and we can help you with the next steps in getting funding for your real estate investment. Whether you’re looking to buy a restaurant, auto repair shop, office building, warehouse, day care facility or any other type of commercial property, Acala Investments can put together favorable financing that helps you close the deal. Contact us today to find out more and apply!