When a lien secures a commercial property instead of a residential property and a mortgage loan is charged on it, it is known as a commercial real estate loan. Retail centres, hotels, apartments, offices complexes are all examples of commercial real estate and the loan that is taken to build these structures is known as commercial real estate loan, in simple words.
Now, just like any other transaction of real estate, this too faces certain problems that make it inevitable for the person concerned to hire a real estate development professional. Development of a real estate does not necessarily have to be residential it can be commercial as well, and for cases such as these Chase Rubin is the most appropriate person.
He is a proven industry professional hailing from greater Philadelphia. His professional ethics involve two basic things – one is maintain a good relationship with the client and the other is to stay updated about the changing and fluctuating market. He loves to help his locality by getting deeply involved in any development process in the local area. His primary aim is to always improve communities and provide the best possible services to his clients.
It actually hardly matters how much effort a professional real estate developer puts in, the problems particularly pertaining to the commercial aspect, crops up in some way or the other.
- The tax returns usually pose a very big problem right at the onset of acquiring a loan; in fact they become a hindrance in the process. A stated income is a better alternative in such case.
- By the passing time, it is becoming really tough to get a loan approved for any kind of specialized property. Any property besides an apartment or retail or office building is being categorized as a specialized property and procuring loan against them is nerve racking.
- The terms or tenures of commercial loans are drastically being shortened by 3 to 7 years.
- Additional fees are charged along with the processing or retainer fee known as the commitment fee, which increase your expenses further.
- Often a lender asks for a business plan, but an intelligent business person will never open up all his cards in front of the lender.
- The use of personal asset as a collateral is often seen in the process of acquiring a loan, but that should be completely avoided by any commercial borrower.
- Highly lengthy process of commercial real estate loan acquisition. The traditional banks require at least 3 to 9 months to close a commercial mortgage while a more modern lender will close the loan in a maximum of 45 to 60 days.
Having overcome the problems of a commercial real estate loan, comes the truth that whether it is a real estate loan for commercial purpose or for residential and personal purpose, at some point of time, some amount of development is definitely required. For this purpose you need to consult and look out for experienced professionals like Chase Rubin, who is well known for his expertise in the field.