Commercial Properties as Investment
Find a trusted and qualified real estate agent that is qualified and willing to work with commercial properties to find the investment property that you want.
Here we have a partial list of the types of properties that can classify as commercial properties and/or investment properties:
- Rental homes/ Apartment complexes
- Retail buildings
- Farms/ Ranches (agricultural)
- Gas station/ Mechanic shop/ Car Wash
- Restaurant/ Diners
- Hotels/ Motels/ Bed and Breakfast
- Manufacturing plants/ Heavy or light Industrial
- Amusement Parks/ Golf Courses/ Public swimming pool
- Office Buildings/ Single or multiple complexes
- Parking Buildings/ Lots
There are many options available to investors that want to expand an existing business or acquire new investment properties. Your real estate agent will be a big asset to you in pointing you in the right direction to current financing and leasing options for commercial properties. Tell your agent exactly what it is you are looking for. Be specific with your criteria and commercial needs so that they may find exactly what you are looking for in investment properties.
Commercial lenders are plentiful so take the time to find the one that will fit your needs and give you the best deal. Not every commercial lender is created the same. Commercial lending can cover such a wide spectrum that not one commercial lender may handle all types of commercial properties or investment properties. Your Pasco, WA real estate agent may be able to get you in touch with a commercial lender that will handle your specific commercial lending needs.
Many times a commercial lender will have a minimum amount that they will handle. In finding the commercial lender that will work within your budget make sure that the lender’s minimum fits in your business plan.
***For the most up-to-date information on available financing/leasing options and requirements ask your Pasco, WA real estate agent and commercial lender to help you.
Just to give you a few general ideas on commercial leasing and loan options see the list below.
Some of the most commonly found Loans/Leasing Options are briefly explained (these can vary from business to business):
- Government grants – See if you qualify for grant money from the government that helps small businesses get off the ground.
- Small Business Administration (SBA loans) – There are many different types of lenders for these loans and programs designed with the small business in mind.
- Shopping center leases – Tenant leases ground and they can build on the property.
- Triple-net lease – Tenant pays base fee and commissions to the owner as well as sq footage of the building.
- Net lease – Tenant pays maintenance fees, insurance, and property costs in addition to the rent.
- Gross lease – The tenant is responsible for the rent. The landlord pays taxes, insurance, and other property costs
Choosing a Lender
Keep in mind that your commercial lender is not in this out of the goodness of his heart. Find out what you need to be prepared with to show them how they will make a return by lending you money for your commercial properties and investment properties.
Every large and small commercial lender has advantages and disadvantages. Sometimes your bigger lenders have more options to save you money on your commercial properties and investment properties. A smaller commercial lender may also carry various lending options with a personal touch that you get from a smaller customer base. Your personal preferences and the financing options they offer will take a big part in this decision. Talk to your real estate agent to see what would be in your best interest.
When you make your final decision of who to have to handle your commercial lending make sure that they are in it for your best interest. This is your nest egg, your investment so you want a commercial lender and real estate agent that will be at your side to walk you through the process.