Purchase Investment Property
& Get a Commercial Mortgage
Get a loan up to $5M to finance a new commercial property investment. With the right commercial mortgage offering low interest rates and the right terms, you can focus on managing your property and earning returns with your business cash flow. Our lenders offer ideal financing options for buying a wide range of investment properties, including
Looking to make a commercial property purchase?
A commercial property can make for a strong investment. But before you move forward, you should ask yourself some key questions.
What is your plan for the investment property?
Before you make your purchase, you will need to formulate a strong plan for the investment. How long do you plan on keeping the property? Do you want to hold on to the investment for a long time, or are you looking to make improvements and then re-sell for a profit? Are you prepared to manage the property, or will you need to hire additional help? These are just a few important questions to answer.
You may have a general plan for your investment, but lenders are going to want to hear specifics before they finance your property. Therefore, it is in your best interest to create a detailed strategy and share it will lenders before you complete the loan application process.
How will your credit history affect your purchase request?
You should also ask yourself some important questions regarding your credit and financial history. If you've experienced credit difficulties in the past, you may find it difficult to meet the requirements of traditional lenders. In cases where you're moving quickly to meet a sellers deadline, you may want to focus on alternative lender partners that are likely to offer more reduced documentation solutions.
How do you want to make your payments?
Finally, it is important to ask yourself questions about the loan payments you will be making after you purchase an investment property. If you plan on holding on to the investment property for a long time, you may want to buy down the rate. This essentially means that you will put more money down up front so that you pay a lower interest rate for the life of the loan. Of course, if you plan on selling the property soon, you could end up paying more for the buydown than you would save on the lower monthly payments.
You can also lower your early mortgage payments by taking out an "interest-only" loan. This means that you would only need to make payments on the interest of the loan for a short period of time. Once that period ends, you would also need to pay the principal payments each month. This can be a smart option if you expect an increase in cash-flow in the future.
There are certainly quite a few questions to ask yourself before you decide to purchase a commercial or multifamily investment property. But don't worry -- you don't have to think of everything yourself. A quality lending partner will work with you to understand your exact needs and help you arrive at a plan that best meets your investment goals. Apply today to learn how our team of mortgage experts can help you with your next investment.
See a Commercial Mortgage Purchase in Action
Our team of mortgage experts helped an investor purchase the above property in Boston. In this case, the borrower did not want to provide tax returns, and that made it difficult to work with banks and other traditional lenders.
Our experts were able to connect the borrower with a reduced documentation solution that did not require tax returns or a 4506T.