PURCHASE PROPERTY OR RENOVATE
A commercial real estate loan or commercial mortgage is a specialized form of financing for the purchase or refinance of real estate only. A CRE loan has a high potential loan to value ratio and is typically structured as either a bank term loan or SBA loan.
2 years in business
$250,000 annual revenue
680+ FICO
Acceptable debt service coverage ratio
Completed application
2 most recent business tax returns
6 most recent business bank statements
YTD financials
Current debt schedule
Property spec sheet and appraisal
I’ve used Clear for many of my business financing needs. Most recently, they helped me get a commercial loan to buy the office building I had been leasing for years. My monthly payments went down significantly and my business can now start to build equity.
A CRE loan can be used to purchase or make improvements on commercial real estate.
This is a bank loan with a bank process. The underwriting is extensive and additional requirements like an appraisal and market analysis generally make a long process longer.
The interest rate can be fixed or variable.
We consider this loan one that is difficult to get approved for.
There typically is not a prepayment penalty.
The lender will likely charge additional fees in the form of closing costs, due diligence fees and/or an origination fee.
Payments are made monthly, like most traditional loans.
The real estate the loan is being used for would serve as collateral.
