When you’re looking to refinance a commercial property you may encounter some roadblocks. If you’ve gone to your bank, you were probably turned down, not because you can’t afford the mortgage but due to the fact that these mortgages are considered more risky. Yes, businesses can fail and loans can be defaulted on but your bank cannot predict the future. How do they know that your business won’t be a smashing success and stay in operation for the next 70 years?
We can’t predict the future either but rest assured, we aren’t your bank. We’re PrivateLend.com and we want to make sure you get the financing that you deserve. In fact, we’ll make sure it happens so you can start growing your business or renting out your space!
What Is A Private Commercial Mortgage?
A commercial mortgage is a loan taken out to secure a commercial property instead of a residential one. This type of loan is ideal for business owners who are looking to increase their space and people looking for an income property. When you use a private lender like PrivateLend.com, you are getting a private mortgage instead of a traditional one.
The difference between a private and traditional mortgage is how it is funded. Traditional mortgages are funded by banks, conventional lenders or even trusts, whereas private mortgages are funded by single or group investors.
Why Should You Use a Private Lender For This Kind Of Mortgage?
Private mortgages are generally recommended for commercial properties because of the size of the mortgages, the complexity of the business, as well as strict underwriting guidelines instilled by the banks and trust companies.
As aforementioned, businesses can fail which frightens traditional lenders. In the end, all mortgages are risky but we do not scare easily. At PrivateLend.com, we will ensure that you get your financing quickly because we know that sometimes the hardest part about getting a commercial mortgage is waiting to be approved.
What Buildings Are Considered Commercial?
To be classified as a commercial property, a building must have five or more units, or be considered properties where a business takes place away from your principal residence. Buildings that have storefronts and residential units are considered mixed and fall under the commercial category. Furthermore, buildings such as offices, industrial, retail properties, and shopping plazas are also deemed commercial properties. Restaurants and bars are thought of as commercial spaces as well.
It’s easy to confuse residential and commercial properties so remember that buildings that have 1-4 units are not commercial properties. These are considered residential and the funding process is a little different. If you’re not sure what category your property falls under, we can help. Moreover, if your property isn’t considered commercial, but is residential, we’ll have no trouble finding you a residential mortgage.
PrivateLend.com will take care of all your mortgage needs. Whether you are looking to purchase a 30-storey apartment building or a high-end boutique, we’ll get you the private commercial mortgage you need as quickly as possible!