Office Building Loans
Companies that are planning to purchase a new premise to use as an office will need to apply for a specific type of credit: office building loans. There is a lot of importance in requesting the right loan since you can get more benefits ad better conditions depending on the specific use you will give to the funds.
To be a bit extreme, it is not the same to apply for a construction loan when you are trying, instead, to buy an office building for your company. A more realistic and closer example lies in the difference between commercial real estate mortgage and office building loans.
Buildings meant to be used as offices are indeed considered to be commercial, but not entirely since most companies will not sell products or provide services directly by receiving clients in the premises. Therefore, a commercial real estate loan does not cover the entire idea and need of the property. Besides, real estate credits are mostly used by investors in this industry that try to purchase, renovate, and resell the properties. Now, what are the main benefits of requesting office building loans if your needs align with them?
First, interest rates will be adjusted to the type of property, the sum of money required, and your needs for the funds. Second, the LTV ratio is higher since the building can involve a higher value than regular commercial real estate properties. Finally, the term of the loan is longer along with the amortization time.
However, all this can vary depending on the lending institution or private lending company offering the loan and from who you decided to acquire it. In our company, Commercial Real Estate Loan Pros of Jacksonville, we can promise you that the differences and benefits of office building loans are going to exceed your expectations when compared to other commercial credits and mortgages. And, more importantly, will cover over 80% of the total cost of the building.
Are renovations off-limits?
If you want to purchase an office building, the process will be simple when you meet all the requirements. However, if you are planning renovations, expansions, or other projects related to the same type of real estate property, we can also offer alternatives of the same type of loan. Most lending institutions and companies only cover the purchase of the property but not other expenses related to it.
Therefore, this limits what companies or particulars can do with the building or if instead of funding the acquisition, they just need to prepare it and polish everything. With us at Commercial Real Estate Loan Pros of Jacksonville, you will not have to worry about this and just focus on providing the main requirements we established:
- Credit score.
- Financial records—personal ones and from your business.
- Details about the building you are planning to buy, renovate, or expand.
Our team will evaluate your request and determine if we can approve it. If not, we will come up with an alternative that is going to cover part of your needs.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.