What Are The Most Common Myths With Regards to Commercial Lending

What Are The Most Common Myths With Regards to Commercial Lending

Not many investors have the capital required to implement commercial real estate deals without leverage. Therefore, financing is a vital component of commercial real estate investing.

Unfortunately, the myths surrounding commercial loans stop people from applying for these financing options – or even knowing where to look to find the product they may need. Listed below are some myths regarding commercial loans that you should not let deter you from finding financing that is ideal for you.

You should only consider large banks: Large banks are no doubt helpful, but there must be a reason why borrowers today are increasingly selecting smaller commercial lenders over the large banking institutions. For example, borrowers want lenders that provide fewer restrictions, more flexibility, and less paperwork. This is the opposite of what most large banks provide. Borrowers are opting for niche commercial lenders in California who are more open to working in a ‘make-sense’ type of manner.

You require a great credit score: This is one of the most common misconceptions with regards to commercial lending. No doubt, having a great credit score aids, but commercial loans do not require spotless credit. There are many avenues that still have very good terms for those with less than perfect credit.

You must have an A grade property: There are many financing options for commercial property of all types. This includes even property that may not be generating any income currently. Some of these types of properties can be some of the most profitable for savvy investors who know how to reposition them properly.

With technological development & more accommodating commercial lenders California, getting good deals in the commercial real estate market is now easier than ever before. additionally, commercial properties can come with lower risk & more returns than residential properties.

You require a very large down payment: A lot of borrowers have a misunderstanding that one requires a heavy down payment to secure a mortgage on a commercial property. That fact is that with the right commercial lender in California, you can negotiate reasonable down payments.

Here at All California Lending, we can help with commercial loan requests of all types.

Regardless of debt service for the property, credit scores of the principals or type of property, we can help you get a commercial loan as quickly as possible.