6 Types of Commercial Real Estate Financing

Is 2021 the year you expand your business or move locations? Do you have a remodeling or tenant improvement project on the schedule? If so, you’ve likely got questions about your commercial real estate financing options.

Commercial real estate financing is an intimidating subject for many business owners. Some people fear being rejecting for funding, while others worry about taking on too much debt. In either case, there is a financing option that is the right fit for you. Take a moment to learn about six possible solutions for funding your commercial real estate project.

1. SBA 7a or 504 Loans

The Small Business Association (SBA) offers several different small business loan programs. Businesses can use SBA loans to fund relocation or commercial construction projects. Many US-based businesses are eligible for SBA loans. Legendary Capital Solutions can help you understand if you are eligible.

2. Stated Income Loans

If your credit history takes some loan options off the table for you, a stated income loan may be a solution. Your credit score is not a factor in your approval for a stated income loan. Instead, the lender determines a loan amount based on your business’s income.

3. USDA Loans

If your business is located in a rural area, you may have had trouble working with traditional banks. Many of the big names in lending don’t understand or feel comfortable approving a loan for rural businesses. Legendary Capital Solutions offers commercial real estate financing through the USDA for business, renewable energy, and community projects in communities with fewer than 50,000 residents.

4. Portfolio Loans

Portfolio loans provide financing by pooling commercial mortgage-backed securities and transferring them to a trust. Lenders fund your loan as part of the pool. Portfolio loans can fund mortgages for many different commercial properties, including offices, warehouses, and retail structures.

5. Bridge and Hard Money Loans

Often, a commercial real estate deal involves time between the sale of one property and the purchase of the next. A bridge loan covers expenses during this time. A hard money loan allows a business to borrow funds based on the value of the collateral they offer.

6. Construction Financing

Legendary Capital Solutions also provides financing options for remodeling, expansions, tenant improvements, and build-outs. These loans provide the working capital for your commercial construction project, whether you’re renovating or building from the ground up.

Navigating your commercial real estate financing options can be difficult without the help of a trusted advisor. Contact the Legendary Capital Solutions team to find the right financing solution for you.

Disclaimer: The contents of this website do not constitute financial advice and are provided for general information purposes only. If you require specific financial advice, you should contact a financial advisor. We can only advise on the basis of specific client instructions and are unable to offer financial advice by email to people who are not our clients. To learn how to become a client of Legendary Capital Solutions, please contact us.

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