Purchasing commercial property in Helena, MT, can be used to add to your investment portfolio, to start a business or to expand an existing business. Obtaining a commercial real estate loan is not always easy, but there are strategies that individuals or small business owners can use to qualify for these loans.
Know Property Values
It is often difficult to know the current market value of any type of commercial real estate. Unlike residential real estate, there are often limited numbers of comparable properties for sale or recently sold in the community.
Having a good understanding of the current market value and the specifics of the property you wish to purchase is critical when applying for a loan. Lenders typically require an independent valuation of the property as well, particularly for large commercial loans.
Have Documentation Ready
The requirements for a residential loan may seem demanding on the application, but there is more documentation required for a commercial loan. Applicants need to have their company financial information, their personal financial information (if buying as an individual) as well as all documentation relating to the formation of the company, tax returns, rental agreements, tenants list for the property and even copies of current leases if they are applicable.
It is essential to have documentation of the sales contract and the legal property description to submit when applying for the commercial real estate loan.
Business Strategy
It is essential for a current business or a startup company to provide a written copy of their business strategy or business plan. This is important for the lender to see how the business is planning to repay the loan.
This is a critical component of the application and one that is required by any Helena, MT, lender to approve the application and provide the commercial real estate loan.
