Getting financing with your business real estate as security, can be quite a frustrating process. However, there are several things you can do to increase your approval chances and get the best rates. Here are some of the most useful tips to arm yourself with when you go hunting for Atlanta commercial building loans.
The first step towards making your loan application is determining what the lenders need. You have to figure out all the documentation that they will demand and ensure you have them all in order. If you do not know such requirements you can walk into any of the commercial banks to make enquiries. However, some of the common things they request for include bank statements and tax returns.
It could be ridiculous to approach any bank without first knowing the value of your real estate. It is critical to determine the true market value of your building as the price also determines how much you qualify for. Banks are normally put off by borrowers who overvalue their assets when sourcing for financing.
Every financier wants to be sure you know why you are borrowing. You should be prepared to be asked for your property strategy. It is nothing unique, but simply a document that clearly details out your business plan. You need to tell them about what your plans are and specifically how the financing will improve your income.
To convince the banks, you should also have a clear and updated tenancy schedule. Most prospective borrowers do not take time to prepare the same and it hurts their chances of qualifying for loans. The document should show the current occupants of the building, the businesses they do and the rents they pay. It should also show rates per feet and lease timelines.
Simplify your corporate structure before submitting your loan application. Financiers are normally turned off by complicated and multiple diagrams that are often confusing at best. It is advisable to prepare a well presented, accurate and clear diagram in order improve your approval rating. Create a diagram that financiers can understand at a glance.
If you have never traveled this path before, get an expert. At times, it makes more sense to hire a broker who has been in the industry for long. Using their skills and experience, they will be able to get you some of the best deals in the market. Research on the property specialists in your area and choose the one to hire wisely.
The first step towards making your loan application is determining what the lenders need. You have to figure out all the documentation that they will demand and ensure you have them all in order. If you do not know such requirements you can walk into any of the commercial banks to make enquiries. However, some of the common things they request for include bank statements and tax returns.
It could be ridiculous to approach any bank without first knowing the value of your real estate. It is critical to determine the true market value of your building as the price also determines how much you qualify for. Banks are normally put off by borrowers who overvalue their assets when sourcing for financing.
Every financier wants to be sure you know why you are borrowing. You should be prepared to be asked for your property strategy. It is nothing unique, but simply a document that clearly details out your business plan. You need to tell them about what your plans are and specifically how the financing will improve your income.
To convince the banks, you should also have a clear and updated tenancy schedule. Most prospective borrowers do not take time to prepare the same and it hurts their chances of qualifying for loans. The document should show the current occupants of the building, the businesses they do and the rents they pay. It should also show rates per feet and lease timelines.
Simplify your corporate structure before submitting your loan application. Financiers are normally turned off by complicated and multiple diagrams that are often confusing at best. It is advisable to prepare a well presented, accurate and clear diagram in order improve your approval rating. Create a diagram that financiers can understand at a glance.
If you have never traveled this path before, get an expert. At times, it makes more sense to hire a broker who has been in the industry for long. Using their skills and experience, they will be able to get you some of the best deals in the market. Research on the property specialists in your area and choose the one to hire wisely.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Construction Loans he recommends you check out www.ifundinternational.com.
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