Commercial land loan
As the term suggest too, commercial land loan is the credit facility provided for purchasing commercial land. This type of loan is taken by businesses, individuals and various types of commercial organizations. Since commercial land is available for higher prices, most of buyers take commercial land loan for fulfilling the financial requirements. commercial land loan is always provided as a secured loan. That is, loan amount is secured against the collateral provided by the borrower. In most of cases, collateral provided is the piece of commercial land bought out of loan amount. There are also many financial institutions that provide finance for buying commercial land as well as for constructing apartments, multiplexes, etc over it.
Interest rate is one of most important aspect of commercial land loans. If compared to residential land loans, interest rates are higher. Interest rates vary from one lending institution to another and thus, it is very important that a person compares various terms of conditions first.
Some important terms
There are some important terms that must be understood by a person before getting commercial land loans. First is DSCR or Debt Service Coverage Ration. It is related to cash flow of commercial land. The commercial land financed must have adequate cash flow so as to service the interest and principal payments. Most of lenders would require a business to have a DSCR of 1.2. Second important term is LTV or Loan to Value. This tells about the margin that has to be provided by the borrower for buying commercial land. Since lenders are more conservative towards commercial land loans, 20% margin is generally required. In other words, LTV associated with these loans is 80%. LTV varies from one lender to another. Other important terms associated with above type of loan are Credit Worthiness and Property Analysis. Borrower should have good credit rating. Similarly, guarantors should also be good credit. Before providing loan, commercial land to be financed is analyzed with respect to location, appearance, age, accessibility etc.
Let us try to understand more about commercial land loan by discussing some of leading sources.
Sources of commercial land loan
GE Real Estate is one of most popular sources of commercial land loans in United States. It is basically a unit of GE Commercial Finance and provides many types of innovative real estate finance solutions. commercial land loans are provided throughout the world by means of 5 operating platforms. These are North America Lending, Business Property, North America Equity, Europe and Asia Pacific. Under business property platform, commercial land loans are provided from $1 million to $1 billion to eligible small and medium businesses based in United States and Canada. GE Commercial Finance also makes joint ventures through GE Real Estate for financing commercial land acquisitions. Fixed rate commercial land loans are provided under CMBS Fixed Rate Programs. For single asset acquisition, loans are provided from $5 million to more than $200 million. LTV varies from 80-90% whereas fixed interest rate term varies from 5-10 years. For getting more information about commercial land loans, a person can easily call at 888-433-4778.
Among online sources for commercial land loans, Commercialloans.loanscut.com occupies important place. It is a California based organization that offers secure, quick and reliable lending services. commercial land loans are provided in timely manner and exact needs are fulfilled due to rich financial sources and expert advice available. Clients are helped to choose the best commercial land loan program on basis of their needs and financial parameters. All types of financial services provided are need based. commercial land loans are provided while adhering to strict rules and regulations. Loan application is processed in fast manner. This organization has been providing commercial loans for past one decade, which are provided in partnership with leading financial companies of the nation.
Similarly, Commercial Banc is also one online source in United Statesplace> that helps a person in getting commercial land loan at lowest rates. Quotes are provided free of cost on no-obligation basis and there are no up-front fee attached with loans. Loans are applied through online application forms in easy and quick manner.
Another provider of commercial land loans in United States is ABC Of Commercial Loans. It is located at 4605 Lankershim Blvd. Suite 301, N Hollywood, CA. Its contact number is 818-477-4068. This lender fulfills financial requirements of different types of small and medium enterprises by providing best commercial land loan consultancy. Online consultation is provided on basis of no-obligation free of cost. Customized loansolutions are provided through commercial loan experts who evaluate exact requirements of borrowers. Loan amount is provided through private banking institutions and other lenders located across the nation. ABC of Commercial Loans is considered as best one-stop online source for commercial land loans. Loan amount is provided at flexible terms and conditions.Minimum loan amount is $100000 whereas maximum loan amount goes over $100 million. Floating rate interest only loans are provided for a period of 1-3 years. Maximum repayment period allowed is 30 years and fixed rates are offered for term of 5, 7, and 10 years. commercial land loans are provided on recourse and non-recourse basis. LTV attached is up to 75%. There are some loan criteria, which varies from one borrower to another, which must be satisfied by the borrower for getting loan amount.
Athena loanservices is also a provider of commercial land loans in United States. It is based at Warren in New Jersey and can be contacted over phone at 908-756-5738. Different types of loan options are provided so that a person is able to fulfill exact requirements. Loan amount is provided through direct access to lending sources located across the nation. Loan approvals are speedy and closing process is very fast. All types of transactions are subject to highest industry standards.
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