Commercial Construction Loan
There are a number of loan options out there that can help you acquire the commercial real estate you need
. If you do not want to purchase real estate and you prefer to build it instead a commercial construction loan is a great option. Commercial developers have the potential to make a decent amount of money in a hurry as they provide small businesses and other companies with the property they need to run their business. If you would like to acquire a commercial construction loam, here are some things you need to know:
1. Executive Summary. Your executive summary is what you need in order to acquire the loan. The executive summary is basically an overview of what your project is. Lenders need to see it in order to understand what the project is, where it is, etc. The more they know about your idea, the easier it will be for you to acquire a commercial construction loan.
2. General Contractor. Before you can acquire the loan you will need to provide the lender with detailed information about the general contractor. They need to see who you are hiring and they may ask for a copy of their resume. Make sure you list some of the projects the contractors have done so the lender can get a good idea as to the service they will provide you.
3. Financial Statements. Since you wont have your corporate credit rating to use, you are going to need to prepare some personal financial statements to offer the lender. They may even ask for the personal financial statements of other people like your business partner and even the general contractor. This gives them a well-rounded view of who they are working with. Typically you will need to prepare financial statements for the past 36 months.
4. Net Income Expected. When you acquire commercial construction loans you will need to provide a specific cost breakdown of the net income you expect to see from the project. You will need to provide information about your marketing plan, management plan, market research, etc. The more information you can offer to the lender, the easier it will be for them to offer you a loan.
5. Pre-sell. In order to acquire the loan, you will need to pre-sell some of the property. You need to acquire the tenants ahead of time or sell the property to at least 50% of the people in order to show the lender this is a solid investmen
by: Andy Kyle
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