Before starting a real estate venture, you may require funding from lenders or investors. As noted on the Entrepreneur.com website, several financing options may allow you to acquire a commercial property.
If you have stellar credit and a good track record with real estate, you may have options to apply for credit lines. By organizing your venture as a business, you may access a commercial line of credit. Lenders generally allow you to buy items to help you profit such as materials to rehab a property.
Commercial loans for real estate
Without good credit, you could find it difficult to qualify for a mortgage. Some commercial property owners, however, may offer their own financing and create a contract for payment terms. Based on your history as a business owner, you may also apply for real estate loans through the Small Business Administration. Between the SBA and a motivated seller offering to finance, you may find the means to fund a property purchase.
You could also search for commercial lenders offering nonrecourse loans. By using the acquired property asset as collateral, you may obtain real estate with the potential to increase profits. Leasing property to tenants, for example, may provide the cash flow to pay the loan. If you default on payments, however, the lender forecloses and takes the collateralized property, as explained on Bankrate.com.
Real estate investors or partners
Some real estate newcomers turn to online networking or peer-to-peer funding. You may find it reasonable to offer an investor “perks” or rewards in exchange for funding. Online crowdfunding, however, may not provide sufficient cash to buy valuable Florida property.
An ironclad contract may attract professional partners or investors experienced in commercial transactions. Whether through loans or partners, well-written agreements may protect you from costly errors when purchasing commercial real estate in Florida.