A commercial property mortgage loan is often secured by the commercial property such as the office building, land, apartment complex, or warehouse. Usually, the proceeds from the rent of these commercial properties are being used to develop or refinance the said property. There is a big difference with the requirements of a commercial property loan mortgage and from that of a residential home loan mortgage. Take note that a mixed used property may also go either way depending on the deciding factor of the bank or lender such as the amount of space allotted to the residence compared to the amount of space allotted to the business. However, most lending companies make the decision for you when it comes to the type of loan you are going to take and they are going to offer on your mixed used property.Basic requirementsInvestment property loans are more demanding than the residential home mortgage loan. The appraisals are conducted based on the condition of the property, size, location, and accessibility. With this kind of loan, you need to demonstrate a good business and personal credit record. The lenders would want more demonstration of income and asset documentation after checking our credit history to make sure you have the capacity and the asset to pay off your loan in case of a payment default. Sometimes, the lender would want a proof of the profitability of your business. Commercial estate financing is often times partly based on the value of the business in the future, perceived risk, market conditions, and anticipated returns from the property.Large down paymentsLenders often ask for larger amounts as down payment because of the risk involve. The average equity is usually about 30 to 45 percent. The rest of the amount will be provided by the lender. This loan to value ratio is the most common percentage used by lenders in commercial lending. Some relationship managers may offer a financing margin of 80% and a repayment of 30 years for commercial and industrial property financing. You will be given the option for a fixed rate, floating rate, or SIBOR rate packages. The property must show a sufficient debt-payment ratio, which is calculated using Net Operating Income/ Total Annual Debt Burden.What are the other factors to consider?You need to demonstrate a solid income stream.Provide a very good profile of the management team.Provide the building plan and blueprints for the use of the property, if available.In case of a sole tenant, the sole tenant must be able to demonstrate a solid and sound financial strength. Here, tenants are considered as business.The features you need to look in the financial statements are, profit, positive net worth, consistent monthly collections, committed paid up capital, and positive cash flow. With a stable business, it seems logical to buy a commercial property than renting it. Sometimes, the mortgage payments are lower than the rent.
Tag Archives: Home
Casual Dining Furniture Can Lend Elegance to a Home
Many homes these days don’t have formal dining rooms. Homeowners who want to create good-looking dining areas often don’t want to spend a lot of money. Some people think that casual dining furniture might be an answer, but are concerned it may look cheap. There are some furniture stores in the Albany, NY area that can advise homeowners on what casual dining furniture would look best in their home. Whether one lives in Glens Falls, Queensbury or Albany, NY or elsewhere, purchasing casual dining furniture can add a touch of style to one’s home.
Casual dining furniture can look elegant and local furniture stores can introduce homeowners to collections of casual dining sets. Depending on the look that the customer is after, casual dining sets can be chosen to complement a modern or more traditional style. The shape of the dining table is the first element that people focus on when shopping for dining furniture. Some sets feature small circular tables, and others include square or drop-leaf tables. Rough-hewn tables offer a more rustic look. Chairs can make a statement too; slat back, bar stool or bench, the chairs offer more than a place to sit; they help complete the look.
Style is part of the process when selecting dining furniture, but the color of the dining set is a critical point as well. Ash or oak furniture with a light stain can brighten a dining nook. Walnut and cherry furniture can add warmth to a room. Darker stains such as an espresso brown offer an upscale look. Some sets even feature metal table frames with glass tops that give a light and classy look that offers a cheery setting for every meal.
Table height is another consideration when shopping for a casual dining set. People who want to have a space where food preparation and eating can take place together may want to consider purchasing a counter-height table. These tables are usually at least 36 inches high. They are perfect for people who have dining areas that overlook an opening between the kitchen and living room. The attraction of open concept homes is a larger kitchen. A counter-height table can provide more food prep space, extra dining space and a beautiful addition to the kitchen’s décor.
Homes that don’t include formal dining rooms offer people the flexibility to create unique dining spaces. Furniture store staff can help people decide on a dining set style, shape, color and even table height that will fit their needs. A good rule of thumb is to take photos of one’s dining area and bring them in to the furniture store to give the staff an idea of where the new furniture will be set up in the house. Some furniture stores even offer design services. Store designers sometimes will come to customers’ homes to help them plan out their furniture groupings. Shopping for casual dining room furniture doesn’t have to be difficult. Furniture store sales consultants welcome the opportunity to help people create comfortable and elegant dining spaces.