Bluestar Mortgage of Orlando is the trusted choice for Commercial real estate lending. Give us a call at 321-400-5545 to speak with a commercial real estate lending expert who can assist you in determining if a commercial real estate loan is the right option for you.
Commercial real estate loans are intended for people searching to acquire revenue-generating properties. The commercial property loans are given, as the name denotes, for a commercial asset instead of residential. The funding likewise consists of the development, acquisition, and construction expenditures.
Generous Financing Options: Secure up to 90% financing at competitive, fixed interest rates, ensuring stability without the worry of future rate fluctuations.
Low Down Payment: Preserve your working capital with a minimal down payment requirement, allowing you to allocate resources effectively.
Flexible Amortization Terms: Choose from a variety of amortization periods, including 10, 20, or 25 years, to best fit your financial strategy.
Financing for Associated Costs: Include associated fees and soft costs in your loan, reducing out-of-pocket expenses and easing your cash flow.
Substantial Loan Amounts: Obtain loans up to $5 million for standard and public policy 504 projects. For small manufacturers, the limit rises to $5.5 million per project, with no cap on total SBA funding. Energy-efficient green projects can also receive up to $5.5 million per project, with a combined maximum of $16.5 million.
Project Range: Fund projects ranging from $125,000 to over $20 million, accommodating a wide spectrum of commercial real estate needs.
This comprehensive financial support can significantly enhance your ability to invest in and grow your commercial real estate ventures.
To be eligible for a commercial property loan, the following are considerations from the lenders:
Commercial real estate is aimed exclusively for business purposes that produce revenues such as:
Usually, investors acquire commercial property and have the space be rented, collecting the rental fee from other entities operating in the acquired commercial property.
Business entities include:
Existing Buildings: The business must occupy a minimum of 51% of the rentable property within one year of ownership. The business is allowed to sublease up to 49% of the space.
New Construction: The applicant must occupy at least 60% of the rentable property. They may lease up to 20% to a third party permanently and can temporarily lease an additional 20%, with plans to utilize some of that space within three years and all of it within ten years.
Additionally, the applicant has the option to create a real estate holding company that leases 100% of the property to the operating business, which can then sublease any surplus space (up to 49%).
Bluestar Mortgage in Orlando, FL, offers an extensive selection of commercial real estate financing options, catering to various needs such as new construction, acquisition, and refinancing. Here’s an overview of the types of commercial real estate lending available:
1. SBA Loans
Much like the Federal Housing Administration (FHA) provides guarantees for home loans, the United States Small Business Administration (SBA) offers guarantees specifically for commercial property financing. There are two primary loan schemes under the SBA for commercial real estate:
1.1. SBA 7(a) Loans
As SBA’s most popular loan program, the 7(a) loans are ideal for purchasing real estate properties with flexible fund utilization. To qualify, businesses must meet specific criteria which can be found on the SBA’s official website. Key approval considerations include credit history, business location, and income stability.
1.2. SBA 504 Loans
The 504 loans provide fixed-rate funding for significant fixed assets, such as existing structures or land acquisitions. Similar to the SBA 7(a) program, businesses must meet certain eligibility requirements, including demonstrating small business status and presenting a viable business plan. Notably, 504 loans are structured differently; they require financing from Certified Development Companies (CDCs) that work to stimulate economic growth, with private lenders covering around 50% of the project costs while CDCs finance up to 40%.
2. Permanent Loans
Permanent loans are long-term financing options typically used for a portion of a commercial property. These loans can be configured as either fixed-rate or variable-rate loans from various commercial lenders. The amortization schedule for these loans is generally more extended than that of other types, allowing for repayment plans that suit your financial needs.
3. Hard Money Loans
Hard money loans are usually provided by private investors who focus predominantly on the property’s value rather than the borrower’s creditworthiness. This type of financing is straightforward in terms of approval but comes with significantly higher interest rates compared to permanent loans. Borrowers should expect to repay these loans within a short timeframe, typically between one to five years, as these loans are often more risk-focused for the lender.
4. Bridge Loans
Bridge loans serve as short-term financing solutions (usually for one year or less) that also carry high interest rates. Their primary purpose is to maintain cash flow while a borrower is in the process of refinancing, leasing, or renovating a commercial property. These loans can also be a temporary measure until long-term financing options become available.
5. Blanket Loans
Blanket loans can be a practical option for investors looking to acquire multiple properties simultaneously. This financing solution consolidates several properties under one lender, payment plan, and set of loan terms. While blanket loans can simplify the financing process, they come with drawbacks, such as potential challenges in selling individual properties due to their interdependence. Should one property underperform, the risk could jeopardize the overall investment portfolio.
In addition to the above loan types, Bluestar Mortgage provides a comprehensive suite of commercial real estate financing solutions tailored to diverse projects, including:
Aggregate commitment amounts are available, with progressive draws aligned with project completion, ensuring financial support aligns with your project milestones.
**Please note that all loans are subject to credit approval, and terms and conditions are subject to change.
If you are interested in a commercial real estate loan, call us at: 321-400-5545 to speak with a commercial real estate lending expert who can assist you in determining if a commercial real estate loan is the right option for you.
We guarantee that we will be able to close on or before your set closing date or we will waive all of our lender fees.
