Starting a business is one of the best ways to have a sustainable income. But it can be difficult to start businesses on your own. This is where you seek financial help.
Commercial real estate or CRE is one of the best ways to gain a steady income. But how do you begin? Can you get loans to help buy the properties you need? Are there CRE loans for the nonprofit sector?
We’ll answer all your questions below! It’s never too late to try your luck in gaining profit.
Finding a Commercial Real Estate Houston Loans Suited to Your Needs
Looking for commercial real estate Houston loans for your business? You have to know what CRE investment you want to develop. These include having any property that has the potential to bring in income.
The six main categories of CRE:
- Office Properties
- Retail or Restaurant Shops
- Industrial Properties
- Land Prepared for Future Development
- Hotels, Sports Facilities, Nursing Homes Etc.
Kinds of Commercial Real Estate Houston Loans You Can Apply For
You can find various types of commercial real estate loans in any state. If you have a business or looking to expand one then it’s wise to invest well.
- Traditional Commercial Mortgage – Your property needs to be owner-occupied to avail of this loan. Your CRE loan is secure through buying of the property. The terms and conditions depend on the lender.
- Conduit/CMBS Loans – These are commercial mortgages. They work as mortgages sold to investors through a secondary market. They will finance between $1 million and $3 million as the smallest amount.
- SBA 7(a) Loan – The small business administration’s flagship loan. You can borrow as much as $5 million with the help of an SBA-affiliated lender.
- SBA 504 Loan – Includes loans from a certified development company. One offers 40% of the total loan amount and the other from the bank with 50% or more of the loan amount.
- Soft and Hard Money Loans – It’s all about credit worth. Soft money loans are a combination of a traditional mortgage and hard money loans. Hard money loans have a higher down payment term, easier to apply for and faster to fund.
- Commercial Bridge Loans – Also called “bridge the gap” loans. You can use them until you find a more suitable long-term financing option.
Availability of Commercial Real Estate Houston Loans for Nonprofit Businesses
There are existing commercial real estate loans for nonprofit businesses. Even if there are no profits, these businesses need money to operate.
It can be hard but you can still find lenders. They look into the company revenues, costs, fundraising plans, and other data. You can also look for government grants and donations to finance the business.
With whatever business you plan for the future, always make sure to invest well. Whether to gain profit or to fulfill a dream, finding the best loan options is important. Plan ahead and do research!