There are plenty of commercial buildings for sale throughout Arizona, and we at Menlo Commercial Real Estate can help you find the perfect office towers, retail spaces, warehouses and medical office buildings in which to invest your dollars. But you face another question when looking for the right commercial building: From what source will you acquire your commercial financing?
That’s actually a big question today. That’s because there are plenty of alternative sources of financing that you can tap when financing the purchase of commercial real estate today.
The most traditional source of financing remains banks. Commercial investors have traditionally relied on loans from banks to finance their purchase of commercial buildings for sale. Banks will, of course, want to check your financials and cash flow to make sure that you can afford to repay your loan. And the checks that banks perform today might be tougher than in the past. That’s because many banks have tightened their underwriting standards. If you aren’t purchasing a solid property in an active neighborhood, and if you don’t have an existing track record of investing in similar commercial properties, you might struggle to qualify for a commercial loan from a bank.
If that’s the case, there are alternatives. Private equity funds have become larger players in the commercial real estate financing business.
You can also seek commercial real estate financing from hedge funds. There are plenty of private hedge funds that aren’t shy about providing commercial loans to investors looking to buy commercial buildings for sale. Another avenue, and one that is growing in popularity? Crowd sourcing. Yes, it is possible to rely on the Internet to raise smaller sums of money from several potential investors in the goal of buying commercial property.
But no matter what form of financing you seek, know that we at Menlo Commercial Real Estate can help you determine which commercial properties are affordable for you and your financial situation. Call us today to begin your hunt for both the right commercial building and the right financing package.