LIANG Commercial

There are a few type of commercial mortgages.

• Owner user type mortgage, buyer is the user for the commercial property, banks can finance with a down payment as low as 15% to 25%. Buyers need to provide three year business financials for bank to qualify.
• Investment property mortgage, retail mall, multi-family apartment, and commercial rental properties, banks require 25% down payment, and the rental income shall be able to support the mortgage and all expenses.
• Business with Property mortgage, gas station, motel & hotel, grocery store with property, restaurant with property, banks require 35% to 45% down payment, and three year financials to qualify.

Business loan is not the same as commercial mortgage and it is not related to a property. To qualify for a business loan, buyers need to provide two year business financial, and prove the business is making money and enough profit to cover monthly payment of loan.  Business loan usually requires 50%+ down payment, and interest rate is usually 1 to 2% higher than commercial mortgage interest rate, due to higher risk for business loan. Most buyers refinance their residential property for money to buy business, not a business loan.

It is one of important buyer and tenant conditions for commercial leasing and sale, subject to all regulatory permits.  There are several type of permits, development permit, building permits, and also permits for a specific business use type, such as daycare and school permit, auto body permit, etc.  Many business use may have specific requirement, for parking requirement, fire code/two hours fire wall for restaurant and daycare, specific building code for daycare/school and auto body, distance requirement to other business, business hours, etc.  For more information, please contact one of our commercial expert.