As opposed to mortgages on your house, commercial mortgage loan are all about Return on Investment (ROI). In buying or selling commercial real estate, the financing can make or break the deal. The best commercial mortgage for you is the one that maximizes your ROI. It seems obvious, but when it comes to shopping for a commercial mortgage it is stunning how little attention to profitability the average investor makes. In fact, I see the same mistakes over and over and often these mistakes lower, or even wipe out, the entire return on the investment. Below I will look at the 4 most common mistakes people make when choosing a commercial mortgage and how to avoid them so that you too, can fully realize the maximum return.
We Close More Commercial Loans than Anyone. Give us a call today to get your loan closed at 866-400-8630 or 512-650-8630.
Mistake #1: Not having a clear goal for the property. Incredibly, many people make investment decisions because someone told them about a great idea or opportunity. They never put pen to paper to even figure out if a profit is possible! Others buy property or investments and have no clear cut return they are shooting for or a game plan on how to get it.
What is your goal? 20% return a year? How many years? Are you trying to buy a fixer-upper and hoping to renovate it and fully rent it out and sell it? When are you trying to sell it by and at what price? Is that possible based on the area it is in? Are you buying a property to house your business? How long do you plan to be there? These are all questions you need to have ironed out because they will affect your mortgage. If you are looking shorter term, possibly to buy something and flip it, then you will want a different type of loan then if you are buying something for your business that you want to someday turn over to your son or daughter.
We close more Commercial Money Loans than anyone. Give us a call today to discuss your deal at 866-400-8630 or 512-650-8630.
HELPFUL TIP: Before you go into contract, run the deal by a commercial mortgage professional. That’s right, an ounce of prevention is worth a pound of cure. You seek professional advice in tax matters and law matters and you should seek advice in commercial loan matters-you probably never went to school for commercial mortgage loans. Don’t just go on what Billy Jo told Bobby Sue (because Billy Jo is rich)-get expert advice BEFORE you commit! At Commercial Capital, Ltd., a division of Nexus Financial Group, we will crunch the numbers for you and guide you in the optimum way to structure the deal. We can alert you to the pitfalls and even bring creative financing strategies to the deal to maximize your return. And we do it all free of charge!!!!
Wishing you the best,
Give us a call today to discuss your deal at 512-650-8630.