Getting an SBA commercial real estate loan through traditional channels is a lengthy process, which may 3 months or longer. But with SmartBiz borrowers can apply online and SBA to obtain commercial real estate loans in about half the time. That's why we have SmartBiz chosen as the best commercial real estate loan provider for small businesses.
Beginning with 25 years maturity and interest rates at 6.25%, SBA loans by SmartBiz are good option for small businesses, an office building or other proprietary commercial space for sale.
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In this article we will the following statement:
- Why we SmartBiz Chose as best loan provider commercial Real estate
- as commercial real estate loans work and the benefits of buying commercial Real estate
- What you need to know to Qualify up for a SmartBiz SBA Commercial Real Estate loan
- SmartBiz Commercial Real Estate SBA loan terms
- SmartBiz SBA loan application process and Timeline
SmartBiz Commercial Real Estate SBA loans - At a glance
| loan type | SBA 7a loans |
| loan amounts | $ 100,000 $ 5,000,000 |
| rate | Currently, 6.25% (variable rate of Prime plus 2.75%) |
| repayment term | 25 years (fully reimbursable loans - no balloon payments) |
| skill requirements |
| must
| prepayment | No after the first 3 years |
Why we Chose SmartBiz as Best Commercial Real Estate Loan providers
Normally Fit Small Business, if we recommend a certain product or services, there is a comparison of three or four options. But in this case SmartBiz is the only online SBA loan provider we have found that provides commercial real estate loans nationally, fast and offers competitive prices.
Here are the main advantages for a commercial real estate loans by SmartBiz application:
- It's faster! While it can generally take 3 to 4 months to get an SBA commercial real estate loan, the process usually takes less than 2 months by SmartBiz.
- Low interest rate 6.25% (loans have a variable rate of Prime + 2.75%)
- 25 years repayment term means low monthly payments
- Fully amortizing loans (no balloon payments). If the loan is paid off, you own the property free and clear.
- Penalties No prepayment after the first 3 years (most conventional loans have prepayment penalties throughout the term of the loan, that decrease as the maturity of the loan comes closer)
One of the reasons why we SmartBiz chose as the best commercial real estate loan provider because of the flexibility it offers. "SmartBiz SBA loans are looking for first-time buyers of commercial real estate and for small businesses, a conventional commercial mortgage refinance," says Al eks Flom, Director of Business Development at SmartBiz. Many small businesses currently hold commercial mortgages, balloon payments, high interest rates or short maturities. All these factors can put your small business in a cash crunch. Flom says SmartBiz many small businesses have succeeded, free to help capital by recoup fully SBA loan in a lower rate of refinancing.
As commercial real estate loans work
are several places you can go to get a commercial real estate loan. The options vary depending on whether you. Buying property real estate or real estate investment This article focuses on residential property, because it is the most common type of property purchased by small businesses.
That being said, investment properties that generate rental income can be very lucrative. If you are interested in buying a shopping center, hotel or other investment property, Click here . We also have a fix guide and invest flip loans for those of you interested in homes.
For owner-occupied commercial properties, a small business has three main financing options:
- SBA loans
- Conventional bank loans
- Hard money loans
these options, many borrowers opt for SBA loans because they longest the have terms and lowest interest rate. There are two types of SBA loans, which can be used for the purchase of commercial real estate. The SBA 504 loans is designed specifically for real estate and facilities, and the SBA 7a loans is a general-purpose loans, which may be, used for real estate.
SmartBiz provides the 7a loan. 7a loans usually have a little more interest than 504 credits but are getting much faster and easier, especially for smaller loan sizes.
Benefits of Getting a Commercial Real Estate Loan
Whether you get a commercial real estate loan through our recommended SBA loan provider SmartBiz, your Bank or anywhere else, there are a lot of benefits for commercial real estate to buy. There is an untapped, but excellent opportunity for many small businesses.
Small business owners often pay thousands of dollars each month to rent their business premises and do not think about buying, but investing in real estate can create business and financial stability. If you are now five years or ten year lease, the rent could increase significantly in the renewal that could eat the revenue of a piece of your company. Rents to lease renewals says Flom, many small businesses have to close forced business. When you buy your business "office building or land, you do not have to happen to worry about that.
Owning the property that your business is also an income-bearing asset takes you. Many small business owners when they decide to retire, sell their business. if the sale property includes your business can be worth a lot more . Instead of selling, you can also may be capable of commercial real estate for rent and help rental income you can get through to retirement.
to own commercial tax benefits Finally, gives his own property. Often a small business will own a separate LLC company create the property to own. the company will pay rent to the LLC or corporation and to write off the rent as a tax deduction. The LLC or Corporation can turn the interest write it on the commercial real estate loan pays. We recommend talking to a tax professional for more information on this agreement.
What do you for a SmartBiz SBA Commercial Real Estate Loan
Qualify[1945002Imallgemeinen], you need the following requirements to be eligible for SBA commercial real estate loans with SmartBiz to qualify:
- Personal credit score of at least 675 (check credit score free at Nav)
- liquid credit score at least 0 (liquid credit score, your KSS score for Small Business scoring service is a combination of business and personal credit. If you want your KSS score out )
- have to buy the property, its majority owner -occupied
- your business financially strong with positive cash flow have been at least 3 years
- The company has operations
- deposit of 15% or more
"Ultimately, we want the business to make sure that can afford to pay the loan back," says Flom. "That is, you should have a positive credit history, and your business well established and should be profitable." It is very difficult to get a commercial real estate loan for a start, because the company has not yet established a track record, even though you may luck with your bank.
A qualification requirement, which is often misunderstood that the property should be majority ownership. Flom says this simply means that at least 51% of the square footage of property to buy are used by and by your business must be occupied. For example, if you buy a three-storey building and two floors of rented, that would be for a SBA loan may not be suitable.
If your property is not property, then you will need to opt for a traditional bank loan or hard money loans. These usually have higher interest rates than a SBA loan. This is not to say that an investment property is a bad idea. The rental income you are used could produce pay higher interest financing. Read our article about Commercial Real Estate Loans. As a loan generating for income property to obtain more details about the options for non-owner-occupied property
SmartBiz SBA Commercial Real Estate Loan Terms
We chose SmartBiz as the best commercial real estate loan providers because they. low-interest, long-term loans with favorable offer conditions for borrowers
loan amounts
the maximum amount of money you borrow with a SmartBiz SBA loans $ 5 million and the minimum is $ 100,000. A great advantage by SmartBiz the application is pulling smaller projects into consideration. often preferred to give banks more than $ 1 million to larger projects.
The cash flow of the company and the amount of debt it can support are the key factors determining how much money you'll approved to borrow. The value of the property also limits the amount of money you can borrow. The maximum loan-to-value (LTV) is typically 85% for a SmartBiz SBA loans. This means that if you are buying the property, the $ 500,000 the maximum loan amount is $ 425,000 worth. Occasionally, you can get the loan extended up to 0% LTV get when you provide additional collateral.
interest and fees
SmartBiz SBA loans are floating rate loans at a rate of Prime + 2.75%. Prime is a market rate that changes periodically. It is currently 3.50, which the current rate on SmartBiz means commercial real estate loans is 6.25%. Click here to learn more about SBA loan rates.
In addition to the interest rate, the cost of a loan is also dependent on fees. Fees on SmartBiz SBA loans are the following:
- A guarantee fee on the SBA-guaranteed portion of the loan for loans over $ 150K. These typically range from 3 to 3.5%. Typically, the SBA will guarantee up to 75-85% of a loan.
- fees for your credit report
- examination fees pull
- environmental tuition.
- Other fees that can be charged by the banks on the SmartBiz platform who your loan [1945009finanzieren]
SmartBiz SBA Loans No prepayment after the first three years. For the first three years, the prepayment penalties are on a sliding scale: 5% of the loan balance in the first year, 3% in the second year and 1% in the third year. After that there are no penalties if you pay in advance. This is a major advantage over traditional bank loans, the prepayment penalties on a sliding scale up usually charge by the due date.
repayment terms
The SmartBiz SBA loan is a 25-year fully refundable credit. You pay back principal and interest over the term of the loan, and by the end of the term of the loan is paid in full. There is no balloon payments or demand payments.
This is another advantage of SmartBiz SBA loans over conventional bank commercial real estate loans. Banks often their loan structure to have a balloon payment. For example, a 10-year loan can be amortized over 25 years old. That is, to make low monthly payments for 10 years, at which point you have to pay the balance or refinance the loan.
have changed the financial position of the time your business, you can order your new conditions may not be favorable refinance. Not to mention, you will go through the process of applying for a loan all over again. have SmartBiz SBA loans no balloon payments, so you can focus on what is most important. Your business runs
SmartBiz SBA Loan Application Process and Timeline
The entire SmartBiz SBA process loan application takes about 30 to 60 days, compared to the typical 0-0 days it often takes when you are working directly with a bank. This is one of the main reasons that we addressed SmartBiz as the best commercial real estate SBA loan provider for small businesses.
Here's a breakdown of SmartBiz of the application process:
SmartBiz SBA Commercial Real Estate Loan - Application Process Step Step
 | 1. The borrower applies a free quotation online.The online application should take no more than 30 minutes. |
|---|---|
 | 2. SmartBiz has to draw a soft credit.not affect the soft train the credit of the borrower credit score. |
 | 3. SmartBiz approves or rejects the application.The approval is based on the application contain credit score and financial information of the applicant. |
| | 4. A SmartBiz rep contacts the borrower.The borrower will submit documents requested, cash flow, to check, including a personal financial statement, business debt schedule, 3 years business and personal tax returns, and a year-to-date consolidated income statement and balance sheet. A dedicated SmartBiz representatives will work with you throughout the process. |
 | 5. SmartBiz working with a lender preferred SBA to finance the loan.The lender will develop a term sheet for the borrower, the interest rate indicates repayment term, fees and other conditions. |
 | 6. Borrower accepts the conditions.If the borrower accepts the conditions, he or she will have to pay a $ 2,500 to $ 5,000 deposit for Third reports put, property valuation, and SBA-required environmental study , |
 | 7. The lenders are formal credit approval.At this stage SmartBiz makes a hard train of credit borrowers, the credit score can affect to a few points. The lender will send the borrower an undertaking which agrees the loan to finance. |
 | 8. Close.paperwork is signed, be paid fees, and loan funds are sent to the borrower account. |
SmartBiz give you a dedicated account representatives in this application to help process. If there are any questions or concerns, it is quick and easy to contact.
Bottom Line
can buy commercial real estate can be an excellent investment in your business and financial future. SmartBiz allows low-rate, long-term SBA loans, and cut the time in half of what it takes to get usually a commercial real estate loan. Therefore, the best commercial real estate SBA SmartBiz loan provider for small businesses is
visit SmartBiz
.
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