Residential real estate uses a debt-to-income formula for judging your ability to repay a loan while commercial real estate is based on the debt coverage service-ratio formula to qualify. This means to qualify for a commercial loan you’ll have to know what your projected return on investment (ROI) will be when making a commercial property purchase. 

The cash flow generated from your commercial property will be one of the main factors in determining both the value of the property as well as its future return. The type and amount of your commercial loan is also dependent on other factors, including your business and personal credit history, net worth and/or financial strength, the type of property, its overall condition, its cash-flow, the location and the general economic outlook of the local market. 

What type of property will you acquire? The first step to purchasing your commercial property is to know exactly how you’ll use the property. How will the property be used to improve your cash flow and financial goals? How long will you retain the property? Will you be an owner user or an investor? Do you have an exit strategy, if required? These are some of the questions you’ll be asked when applying for your commercial financing. 

After you’ve established the market need and use for the property, you’ll also want to analyze its current and future cash-flow that will contribute to your ROI. 

We’ll help you get started and answer questions you may have. We have investors for most scenarios. All at competitive rates and fees. We'll help you achieve your goal.