The Lee County, Florida, commercial real estate market was spared much of the brunt of 2020’s economic havoc. Solid fundamentals and momentum helped. Today, the forecast for the commercial real estate market is strong. There is more demand than supply. Whether you are a small business, developer, or even a real estate investment trust, or looking to buy or update a commercial property, a commercial real estate loan could be the best option.
Alec Salameh is a realtor you can trust to help navigate the commercial property market in Lee County. As a Coldwell Banker Realtor, he can utilize one of the world’s largest and most respected real estate companies to deliver modern, trustworthy, and highly professional real estate services to his clients. As one of the top commercial real estate brokers Fort Myers residents and investors depend on, Alec Salameh has every tool available to get you the best deal. He also handles Cape Coral commercial real estate and beyond.
Corporations and small developers highly seek commercial property for sale in Cape Coral and Fort Myers. The high level of competition requires knowledge and resources for buyers to close at a desirable price. If you are seeking a commercial real estate loan for financing, Alec Salameh can help you find the right one that makes sense for your situation and maximize its potential.
What Is A Commercial Real Estate Loan?
Coldwell Banker commercial real estate brokers in Fort Myers and Cape Coral like Alec Salameh help many small businesses and developers discover the CRE loan opportunities. Many of them aim to purchase commercial real estate and lease out space to other companies as tenants for a profit. A property like a Cape Coral warehouse for sale could be an attractive investment. Because there is a higher demand than supply with Cape Coral commercial real estate, they will likely need help financing.
CRE loans can come from various entities and institutions, including banks, pension funds, private investors, the U.S. Small Business Association, and more. CRE loans work similar to residential mortgages and loans, and each applicant is analyzed based on risk to determine applicable rates and time limits to be paid back.
What Lenders Look For
Whether someone is looking to finance a Cape Coral warehouse for sale or an office building in Fort Myers, all commercial real estate loan lenders will look at the same general factors.
A CRE loan lender will first consider the collateral – the property the applicant wants to purchase. However, in many cases, the applicant must make personal guarantees on this collateral. Who will be the principal or owner of the property is assessed based on their credit scores. Lenders will also want to see the owner’s financial statements and income tax returns going back three years or more. Some of these lenders may use specific metrics, including financial ratios like the loan-to-value ratio or the debt-service coverage ratio.
3 Primary Types of CRE Loans
Commercial real estate brokers in Fort Myers and Cape Coral often point clients to three primary types of CRE Loans.
- Permanent Loans come with amortization and have specific term limits of less than five years.
- SBA Loans come from institutions licensed by the government to hand them out. The 7(a) Loan is the most popular, and the rates and term limits are often more appealing to small businesses and entities.
- Bridge Loans can be attractive because they are made available to those waiting for approval for a permanent loan. The terms are much shorter – typically between six months and three years.
The Application Process
Commercial real estate brokers in Fort Myers and Cape Coral, like Alec Salameh, will be happy to assist you with the application process. His knowledge of Fort Myers and Cape Coral commercial real estate will be a great advantage in getting you the best terms and rates possible.
The process varies. You could face more stringent requirements based on the property and financial history. A Cape Coral warehouse for sale or property in Fort Myers has slightly different nuances – all of which can be explained to you in more detail by contacting Alec Salameh. The important part about applying for a loan for commercial property for sale in Cape Coral or Fort Myers is being prepared.
- Security – Loan lenders want to ensure you are a good bet. You should get insurance to protect the collateral (the property) from damages.
Income – If you plan to seek commercial property for sale in Cape Coral or Fort Myers through a CRE loan, lenders will want to ensure you have adequate income to pay them back. You should focus a lot of your preparation time on sourcing the appropriate