Expert Guidance and Flexible
Trust the Experts
- Welcome to TwoSmith Capital, where we specialize in helping business owners and investors navigate the complexities of commercial real estate financing.
- With our extensive experience and dedicated team, we ensure that you secure the best loan options to drive your business success.
- Choosing the right loan can make all the difference, and we are here to guide you every step of the way.
Understanding Commercial Real Estate Loans
Owner-Occupied Loans
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What They Are:
Understanding the fine print is essential but often confusing. - Benefits:
- Lower down payments (15-20%)
- Better terms and interest rates
- Ideal for growing businesses needing a stable location
Investment Loans
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What They Are:
Loans for properties leased out to third-party tenants. - Benefits:
- Potential for rental income
- Higher down payments (25-30%)
- Diversification of investment portfolio
Overcoming the Complexities of
Commercial Real Estate Loans
Navigating the complexities of commercial real estate loans can be daunting. Business owners and investors often face high down payments and interest rates, intricate loan terms, and the challenge of securing financing with less-than-perfect credit. Managing cash flow during loan repayment adds another layer of difficulty.
Common Challenges
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High Down Payments and Interest Rates:
Finding affordable financing options can be tough. -
Complex Loan Terms:
Understanding the fine print is essential but often confusing. -
Credit Issues:
Securing loans with less-than-perfect credit is challenging. -
Cash Flow Management:
Balancing loan repayments with ongoing business expenses.
How We Help
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Tailored Loan Solutions:
Customized options to fit your specific business needs. -
Competitive Rates & Flexible Terms:
nsuring the best possible terms for your situation. -
Expert Guidance:
Dedicated team providing personalized assistance through every step. -
Streamlined Application Process:
Simplified and efficient to save you time and stress.
Trust our dedicated team to help you navigate the complexities and secure the best loan options for your business or investment needs.
Interested in Hearing More About CRE’s?
Working with TwoSmith Capital means having a trusted partner dedicated to your financial success.
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Our expert team is ready to assist you in securing or refinancing your commercial real estate loan.
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Contact us today and take advantage of our tailored solutions and professional guidance.
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Frequently Asked Questions (FAQs)
We understand that commercial real estate loans can be complex, and you may have many questions. Below, we've answered some of the most common inquiries to help you better understand your options and the loan process.
A CRE loan is a mortgage secured by a lien on commercial property, used to acquire, refinance, or develop commercial properties such as office buildings, retail centers, industrial facilities, and multifamily housing complexes.
Owner-occupied loans are for properties where the business occupies at least 51% of the space, offering lower down payments and better terms. Investment loans are for properties leased to tenants, with higher down payments but rental income potential.
To qualify for a CRE loan, you need a personal and business credit score of at least 680. Expect to make a down payment of 15% to 30% of the property's price. Your Debt Service Coverage Ratio (DSCR) should be 1.25 or higher.
You'll need to provide business financial statements, personal financial statements, tax returns, a business plan, and property information such as an appraisal. Experience in managing commercial properties or a strong track record in your industry will also enhance your chances.
Repayment terms depend on the loan type, lender policies, and borrower qualifications. Common terms range from 5 to 25 years with fixed or variable interest rates.
While reputable lenders disclose all fees upfront, always review the loan agreement for potential hidden costs such as origination fees, processing fees, appraisal fees, and prepayment penalties.
Commonly required documents include business financial statements, personal financial statements, tax returns, property information, a business plan, and sometimes appraisals or environmental reports.
Owner-occupied loans: 15-20% down payment.
Investment loans: 25-30% down payment.
Repayment typically involves monthly payments over a set term, including both principal and interest. Terms can vary but usually range from 5 to 25 years.
Generally, commercial real estate (CRE) loans are intended for purchasing, refinancing, or improving commercial properties. However, some lenders may allow you to use part of the loan for consolidating other business debts, provided it aligns with their lending policies and the primary purpose remains property-related. It's best to discuss your specific needs with your lender to see if this option is available and advisable for your situation.
The time to fund a CRE loan varies, typically ranging from 30 to 60 days, depending on the lender’s process and the complexity of the loan.
Costs include interest rates, down payments (usually 15-30%), origination fees, appraisal fees, legal fees, and sometimes prepayment penalties.
If sales fluctuate, it's crucial to have a plan in place. Some options include negotiating more flexible repayment terms with your lender, seeking temporary payment relief, or using business savings to cover shortfalls.
Yes, we offer refinancing options to help improve your loan terms or access equity in your property.
We provide expert advice, customized loan solutions, and thorough risk assessments to help you make informed investment decisions and manage financial risks effectively.
