Commercial Mortgage – Real Estate and Non Real Estate Funding
Commercial mortgage is a type of mortgage loan which is secured by commercial property instead of a residential property. The property must be income producing real estate such as office complexes, retail centers, or hotels and apartments. Usually, the proceeds form the said mortgage are used to either refinance, acquire, or develop commercial properties.
Real Estate For Commercial Mortgage
Since Mortgages are secured loans tied to real estate, you can use your real estate to acquire commercial properties. For this reason, you won’t have a hard time acquiring a commercial property since you can already use it once you get approved for the mortgage. Since you acquired a commercial property like an apartment complex perhaps, you won’t have any trouble paying for the mortgage once you fill that property up with people who can rent the apartments. Paying the mortgage on an installment basis and how long would you pay it for would depend what you and the mortgagees have agreed upon, once you have paid the property in full then it is yours. Just be careful not to miss your payments, once you do so, your real estate will be foreclosed and the mortgagees would again own the commercial property. For commercial mortgage that uses non real estate funding, you can probably get a mortgage by using your car or jewelries as collateral. The process of paying would most likely be the same. But for better approval, using real estate would be a better solution if you really need to acquire a commercial property. But this also depends on what non real estate collateral you will use. Natural resources can be used such as oil, gas, and coal. Large companies and corporations often use factory equipment and machinery for loans. Certificate of deposit, stocks, and bonds can also be used since they can be converted easily into cash. The amount you might get out of these would depend on what value the security has. If you want to get a loan or having a hard time getting approved for a mortgage, or you just simply need your business to be funded, check out newcityfinancial.com. They can be of assistance to you on these matters.