The Easiest Type of Commercial Loan

Published December 22, 2012 

Apartment loans are so much easier to qualify for, to purchase, to refinance, and to sell than most any other type of commercial loan.

See if you can get pre-approved for an apartment loan today. Call now: 866-811-9515

Getting back to the topic of this blog – just like it’s easier to repair a lawn mower than an automobile, it’s because there are so many less moving parts.

Have you ever seen a circus act where the entertainer has five plates spinning on poles, is balancing a sword on his nose, and is standing on top of the shoulders of someone below him?

Many types of commercial loans have so many moving parts, that they are very tough to qualify for, often taking much more time to close, and have many more parts to the loan.

For example, for an apartment loan, you only have to check the personal financial statement and credit report of the investor. However, for a shopping center loan that has, for example, 35 stores with 35 different owners, you have to check the personal financial statement and credit report of all 35 store owners. Similarly with office buildings, you need to check out the finances of each of the office building owners.

Bu, it gets more complicated than that. With an apartment loan you have one lease to deal with. Regarding the above shopping center, you have 35 leases to handle. And you typically find yourself with some of the leases about to expire. So now you’ve got to go through the months it takes for the process of negotiating the leases to get renewed.

And it gets worse. You’ve got 35 businesses to analyze to see if they are profitable – a requirement.
Ouch!

To qualify for apartment loans, it’s like having to handle only one cat. To qualify for a shopping center, it’s like having to handle many cats. One misbehaving cat can make the experience not worthwhile. Similarly, one tenant in a shopping mall could stop or greatly delay the purchase of the mall. I mean, what do you do if the shopping mall has a dry cleaner, and it’s discovered on inspection that the ground is contaminated below the cleaners? The contamination has spread below some other stores, and the clean up will greatly delay any possibility of selling the property. Acquiring an apartment building and an apartment loan is so simple in comparison – with far fewer problems to handle.

Call 866-811-9515 now to see if you qualify for an apartment building loan, or for any questions and concerns related to an apartment building loan.

By Bruce Painter, Marketing Director