Commercial Real Estate Investing: The Ultimate Beginner's guide to learn how to invest in Commercial Real Estate and Build your Real Estate Empire.

Stop Making Your Landlord Rich And Buy Your Property: The Business Owner's Guide To Obtaining Commercial Real Estate Financing 

The Advantages For Business Owners To Buy The Property That They Are Using

There are several advantages for business owners to buy the property that they are using. These include:

Long-term cost savings: When a business owner owns the property that their business operates out of, they can avoid the ongoing expense of renting or leasing commercial space. Over time, this can add up to significant cost savings.

Asset appreciation: Commercial property typically appreciates in value over time, meaning that the property's worth is likely to increase. This can provide the business owner with a valuable asset that can be sold or leveraged for financing in the future.

Tax benefits: Owning commercial property can provide business owners with tax benefits, including deductions for property taxes, mortgage interest, and depreciation.

Control over the property: Owning the property provides the business owner with greater control over the property's use, design, and maintenance. This can be particularly advantageous for businesses that require specific facilities or equipment to operate.

Stability and security: Owning the property provides a sense of stability and security, as the business owner is not at the mercy of a landlord's decisions regarding lease renewals, rent increases, or property improvements.

Potential rental income: If the business owner has excess space on the property, they may be able to generate rental income by leasing the space to other businesses or individuals.

Overall, buying the property that a business operates out of can be a smart long-term investment, providing cost savings, asset appreciation, tax benefits, and greater control and stability.

What Is A Commercial Mortgage?

A commercial mortgage is a type of loan that is used to finance commercial real estate, such as office buildings, retail spaces, apartment buildings, and other non-residential properties. This type of loan is usually secured by the property being financed and is designed for businesses or investors looking to purchase or refinance commercial properties.

Commercial mortgages typically have different terms and requirements than residential mortgages, including higher interest rates and larger down payments. The repayment terms for commercial mortgages can vary depending on the lender and the borrower's financial situation, but typically range from 5 to 25 years.

Commercial mortgages can be obtained from traditional banks, credit unions, and other financial institutions, as well as from private lenders and specialized commercial mortgage brokers. To qualify for a commercial mortgage, borrowers are typically required to have a strong credit history, a solid financial profile, and a significant down payment or equity in the property being financed.

20 Different Types Of Mortgage Loans For Commercial Properties 

Fixed-rate Mortgage: A mortgage loan in which the interest rate remains the same throughout the entire term of the loan.

Adjustable-rate Mortgage: A mortgage loan in which the interest rate may fluctuate based on a benchmark index.

Balloon Mortgage: A mortgage loan in which the borrower makes lower payments for a set period, and then pays off the remaining balance in a lump sum at the end of the loan term.

Interest-Only Mortgage: A mortgage loan in which the borrower pays only the interest on the loan for a set period of time.

Reverse Mortgage: A mortgage loan for seniors that allows them to borrow against the equity in their home without having to make any payments on the loan until they move out, sell the home, or pass away.

Bridge Loan: A short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing property.

Hard Money Loan: A loan that is backed by the value of the property and not by the creditworthiness of the borrower.

SBA 7(a) Loan: A government-backed loan for small businesses that can be used to purchase commercial property.

SBA 504 Loan: A government-backed loan for small businesses that can be used to purchase fixed assets such as commercial property.

Commercial Mortgage-Backed Security (CMBS): A type of bond that is backed by a pool of commercial mortgages.

Construction Loan: A short-term loan used to finance the construction of a commercial property.

Mezzanine Loan: A loan that is subordinate to a first mortgage loan, but is senior to equity financing.

Participating Mortgage: A mortgage loan that allows the lender to share in the profits of the property.

Wraparound Mortgage: A mortgage loan that includes the existing mortgage and provides additional financing to the borrower.

Sale and Leaseback: A transaction in which the owner of a commercial property sells the property to a buyer and then leases it back from the buyer.

Joint Venture: A partnership between two or more parties to purchase and develop a commercial property.

Sale of Receivables: A transaction in which a borrower sells its receivables to a lender in exchange for financing.

Equity Financing: A financing method in which the borrower receives funds in exchange for a percentage of ownership in the property.

Non-Recourse Loan: A loan in which the lender has no recourse to the borrower's personal assets if the loan is not repaid.

Sale of Partial Interest: A transaction in which a borrower sells a portion of their ownership interest in a commercial property to a buyer in exchange for financing.

20 Lenders For Business Mortgages 

Banks: Banks are the most common lenders for business mortgages. They offer a variety of loan products, including fixed-rate and adjustable-rate mortgages.

Credit Unions: Credit unions offer similar loan products as banks, but are typically smaller and community-based. They may offer more flexible terms and lower fees than traditional banks.

SBA (Small Business Administration) Lenders: The SBA offers loan programs to help small businesses purchase commercial real estate. SBA lenders are private lenders that participate in these programs.

CMBS (Commercial Mortgage-Backed Securities) Lenders: CMBS lenders provide funding for commercial real estate by pooling together mortgages and selling them as securities to investors.

Life Insurance Companies: Life insurance companies are a popular source of funding for commercial real estate. They offer competitive interest rates and longer loan terms than traditional lenders.

Pension Funds: Pension funds invest in commercial real estate through debt financing. They offer long-term financing with fixed interest rates and lower fees than traditional lenders.

Private Equity Firms: Private equity firms invest in commercial real estate by providing equity financing. They typically invest in high-risk, high-return projects.

Hard Money Lenders: Hard money lenders provide short-term financing for commercial real estate projects. They offer higher interest rates and fees than traditional lenders, but are willing to finance riskier projects.

Mezzanine Lenders: Mezzanine lenders provide financing that is subordinate to a first mortgage loan, but senior to equity financing. They offer higher interest rates than traditional lenders.

Commercial Finance Companies: Commercial finance companies provide financing for commercial real estate projects. They may offer more flexible terms than traditional lenders.

Private Mortgage Funds: Private mortgage funds provide financing for commercial real estate projects through pooled investments. They offer higher returns than traditional lenders.

Crowdfunding Platforms: Crowdfunding platforms allow investors to invest in commercial real estate projects through online platforms. They offer lower minimum investments and higher returns than traditional lenders.

REITs (Real Estate Investment Trusts): REITs invest in commercial real estate through equity financing. They offer lower returns than private equity firms, but are a more stable investment.

Family Offices: Family offices invest in commercial real estate through equity financing. They offer more flexibility than traditional lenders.

Development Companies: Development companies provide financing for commercial real estate projects that they are developing. They offer more flexibility than traditional lenders.

Insurance Companies: Insurance companies provide financing for commercial real estate projects through debt financing. They offer long-term financing with fixed interest rates.

Asset-Based Lenders: Asset-based lenders provide financing for commercial real estate projects based on the value of the property. They offer more flexibility than traditional lenders.

Factoring Companies: Factoring companies provide financing for commercial real estate projects based on the value of accounts receivable. They offer more flexibility than traditional lenders.

Merchant Cash Advance Providers: Merchant cash advance providers provide financing for commercial real estate projects based on future credit card sales. They offer more flexibility than traditional lenders.

Equipment Leasing Companies: Equipment leasing companies provide financing for commercial real estate projects by leasing equipment. They offer more flexibility than traditional lenders.

Commercial Mortgage Brokers In New York 

Eastern Union: Eastern Union is a full-service commercial mortgage brokerage firm that specializes in financing for multifamily, mixed-use, retail, and office properties.

Meridian Capital Group: Meridian Capital Group is one of the largest commercial mortgage brokerage firms in New York. They specialize in financing for all types of commercial properties.

Silverthread Capital: Silverthread Capital is a boutique commercial mortgage brokerage firm that specializes in financing for multifamily and mixed-use properties.

Arbor Realty Trust: Arbor Realty Trust is a commercial mortgage brokerage firm that specializes in financing for multifamily properties.

GCP Capital Group: GCP Capital Group is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties, including multifamily, retail, office, and industrial.

HKS Capital Partners: HKS Capital Partners is a boutique commercial mortgage brokerage firm that specializes in financing for luxury residential and commercial properties.

B6 Real Estate Advisors: B6 Real Estate Advisors is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

Largo Capital: Largo Capital is a commercial mortgage brokerage firm that specializes in financing for multifamily, retail, office, and industrial properties.

Ackman-Ziff: Ackman-Ziff is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties, including multifamily, retail, office, and industrial.

Mission Capital Advisors: Mission Capital Advisors is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

NorthMarq: NorthMarq is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

M&T Realty Capital Corporation: M&T Realty Capital Corporation is a commercial mortgage brokerage firm that specializes in financing for multifamily properties.

CCRE: CCRE is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties, including multifamily, retail, office, and industrial.

Pembrook Capital Management: Pembrook Capital Management is a commercial mortgage brokerage firm that specializes in financing for multifamily and mixed-use properties.

HFF: HFF is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

Redwood Mortgage: Redwood Mortgage is a commercial mortgage brokerage firm that specializes in financing for multifamily and mixed-use properties.

Ladder Capital Finance: Ladder Capital Finance is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

Square Mile Capital Management: Square Mile Capital Management is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties.

Greystone: Greystone is a commercial mortgage brokerage firm that specializes in financing for multifamily properties.

Stabilis Capital Management: Stabilis Capital Management is a commercial mortgage brokerage firm that specializes in financing for all types of commercial properties, with a focus on distressed assets.

Mortgage Insurance Products 

Mortgage insurance products are designed to protect lenders in case borrowers default on their mortgage loans. There are several types of mortgage insurance products available in the market, and below are some of the most common ones:

Private Mortgage Insurance (PMI): PMI is a type of insurance that protects the lender if the borrower defaults on the loan. It is typically required if the borrower makes a down payment of less than 20% of the home's purchase price.

Federal Housing Administration (FHA) Mortgage Insurance: FHA mortgage insurance is a type of insurance that protects lenders against losses in case the borrower defaults on an FHA loan. It is required for all FHA loans, regardless of the down payment amount.

Department of Veterans Affairs (VA) Mortgage Insurance: VA mortgage insurance is a type of insurance that protects lenders against losses in case the borrower defaults on a VA loan. It is not required for VA loans but can be charged as a funding fee.

Rural Housing Service (RHS) Mortgage Insurance: RHS mortgage insurance is a type of insurance that protects lenders against losses in case the borrower defaults on an RHS loan. It is required for all RHS loans.

Mortgage Life Insurance: Mortgage life insurance is a type of insurance that pays off the mortgage loan balance in case the borrower dies or becomes disabled.

Title Insurance: Title insurance protects lenders against losses due to title defects, such as unpaid taxes or liens, that were not discovered during the title search.

Homeowners Insurance: Homeowners insurance protects the borrower and lender against losses due to property damage, theft, or liability claims.

Flood Insurance: Flood insurance protects the borrower and lender against losses due to flooding, which is not covered by homeowners insurance.

Earthquake Insurance: Earthquake insurance protects the borrower and lender against losses due to earthquakes, which are not covered by homeowners insurance.

Mortgage Credit Insurance: Mortgage credit insurance protects lenders against losses in case the borrower becomes unable to make mortgage payments due to job loss, disability, or death.

Employment Insurance: Employment insurance provides a benefit to the borrower to cover the cost of mortgage payments if the borrower becomes unemployed.

Mortgage Payment Protection Insurance: Mortgage payment protection insurance provides a benefit to the borrower to cover the cost of mortgage payments if the borrower becomes unable to work due to illness or injury.

Each of these mortgage insurance products offers different benefits and protections, and borrowers should carefully review the terms and costs associated with each option before making a decision.