Texas commercial real estate investors might be individuals who want to invest in a property that they will rent out to business owners. They might also be businesses looking to purchase an office or store location. Regardless what kind of commercial real estate buyer you happen to be, when purchasing your first property, you could encounter various challenges.
Here are three common challenges that get in the way of a commercial real estate purchase:
Credit score problems
You might have an excellent job, an excellent income and a lot of savings in your bank and investment accounts, but you might also have a black mark on your credit score somewhere. Even two or three 30- to 90-day late payments on a loan or credit card could wreak havoc on your credit history when it comes to receiving a large commercial real estate loan. In some cases, you may need to have a prohibitive amount of liquid assets to get the kind of loan you’re looking for.
Not having enough money to make a down payment
Banks and lending institutions like their borrowers to pay a significant down payment when they’re buying a commercial property. If you don’t have enough assets to back up the loan, you could be out of luck.
You haven’t been in business long enough
Let’s say you want a business loan to buy a new property for your company. If your company is relatively new — and hasn’t been operating for at least three years — the bank could see you as a very risky bet.
Those looking to make a commercial real estate purchase can employ various strategies to get the loan they need. Make sure your legal ducks are in a row and you just might be able to make that dream purchase for your business you’ve been hoping for.