How Much Deposit Do I Need to Buy Commercial Property

1. How Much Deposit Do I Need to Buy Commercial Property? One of the most important factors to consider regarding commercial real estate in Oklahoma is the deposit. Whether you need a Commercial real estate OKC loan to buy a new property or update it, a commercial loan operates differently from a residential loan. The deposit will depend on the loan that you choose. For support in making the best decision, consider reaching out to a broker such as Horizon Commercial Real Estate. Loans for Commercial Real Estate in Oklahoma Traditional Loans A traditional loan is between the lender and borrower without any government backing. The lender will often require a higher credit score for this type of loan. If you choose this method, a lower down payment is required. It typically ranges from 15 percent to 35 percent based on the loan to value. To qualify for this type of loan, you will need a high credit score but not as many years in business as the other options. SBA 7(a) The Small Business Administration covers an SBA loan. SBA7(a) is the most common type of small business loan. This commercial real estate OKC loan can cover up to 90% of the cost up to $5 million. Requirements include a history of business over the past three years and a good credit history. The benefit is that the initial deposit will be 10 to 15 percent of the purchase price. CDC/SBA 504 The CDC/SBA 504 is a blend between a government-backed small business loan and a community development corporation (CDC). In this case, the CDC will cover 40 percent of the loan while the SBA-backed lender takes on 50 percent. The remainder is the borrower’s deposit. Since this is an SBA loan, it will have similar requirements to the SBA7(a). The CDC also requires that the borrower create jobs based on the amount of money borrowed. This is a good option if you believe the company will grow. Naturally, each of these loans carries different interest rates and payment terms, which you should take into consideration when making your decision. An experienced broker such as Horizon Commercial Real Estate will be able to help you determine the best course of action for your real estate venture. #commercialrealestateokc, #commercialrealestateinoklahoma, #industrialbuildingforleaseinoklahoma, #landlordrepresentationinoklahoma, #saleleasebackinoklahoma, #commercialbuildingsforsaleokc, #warehousebuildingsinoklahoma, #tenantrepresentationinoklahoma, #saleleasebackokc