Commercial Investments

Interested in Commercial Investing?

Call us at (289) 800 – 9620

What you need to know about Commerical Investing

Commercial financing refers to the purchase of commercially zoned properties that typically fit into one of the following Asset Classes:

Multi Family

Residential apartment buildings or complexes of more than 4 units

Industrial

Small bay warehouses, big bay distribution, fabrication, showrooms etc.

Office Buildings

Buildings that contain primarily offices such as medical buildings etc.

Retail

Store front, high street properties that can range from smaller strip malls to large community-oriented shopping centres, big-box developments and even regional malls

Almost all lenders, with the exception of private, joint venture or hard money lenders, review two key areas:

First, the Commercial Property

Does the property have positive cash flow? (Rental income less mortgage, taxes and expenses result in excess cash). Is the property marketable? The lenders are always thinking about what will happen when you default, and they are left holding and/or selling the property?

Most lenders do NOT want to own property… they are in the business of loaning money, not property acquisition or management. In commercial, the value of the property is determined by the cash flow, known as the Income Approach, so despite your purchase price, the lender may determine the value on which they will base their financing on which can sometimes be lower.

Second, you the borrower

Is there sufficient income to pay your own existing financial obligations, good credit, and income to qualify. Is it a corporation or personal?

Do you have sufficient liquid assets and a high net worth to carry this property if there are delinquent tenants or lengthy vacancies?

Do you have experience managing commercial properties and tenants?

Interested in commercial investment? The Windrose Group can help!

 

Contact The Windrose Group

Do you have a question? Are you interested in learning more about rates and opportunities? 

Phone

(289) 800 - 9620

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