This overview will offer some candid thoughts about commercial financing and commercial real estate loans plus an overview of primary reasons for purchasing commercial investment property or buying a business. An increasingly disturbing climate for residential real estate investing has motivated investors to evaluate business opportunity options and business real estate investment property.
Unique Business Investing and Real Estate Investment Situations
Commercial real estate investment property and business opportunity investing possibilities include unique businesses such as golf courses and gas stations. The special aspects of such business finance and management options can result in increased potential to provide added value and differentiate a business or commercial property.
Of course specialized business real estate investing does require special purpose business finance solutions such as golf course financing and funeral home financing. The ability to arrange a business loan or business opportunity financing that is appropriate for both the business owner and the business itself will be a critical ingredient in business investment success.
Business Opportunity Financing with SBA Loan Finance
The possibility of using Small Business Administration financing is a business financing alternative not applicable to residential real estate financing. An SBA loan is a business finance option typically viable for new business owners and can be critical in acquiring commercial investment property or a business opportunity.
Business Opportunity Investing When Real Estate is Excluded
Acquiring a business opportunity excludes commercial property investing. Without real estate, the business loan value will be primarily determined by the business instead of real estate. The lack of a commercial real estate loan can end up being a profitable advantage in a falling real estate investment environment.
Commercial Investment Value Driven Primarily by Income
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business opportunity loan and commercial real estate loan will depend upon a business appraisal that will evaluate the recent business income levels.