Real Estate Financing

  • Commercial Mortgage
    • Commercial mortgages are loans taken out by businesses to purchase or refinance commercial properties such as office buildings retail spaces or industrial facilities. These loans are commonly used by businesses to acquire real estate for their operations or to invest in income producing properties.
  • Owner Occupied Term Loan
    • A type of financing used by businesses to purchase or refinance commercial properties that they intend to occupy for their own use. Unlike commercial mortgages which may also be used for investment purposes, owner occupied term loans are specifically designed for properties with the business is the primary occupant. These loans typically have fixed terms and repayment schedules with the property serving as collateral for the loan.
  • Refinance/ Equity Take Out
    • In the commercial real estate context, both refinancing and equity take-out strategies are common. Here’s how they work:
    1. Refinancing in Commercial Real Estate:
      2. Commercial property owners can refinance their existing mortgages to achieve various financial goals. Some of the common reasons for refinancing in commercial real estate may include:
    2. Extending loan terms:
      3. Refinancing can provide an opportunity to extend the loan term, which may help in reducing monthly payments or spreading out the repayment period, thereby improving cash flow.
    3. Accessing equity:
      4. Commercial property owners can opt for a cash-out refinance to access the equity built up in their property. This involves refinancing the existing mortgage for an amount greater than the outstanding balance and receiving the difference in cash.
  • Equity Take-Out in Commercial Real Estate:
    • Equity take-out in commercial real estate involves borrowing against the equity in a property to access cash for various purposes. Commercial property owners can access equity through several means:
    1. Second mortgage:
      2. Obtaining a second mortgage on the property, either from the existing lender or a different lender, allows the owner to access additional funds without refinancing the existing mortgage.
    2. Commercial equity loan:
      3. This type of loan allows property owners to borrow a lump sum amount based on the equity in the property, similar to a home equity loan for residential properties.
    3. Commercial equity line of credit:
      4. Allows commercial property owners to access funds as needed up to a predetermined credit limit, using the property’s equity as collateral. Interest is only paid on the amount borrowed.
Deciding between refinancing and equity take-out in commercial real estate depends on factors such as current market conditions, interest rates, loan terms, property value, equity position, and the owner’s financial goals. Consulting with Capital Crafters can help in evaluating the options and determining the most suitable strategy based on individual circumstances and objectives.
  • Land Financing: Refers to obtaining funding for the purchase of land. This type of financing is often used by businesses looking to acquire land for development, investment or other purposes.At Capital Crafters, we help business secure up to 80% of land financing.
  • Private financing for commercial real estate: Refers to obtaining funding from private investors, companies, or non-bank financial institutions instead of traditional banks or government-backed lenders. This type of financing can offer more flexibility in terms of loan terms, approval criteria, and speed of funding, but it often comes with higher interest rates and fees.Private financing can be a viable option for borrowers who may not qualify for traditional bank loans or need funds quickly to capitalize on investment opportunities.