Mixed-Use Loans
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If you are new to the real estate business, you might not be familiar with what mixed-use loans are or even what is a mixed-use property in the first place. To make it simple, most properties are only for one use. What does this mean? A residential one is clearly for people to live in it while commercial properties are used for businesses, companies, and similar purposes.
You can also use those properties for passive incomes when renting them, but the purpose for the person or company renting/buying them will usually remain the same.
When it comes to mixed-use properties, they have more than one purpose—usually 2 or more. The most common example for this is those buildings where you can find businesses and offices on the first floors and a few ones on others. However, other parts of the properties are meant for residential purposes, storage, or other uses. Therefore, you have real estate that works as your residence, office, premise, business, storage, and more, depending on how much space you have and how you use it.
Since they are not for residential or commercial and maybe storage needs, you must get a loan that is suitable based on the function of the property. This is why mixed-use loans are the ones to be considered when thinking about purchasing or maybe renovating one of these properties.
Most of the time, you require more funds due to the size of the property and although it is possible for it to be as big as a regular house or business, the final use can change the conditions and the price, which leads to different requirements and terms when requesting a loan. Finally, not all usual lenders tend to offer credits for such investment which can make it a bit difficult to access the required funds.
How to obtain enough capital for mixed-use properties
Private companies and individual lenders are the best options since they tend to consider collateral more than creditworthiness. In this case, the collateral is the property you are acquiring and the interest rates go lower compared to traditional loans and lenders. However, all private and individual lenders have their own terms and conditions despite following a standard when lending the funds.
At Commercial Real Estate Loan Pros of Tampa, we offer mixed-use loans that focus on the collateral as well, but we will set interest rates and additional terms based on your financial history, income, and specific use and project for the property. The term of the loan can also vary depending on the amount requested and approved but usually starts at 10 years. Summarized, we consider these factors:
- The size of the property.
- Specific purposes for it.
- The number of individual units or structures.
- Actual value of the property.
- Is it a new purchase or are you planning to renovate it?
- A credit score is important but not the most relevant requirement.
Our team at Commercial Real Estate Loan Pros of Tampa will take your request as long as you provide common requirements like the credit score, financial records, and details about the property and your purpose. Therefore, do not hesitate to contact us for mixed-use loans since we never limit borrowers—or future ones—to, at least, get a chance to have their requests evaluated and considered.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.