| The idea of purchasing a commercial property | | | | potential is and if the commercial property |
| is that it is well suited to the needs of | | | | will meet those needs. |
| your business. This can and is defined by | | | | |
| several factors and they will all be | | | | The commercial lender will not give you a |
| considered when you apply for your mortgage. | | | | commercial mortgage if the property is too |
| The commercial lender will look at your | | | | big or not big enough to meet the expected |
| business and what it does and how it will | | | | needs of the business. If the property does |
| relate to the commercial property in | | | | not have enough parking for peak customer |
| question. | | | | traffic, it will mean you could loose |
| | | | business. |
| If your company makes widgets, the lender | | | | |
| will want to know how long you have been | | | | The lender will want to know if there is |
| making widgets. They will also want to know | | | | enough space for the number of employees |
| what your growth rate has been over the time | | | | required and if the kitchen is large enough |
| you have been making widgets. They will look | | | | to meet thier needs. What is the maximum |
| at the property to consider whether it will | | | | seating capacity of the building and how much |
| meet your needs for making widgets during the | | | | will the average customer have to purchase to |
| lifetime of the loan. | | | | make the payments. |
| | | | |
| The lender will want to see that you will | | | | There are many similar small things to |
| have room to grow and that you will grow to | | | | consider when deciding if the commercial |
| fill the space. They will also look at the | | | | property being looked at is a good deal for |
| location of the property to see how that is | | | | both you and the lender. The list of things |
| going to work with your widget manufacturing | | | | that can make or break a property deal is |
| needs. Do you have good access to roads that | | | | very long and it does change from business to |
| can handle the volume of traffic that will be | | | | business. |
| generated? | | | | |
| | | | For example for some businesses, it may come |
| Will there be adequate parking available for | | | | down to waste removal. If your business is |
| staff and customers? Does the location | | | | involved in agriculture, it could come down |
| provide room for expansion if your growth | | | | to the smell. Is the location of your farm |
| rate is more then expected or will you be | | | | upwind or downwind from a population center? |
| moving in a couple of years? What tax | | | | |
| incentives are available on that property and | | | | If you are upwind from a population center, |
| how long will they be available for that | | | | there could be some issues as locals oppose |
| property? Are the tax incentives a one-time | | | | your being there. This could create a |
| offer or are they able to be extended to make | | | | different kind of pressure on the lender that |
| the property more appealing. | | | | could make the property less desirable for |
| | | | the commercial loan. An independent broker |
| The things that will make a commercial | | | | could help out with this type of issue. |
| property desirable will change depending on | | | | |
| what your business is. If you want to open a | | | | It does not make any difference what your |
| pub, your needs will be very different from | | | | business is, what will make all the |
| that of a factory. The lender will want to | | | | difference is what your business needs are |
| know that the property is in a good location | | | | and will the commercial property meet those |
| to maximize the profitability of the pub. The | | | | needs. The definition of a good commercial |
| property could be located across the street | | | | property is one that will meet all your |
| from the factory we talked about in the | | | | current and long-term plans. |
| previous example. | | | | |
| | | | If it does, it will make it easier to get the |
| The lender will again look at your past | | | | commercial mortgage you are looking for. It |
| performance in regard to operating pubs to | | | | will also help you to get better rates and |
| make sure that you know how to run a pub. | | | | conditions on your commercial financing. |
| They will want to know what the growth | | | | |