Danbury Real Estate Attorneys Help You Obtain Financing for Your Commercial Property
Connecticut lawyers experienced in all modes of financing purchases
Financing is essential for most commercial property acquisitions. Lenders have considerable leverage in imposing loan terms. To level the playing field and increase your bargaining power, you need knowledgeable guidance from an attorney who is well-versed in commercial property finance. At Collins Hannafin, P.C. in Danbury, we have decades of experience in commercial real estate transactions, having negotiated favorable mortgage terms for business clients throughout Connecticut.
Options for financing commercial properties
Despite the cost and potential red tape, individuals and companies buying commercial property in Connecticut have several ways of accessing a loan. They include:
- Small Business Administration loans — These government-backed loans for small businesses offer lower interest rates and lengthy amortization periods.
- Conduit loans — These mortgages, formally known as commercial mortgage-backed security (CMBS) loans, are bundled and sold on secondary stock markets to institutional investors. The pooled loans serve as mutual collateral, reducing lenders’ risks and resulting in lower interest rates.
- Commercial mortgages — The standard loan instruments from traditional banks resemble residential mortgages but can have significantly shorter terms. If you can manage a 20 percent down payment on the property, this can be an attractive option.
- Bridge loans — Private lenders offer short-term financing solutions designed to fill the gap between two financing arrangements. Bridge loans enable quick closing, so that you don’t miss an opportunity to acquire a desirable property.
- Commercial refinancing — A secondary loan may improve on the terms of an outstanding mortgage on your commercial property. Borrowers might secure a lower interest rate, a lower monthly payment or a shorter or longer term of loan.
- Commercial construction loans — These loans for improvement of property are paid out incrementally, gauged by the construction schedule.
- Hard money loans —Private lenders offer short-term loans based on collateral the buyer provides in the form of physical assets, such as vehicles, business equipment or other real estate.
- Blanket loans — These loans are designed to cover the purchase of multiple real estate properties at once.
- Multifamily loans — A building with five or more units typically has a high purchase price but it also offers the prospect of producing rental income. Traditional lenders may offer favorable terms to a buyer with a high credit score, sound personal financials and an established relationship with the lending institution.
- Vacant land loans — These are popular options for investors and developers planning to build on a parcel. Because of the risk for the lender, vacant land loans are often short-term, ranging from 12 to 24 months, and require a down payment of up to half the purchase price.
Within each of these options, there are creative ways to structure financing. Our commercial real estate lawyersare experienced in securing favorable terms.
How our attorneys can help with commercial property financing
Commercial loan documents are complex instruments which present challenges for buyers. Nevertheless, experienced commercial real estate lawyers can find opportunities to secure favorable terms. As we perform our legal due diligence for the transaction, we can glean facts that appeal to lenders, such as:
- Clear title
- History of environmental compliance
- Absence of zoning or permitting restrictions
- Absence of boundary issues
- Sound tax record
Our attorneys know what lenders want to see from a loan applicant so that they can feel comfortable offering their best rates.
Contact an experienced Danbury commercial property finance attorney
Collins Hannafin, P.C. in Danbury, CT provides guidance on commercial property financing options throughout Connecticut. Call us at 203-885-1938 or contact us online to schedule an appointment.
