Loan Programs Available For Your Retail Real Estate Investment

Retail business investments can be very lucrative. From single commercial tenant properties, to expansive shopping malls, your retail business investment could garner you massive profits. Raisal offers a variety of retail loan programs, depending on what kind of retail establishment you’re seeking to borrow funds for.

Here’s a rundown of Raisal loan programs that are available for your retail business investment.

Bridge Loan

A bridge loan is available from Raisal for your retail business investment and is appropriate in certain circumstances. Since a bridge loan is a short-term loan, it makes sense to apply if you have immediate cash needs and a long-term financial plan in place. Bridge loans at Raisal start at $500,000, and terms range from six months to 36 months. Bridge loans can help with issues like land acquisition for future building, high vacancy rates, and limited closing times on short range opportunities.

With closing times as little as as within one week, a bridge loan can literally help you “save the day” as far as your retail business investment. Bridge loans require documentation, as well as a written plan to acquire when applicable, an exit strategy, and sufficient cash to close on the loan. An amortization schedule with interest-only payment also adds to the attractiveness of this loan option for retail business investments.

Banks and Credit Unions For Investors Or Owner Occupied

Two different commercial financing options from banks and credit unions are available for acquisitions, development, construction, and renovations on commercial properties, depending on whether the property is for investment purposes only or will be owner occupied. These types of retail business loans can also be used to refinance existing debt or for consolidation of multiple debts. One of the major advantages of bank and credit union financing is the competitive interest rate and term length, which is up to ten years.

Typically, the borrower would need to have been in business for a minimum of two years, with no prior bankruptcies or defaults in the previous seven years.

Small Business 7(a) Loan

The Small Business Administration’s 7(a) loan is a very attractive loan option for retail business investors because of the low down payment of just 10% for retail business purchases. This loan option can be utilized for a variety of purposes, including acquisitions, construction, working capital and equipment purchase. Loan amounts range between $500,000 and $5 million, and closing time takes an average of between four and six weeks.

To qualify for an SBA 7(a) loan, the business borrower must occupy at least 51% of the property, have a minimum credit score of 680, and have been in business for a minimum of three years.

SBA 504 Loan

The SBA 504 loan is another option offered by the Small Business Administration. Borrowers for retail business investments may apply for and receive between $500,000 and $20 million. With the higher maximum, this loan is ideal for heavy equipment purchases, new construction, existing construction purchase, and expansion of an existing building. This loan type typically closes between four and six weeks, and has a maximum loan to value ratio of 90%.

Qualifications for this loan include having a minimum credit score of 640, and a minimum of two years in business. Also, the business must be a “for-profit” endeavor.

Stated Income For Investors

One of the more popular Raisal loan programs available for retail business investors, the Stated Income for Investors loan is designed to help investors who can’t qualify based on previous tax return records. Instead, borrowers might qualify based on their credit score and bank statements. With a lower loan floor that starts at $250,000 and goes all the way up to $5 million, this loan option for retail business investors is ideal for class B and C properties. Term lengths go up to 30 years, with no balloon payments, so this option is a great alternative for non-traditional investors to get in on the retail business property market.

Qualifications for a Stated Income for Investors loan include a minimum credit score of 650, and the property must be income producing.

Stated Income For Business Occupied Properties

Another loan option available for borrowers not able to qualify based on tax returns is the Stated Income for Business Occupied properties. With submission of documents including bank statements and a qualifying minimum credit score in the 600s, borrowers can get between $250,000 and $5 million for Class B and Class C properties that are business occupied. With a maximum loan to value ratio of just 75%, this loan is considered a little more lenient than what a borrower could get from a bank or credit union.

A minimum credit score of 650 is required to qualify for this type of loan, as well as having been in business for at least two years.

With all these options available to fund your retail business investment strategy, there’s no reason to let money get in the way of your goal. Finding the right lenders is easy when you use Raisal. Just get started for free online and you can be on your way to getting the financing you need to make your retail business investment goals a reality. Get started now.

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