Friday, April 7, 2017

Prime Facts About Atlanta Commercial Real Estate Financing

By Tom G. Honeycutt

Commercial real estate financing is highly sought after, especially by those interested in developments that are non-residential. Lenders will accepts various kinds of assets as collateral, including the deed of the property in question, inventory, receivables and trade accounts just to mention a few. There are certain aspects that you must understand before you begin plans to secure your loan. During the hunt for suitable Atlanta commercial real estate financing, several key factors would need to be considered.

You will find a variety of resources that you could use to get funds for your business project. Just like when getting a residential loan, there are numerous banks and private money lenders who could help you out. You may also approach insurance companies, private investors or capital sources that are owned by the government.

Getting suitable financing could go a long way in ensuring that you can go about developments that could bring great returns in the future. Even so, there is always an importance in making calculated moves before choosing a lender or a financing deal for that matter. In the end, certain grave repercussions are associated with failure to keep the end of your bargain.

There are certain notes that would be used when securing your loan. The most important one is the cognovit note. This is primarily a promissory note that authorizes the creditor to pursue legal action in case of default in payments.

It pays to seek professional guidance from a financial adviser before you make any move. Lenders are in business for the returns and any deal that seems good would get the funding it requires. The fact that numerous good and toxic deals will be readily available makes it necessary for one to seek the needful advice before securing any loans.

There is much importance in creating notes that you could compare before getting into any agreements. If you are not new in securing loans, then perhaps you know only too well that lenders are not equal when it comes to the details of the deals they can offer. Do some serious detective work and ensure that you are in a position to make educated choices.

Matters interest rates must not be overlooked. Bear in mind that the rates that apply for commercial loans are normally higher than those that apply for residential loans. In this regard, you need to compare the rates of various lenders and also take note of the costs related to processing the loan.

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