FAQ - Do I Need A Downpayment To Buy Commercial Property?
Didier Malagies • March 2, 2022
In the past, you needed a downpayment to buy commercial property. But now, you have options!
Buying commercial property costs less than you think. If you are a business owner for 2 years there is an opportunity to buy a commercial property with 0 percent down. Watch our video to learn more.
If you're thinking about purchasing a commercial property, here are some reasons to consider taking the plunge:
Owning builds equity.
As with any other kind of real estate, commercial properties go up in value over time. If you rent, all you're doing is paying your landlord's mortgage; if you own, you're building your own equity.
Owning saves money.
In addition to equity gains, owning can also save money in the long run. If you're renting a building that's suitable for your business now but might be too small in five or 10 years, it could be cheaper to buy than to move if space becomes an issue.
Owning gives control.
Renting puts you at the mercy of your landlord's whims; there's always the possibility that they'll raise your rent or not renew your lease when it expires. When you own your own building, however, you're free to make any changes necessary to suit your business needs now and in the future — and there's no need to worry about moving costs or finding a new location because you are the landlord.
Want to know more about buying commercial property? Give us a call at (727) 784-5555. We can walk you through your options. Or visit our commercial loan options page for more information.
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If you need working capital for your business, you’ve come to the right place. We can get you up to $150,000 in financing in as little as 2 weeks. And unlike traditional banks and other lenders, we are here to help you throughout the process to make sure you get funded. Our program is designed to give businesses like yours access to cash when they need it most. The best part? There is no cash flow analysis, no debt refi, no equipment requirement - just working capital. You can get 30% of your top line, gross revenue from your last tax returns. To qualify for the loan you will need: To be self-employed for 2 years. Have a 680 FICO score or higher. Have a 155 biz score or higher. Access to working capital can help your business in many ways: Working capital loans can help with covering payroll. Some businesses have cash flow problems because they have to pay their employees before they get paid. This can be a problem for startups, especially if the business owner is also an employee. Working capital loans can help you cover payroll and other expenses until you receive payment from clients. Working capital loans can help with buying inventory. The cost of inventory is one of the biggest expenses for most businesses. Working capital loans can help you buy inventory quickly and easily so that you don't have to wait for your customers to pay their bills before they can receive it. Working capital loans can help with rent and building expenses. Rent and building expenses are ongoing costs that must be paid every month regardless of whether or not there have been any sales in that month. Working capital loans help businesses pay these bills on time so that they don't fall behind. There is no obligation to start the lending processes. Just an obligation to yourself to figure out what's best for you. Find out more about how much you can borrow to help you finance your working capital! Complete the form below and one of our advisors will reach out to you. Or, give us a call at (727) 784-5555 and we will be happy to answer all of your questions.
The process of seeking a commercial loan in Florida can be overwhelming.
For doggy daycare owners and buyers, there are two main types of Government Subsidized Loans that can help you buy or grow your business .
The Small Business Administration (SBA) 504 loan is a long-term financing tool for growing small businesses.
The Small Business Administration (SBA) 504 loan is a long-term financing tool for growing small businesses.
Tax season is a great time to take stock of your company's financial situation and look ahead to the next year.
As a business owner, you need to know why commercial loans are important, how it works, and what is available to you.
Commercial real estate loans are similar to residential mortgages, but they usually require a shorter repayment period and a higher down payment.
For small business owners, there are three main types of commercial real estate loans: conventional commercial loans, SBA 7(a) loans and SBA 504 loans.
Check out our other helpful videos to learn more about credit and residential mortgages.
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Are you a salaried employee, hourly, self-employed, or a contractor? Do you receive bonuses, commissions, or overtime? How consistent is that income? Can you provide recent pay stubs, W-2s, or tax returns? Self-Employment (if applicable): How long have you been self-employed? Can you provide two years of business tax returns and profit/loss statements? 🔹 Funds to Close Questions Lenders want to confirm you have enough money to cover the down payment, closing costs, and reserves. Questions may include: Source of Funds: How much money do you have saved for the down payment and closing costs? Where are these funds coming from (savings, checking, retirement account, gift, etc.)? Are you receiving any gift funds? If so, from whom? Asset Documentation: Can you provide bank statements from the past 2–3 months? Are there any large or unusual deposits? Can you explain them? Reserves: Do you have additional savings left after closing (reserves)? Can you show evidence of other assets (stocks, bonds, retirement)? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
Yes, the reverse mortgage market is projected to experience growth in 2025. Analyses indicate that the market size will increase from $1.79 billion in 2024 to $1.92 billion in 2025, reflecting a compound annual growth rate ( A reverse mortgage can be a useful financial tool for certain homeowners, especially older adults looking to access home equity without selling their home. Here are the key benefits of a reverse mortgage: 🏡 1. Access to Home Equity Without Selling You can tap into your home's equity and receive funds as a lump sum , monthly payments , or a line of credit , without having to sell your home or move out. 👴 2. No Monthly Mortgage Payments Unlike a traditional mortgage, you don’t make monthly payments . Instead, the loan is repaid when you sell the home, move out permanently, or pass away. 💵 3. Flexible Payout Options You can choose how to receive the funds: Lump sum Monthly payments (tenure or term) Line of credit Or a combination This flexibility helps match your financial needs. ✅ 4. Stays in Your Name You retain ownership of your home, and as long as you meet the loan requirements (like maintaining the home and paying property taxes/insurance), you can continue to live there. 🛡️ 5. Non-Recourse Loan You (or your heirs) will never owe more than the home is worth . If the home’s value drops below the loan balance, the FHA insurance (if it's a HECM—Home Equity Conversion Mortgage) covers the difference. 👨👩👧👦 6. Heirs Have Options When you pass away, your heirs can: Repay the loan and keep the home Sell the home and keep any remaining equity Walk away if the loan balance exceeds the home’s value 💰 7. Supplement Retirement Income Reverse mortgages can provide a source of income during retirement, helping cover expenses, delay Social Security, or preserve investments. Would you like a quick rundown of the downsides too, just so you have the full picture?
