Commercial Real Estate, The Asset That Keeps On Giving
By Jason Bertrand

A commercial mortgage is different from a residential mortgage. In a residential scenario the bank is simply looking at the value of the property and the buyer's ability to pay. In a commercial scenario the bank not only looks at the property value and the credit worthiness of the guarantor, but also the company's financial history and the income generated from the commercial property. It is always good to have someone on your side to make sure the process goes smoothly.

In many cases it is much more beneficial, as a business owner, to own your property in opposition to leasing. Commercial mortgages are available, depending on loan-to-value, as stated income or full documentation. These mortgages are also available as a fixed or adjustable rate mortgage. Amortization can be defined at a 30, 25, 20, 15 or 10 year schedule.

Business Mortgages give a residential landlord a choice of different mortgage products for all types of commercial properties and with several different mortgage interest options. Specific lenders offer products that vary and offer very creative financing solutions for a business. Some programs offer commercial business owners with development options. Large scale apartment complexes and high rise developments offer a great source of residual income. Commercial investors are aware of this and are ready to lend for commercial development.

In addition it is becoming more and more common to have commercial properties that are owner occupied. Whether occupying the entire property or commercially leasing a portion while retaining the remainder, there are options that make this type of financing possible.

Commercial Mortgage loans are important for all types of business whether new or established. It is a very good way for a company to write off the mortgage interest when searching for a tax advantage. In addition it is a very simple way for a company to create capital when needed. Real estate is an asset that generally appreciates. Financing secured by an asset is more beneficial for a lender than unsecured financing. Unsecured financing holds more risk for a lender so even when requesting an unsecured line the lender may require an asset to secure the line any way.

As a business owner there are many ways to create capital, whether through loans, the sale of stock, or increased revenue. The important part is to realize that real estate offers an asset that most likely will not depreciate and can be drawn off on more than one occasion. It also shows potential lenders the stability required to offer a financing package.

Copyright 2006 Jason P Bertrand

Jason Bertrand is the President of JPB Financial Services, Inc., a Connecticut Corporation and member of the Better Business Bureau. Mr. Bertrand has over a decade of experience in the financial services industry and is a Notary Public in the State of Connecticut. http://emortgageloanstore.com http://businessloansandleasing.com http://jpbfin.com

JPB Financial Services, Inc

PO Box 552

Vernon, CT 06066

860-982-5334

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