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6 Things To Consider Before Investing In Commercial Real Estate

Commercial Real Estate 6 Things To Consider Before Investing In Commercial Real Estate
You may be familiar with some of our products and services like credit cards, financial education or loans - just to name a few! But, did you know Global can also help you finance a commercial real estate loan? 
Part of the credit union difference is providing members with access to a variety of lending options specialized to your needs. We will work with you to get the financing you need and guide you through the process. If you’ve been thinking about investing in commercial real estate, here are 6 things you should consider. 
1. Find an expert to help you through the process. Be sure you are aware of the average loan size your prospective lender works with and choose the right size lender for you. You might be thinking to yourself, “Why don’t I just go with a big lender, just in case I end up needing a larger CRE loan?”. Our answer? A smaller lender will be able to provide you better one-on-one time as you work your way through this exciting purchase.
2. Discuss with your agent how long closing can take while you are looking. In addition to the hot market, commercial real estate moves at its own pace. Talk to your agent about variables that can influence your timeline to close so you can plan accordingly.
3. Learn about what types of loans are available. Not all loans are created equal. Financing can fall into a variety of categories depending on what you’re looking for— industrial, retail, office, new construction, etc. Shop around for the one that best suits your needs.
4. Ask about fees! Hidden fees can pop up in surprising places when it comes to a CRE loan. Be sure you are prepared for these by knowing where they can appear. Talk to your lender about fees associated with your loan so you won’t be surprised. 
5. Determine the approval process. If you paid for services such as appraisals, credit reports, or engineer reports, you are entitled to a copy of those reports. Specific paperwork and records will be needed for this process. Talk to your lender about what they need to get you approved for your CRE loan. 
6. Think about how much insurance you will need on the property. Depending on the type of commercial investment, insurance can make a big difference in price. And, insurance will be a steady and recurring payment when it comes to your commercial real estate property. Be sure to think about what the overall monthly cost will be vs just the loan every month. 
Whether you are buying new, refinancing an existing property, or developing new construction, this new chapter in commercial real estate will be as exciting as it is challenging. We're here to help make those challenges seem less scary by giving you the questions to ask to make sure you know what to expect.  
Wondering if Global is the right lender for your CRE loan? Our Global Member Business Lending experts are ready to help you make those commercial real estate dreams a reality. With experience in wealth management, private banking, resort development and portfolio refinancing, you’ll be in good hands taking on this exciting new enterprise. Read more on our commercial real estate options here.
Written By
Global Credit Union
Member Financial Education and Engagement

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