Phillip D. in Atlanta, GA writes:

Stephen, I am a CPA and have been renting my office space for 8 years. I now have a chance to purchase the building for $1.4 million. There are 3 other long-standing tenants. After careful financial analysis, I know I would be better off purchasing than continuing to rent. How do I go about getting commercial financing, is it just like residential?

Congratulations, Phillip, this sounds like an excellent opportunity. Commercial financing is similar to residential, but it is much less regulated. In other words, you really need to read the fine print and seek expert advice. In general, the rates are usually a little bit higher and the loans require larger down payments. The major difference however, is that with residential mortgage underwriting, the emphasis is put on the borrower and with commercial financing, emphasis is put on the cash flow of the property.

Up until recently, only large banks funded commercial loans, but now traditional residential mortgage companies, like ours, have streamlined the process and offer a selection of small commercial loans up to $5 million. You will find it easier now than ever to own commercial properties. Give me a call if you'd like to discuss further.

Stephen