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Question regarding loans. I have a vacant commercial property in NJ that needs to be rennovated...?

fastlikeflash - 2008-06-22 11:12:13 - Renting Real Estate

Once I rennovate it will have rentable apts, and a store. What is the best type of loan to get for such an endeavor? Would a home equity loan be the right one to seek? My credit score is a little above 700. What banks are easiest to obtain loans from?

Best Answer:

For various reasons (like taxes and accounting) your best option is to get a commercial loan secured by the property itself. When commercial appraisals are done they look at the value of the finished product rather than the present condition (as home appraisals are done). Good luck and don't forget to shop around for the best rate.

Answers:

For various reasons (like taxes and accounting) your best option is to get a commercial loan secured by the property itself. When commercial appraisals are done they look at the value of the finished product rather than the present condition (as home appraisals are done). Good luck and don't forget to shop around for the best rate.

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determine<!--the monthly payment you will need to make. You also need to know if the interest rate is of a fixed or adjustable nature. Fixed rate implies that the monthly payments will remain constant, while an adjustable rate implies that rates will fluctuate depending on market conditions. http://best-loans.awardspace.com/homeloans.htm In adjustable rate, when will rates change? If your interest rate on the home equity loan is of the adjustable variety, you need to know three things: when the rate is going to change (that is under what conditions), how frequently will the rate change and what’s the average-->percentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.