Sunday, December 30, 2007

Business Loan and Commercial Mortgage Investment Fundamentals

Business Loan and Commercial Mortgage Investment Fundamentals
As many investment experts will tell you, there are several
compelling reasons to consider business finance and
business opportunity investing. A primary incentive to
explore business financing options is the ability to
finance a business loan or commercial mortgage with income
generated by either the business or the commercial real
estate investment property. Another key investing
attraction is the ability to either include or exclude
commercial real estate from the commercial loan process.

The recent negative investment climate for residential real
estate investment property has provided investors with new
reasons to explore investing in business opportunity and
business finance options. This report will offer some
guidance for business financing and commercial mortgage
loans plus an overview of primary reasons for exploring
possibilities to buy a business or commercial investment
property.

Business Finance - Investing in Unique Businesses and
Special Purpose Properties

Commercial real estate and business opportunity choices
include special purpose situations such as funeral homes
and golf courses. The unique characteristics of such
business investment options translate to enhanced
possibilities to differentiate a commercial business and
provide added value.

Of course specialized business real estate investing does
require special purpose business finance solutions such as
golf course financing and funeral home financing. The
ability to arrange a business loan or business opportunity
financing that is appropriate for both the business owner
and the business itself will be a critical ingredient in
business investment success.

Buy a Business with an SBA Loan for a Commercial Mortgage
and Business Opportunity Finance

The option to use SBA financing (Small Business
Administration loan) provides a business loan choice not
available for residential real estate investing. This form
of business financing is available to new business owners
and can prove to be instrumental in purchasing a business
opportunity or commercial real estate investment.

Business Opportunity Financing Without Real Estate
Investment Property

Purchasing a business opportunity does not involve
commercial real estate. This means that business finance
value will be driven by the business rather than real
estate, and the absence of a commercial mortgage can prove
to be a significant advantage in a declining real estate
market.

Business Loan - Commercial Investment Value Driven
Primarily by Income

In comparison to residential real estate investment
property value depending primarily on location, commercial
real estate and business value is primarily determined by
business income. This results in less sensitivity to local
real estate property value trends. A business opportunity
loan and commercial real estate loan will depend upon a
business appraisal that will evaluate the recent business
income levels.

Commercial Loan Precautions - Business Financing Problems
to Avoid

Just as there are unique and substantial positive benefits
associated with buying a business or commercial real estate
investment property, there are also a number of special
business loan and commercial mortgage problems to avoid
when arranging business financing. For those most familiar
with investing in residential real estate, it is important
to note that there are over 25 differences between
commercial financing and residential investment property
financing. With each critical difference, there is a
significant potential commercial loan problem to anticipate
and avoid.


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Steve Bush is a commercial real estate investment loan
expert - learn how to avoid business finance mistakes and
find out about business opportunity loan strategies at AEX
Commercial Financing Group =>
http://aexcommercialfinancing.com

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