Keys to Industrial Mortgage Financing
“When Seeking Industrial Mortgage Financing, Make Sure You Have These Key Things in Order”
To get mortgage financing for An industrial use building and/or property, you’re going to have to make sure you have a number of things in order to get the best deal or get financed at all.
The first thing that every industrial mortgage lender wants to know about the subject property is the historical use that’s taken place and if there is any environmental liability.
Even if the building and/or property itself did not house a use that would be considered environmentally unfriendly, the neighboring business area history will be important to as air, water, and soil can transfer pollutants from one location to another over time.
The best way to prepare for this requirement is to proactively get an environmental assessment completed. This can require multiple phases of work, depending on the property use and what may get detected in the initial site visit.
To improve you chances of getting a clean report and minimizing the overall cost of assessment and testing, make sure that you clean up the building and property and keep it clean. Garage and debris that sits around can create the perception that contamination may exist due to the manner in which the property is being maintained.
Building on the last point, another key aspect of industrial mortgage financing is the current condition of the real estate and the state of repair. The property is only going to be valuable as security to a mortgage lender if the lender views it to have a valid resale market, based on the conditions its in. The more work required, the less likely you’re going to be able to attract lender interest and the interest you do attract will be for lower loan to value mortgage amounts and higher interest rates.
The third key to industrial mortgage financing is demonstrating strong repayment either through the revenues received from tenants or from your own business if you are occupying the building yourself. The stronger the repayment is, the more likely you will get lender’s interested in the mortgage opportunity.
If you have an industrial property that you’re looking to purchase or refinance, give me a call so I can quickly assess your situation and provide relevant industrial mortgage financing options for your consideration.
Click Here To Speak With Industrial Mortgage Broker Joe Walsh.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel