Commercial Financing

[invst4profit]

I am presently looking at moving from residential to commercial and require info on financing. I have made some inquiries with a morgage broker and am being told that for about $300,000 my rate will be anywhere from 8.5% up to 10.5% with setup fees around $6000. Does this sound about right.
Can anyone familiar with Ontario recommend a good source of commercial financing.
I am planning on making an offer next week so preliminary info is required to assist me in structuring my offer.

Thanks

 

[DonCampbell]

I would speak with Abbey at First National in Toronto if I was you.

 

[PeterKinchMortgageTeam]

QUOTE (invst4profit @ Feb 8 2008, 12:11 PM) I am presently looking at moving from residential to commercial and require info on financing. I have made some inquiries with a morgage broker and am being told that for about $300,000 my rate will be anywhere from 8.5% up to 10.5% with setup fees around $6000. Does this sound about right.
Can anyone familiar with Ontario recommend a good source of commercial financing.
I am planning on making an offer next week so preliminary info is required to assist me in structuring my offer.

Thanks


Commerical financing is very different than residential - your LTV, rate, and fee will be dependant on several factors such as the type of property, the location, cap rate etc.... The cost that you quoted above is probably not unreasonable but you would still want to look into your other options, as often there are ways to make it cheaper. Give Abby a call as Don suggested - she can probably give a couple of suggestions and some ballpark pricing.

Hope that helps,

 

[albainstar]

i would also look at the BDC in your area. (Business Development centre) It is govt funded adn they offer loans as well as some grants etc.
Also Private financing may be better for you - you could bring in a share holder and sell them b or c class shares which means they have no real say in the day to day, but are a registered shareholder none the less.

what kind of business is it?
There may be special funds or grants for areas the gove wants to grow or support.
Are you metis or aborigional? Do you employ a minorities or diabled? There may be $ available for some or all o fhtese things.

Good luck, as a business owner I know It is almost impossible to get good business financing.
We ended up going to the bank pretending that i wanted to renovate my house and they gave me $ for that, when i told them I wanted to open a business they basically said no.

 

[invst4profit]

Thanks everyone I will explore all of the options you have suggested,
The loan buy the way is for the purchase of a Mobile Home Community.