Private Mortgage For Industrial Property
“Private Mortgage Lenders Finance A Wide Variety Of Industrial Mortgage Requirements”
When referring to industrial properties requiring private mortgages, this can relate to a large spectrum of properties.
A lot of this has to do with the definitions people have for commercial properties versus industrial properties.
In most cases, industrial has to do with a combination of size and use. The larger a building, the more likely its going to be classified as industrial regardless of how its utilized.
Therefore, even office buildings can be considered industrial in many instances.
The actual distinction for any one property is based on the way its zoned for use with industrial zoning tending to have a broader usability guidelines than commercial, but that’s going to depend on the jurisdiction of the property.
The point here is that industrial properties are not limited to large buildings that house manufacturing or processing activities.
In many cases, private mortgage financing can not only be a good fit, but the only fit for properties that fall under heavy industrial use. At the same time, all other industrial properties can derive financing from private mortgage sources depending on the requirements and timing of financing.
As I’ve described in other articles, situations that require quick closing or extended periods of time to arrange institutional financing can turn to private mortgages as a short term financing option.
Industrial construction loans are many times provided by private mortgage lenders for all sorts of industrially zoned building projects.
There will also tend to be more private lending options available for requirements under $2.0 M due to the fact that larger amounts are only provided by a small percentage private lenders so you can end up with less competition and less availability for certain projects in certain areas.
For well kept industrial buildings that are fairly new and are part of an active market, private mortgage rates can rival institutional rates in some cases and when you factor in all the additional costs to qualify and service an institutional mortgage, an industrial mortgage through a private lender may provide a superior option for a period of time.
The key point here is that private lenders as a whole will consider financing a wide spectrum of industrial properties with the rates and terms offered being relevant to the risks associated with the property and the competition among private lenders to fund any given deal.
If you require an industrial mortgage and want to know more about your private mortgage options, I suggest that you give me a call and we can go over your requirements together.