Commercial Real Estate Financing – A Good Alternative for Small Companies Seeking 90% to Purchase

There is a little known, but excellent financing program available for small companies that will allow them to obtain 90% financing for the purchase of commercial real estate. The beauty of this program is that it is a non SBA (Small Business Administration) program that does not require the use of business and personal tax returns to qualify for the loan.

(Please keep in mind, that I am in no way knocking the SBA as they are a fantastic resource for financing small businesses) I just want to share with you a program that is ideal for companies that may not have extremely strong financials, or have the stomach for the abundant and sometimes cumbersome amount of financial paperwork required by the SBA.

This program uses alternative credit information to qualify you for the financing.

Here are the 5 main criteria to qualify for this loan program, as of the date of the writing of this article:

1) The property must be an “Owner Occupied Property” and “Multi Use Property”

An Owner Occupied property is described as any business that owns a building that operates its business out of that same building. The business does not have to be the buildings sole tenant, but must occupy at least 25% of the total rentable space of the building.

The building must also be able to have “Multiple Uses”. The following property types are commonly financed: Professional Offices, Office Condominiums, Warehouses, Warehouse Condominiums, Freestanding Retail, or even small Retail Strip Malls where 25% or more of the total space will be Owner Occupied.

2) Loan amounts are up to $500,000.

I am sure that many of you have seen advertisements that claim to be able to do 90% financing through a “No Doc” or “Low Doc” program with loan amounts up to $1,000,000. My best advice to you is to not get taken in and be disappointed later. I have not seen a deal of this nature close with a loan amount greater than $500,000. Take my word for it, $500K is your loan limit for this program.

3) Credit Score of 700 or greater.

The borrower or borrowers must have an individual or average middle credit score of 700 or greater. Lower credit scores will result in obtaining less financing.

4) Borrower in business for a minimum of 2 years

Your company or D/B/A must be able to show documentation from your State that you have been in business for a minimum of 2 years

5) Proof of timely commercial rent paid for 12 months.

Your company must show proof of timely commercial rent payments for 12 consecutive months. This is commonly shown through canceled rent checks. Note*** Residential rent payments or home based businesses that do not pay commercial rent will not be accepted.

That’s it! If you can deliver all of the items listed above than you will more than likely be approved for 90% financing on the purchase of your new commercial property.

Now here is a little secret!

If you and your company meet the criteria that I have listed above, then it is probable that you can actually obtain 100% financing, if you desire to, for this same purchase.

David Walis is the Executive Vice President of Combase Financial. He is a nationally recognized financial adviser who specializes in the financing of owner occupied commercial real estate. He can obtain commercial financing for all property types with loan amounts ranging from $100,000.00 to 50,000,000.00. He welcomes any comments, questions, or inquiries from his readers. Send him an e-mail at He can be reached by telephone at (800) 578-1206. Please call or email today if he can be of assistance to you in helping you obtain commercial financing.

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