working capital management Working Capital Management | Page 11

COMMERCIAL REAL
ESTATE LOANS
Commercial real estate loans are utilized to purchase business
property to operate and buy commercial properties for
generating income. How the real estate is used determines the
right kind of commercial mortgage for you.
Land and
construction loans are the common loans taken in real estate.
Commercial real estate loans could be as short as few months
or as long as 30 years.
Commonly, office complexes, hotels, apartments, retail centers
along with acquisition, development and the construction of the
mentioned properties are completed through commercial real
estate loans. Similar to residential loans, independent lenders
and banks are actively in making commercial property loans.
Pension funds, insurance companies and private investors also
make commercial real estate loans. The incentives for lenders
for making commercial real estate loans are they attract
wealthy tenants and sometimes are able to make quite a
handsome revenue amount.