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Wednesday, May 21, 2008

Getting a Mortgage Refinance the Commercial Area

Getting a Mortgage Refinance the Commercial Area

Bill had a hamburger joint that has been passed on for three generations. Business was good for the past years but the construction of other restaurants in the area began to eat part of the market.

The only way to compete will be to renovate and give the customers a fresh look of the place. A friend who has an architect was called in to check how much was needed. The estimate showed that Bill would need $150,000.

Bill was shocked at first but realized this was the reality. So, there were two options. The first will be to fold or give the other competitors a good fight. Bill who served in the military at one point in life decided to face the odds.

There was just one problem. Bill didn’t have the money. The interest rates in the bank were quite high so the only place to get the cash will have to be done by refinancing the restaurant.

The hamburger joint purchased some new equipment 5 years ago. Given the value of the property, Bill could get $250,000 which was more than enough to pay for the machines and the renovation.

This is when Bill called in some old friends who referred a mortgage company that has been doing this for more than 10 years to help out in the business. A meeting was set up and the documents needed were shown to the specialist.

After a few days, the loan was approved and cash was soon on the way. The construction will take 2 months so Bill and the architect decided to have this done in phases rather done not have any money come in.

Signages were placed around the restaurant and people still frequented the place. A lot of the regulars were very excited with the new look that a mock up model and drawings were placed on display.

Time flew very quickly and 2 months later, the renovation was complete. There was a huge party to open the event and people soon packed the place. The renovation paid off that even if the contract states that payment will be done in 2 years, Bill was able to give everything back in 8 months.

The success story of Bill is just one of many who want to get mortgage refinancing for a commercial lot. Some people let others do the developing after leasing the property for a number of years while there are others who have something already on it and need a few touches to make it more profitable.

The interest rates of getting a mortgage can be fixed or adjusted. The person shouldn’t be surprised if the company offers a combination of both when applying for a loan.

There are many ways to get a mortgage loan. The person can go straight to a broker by checking the local directory or surfing in the internet. There are also some brokers who can help in the process that will require the individual a certain fee for the services rendered.

Some people consider getting a mortgage to refinance the commercial area to be a gamble. Perhaps it is but if the property has potential, this should be maximized so that the person can be like Bill who is successful in running a hamburger joint against other players.