Commercial Real Estate is basically a real estate deal/transaction which takes place for the main purpose of commercial matters.
CRE lending is slightly tricky as it involves huge amount in transaction.
These are some steps to be argued before you go for CRE
- Find a challenging/ motivated CRE lending agent.
- Before you enter into CRE, a real estate due diligence is necessary, which will give hand in future transactions as well as it will be useful for understanding the real estate firm you are dealing with. Usually high skilled professionals are hired for this kind of investigation
- Once you are satisfied with the due diligence process you can step further with the agreement signing process which is more essential for the one reason that in Indian courts property deals cannot be enforced with oral agreements.
- Agreements must be transparent, verified by professionals for the smooth functioning of further arrangements.
- There are some private banks which provide special interest rates/ facilities for genuine CRE transactions.
- Usually in high profile transaction of CRE the lease period is 99 years (subject to change as well)
- Commercial use can be anything but not limited to Shopping complex, Star hotels, MNC’s etc.
Mortgage– Mortgage for commercial transaction is same as the residential transaction. The main black out difference is that the property must be on commercial in nature.