What Is Owner User Commercial Real Estate Financing

Alpha Funding Corp provides “owner user” commercial real estate financing for real estate transactions only. If you own a commercial property, hotel, assisted living facility or any of the property types listed below contact us today.

Also known as owner-occupied commercial real estate, owner-user commercial real estate is essentially a property owned by a business that also occupies the property or at least part of the property. An alternative to renting, purchasing a premises that your business can operate out of can be a worthwhile investment that delivers numerous benefits.

Owner User Commercial Real Estate Financing Property Types

Owner-user commercial properties are classified into a number of property types, including:

• Retail & Strip Centers

• Healthcare and Medical Offices

• Offices

• Industrial, including Warehouses and Manufacturing Facilities

• Agricultural Properties

• Special Purpose Properties such as Self-Storage Facilities, Assisted Living Facilities, Daycares, and Sports & Events Centers

• Hotels

• Mixed-Use Buildings

The Benefits

There are many benefits of an owner-user commercial property no matter what industry you’re in. For instance:

• Flexibility. Owning your commercial property gives you endless options with what you can do with the space. For example, you may have the option to expand and renovate or repurpose spaces to suit your needs. This will make it easier and faster for your business to grow.

• Security. When you own your business’s premises, you don’t face the risks posed by renting. For example, you’ll no longer be at risk of your landlord deciding to sell the property, increasing rent, or not renewing your lease.

• Financial benefits. There are many financial upsides to owning your business premises as opposed to renting. For example, instead of paying rent – often referred to as ‘dead money’ – you’ll be building equity with every mortgage payment you make. Asset appreciation means your property will also increase in value over time, further building your equity. There are numerous other financial benefits including tax advantages, consistent fixed payments, and lower expenses such as insurance rates.

Financing an Owner-User Commercial Property

Often obtaining traditional financing for an owner-user commercial property can be difficult, but a hard money loan ensures that securing an owner-user commercial property is an attainable goal for many investors. If you have a poor credit history, a low credit score, or are a first-time investor with no track record, an owner-occupied hard money loan may still be an option for you.

An owner-occupied hard money loan is a short-term loan provided by a private lender. Generally, these loans are flexible and can be secured quickly, allowing you to snap up an opportunity before it’s too late. You’ll be able to use this owner-user financing for purchasing, refinancing, constructing, or renovating owner-occupied commercial real estate properties.

Hard Money Lenders

Whilst hard money loans are much easier to qualify for than traditional loans, a hard money owner-occupied private commercial real estate loan does attract a number of requirements in order to mitigate the risks for the lender. One of the most obvious requirements is that you must operate your business out of the property you are seeking the loan for. Depending on the circumstances, your lender may require you to occupy a certain percentage of the property.

This may be a minimum of 51% of the leasable space. There may be other requirements such as a minimum amount of time that your business has been operating for, and proof of your business’s viability and profitability. Other requirements may include a maximum loan-to-value cap and a minimum credit score rating. Call us today, as commercial bridge lenders we have numerous loan programs for investors.

If you’re ready to move on an owner-user commercial property and are looking for the right financing partner, get in touch with Alpha Funding Corp today. Our senior loan experts are ready to answer your questions and optimize your investment with our flexible and cost-effective owner-user commercial property hard money loans.