Jersey City Commercial Real Estate Loans: 4 Common Questions

The Jersey City commercial real estate market encompasses fix and flip projects, large scale construction, and everything in between. It should come as no surprise that there are also many options available to finance commercial real estate transaction in the Jersey City area. Our team has put together answers to common questions about commercial real estate loans to help property investors and developers navigate the myriad finance programs.

Can I use SBA loans for commercial real estate in Jersey City?

Absolutely. SBA loans are used primarily for industrial and owner occupied properties in Jersey City. The trick is finding a preferred lender. Unlike banks and other traditional institutions, preferred lenders have the ability to expedite SBA loan requests and get the most favorable terms and interest rates.

I’m a first-time Jersey City commercial real estate investor. What properties should I buy?

This is a question we regularly receive, but the answer isn’t simple. Many first time property investor start off by flipping houses, or converting a property into a rental. Some start with motels and retail space. The best place to start is by looking at your budget, and figuring out what type of property if manageable and profitable for you. Some commercial real estate investors get in over their heads by purchasing a property that is hard to manage. Others start off small and build small empires by leasing properties throughout Jersey City, NJ.

Do I need proof of salary to get funding for commercial real estate?

In certain situations, commercial real estate investors can apply for a stated income loan. Since many property investors do not draw a regular salary from a corporate entity, and instead rely on rent from tenants and sales, stated income loans only rely on proof of revenue and supporting tax documents.

Do I have to use debt-based loans for Jersey City properties?

There are a number of situations where debt-based loans are not an ideal fit for Jersey City commercial real estate transactions. For those cases, equity or mezzanine loans might be in order. Both can be arranged quickly to keep larger projects on track so local investors can start generating revenue.

I have a question, but I don’t see it listed here.

If you have a specific question about Jersey City commercial real estate loans, contact the experts at the Capital Lenders. Our team has the depth of knowledge to answer questions about financing and provide solutions tailored to your needs.