Three Factors That Can Affect Your Down Payment

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Business owners looking to finance their commercial properties with a private equity loan in Broward County should pay attention to factors that can affect the terms of their down payment. Financers will take a number of variables into consideration in determining how valuable your property will be and whether it will generate revenue. A property with lower value may require a larger down payment. If you’re still early in the process, consider how you can lower your down payment by making some important decisions.


Your property’s location should be in a place where it can be easily accessed. This would include a place off a major highway, expressway, interstate, or in a well known business district. Conversely, a location in an area with persistent problems such as crime or ill-kept housing or buildings can impact a property’s value. Additionally, some properties can be devalued due to poor nearby utilities. If an area is subject to brownouts or bad plumbing, it can make the property less desirable and affect down payment terms in your private equity loan in Broward County.

Physical Condition

In many cases, the property you want to finance with a private equity loan in Fort Lauderdale may not be in an optimal location, but fortunately, there are other factors you can more directly control. One of them is the physical condition of the property. One of the smartest investments you can make is to renovate the interior, put down new carpeting, paint walls, and replace old and broken siding or even the roof. Also, make sure the utilities are in prime working order. A building with inadequate electricity will be seen as a risky venture.

Usage of the Property

The prime use of commercial properties is to make money, so your lender will want to know that your property will be an effective revenue generator. Do your homework to find out how your enterprise will interact with the local economy. If your business operates predominately across state lines or even international, just lay out how you draw in clients from across state lines. Whether your business is predominately local or national, demonstrating your property will be used to pull in a strong cash flow can do wonders for favorable loan terms.

By hammering out details like how your commercial property can generate cash flow or making sure your property is in prime shape, you can do a lot to reassure financiers that your property will be valuable and help you secure favorable terms for a private equity loan in Broward County.