10 Commercial Real Estate Kansas City Loan Mistakes

Often securing a loan is part of renting Kansas City office space, especially in the start-up phase of a business or in the case of expansion or other projects.  Here are a few common mistakes that businesses make while applying for a loan to be aware of as you try to procure your own loan:

  1. Not doing enough research.  Make sure that you put in the time to review commercial loan terms from multiple different banks and commercial lenders.
  2. Not finding the best lawyer.  A lot of times it can be tempting to choose a family member or a friend who happens to be an attorney to help you with this process, but you will want to hire a commercial real estate attorney—someone who has experience in negotiating the types of real estate loans you need.
  3. Failing to have a clear plan for the money.  It is important to lenders that you have a definite plan in place for how you intend to use the money, as well as a timeframe in which you plan to complete any projects.
  4. Failing to present a business plan.  It is to your advantage when you are applying for a loan to be able to show lenders a well-structured business plan that lays out all of your financial and operating data and shows the general trajectory of your business.
  5. Not investing your own money.  It is a good idea to have your own available cash on hand when applying for a commercial real estate loan, because commercial lenders want to see that you are willing and able to cover a percentage of the cost with your own investment.

Being aware of these steps could give you a better chance at procuring a loan!

If you are interested in office rental space in Kansas City, give us a call at 913-685-4100!

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