Posted onOctober 23/2014
When you see the word ‘mortgage’, you may think of the residential kind or the commercial kind, but any type of property that you buy requires a mortgage. This includes industrial properties.
Types of Properties
An industrial mortgage is a mortgage that has been taken out on an industrial property. These mortgages are for properties like manufacturing plants, warehouses, factories, storage units and various industrial workshops. Most towns and cities have areas that have been designated as “industrial areas,” and these are typically where industrial mortgages are in place.
Reasons for an Industrial Mortgage
When you set out to get an industrial mortgage, you may want the property for an active business venture or for investment purposes. You may want to buy into an existing business, create one from scratch or just buy up an abandoned building in order to sell it later on.
Finding Your Spot
Industrial properties are probably one of the least glamorous to look at and you’ll never see a reality show about them, but it’s still important to find the right one and you should go through the same kinds of steps you would go through when buying any property. Find an agent that specializes in industrial properties, get financing and off you go.
Of course, with an industrial unit you may have more flexibility in where the property is located. If you are planning on opening a workshop or manufacturing plant, your range will probably be greater than if you were looking for a house. There are only so many industrial areas, so moving onto the next town to look might be necessary if yours doesn’t have what you need.
What Do You Need?
When you start your quest for an industrial property, you’ll need items that you don’t usually need when looking for residential financing. Along with the property details and your credit information, you’ll need things like a business plan for new businesses, last couple years’ worth of accounts for existing business, environmental reports and tenant information, if applicable.
Overall, the process is quite similar but some of the details and the places you’ll be looking at will be different. As with a residential mortgage, you may benefit by using a broker for industrial mortgage financing. A mortgage broker with experience in industrial properties has access to a wider range of lenders and may offer a better chance to find the right deal for you and your future business plans!