A Streamlined Process for Commercial Real Estate Investment Loans

April 27, 2023

For commercial property investors, timing is everything, whether choosing the ideal investment property, constructing your building, or finding tenants to rent your space. However, one of the most important aspects of commercial real estate investing is having a smooth and straightforward commercial property loan process from start to finish.

Texas Gulf Bank has been a leading provider of commercial real estate investment loans throughout the Gulf Coast for over 100 years. Learn about our streamlined commercial real estate financing options and how to secure the financing needed for your investment needs.

Why You Need an Experienced Lending Partner

To ensure your success in commercial real estate investing, you need a financing partner that can offer effective lending solutions, a streamlined lending process, and in-depth guidance along the way.

Texas Gulf Bank has extensive experience in commercial real estate investment loans, with a deep understanding of the region and its market trends. We have provided loan options for all types of commercial real estate projects in the region, including:

Mixed-use developments
Retail centers
Industrial warehouse buildings
Subdivisions
Multi-unit housing
Rental homes
Self-Storage Facilities
Healthcare Facilities

Whether you plan on making renovations, constructing a new facility, or generating steady rental income, we offer helpful guidance and risk assessments. Our lenders work hard to help you generate long-term returns for you and your financial partners.

1. Loan Options for New Construction

One of the reasons why property investment partners continue to choose Texas Gulf Bank for commercial real estate financing is because we proudly offer a range of effective short-term and long-term loan options that fit each situation.

For real estate investors looking for ground-up construction financing, TGB offers loan options that include the following:

Construction Loans

Construction loans are a great solution for financing your entire building process, with funds released directly to the builder as you hit construction milestones.

These are short-term loans and borrowers are only required to make monthly payments on interest during the construction or draw period, which can preserve your cash flow. Once construction is complete, the loan will need to be refinanced into a long-term mortgage which Texas Gulf Bank can provide.

Land Acquisition and Development Loan

You may also consider a land acquisition and development loan to cover both purchasing and preparing undeveloped land for construction.

These loans may be ideal for investment partners that want to quickly purchase commercial properties, allowing them the ability to control the land while they work with architects, engineers, and general contractors to finalize the project.

2. Loan Options for Existing Property

Investment partners that currently own or want to purchase an existing commercial real estate site have the following loan options:

Commercial Mortgages

These long-term loans are used to purchase existing properties, typically with flexible loan terms and competitive interest rates, making them a popular choice for investors. Commercial mortgages can be customized to fit different property types, like office buildings, retail spaces, industrial properties, or multi-family projects.

Loan Refinancing

Refinancing existing loans is an option for investors who already own commercial properties but want more favorable loan terms. Whether or not you could benefit from a refinancing depends on a number of factors, including current rates compared to your existing loan rate, any prepayment penalty on the existing loan, etc. Through loan refinancing, borrowers can enjoy benefits such as:

Accessing equity for improvements or expansions
Lower monthly payments by consolidating multiple loans into one
Extended loan terms
Avoiding upcoming balloon payments

Commercial Real Estate Investment Loans Done Right

Investment partners interested in applying for a commercial real estate investment loan will discover a smooth and seamless loan application process with Texas Gulf Bank.

In our initial meeting with potential borrowers, our lenders take the time to learn about future plans and goals for your commercial property investment so that we can help identify the best possible lending solutions.

By understanding the unique needs of each investor, we can make loan recommendations that normally fit timing, budgetary needs, and long-term financial goals.

Part of the loan process includes thoroughly evaluating the land being considered for purchase. Our loan officers will ask to study factors such as:

Property location
Market trends
Business competition
Area demographics
Environmental assessments

In addition, loan officers need to confirm if there is adequate long-term cash flow to fully repay the loan amount. To determine loan viability, applicants will need to provide the following financial documentation, including but not limited to:

Personal financial statement
3 years of personal tax returns
3 years of business tax returns
YTD Business income statement and balance sheet
Property plans and specifications
Surveys and/or plats
Construction budget
Builder resume and experience
Projections including rent and expenses
Preleasing information including LOIs or executed leases

Once all documentation is received, we will pull a credit report and our loan review team will assess the loan application. We will keep you informed throughout each step of the loan review process. As a local bank that makes in-house lending decisions, we can usually offer an expedited loan review to our customers.

If your application is approved, we will process loan closing and funding as soon as possible to support your commercial property investments.

Get a Better Loan Experience with Texas Gulf Bank

Founded in 1913, Texas Gulf Bank is a community-oriented bank with a priority of investing in local businesses and individuals. We strive to always provide effective loan programs, top-quality services, and exceptional customer service to each customer.

We genuinely care about our clients and want to help you succeed in your commercial real estate investments. Contact us to speak with a loan officer about commercial real estate investment loans or to begin the application process. You can also complete our form to get started today.

All Loans Subject to Credit Approval