Financing Owner Occupied Commercial Real Estate in Texas
April 25, 2024
Owning the physical space where your business operates is a dream for many owners in Texas. Although renting or leasing in the early days may have been a sound business decision, over time, your company could quickly outgrow the existing space. Now, it’s time to relocate to a better market or take advantage of an opportunity to acquire commercial real estate.
When it comes to financing an owner occupied commercial space, small business owners have several effective loan options to choose from. Knowing which option fits your needs is critical for taking the next step in business growth.
Discover loan programs available for financing owner occupied commercial real estate and why Texas Gulf Bank is the lending partner your business needs for funding a commercial property transaction.
Why Choose Owner Occupied Commercial Property?
Even with market fluctuations and economic uncertainties, purchasing owner occupied commercial real estate in Texas can still be a worthwhile investment for small business owners. Commercial property ownership could offer several important benefits, such as:
- Operational stability
- Potential tax* benefits
- Improved cash flow
- New opportunities for revenue
- Opportunity to build equity in an asset
An owner occupied commercial property may give your business more freedom to operate and market your business property as you see fit without landlord restrictions. In addition, property ownership may provide tax benefits, offer consistent monthly payments, and allow your business to build equity in a fixed asset.
Also, an owner occupied commercial property requires your business to occupy at least 51% of the available space, meaning the remainder of your property may be leased out to other businesses or entities. This may allow your business to generate steady rental income, potentially improving cash flow that could be used to support ongoing operations.
Financing Owner Occupied Commercial Real Estate to Fit Your Needs
With the right lending options, small business owners can build towards a better future by investing in owner occupied property. Texas Gulf Bank offers a range of strategic loan solutions tailored to meet the unique needs of owners.
Owner Occupied Commercial Real Estate Loans
With an owner occupied loan, business owners can access the financing needed to pay for commercial land, construction costs, and a mini-permanent* mortgage through one consolidated loan program.
*NOTE: Some creditors may offer one-time-close construction loans that include a permanent mortgage, but Texas Gulf Bank’s one-time close construction loans only include a mini-permanent mortgage.
These one-time-close loans may allow small business owners to enjoy a streamlined loan program that requires a single application process. Borrowers may benefit from fixed monthly payments to help stabilize cash flow.
SBA 504 Loans
The Small Business Administration (SBA) 504 loan program is an excellent loan option for businesses seeking potentially favorable repayment terms and lower down payments than other financial lending sources. SBA 504 loans are specifically intended for small businesses that need funding for major fixed assets like commercial property or building renovations.
The SBA 504 loan option is offered in partnership with traditional banks like Texas Gulf Bank, along with Certified Development Companies (CDCs). These regulated, community-based SBA partners work to encourage business and job development.
Working Capital Loans
Thinking beyond commercial real estate, consider a supplemental lending option. A working capital loan is an ideal choice for business owners who already have owner occupied commercial real estate funding in place but need a financing solution to cover day-to-day operational costs.
Working capital loans can help business owners manage cash flow more effectively. Business owners may also have access to more financial resources to cover operating expenses in their new commercial property.
Texas Gulf Bank: The Lending Partner Your Business Needs
As a community-based bank serving the Southeast Texas Gulf Coast for over 110 years, we have a deep understanding of the businesses in our region. Our lenders strive to provide financing solutions and banking services that meet your needs.
When you choose Texas Gulf Bank as your lending partner, you gain advantages including:
- Regional Expertise: We have in-depth experience with local markets and provide valuable regional guidance to clients regarding the best possible locations for acquiring owner occupied commercial properties.
- Customized Loan Solutions: We understand that each small business has unique goals and financing needs. Instead of a one-size-fits-all lending approach, we develop customized loan solutions to support your business goals.
Take the First Step Towards Property Ownership
Choosing the right lender is crucial for realizing your owner occupied commercial real estate aspirations. Texas Gulf Bank is ready to help you make the transition during this period of growth for your business.
Contact Texas Gulf Bank today to speak with a lender and learn more about financing owner occupied commercial real estate. Your dream property awaits, and Texas Gulf Bank is here to help you unlock its doors.
*Consult your tax advisor for how purchasing owner occupied real estate may benefit you depending on your particular tax situation.
All loans subject to credit approval.