When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?
Personal finance can be a great way to buy things you want now and only pay in small weekly or monthly instalments. One of the most widely used personal finance is finance to buy a car or motorbike, as we need to upgrade our transport every couple of years. However be careful of spruikers at car yards offering in house finance, as these are often above the normal interest rate that you can most likely get at your bank or elsewhere. Just because they say they will give you easy finance doesn’t mean you should take it. remember to research all of your options and if there interest rate and establishment fees stack up against the majority of other sources then use this finance option.

When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?

There is one well known way around this is by using low doc finance and telling the lender you are buying the place as your residents this way you can get a residential mortgage interest rate however the motel can generally not have any more then 6 units in the building to be eligible for residential finance if you can buy a motel that makes a good income this way you will be laughing as your paying half the costs in interest then your competitors on their finance for your motel because you simply researched instead of jumping in feet first.

You will need to do a lot of research before picking the motel you want like checking out occupancy rates how long it has being profitable and if there is areason that the occupancy rates are a lot higher then last year this could be something is being constructed in town and a lot of workers are staying there this would be a bad choice because as soon as the work is finished so will the occupancy rate of your motel

So in conclusion does lots of research try for a 6-unit motel to get residential finance as opposed to specialized commercial interest rate, which will bring your overheads down dramatically.

To have your commercial property valued and in most cases this is needed upfront some ways around this are to get an investor to lend you the money for a part share in the commercial property and sometimes a commercial lender may incorporate the cost of the valuer into the loan but this rarely happens with commercial finance the most common way to pay this fee is buy using equity in your own home to secure the value of the building and it is highly recommended that you get your own independent valuation as banks are very conservative especially in the global financial down turn we are currently in.
Use interest only finance, you should always use interest only finance whether investing in a commercial property or a residential property.
Using interest only finance simply means you have more serviceability and can most likely buy a bigger commercial property then using principle and interest finance or more then one small commercial property to spread your risks across several sectors.

Although this sounds all great on a face value commercial property has many different criteria’s for example if you wanted to buy a motel you would need to have up to 50% of the costs as these types of properties are known as specialised security and usually have an lvr of up to 60%. Where as a retail office space you can lend up to 85% of the value of the building this is why you see many investors buying retail offices and industrial complexes as these two commercial properties are far easier to get finance for service station in particular are very difficult to get finance on as they are also a specialised security property and you will need around 50% deposit to even consider this option although if you can find a way around this most service stations have very good long term leases with plenty of positive cash flow so in conclusion if your looking for commercial finance you should look into retail shops, Offices and industrial buildings.