Warehouse Loans – Approved on Just One Income Document

1. Application Fees: Costs for processing your refinancing application.
2. Appraisal Fees: Fees for a professional appraisal to determine the current value of your property.
3. Legal Fees: Charges for legal services related to the new loan agreement.
4. Prepayment Penalties: Potential penalties for paying off your existing loan early.
5. Other Fees: Additional costs such as title insurance, recording fees, and new lender fees.

1. Current Loan Details: Information about your existing mortgage.
2. Financial Statements: Recent business financial statements, including income statements and balance sheets.
3. Appraisal Report: An updated property appraisal.
4. Business Plan: Details of your business operations and future plans.
5. Tax Returns: Recent personal and business tax returns.

Refinancing might be right for you if:

1. Current interest rates are significantly lower than your existing rate.
2. You need access to cash for business expansion or other investments.
3. Your property has significantly appreciated in value.
4. Your financial situation has improved, allowing you to qualify for better terms.

The refinancing process typically takes 30 to 60 days from application to closing, depending on the lender and the complexity of your financials.

1. Fees and Costs: Upfront costs can be significant, and it may take time to recoup these expenses through lower payments.
2. Interest Rate Fluctuations: If refinancing to a variable rate loan, future rate increases can affect your payments.
3. Extended Loan Term: While extending the loan term can lower monthly payments, it may increase the total interest paid over the life of the loan.
4. Credit Impact: Applying for refinancing can affect your credit score due to the hard inquiry and potential changes in your debt levels.

Yes, as a salaried full-time employee, you can buy a warehouse to rent out. Here’s how: 

• Financial Stability:
  1. Ensure your finances are stable. Lenders will evaluate your ability to manage mortgage payments alongside your salary.
• Secure Financing:
  1. Loan Options: Research commercial real estate loans and compare lenders.
  2. Documentation: Prepare proof of income, employment verification, and credit history.
  3. Down Payment: Typically 20-30% of the purchase price.
• Property Selection:
  1. Location: Choose a high-demand area.
  2. Condition: Assess the warehouse’s condition for any needed repairs or upgrades.
• Rental Market Analysis:
  1. Market Rates: Research local rental rates.
  2. Demand: Ensure a steady stream of potential tenants.
• Legal and Management:
  1. Lease Agreements: Draft a solid lease agreement.
  2. Property Management: Decide between self-management or hiring a property manager.
• Consult Professionals:
  1. Financial Advisor: Assess investment viability and risks.
  2. Real Estate Agent: Find the right warehouse.
  3. Legal Counsel: Cover legal aspects, including purchase and lease agreements.

By following these steps and preparing thoroughly, you can successfully purchase and rent out a warehouse.

For personalised advice and assistance with warehouse loans and refinancing, consider consulting a financial advisor, accountant and experienced agent in commercial real estate.