“Never loan money to the business when you do not understand the nature of the business,” said Jim Devine, founder, chairman and CEO of Hipereon, Inc. Devine was lead faculty at the CUES Advanced School of economic Lending: Real estate Lending , held September in Dallas, where he walked students through different types of real estate properties.
Credit unions considering these kinds of loans need to comprehend the soundness of the various kinds of properties as a business and, potentially, because the collateral for any commercial real estate loan.
Commercial Office Properties
Advantages: Commercial offices typically have a diverse makeup to their income streams. They tend to possess several different tenants, each with a unique leasing arrangement with the property owner.
Plus, the property owner can generate revenue from other sources like parking.