No Money Down - You Can Still Finance a Commercial Property

So you want to buy a commercial property with no or little money down? This might seems to be an impossible task however it is the other way around. With careful property selection and a bit of creative thinking, you can easily own a property that you might have an eye on.

Commercial property, alternatively called as income or investment property can help an individual to earn profit from rental income or capital gain. Commercial property can be in the form of warehouse, undeveloped land, office building, apartment building or rental residential home. Some of the financing options that can help you to make a purchase with almost no down payments are:

Bank
The traditional way of securing finances, banks can finance your purchase up to certain limit. For example, they may agree to finance the property up to 90% of the total price. An individual can get a second loan to pay for the difference. If you have good credit score and can pay high rate of interest, this might be the best option for you.

The borrower would have to pay the monthly installments depending upon the rate of interest and the principle amount. Another option is the Note. This is an agreement between the borrower and the bank in which the individual has agreed to pay back the loan amount in specified amount of time. This financing option can be used to make easy down payment.

Owners, investors and partners
A motivated seller might be willing to finance your purchase. In this is your situation, you can avoid various financing hurdles such as closing costs, loan applications and banks. You would also be able to negotiate on the terms and conditions of the interest rates to secure a favorable deal. Moreover this option helps a person to make a purchase without putting any money down.

Consider making an investment with partner or partners. This process might require more paperwork, closing costs and less amount of money as the profit but it can benefit you, if you do not have money to make the down payment.

A large number of investors are also present who might be looking for opportunities to finance a deal. Investors are usually attracted to commercial property investments if they offer them good return on investment. If you want to meet potential investors, consider advertising in the newspaper or meet them through investment clubs.

Turn key properties
The turn key investment helps a person to buy rental property which would be managed by turn-key provider. This is sometimes known as passive income which helps a person to earn monthly income on his property.

Master lease agreement
An old form of financing, master lease can also be described as the lease to buy option. The master lease agreement enables a person to buy the property with little down payment. In this option the buyer has the right to own, operate and maintain the property.

These were some of the option to avail financing if you have no money down. So the next time you want to invest in a property but do not have enough funds choose one of the above option and make a purchase.

The Factors Where Planning Permission Could Be Required Prior to Building a Conservatory

The construction of a conservatory is a very popular way of adding extra, flexible space to a home, in the form of a beautiful, relaxing, light and airy space, which can be used as an extra living or dining area for example. Generally it is not necessary to obtain planning permission before beginning work on building a conservatory, as it is a 'permitted development', but there are certain situations where it may be required.

Planning rules refer to the 'original house', as it was first built, or as it was in 1948. Recent legislation means that larger single storey rear extensions or conservatories are permitted developments until 30 May 2016. This means the size limit for an extension or conservatory has increased from four to eight metres from the original house for detached houses and from three to six metres from the original house for attached houses. For this larger size of conservatory it would be necessary to notify the local planning authority. They may ask for additional information and can notify the neighbours of the intended construction, who could then have the right to lodge an objection.

There are other situations where planning permission might be needed for a conservatory. It is worth considering the size of the proposed conservatory, as if it were to cover more than half the land around the original house, or to project beyond the front elevation of the house, or beyond the side elevation where this is adjacent to a road, then planning permission would be required. A conservatory to the side of the house should not be wider than half the total width of the house.

There are also limits on the height of a conservatory: a conservatory to the rear of the house shouldn't exceed the maximum single storey height of 4 metres and its eaves and roof ridge must not be taller than the highest point of the house. If the conservatory were to be double height, or were to exceed the rear elevation by more than three metres, or be within seven metres of a boundary to the rear of the house, then planning permission would be needed.

If you live in an area of 'Designated Land', such as an area of Outstanding Natural Beauty, or a national park, a World Heritage site, or a conservation area, then a conservatory should not project from the rear wall of the original house by more than three metres for an attached house and by more than four metres for a detached house. In these areas a conservatory is only permitted to be single storey in height and cannot be located on the side of the house. Some general points to consider are that the conservatory roof style should not be radically different from that of the house and the conservatory design should not have a balcony, veranda or raised platform, or else planning permission would be needed.

The Dangers of Falling Foul of the Planning System

Arguably the most important part of the new build process is planning permission. The seriousness of failure to achieve and comply with planning permission cannot be over emphasised. This week's news of a family being forced to have their home demolished serves as a stark reminder of the power wielded by the planning authorities. The Murray family contracted builders to construct their dream home in Glasgow over two years ago.

But the finished house did not comply with the terms of the planning permission granted, and the local council have ordered that the house be demolished. Given that they paid £164,000 for the building plot and the construction cost £300,000, this is devastating news for the family. The council have stated that the house "differed considerably" from the approved plans (six feet higher, four feet wider and nine feet longer, with an unapproved balcony).

Planning permission is granted subject to certain conditions. A breach of these conditions is not illegal. However, it will usually result in the council either allowing the owner the opportunity to seek retrospective permission, or the council may issue an enforcement notice. Failure to comply with an enforcement notice is a criminal offence.

An enforcement notice can demand that you revert things to their original state, for example if you were to replace wood framed windows with UPVC windows without permission, this might be deemed unacceptable and you might be ordered to put wooden frames back in. In the worst case scenario, an enforcement notice could require the demolition of a new extension or even an entire building, as in the case of the Murrays. To make matters worse, you can also be issued with a fine - up to £20,000 in the magistrates court or unlimited in the crown court. The Murray family have been ordered to pay the demolition costs of £11,500. You have the right to appeal against an enforcement notice, but if you are unsuccessful you must comply with the notice.

Some would say it is a crime to demand that a building be demolished, and it is undeniably wasteful of resources, but planners would argue that it needs to be made absolutely clear that people are not permitted to deviate from agreed specifications.

Plans should always be discussed with the local planning authority and building control department before any work begins. Andrew Murray trusted his builder and architect to adhere to the terms of the planning permission granted, but they failed to do so and he is paying the price. The case demonstrates the importance of owner involvement in overseeing building projects. Alternatively, employ an architect or project manager and formally delegate responsibility through a contract.

Whatever the moral rights and wrongs of the situation, the planning authorities have the law on their side, and they have shown they are not afraid to use it.