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Your Trusted Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Your Trusted Katy / Fulshear & Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Looking to invest, buy, sell or lease? We can help.

View Properties

Looking to invest, buy, sell or lease? We can help.

View Properties

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eXp Commercial - Viking Enterprise Team's real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the Katy- Houston area. Our knowledge, experience, and reputation sets us apart from many firms.

A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

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🧱 Construction Loan Requirements for Commercial Projects 📊

🏗️ How to Qualify for a Construction Loan in 2025 🏡

Commercial Real Estate

August 06, 2025•3 min read

🏗️ How to Qualify for a Construction Loan in 2025 🏡

🧱 Construction Loan Requirements for Commercial Projects 📊

🧱 Construction Loans: What You Need to Qualify

Whether you’re building a new office, retail center, or multifamily property, construction loans can be a powerful tool to bring your vision to life. But qualifying isn’t as simple as applying for a standard mortgage—especially in today’s lending environment.

Here’s what commercial real estate investors, builders, and business owners need to know about qualifying for a construction loan in 2025.

🧰 What Is a Construction Loan?

A construction loan is a short-term loan used to finance the cost of building or renovating a commercial property. Once the project is complete, the loan is typically refinanced into a permanent loan or paid off through the sale of the property.

✅ Key Construction Loan Requirements

1. Strong Credit Profile
Lenders generally look for a credit score of 680+, with excellent credit needed for larger commercial projects. Your credit history should show a responsible use of debt.

2. Detailed Project Plans
You’ll need to provide:

· Architectural plans

· Contractor agreements

· Cost breakdowns

· Timeline for completion
Without these, your loan application won’t move forward.

3. Down Payment or Equity Injection
Most lenders require 20%–35% down based on total project costs (known as Loan-to-Cost or LTC). For example, if your build costs $2M, you may need $500K–$700K in equity.

4. Construction Budget + Soft Costs
The loan amount must match your actual build costs, including soft costs like permits, design fees, and contingency reserves.

5. Borrower Experience
If you're an investor or developer, lenders will ask about your track record. Have you completed similar projects before? New investors may need to partner with an experienced builder or hire a construction manager.

6. Exit Strategy
What’s your plan after construction? Lenders want to know how they’ll be paid back—via sale, long-term refinance, or owner-occupancy. A clear exit strategy improves your approval odds.

🧮 Commercial Construction Loans vs. Residential

While residential construction loans may offer options like one-time close loans, commercial construction financing is more complex. It often includes interest-only payments during construction and requires monthly draws based on work completed.

🔍 What Lenders Look For

· Debt Service Coverage Ratio (DSCR) projections

· Feasibility studies or appraisals

· Zoning and permit approvals

· Personal and business financial statements

· Environmental and soil reports (if land involved)

💡 Pro Tip: Get Prequalified Early

Before hiring contractors or purchasing land, talk to a commercial mortgage broker. Getting prequalified for a construction loan will help you budget accurately and spot potential deal killers early.

Final Thoughts

Construction loans are a great way to build value, expand your business, or create long-term income. But qualification takes preparation. Whether you're building a medical office in Katy, TX or a flex warehouse in Houston, working with a team that understands construction lending is key.

Need help qualifying for a construction loan?
🏗️ Contact our team to get prequalified today.

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Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

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eXp Commercial - Viking Enterprise team real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the greater Katy & Houston MSA area. Our knowledge, experience, and reputation sets us apart from many firms.