Investing in commercial property is a great way to stabilize your finances with real assets that can be improved, resold, or worked for income. Like any other investment, commercial real estate does have its risks. The advantage is that those risks can be well controlled with good local research and careful consideration of all your purchase options. It also helps if you know how to get lower interest rates when you finance, because the lower your overhead for financing, the higher your returns on the investment tend to be. Here are a few ways to help yourself to the best rate possible.

1. Increase Your Down Payment

Increasing the size of a down payment is a great way to make the most out of the loan rate. While there are minimum down payment requirements set by lenders to show what they absolutely need to control their risks, there is no requirement you stick to that minimum. Often, an increased down payment can help someone with fair to good credit access the rates available to people or businesses with a much higher score. If your lender requires 30% down for commercial real estate loans, consider putting up 40% or even 50%.

2. Improve Your Credit Scores

If you run your real estate investments through an LLC or corporation, you’ll probably want to check the business score for that company as well as your personal score and work on both. If you’re investing personally, then you’ll only have the one in a lot of cases. Either way, using short-term credit, including credit cards, and then paying them down quickly is the best way to bring that score up. Make small purchases or take out small loans you don’t actually need and then pay them back almost immediately.

3. Consider Shorter Loan Terms

Another way to lower interest on your loans is by requesting a shorter term than the lender’s maximum. If the lender offers commercial real estate mortgage loans for up to 20 years, consider a 10 year option. Often the interest savings almost neutralize the increased principal costs associated with the shorter term, so the actual increase in your payment month to month winds up being workable. If you are having trouble using the strategy on your current prospects, consider lowering your intended purchase price a little to make a 10 year loan work, then hunting for the commercial properties that match. It’s a great way to streamline your overhead costs, especially if you have an exit plan within the decade anyway.