Financing Turnkey Properties for Restaurants: What You Need to Know

Jun 08, 2024

Understanding Turnkey Properties

Turnkey properties are fully renovated homes or commercial spaces that are ready for immediate use. For restaurant business owners, this can mean a space that already has a functioning kitchen, dining area, and necessary permits. This saves time and effort compared to building or renovating a property from scratch.

Investing in a turnkey property allows you to focus on growing your restaurant business instead of dealing with construction delays and unexpected costs. You can start serving customers sooner and generate revenue faster.

restaurant interior

 A turnkey property can provide several benefits for your restaurant business. First, it allows you to preserve your capital. Instead of spending a large amount upfront, you can spread the cost over time through a loan. This can help you maintain cash flow for other business needs.

Second, financing can offer tax advantages. Interest paid on a commercial mortgage is often tax-deductible, which can reduce your overall tax burden. Consult with a tax professional to understand how this applies to your specific situation.

Lastly, owning the property can increase your business's equity. As you pay down the mortgage, you build equity in the property, which can be a valuable asset for future growth or financing needs.

business meeting

There are several financing options available for turnkey properties. Traditional commercial mortgages are a common choice. These loans typically have fixed interest rates and terms ranging from 5 to 25 years. They require a down payment, usually around 20% of the property's value.

Another option is a Small Business Administration (SBA) loan. The government, which can make them easier to qualify for partially guaranteed SBA loans. They often have lower down payments and longer repayment terms compared to traditional loans.

Additionally, some lenders offer specialized loans for restaurant businesses. These loans may have more flexible terms and conditions tailored to the unique needs of a restaurant owner.

loan application

Loan Application

Before applying for a loan, it's important to prepare all necessary documents. Lenders will typically require financial statements, tax returns, and a business plan. The business plan should detail your restaurant's concept, target market, and financial projections.

Having a strong credit score can also improve your chances of approval. Pay down existing debts and avoid taking on new ones before applying. This shows lenders that you are a responsible borrower.

It's also helpful to have a clear understanding of your budget. Know how much you can afford to borrow and repay each month. This will help you choose the right financing option and avoid overextending your business.

Working with a Commercial Mortgage Broker

A commercial mortgage broker can be a valuable partner in the financing process. They can help you find the best loan options and guide you through the application process. Brokers have access to a wide range of lenders and can often secure better terms than you might find on your own.

At our brokerage, we specialize in helping restaurant owners finance turnkey properties. We understand the unique challenges and opportunities in the restaurant industry. Our team is here to support you every step of the way, from finding the right property to securing the best financing.

Contact us today to learn more about how we can help you finance your turnkey restaurant property. Starting your restaurant business in a fully equipped space can set you up for success from day one.

restaurant owner

Understanding Turnkey Properties

Turnkey properties are ready-to-use buildings that require minimal effort to start operations. For restaurant owners, this means you can quickly set up and begin serving customers. These properties often come with necessary equipment and fixtures.

Financing turnkey properties can differ from other types of commercial real estate. It is important to understand these differences before making a decision.

restaurant interior

Turnkey properties offer several advantages. First, they save time. You can start your business much faster compared to building from scratch. Second, they often reduce initial costs. The property already has the necessary infrastructure.

Additionally, turnkey properties can make it easier to secure financing. Lenders see these properties as lower risk because they are ready for immediate use.

Types of Financing Available

There are different financing options available for turnkey properties. These include traditional loans, SBA loans, and private financing. Each option has its own benefits and requirements.

Traditional loans are common. They usually offer competitive interest rates. However, they may require a strong credit history and significant down payment.

financing options

for restaurant owners with less upfront capital.

To qualify for an SBA loan, you need to meet certain criteria. This includes having a solid business plan and good credit score.

Private Financing

Private financing is another option. This can come from investors or private lenders. It is often more flexible but may come with higher interest rates.

Private financing can be a good choice if you need funds quickly or do not qualify for traditional loans.

private lender

business plans, and credit reports.

Be ready to explain why the turnkey property is a good investment. Highlight its benefits and how it will help your restaurant succeed.

Working with a Broker

A commercial mortgage broker can help you navigate the financing process. They have experience and can offer valuable advice. They can also connect you with lenders who specialize in turnkey properties.

Working with a broker can save you time and help you secure better terms.


Financing a turnkey property for your restaurant can be a smart move. It offers many benefits and can help you start your business quickly. Understanding your financing options and preparing your application are crucial steps.

Consider working with a commercial mortgage broker to make the process smoother. With the right approach, you can secure the funding you need and open your restaurant with confidence.