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There are 5 primary types of commercial real estate loans that you can tap into: conventional loans, bridge loans, SBA loans, hard money loans, and owner financing.

  1. Conventional: Most banks and financial institutions offer conventional loans. It typically consists of a fixed-rate mortgage used by investor to buy an existing, occupied property.
  2. Bridge: A bridge loan is short-term source of capital made available for investors looking to service a debt until they can complete a flip and refinance the property or to pay out a balloon payment, for example.
  3. Hard Money: Hard money loans are an alternative form of capital provided by private individuals or companies. These short-term loans are secured by using commercial real estate as collateral.
  4. SBA: SBA loans can be broken down in two: SBA 7(a) and SBA 504. These loans are backed by the Small Business Administration (SBA), thereby their names. The SBA 7(a) differs from SBA 504 in that it offers more flexibility with how you can use your funds. Under a SBA 7(a), borrower can secure up to $5 million, whereas the SBA 504 program has no maximum loan amount.
  5. Owner Financing: owner-financed deals are done outside of financial institutions, where the seller acts as the lender in the purchase of their property.

Are you interested in a commercial loan? Call us today and we will be happy to discuss in more detail how to set you up with an investment property loan that will fit your growth needs

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