Investment Property Financing

A commercial property, is a kind of real estate that is used only for business purposes. Commercial real estate loans allow businesses purchase or renovate property and finance this through a loan. Another term for this is commercial mortgages, which basically means use of funds to finance commercial real estate for mixed-use buildings, retail centers, and office buildings.

Investment in Commercial real estate (CRE) offers numerous advantages over residential investments, and obviously the best reason to invest is the earning potential. Commercial properties are a smart way to generate a steady passive income stream. The value of a commercial property can be affected more by economic growth and production which have a direct impact on rents, demand and construction. This basically means the price of a small commercial property in most cases might be higher than a residential property.

Benefits Of Investment In Commercial Real Estate Include:

  • Higher Earning Potential
  • Professional Tenants
  • Longer Lease Terms
  • Triple Net Leases

There are different loan options available to you when you are looking to finance commercial real estate along with specific criteria that must be met. Online independent lenders, large national banks, investor-only lenders, insurance companies, pension funds, private investors and the U.S. Small Business Administration's 504 Loan program, provide funding for commercial real estate investments. Understanding and choosing the right kind of loan is critical because it can impact the bottom line.

Types Of Loans Available For Commercial Property Investment

A complete list is provided on the left side of this page, broadly commercial real estate loans fall into five primary types.

  • SBA 7(a) loans
  • CDC/SBA 504 loans
  • Traditional commercial mortgages
  • Bridge loans
  • Hard money loans.

Interest Rates

Interest rates on commercial real estate loans are generally on the higher side and fluctuate regularly. Typically they range from 5% to 15% on commercial mortgages.

Commercial Loan Terms

Commercial real estate loan terms typically range from 5 to 20 years. Having said that, SBA 7(a) loans have a maximum repayment term of 25 years for commercial real estate, CDC/504 loans have a maximum term of 20 years.

Down Payment

This really depends on the type of loan you decide to go for, down payments on commercial properties can range from 10% to 50% and even more.

From multifamily to office to industrial, our team of experts can help. We are just a call away, call us at o: 305.396.3900 or click the button below to contact online.

Free Consultation Request
I believed my only choice was to sell off the mixed-use property I inherited at a loss since it required immediate rehabilitation. My fix-and-flip loans from Fast Commercial Capital saved me. In addition to being quick, the fundraising process was simple. My understanding of what I was getting into was fully assured by the team's thorough explanations of all the words. The house needed some work, but I was able to repair it and sell it for a healthy profit. They are really prompt and effective, living up to their reputation!
Ethan Jackson a month ago
Thank you so much for help, Don and Fast Commercial Capital. You guys were awesome and did exactly what you said you would do. Thanks again!
Theodore Leighton a month ago
As a small business owner looking to expand, I hit a roadblock with traditional lenders. That's when I stumbled upon Fast Commercial Capital. I needed quick access to working capital for inventory and marketing. Not only did they process my application on process my application on received the funds in less than 72 hours. The team was incredibly responsive and simplified a process that usually gives me a headache. Can't recommend them enough!
Liam Garcia a month ago
Fast Commercial Capital was a lifesaver for my small business. Don and his team are fantastic. Thanks Team!
Harper Wright a month ago