Commercial Property Loans
Commercial property loans are a form of financing used for buildings considered to be commercial properties. This does not take into account vacant land or single family residential projects. Multi-unit apartment complexes are usually considered to be commercial properties if they are five units or larger.
Other less common forms or commercial property loans can be made for mixed use projects. This would include storefronts on ground floor levels with residential living areas on upper floors. Restaurants and other retail venues tied into residential spaces are all considered mixed use and fall under commercial property loans.
Like traditional real estate funding options, commercial property loans entail an appraisal of the property as well as the land accompanying the project. Appraisals are intended to give a market driven value to a project, keeping the lender from loaning more money on a building or project than the market says it’s worth. Credit is also a factor in commercial property loans, as is previous experience and potential profitability of the project.