Commercial Real Estate Loans Explained
Types of Commercial Real Estate Loans Explained Investing in commercial real estate can be a lucrative endeavor, but it often requires significant capital. Most investors and business owners turn to commercial real estate loans to finance their property purchases. Understanding the different types of commercial real estate loans can help you choose the best option for your investment needs. Below, we explore the most common types of commercial real estate loans and how they work. 1. Traditional Commercial Mortgage Loans A traditional commercial mortgage loan & rental property financing is similar to a residential mortgage but is designed for business properties rather than homes. These loans are typically offered by banks, credit unions, and other financial institutions. Features: Loan terms range from 5 to 30 years. Fixed or variable interest rates. Requires a down payment of 20-30%. Suitable for office buildings, retail spaces, industrial properties, and multi-famil...