Commercial Real Estate Lenders Reveal Insider Funding Secrets

Types of Commercial Real Estate Loans

There are several types of commercial real estate loans available, each designed to meet specific investment goals. The most common types include:

• Permanent Loans: These are long-term loans used for purchasing or refinancing commercial properties. They typically come with fixed interest rates and are amortized over a period of 5 to 30 years.
• Bridge Loans: Short-term financing options that provide quick capital for property acquisition or renovation. They are ideal for investors looking to capitalize on time-sensitive opportunities.
• Construction Loans: These loans are designed for financing the construction of new commercial properties. They usually have higher interest rates and shorter terms, reflecting the increased risk associated with construction projects.
• Mezzanine Financing: A hybrid of debt and equity financing, mezzanine loans offer higher leverage and are typically used to fill the gap between senior debt and equity.