Secure Your Dream Investment Commercial Property Financing Secrets
Types of Commercial Property Financing
There are several types of commercial property loans, each catering to different needs and investment strategies:
- Traditional Commercial Mortgages: These are similar to residential mortgages but typically require a larger down payment and have shorter terms. Interest rates can be fixed or variable, depending on the lender's terms.
- SBA Loans: The U.S. Small Business Administration offers loans that can cover up to 90% of the property cost, making them an attractive option for small business owners looking to invest in commercial real estate1.
- Bridge Loans: Short-term loans that provide quick capital to bridge the gap between the purchase of a new property and the sale of an existing one. They are ideal for investors who need to act quickly in competitive markets.
- Hard Money Loans: These loans are secured by the property itself and often come with higher interest rates. They are typically used by investors who need fast access to capital and are willing to pay a premium for it.