Commercial real estate financing is not one product. A buyer repositioning a building, a developer starting construction and a long term owner with stable income each need something different. Understanding the main loan types helps owners and buyers ask the right questions before talking to lenders.
Key takeaways
- Bridge loans are short term and flexible.
- Construction loans fund building in stages.
- Permanent loans suit stable, income producing properties.
- Preparation and clean financials improve terms.
The three main loan types
| Loan type | Typical use | Character |
|---|---|---|
| Bridge | Acquisition or repositioning | Short term, flexible |
| Construction | New building or major renovation | Funded in stages |
| Permanent | Stable income property | Longer term, lower flexibility |
What lenders review
- Property income and expenses
- Rent roll and leases
- Borrower experience
- Building condition
- Business plan
- Equity in the deal
Rates and the bigger picture
Loan pricing moves with the broader rate environment, influenced by the Federal Reserve monetary policy. Some owner-occupied businesses also look at government backed programs such as SBA 504 loans.
The best loan is the one that matches the business plan, not just the lowest rate.
How Mendy Realty helps
We provide third-party capital introductions through our commercial mortgage and Mendy Capital services. Mendy Realty Inc. does not originate loans and is not an investment adviser.
Frequently asked questions
Which loan is right for me?
It depends on your property and plans. A financing review is a good first step.
How long does approval take?
It varies by lender and complexity.
Do you lend money?
No. We introduce clients to third-party capital sources.
Helpful public resources
Federal Reserve monetary policy | SBA 504 loans | ACRIS property records | NYC Department of Finance property
Related reading
Mendy Realty Inc. is a licensed New York real estate brokerage and Court Approved Fiduciary Broker serving Brooklyn, Manhattan and New York City with residential, commercial, estate and hotel sales. Call 718-751-0738.
This article is general information about real estate. This is not legal or tax advice. Consult with your attorney, accountant and tax advisor. Market conditions change; verify current details before making decisions. Equal Housing Opportunity.
