What Is a Commercial Real Estate Loan?

To understand what a commercial real estate loan is, let’s first discuss what commercial real estate is. Commercial real estate includes properties like:

  • Retail malls
  • Shopping centers
  • Office buildings
  • Hotels
  • Apartments
  • Other large-scale properties

Commercial real estate loans are used strictly for investing in commercial property, rather than residential purposes. However, commercial loans can be used on residential 1-4 unit properties that are owned by an LLC.

Like with any type of mortgage loan, banks and lenders are responsible for providing commercial real estate loans. Commercial real estate loans are given to business entities, such as corporations, LLCs, investors, and developers, whereas residential real estate loans are given to individual borrowers.

It is important to note that Griffin Funding only offers commercial loans to LLCs on 1-4 unit investment properties. 

What Types of Property Can You Invest in with a Commercial Real Estate Loan?

There are an assortment of different properties that you can invest in with commercial real estate loans. Some of the most common types of properties commercial real estate investment loans are used for include:

  • Single family homes
  • 2-4 unit properties
  • Condos
  • Townhomes
  • Multi-use properties
  • Multi-family properties with 5-20 unites
  • Apartment complexes
  • Office buildings
  • Retail spaces
  • Warehouses

Fortunately for investors, there is no cap on the number of properties or loan amounts they can have in their portfolio, so investors can expand their portfolio with multiple properties at one time. 

Griffin Funding only offers commercial loans to LLCs on 1-4 unit investment properties. 

Benefits of a Commercial Real Estate Loan

There are many benefits of using commercial real estate investment loans for property investments. Investing in commercial real estate allows you to grow your real estate investment portfolio and make more money with a single investment. Some of the most notable benefits of commercial real estate loans include:

  • No personal income requirement (in some cases)
  • No debt requirements (in some cases)
  • No tax returns required (in some cases)
  • Variable and fixed rates available
  • Close the loan in the name of your LLC (you still must personally guarantee the loan)

These are all valuable benefits that make it easier for more borrowers to qualify for commercial real estate loans.

How Do You Get a Loan to Invest in Real Estate?

In order to get a loan so that you can invest in real estate, there are a couple of lender requirements that you must meet. Commercial real estate loan requirements are typically more strict as there is more money on the line. Each lender sets their own requirements, so when you’re shopping for a loan, know that you have options. For instance, Griffin Funding strives to make commercial property investment as accessible as possible to borrowers. 

Our lending process is streamlined to make loan approval efficient and stress-free for our borrowers. Throughout our lending process, you will have access to knowledgeable lending specialists so that you can proceed with confidence.

With Griffin Funding, you can get assistance with a variety of investment property loans so that you can get the funding you need to buy your property. In addition to commercial real estate loans, we also provide:

  • VA loans
  • Jumbo loans
  • Non-QM loans
  • And more

Contact us to discuss your options with one of our loan specialists today.

How Much Do You Need to Put Down for a Commercial Loan?

There is no specific amount of money that you need to put down for a commercial loan. The down payment for a commercial loan depends on several factors, such as what your lender requires based on your individual circumstances and the cost of the property you’re investing in. 

However, it’s important to note that the more money you put down in your down payment, the less you’ll have to pay off or accrue interest on, so putting down more in the beginning will ultimately save you more in the long run.

What Are Commercial Real Estate Loan Rates?

Commercial real estate loan rates are not set in stone or standardized across lenders. In fact, commercial real estate loan rates can vary significantly depending on lender requirements, the current state of the economy, and the borrower’s financial health. 

Interest rates fluctuate regularly, so one of the best ways to secure a low interest rate is to be in good financial standing when you apply. You can do this by improving your credit score, increasing your net worth, expanding your portfolio, increasing your access to liquidity, and providing solid evidence of an income producing property

What Type of Commercial Loan does Griffin Funding Offer?

  • Commercial DSCR loans on 1-4 unit properties.

Griffin Funding offers commercial loans on 1-4 unit investment properties used for business purposes. DSCR commercial business purpose loans are best used for purchasing cash flow producing investment properties and doing a cashout refinance on existing investment properties and using the cash for business purposes only (since these loans are commercial you cannot use the funds for personal use). We lend to LLCs and other business entities and do not lend commercial loans to natural persons. Even though the loans are in the name of your business we still require a personal guarantee. Commercial DSCR loans cannot be used for primary residences or second homes. Use of funds on cashout refinance transactions must be used for business-purposes.

Why Choose Griffin Funding

If you want access to the best commercial real estate loans with low-interest rates, you might want to consider working with Griffin Funding as your lender. At Griffin Funding, we work to find personalized loan solutions that are curated to each borrower’s financial situation so they can maximize the benefits of their mortgage loan. When you use Griffin Funding as your lender, you’ll also get access to more flexible requirements so that you can qualify for the loan that you need without all the barriers and long wait times.

In addition to the technical side of lending, we also pride ourselves on providing white-glove, five-star customer service to each and every borrower we help. We have an experienced, knowledgeable team that is always more than happy to answer any questions you may have throughout your loan process and walk you through each step to make it as easy as possible to secure a loan in a timely manner. 

Learn more about Griffin Funding and how you benefit from choosing us as your commercial real estate lender.

Apply for a Commercial Real Estate Loan Today

If you’ve found a commercial property you’re interested in investing in, the first step is securing a loan. You can visit us at one of our locations, call us at 855-651-2871, or apply online to get started. We make it easy to grow your real estate investments with favorable commercial real estate loans and quick turnaround times. Let Griffin Funding help you grow your portfolio.