Commercial Real Estate Loans for Investors
Investing in real estate can be a highly lucrative field to get into—that is, as long as you have the means to do it correctly. But in order to invest in real estate, you need to get a loan. Real estate investors can choose between two different types of loans: commercial real estate loans and residential real estate loans. You can secure both types of loans from Griffin Funding.
When investing in commercial real estate, you will need a business-purpose commercial loan. Griffin Funding strives to provide competitive rates and flexible underwriting options that help more borrowers start investing or grow their portfolio. Learn more about commercial real estate loan requirements and why you should consider Griffin Funding as your lender.
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What Is a Commercial Real Estate Loan?
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.
Like 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.
The 2023 United States banking crisis has led to many regional banks no longer offering loans on commercial real estate. Historically, regional banks have been known for providing real estate investors with commercial real estate loans, often the primary funding source for these investors, leaving them with little to no options in today’s market.
Think you qualify for a loan? Contact us today to find out!
Contact UsWhat 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 Residences
- 2-4 Unit Properties
- Condos
- Townhomes
- Multi Use
- Student Housing
- Multi Use
- Multifamily (5+ Units)
- Apartments
- Office Buildings
- Retail Malls
- Shopping Centers
- Warehouses
- Other large-scale properties
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.
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 most cases)
- No debt requirements (in most cases)
- No tax returns required (in most cases)
- Variable and fixed rates available
- Single Family, 2-4 Units, Multi-Family 5-10 Units
- No cap to the number of properties or loan amount in the portfolio
- 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 Loans does Griffin Funding Offer?
- Commercial DSCR Loans on 1-4 Unit Properties.
- Small Balance Multifamily DSCR Loans on 5-10 Unit Properties
Griffin Funding offers commercial loans on 1-10 unit investment properties 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 utilizing 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 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.
Contact us if you were turned down by a regional, mid-size, or large bank for a commercial real estate loan contact us. We offer a bank alternative funding source for multifamily real estate loans.
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 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 to qualify for the loan you need without all the barriers and long wait times.
The commercial real estate loans that Griffin Funding specializes in are DSCR 1-4 unit investment properties, DSCR Multifamily Structures, and DSCR Multi-dwelling Units (MDU). Loans on Multifamily and MDU are loaned on 5-10 units.
In addition to the technical side of lending, we also pride ourselves on providing white-glove, five-star customer service to 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.
Think you qualify for a loan? Contact us today to find out!
See if you QualifyApply for a Commercial Real Estate Loan Today
If you’ve found a 1-10 unit commercial investment 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 growing your real estate investments easy with favorable commercial real estate loans and quick turnaround times. Let Griffin Funding help you grow your portfolio.