A commercial mortgage is financing for your business property needs.
Commercial mortgage lenders will provide financing to qualified businesses for the acquisition or development of the commercial real estate. Whether your business is purchasing a gas station, office building, or even a golf course, a commercial mortgage is for you. Make sure you have quality business credit scores in place before approaching a potential lender.
| Capital Type | Capital Type Definition |
|---|---|
| Acquisition and Development | Excellent for raw land development including streets. |
| Adjustable Commercial Mortgage | Interest can go up and down based on the prime rate. |
| Construction Mini-Perm | Income property construction with 3 to 5-year loan. |
| Construction Loan with Takeout Package | A takeout loan is arranged prior to construction. |
| Fixed-Rate Commercial Mortgage | The interest rate will stay steady, and will not move during the life of the loan. |
| Hard Money Loan | Private lenders provide loans based mainly on the hard asset value like a commercial building or land. |
| Interim Loan | A bridge or project-type loan which is 2 years or less. |
| Joint Venture | A business partner who assists with the funding for real estate development. |
| Participating Mortgage | The lender receives a kicker if the gross income exceeds a certain amount. |
| Real Estate Sale and Leaseback | Lender purchases land and leases back to borrower (generally developer) for a fixed rent plus other considerations. Mortgages are issued on leasehold at market rates. Usually, produces more dollars than a mortgage. |
| Real Estate Purchase Loan | Lending for the purchase of the commercial real estate. |
| Second Mortgage (Commercial) | Loan secured by equity behind that of the first lien. |
| Wraparound | The lender makes a second commercial mortgage and assumes the first mortgage. |
