Master Commercial Real Estate Mortgage Lenders' Secret Tactics
Types of Commercial Real Estate Loans
There are several types of commercial real estate loans, each suited to different needs and property types. The most common include:
- Traditional Commercial Mortgages: These are standard loans with fixed or variable interest rates, typically used for established properties.
- SBA Loans: Backed by the Small Business Administration, these loans offer favorable terms but require more documentation.
- Bridge Loans: Short-term loans used to "bridge" the gap until long-term financing can be secured.
- Construction Loans: Designed for financing new construction projects, these loans often convert to permanent mortgages once the project is completed.
Each loan type has its benefits and drawbacks, and the choice depends on your specific needs and financial situation3.