Commercial Real Estate Loans

Multifamily (10 or more units), retail, office, industrial, and mixed-use properties are all eligible. Qualification depends on the property's income performance and the lender best matched to the asset class. Not sure if your property qualifies -- reach out and we'll let you know.

Residential DSCR loans qualify primarily on rent income and credit. Commercial goes deeper -- lenders evaluate the full property financials, the borrower's experience, the business plan, and the exit strategy. The process is more involved, timelines run 60-90 days, and the broker-lender relationship plays a much larger role in the outcome.

Most commercial lenders evaluate deals through the 5 C's -- Character, Capacity, Capital, Collateral, and Conditions. In practice that means property DSCR, borrower net worth and liquidity, LTV relative to asset type, and the borrower's track record with similar projects. A well-packaged file that clearly communicates all of these factors is often the difference between an approval and a pass.

Commercial loans are full-doc. Expect 2-3 years of personal and business tax returns, P&L statements, balance sheets, bank statements, a personal financial statement, and a borrower resume. Purchases require a purchase agreement; income properties require a current rent roll; construction deals add plans, budget, and permit documentation. The more complete your file upfront, the smoother the process.

Most lenders look for a minimum DSCR of 1.20x-1.25x and LTV in the 65-75% range depending on property type and deal strength. These are general benchmarks -- every transaction is evaluated individually, and stronger deals with experienced borrowers can sometimes achieve better terms.

Yes. If you occupy more than 50% of your commercial property, SBA 7(a) and 504 loans are typically the better fit and often offer more favorable terms for that use case. Reach out to discuss which structure makes sense for your situation.