CRE Loan Types
Types of Commercial Real Estate Loans
Conventional Mortgage Loans
What is a Conventional Commercial loan?
Conventional commercial loans are similar to what you’d get when purchasing a single-family home, but often with shorter terms. The Majority of commercial real estate investors purchase property using traditional, fixed-rate mortgages.
What is a commercial bridge loan?
A commercial bridge loan is a source of short-term capital that is often used for debt service until an owner improves, refinances, leases, sells or otherwise completes a property transaction. IE: Investors will sometimes use a bridge loan when their balloon payment in their mortgage is coming due. In some cases it is used to pay the balloon payment prior to refinancing
Hard Money Loans
What is a hard money loan?
Hard money loans are an alternative form of capital, provided outside of traditional lending channels, either by individuals or companies. Unlike traditional or bridge loans, hard money loans are not subject to the same regulations that apply to financial institutions. Therefore the loan can be used for a wider variety of purposes.
What is a Mezzanine Loan?
Mezzanine financing is often used to fill the “middle” of a capital stack. It can be structured in a number of ways, with both debt and equity.