Business funding
Commercial Real Estate Loans
Financing to buy, refinance, or pull equity out of commercial property.
General qualification guideline; lender and program requirements may vary.
Best forBuying, refinancing, or pulling equity out of office, retail, industrial, or mixed-use property.
Overview
Property financing built around the building and its income
Commercial real estate loans finance office, retail, industrial, warehouse, multifamily (five or more units), mixed-use, and special-purpose property. They can fund a purchase, replace existing debt, or pull out equity for another investment or for the business. Owner-occupied loans lean on the operating business’s cash flow; investment loans lean on the property’s rents and net operating income. Banks, credit unions, SBA programs, and private lenders all lend here, and the right fit depends on the property, the borrower, and the timeline.
Benefits
- —Longer terms and amortization than most business loans
- —Can finance a purchase, a refinance, or a cash-out
- —Works for owner-occupied and investment property
- —Fixed and variable rate structures are available
- —Builds equity in an appreciating asset
Good for
Situations where it tends to fit
Terms, leverage, and eligible property types depend on the lender and program.
Documentation
What you will typically need
Documentation covers the property, its income, and the borrower:
- —Property details: address, type, and the purchase contract or current mortgage statement
- —Rent roll and operating statements for investment property
- —Business and personal tax returns, typically two to three years
- —Personal financial statement
- —Entity documents for the borrowing LLC or corporation
- —Government-issued ID
Qualification factors
What generally matters
- —Debt service coverage from the property or the business
- —Loan-to-value and down payment
- —Property type, condition, and location
- —Personal and business credit profile
- —Experience owning or operating similar property
- —Liquidity and reserves after closing
Common questions
Commercial real estate loans, answered plainly
How much do I need to put down?
It varies by lender, program, and property type. Conventional commercial loans commonly expect a larger down payment than a home mortgage, while SBA programs can lower it for owner-occupied property. We will tell you what is realistic for your deal.
What is the difference between owner-occupied and investment property?
Owner-occupied means your business uses most of the space, so underwriting leans on the business's cash flow. Investment property is leased to others, so underwriting leans on the rents and net operating income. Some programs only do one or the other.
How long does it take to close?
Longer than a business line or term loan, because an appraisal, environmental review, and title work are usually required. If you are on a tight deadline, a bridge loan can carry the purchase until permanent financing is in place.
Looking at a commercial property?
Send us the property, the price or current debt, and what you want the financing to do. We will tell you which programs fit and what they look like.
The guidelines on this page are general guidelines only — not guaranteed lender approval requirements. Requirements vary by lender and program. TK Capital Solutions is not a lender; all funding is subject to lender underwriting and approval.