Investment Property & Commercial Property

INVESTMENT PROPERTY

Some lenders specialize in non-owner-occupied property and offer attractive loan programs.  Other lenders may do the loan, but charge a premium.  Many of the best lenders for investment property do not have a retail presence, so it’s essential that borrowers work with a mortgage broker who is equipped to search out the most appropriate lenders and loans. Residential property up to four units can usually be financed by conventional loans (again, one needs to deal with certain lenders), but five units and above are considered commercial property and are treated differently.
 
I am experienced at working with clients who need to raise money for down payments on investment property by tapping their home equity or liquidating other assets.  Before making recommendations to clients, I back up my suggestions with analysis by powerful software which shows what the effects of financing plans are over different time periods, with numerous variables.

COMMERCIAL PROPERTY

Apartment houses, office condos, office and retail buildings, restaurants and day care – all are commercial property and financing is obtained from lenders’ commercial property divisions. These mortgages generally require a larger down payment and a very detailed appraisal.  The lenders evaluate the net rental income to loan payment ratio of the property and are usually more interested in that than they are in the borrower’s personal income.  In fact, stated income loans are available for commercial property, as long as the down payment is substantial, the appraisal is strong, and the debt service ratio is within the lender’s guidelines.
 
I normally do not deal in business loans.  If you are purchasing a business and the transaction includes real property, I can finance the real property portion.