For business owners and investors
Commercial Real Estate Loans
If your business rents its space, you may be able to buy that building with far less down than you think. Plus conventional commercial financing when the deal is an investment, not an occupancy.
Most business owners I meet have spent ten years paying a landlord. They assume buying the building is out of reach because commercial loans mean 30% down. For a pure investor, often true. For a business that will occupy the space, usually not.
That gap is the most valuable thing on this page.
The owner-user advantage
If your business occupies the majority of the space, government-backed commercial programs open up. The headline differences against a conventional commercial loan:
- Much higher leverage, up to roughly 93% loan-to-value in the right structure
- 25-year fully amortised terms, rather than a five-year balloon
- Fixed-rate options on the structured programs
- Written nationwide
The requirement is occupancy. Your business generally needs to take at least 51% of the building. You can lease the rest to tenants, which means part of your mortgage is paid by someone else while you build equity instead of rent receipts.
The three main paths
Government-backed, single loan
One first trust deed, commonly up to $5 million, up to roughly 93% loan-to-value, written as a 25-year fully amortising loan. Works for purchase, refinance, and in some structures working capital alongside the real estate.
Property types: office, industrial, retail.
Government-backed, two-loan structure
A first trust deed up to roughly $10 million at a lower loan-to-value, paired with a second up to roughly $5.5 million, combining to as much as 93%. Secondary-market options can take the total higher still.
Fixed rates are available. Purchase and refinance.
Conventional commercial
No occupancy requirement, so this is the investor path. Loans up to roughly $10 million at up to 80% loan-to-value. Purchase, refinance and cash-out. Fixed rates available.
Who this is really for
The business owner who rents. Dentist, machine shop, auto shop, distributor, restaurant, clinic, contractor's yard. If you are writing a lease check every month and you plan to stay, run the numbers on owning.
The self-employed borrower who was told no elsewhere. Commercial underwriting looks at the business, not just personal tax returns. That is a different, and often kinder, lens. Self-employed home loans.
The investor moving up from residential. Once you cross five units or into commercial property types, the underwriting changes from your income to the building's income. Real estate investor loans.
What I will need
- What the property is and what it costs
- What your business does, and how much of the space it will occupy
- Two years of business financial statements and tax returns
- Your rent roll, if there are tenants
- Your personal financial statement
That sounds like a lot because it is. Commercial files are heavier than residential ones. They also close, and the terms are worth the paperwork.
What I will not do
I will not quote you a rate off a marketing page. Commercial pricing is deal-specific and moves with the property, the industry, the occupancy and your financials. Send the deal and get a real number.
Questions people ask
How much of the building do I have to occupy?
On the main government-backed program, your business generally needs to occupy at least 51% of the space. You can lease the rest out. That single rule is what lets an owner-user borrow at far higher leverage than a pure investor would get.
What kinds of property qualify?
Office, industrial and retail are the standard categories. Mixed-use and special-use properties are handled case by case and are not something I would promise without seeing the deal.
What if I do not want to occupy the building?
Then it is a conventional commercial loan. Leverage is lower, typically capped well below the owner-user programs, but cash-out is available and there is no occupancy requirement.
How long are the terms?
The main government-backed program is commonly written as a 25-year fully amortised loan, which is unusually long for commercial property. Fixed-rate structures are available on other programs. Balloon payments are normal in conventional commercial lending, so ask about that specifically.
Is this only for California?
No. These programs are written nationwide. I am licensed in 32 states for residential lending, and commercial financing is not restricted the same way.