Real Estate Financing
Finance Rental Properties, Multi-Family Buildings & Business Real Estate
What Are Real Estate Loans?
Commercial real estate loans are financing solutions designed specifically for non-owner occupied properties, which is investment real estate that you don't live in or use as your primary business location. These loans help investors and business owners purchase, refinance, or renovate income-producing properties including rental properties, multi-family buildings, retail centers, office buildings, warehouses, and mixed-use developments.
Commercial real estate financing provides investors with the leverage needed to build wealth through real estate, allowing you to control valuable assets while preserving your capital for additional investments, improvements, or reserves. Whether you're buying your first rental property or expanding a multi-property portfolio, commercial real estate loans make real estate investment accessible and profitable.
Why Choose Real Estate Loans?
Build Wealth Through Real Estate
Leverage allows you to control valuable assets with 20-25% down. Build equity, generate rental income, and benefit from property appreciation over time.
Income-Based Qualification
Qualify based on the property's rental income and DSCR, not just your personal income. Perfect for investors with multiple properties or non-traditional income.
Flexible Loan Structures
Choose from fixed-rate, variable-rate, interest-only, and balloon payment options. Customize terms to match your investment strategy and goals.
Portfolio Expansion
Finance multiple properties and build a diversified real estate portfolio. Scale your investments while managing cash flow effectively.
Tax Advantages
Benefit from mortgage interest deductions, depreciation, and other real estate tax benefits that can significantly reduce your tax liability.
Long-Term Financing
Get terms up to 30 years with lower monthly payments compared to short-term financing. Improve cash flow and maximize your return on investment.
Types of Real Estate Loans
Conventional Commercial Loans
Traditional bank financing for stabilized, income-producing properties. These loans offer competitive rates and terms for experienced investors with strong credit and property performance. Loan amounts from $250,000 to $5 million+, terms of 5-20 years with 20-30 year amortization, LTV up to 75-80%, and fixed or variable rates.
Best for: Established investors, properties with consistent rental income, long-term holds, refinancing existing properties.
Construction Loans
Short-term financing (12-24 months) to fund the construction of new commercial properties or major renovations. Funds are disbursed in draws as construction progresses. Interest-only payments during construction, with conversion to permanent financing upon completion. Perfect for developers, investors building new properties, major property repositioning projects, ground-up development.
Requirements: Detailed construction plans and budget, experienced builder/contractor, 20-30% equity injection, solid exit strategy (sale or permanent financing).
Types available: Construction-to-permanent loans (single close), standalone construction loans, ground-up construction, major renovation/rehab financing.
DSCR Loans (Debt Service Coverage Ratio)
Income-based loans that qualify you based solely on the property's rental income, not your personal income or employment. No tax returns, W-2s, or income verification required.
Requirements: DSCR of 1.0-1.25+, credit score 640+, 20-25% down payment, terms up to 30 years available.
Best for: Self-employed investors, retirees, or those with multiple properties.
Permanent Financing (Agency Loans)
Long-term, fixed-rate financing through Fannie Mae and Freddie Mac for multi-family properties (5+ units). Excellent rates and terms for qualifying properties and borrowers. Non-recourse options available for experienced investors.
Features: Up to 80% LTV, 30-year amortization, fixed rates, properties with $1M+ value, strong cash flow required.
Bridge Loans
Short-term financing (6-24 months) for properties needing renovation, lease-up, or repositioning before qualifying for permanent financing. Higher rates but faster approval and more flexible requirements than conventional loans.
Best for: Value-add properties, distressed assets, properties with vacancy issues, investors planning quick renovations.
Portfolio Loans
Loans held by the originating lender rather than sold on the secondary market. More flexible underwriting guidelines allow for unique properties or borrower situations that don't fit conventional lending boxes.
Best for: Properties with unique characteristics, investors with non-traditional income, portfolios with mixed property types.
Blanket Loans
Finance multiple properties under a single loan with one payment. Ideal for portfolio investors looking to consolidate financing, streamline management, and potentially get better terms than individual property loans.
Advantages: Single closing, lower overall costs, cross-collateralization, ability to release properties from the loan as you sell them.
How REAL ESTATE LOANS WorK
1. Property Identification – Find your investment property and conduct due diligence. Analyze rental income, expenses, and potential return on investment.
2. Loan Pre-Qualification – Discuss your investment goals and get pre-qualified. We'll determine loan amount, terms, and rate based on property and borrower profile.
3. Property Analysis – Lender evaluates property's income, expenses, and DSCR. Appraisal ordered to determine property value and loan-to-value ratio.
4. Application & Documentation – Submit loan application with property financials, rent roll, leases, your financial information, and experience documentation.
5. Underwriting & Approval – Lender reviews all documentation and issues loan approval with terms.
6. Closing & Funding – Sign loan documents, provide down payment, and close on your property. Begin collecting rental income and building equity.
Call 805-819-ROCK or tap “Apply Now” to get started
Why Partner With Us?
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Unlike traditional banks that can take weeks to process your application and often decline small business loans, we specialize in fast, flexible working capital solutions. Our team understands that business opportunities and challenges don't wait for lengthy approval processes.
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We've helped thousands of business owners access the capital they need to grow, manage cash flow, and seize opportunities. Our dedicated funding specialists work with you personally to understand your needs and customize financing that fits your business model.
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With transparent pricing, no hidden fees, and straightforward terms, we make business financing simple and stress-free. From your initial application to your final payment, we're here to support your success.
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Frequently Asked Questions (FAQ)
1. What's the difference between owner-occupied and non-owner occupied commercial loans?
Owner-occupied means YOUR business operates in at least 51% of the property. These qualify for SBA loans with better terms (10% down, lower rates). Non-owner occupied properties are investment real estate you rent to others—they require commercial real estate loans with 20-30% down and slightly higher rates.
2. Can I use rental income to qualify for a commercial real estate loan?
Yes! That's exactly how commercial real estate loans work. Lenders qualify you based on the property's rental income using the DSCR (Debt Service Coverage Ratio). As long as the property generates enough rent to cover the mortgage payment plus 20-25%, you can qualify—regardless of your personal income. DSCR loans don't even require personal income verification.
3. How much down payment do I need for an investment property?
Most commercial real estate loans require 20-30% down. The exact amount depends on property type, your credit score, experience, and the lender. Multi-family properties often qualify for 20-25% down, while riskier property types (retail, hospitality) may require 30-35%. Stronger borrowers with high DSCR can sometimes get 20% down on most property types.
4. What credit score do I need for real estate financing?
Most lenders require a minimum credit score of 640-680 for commercial real estate loans. Scores of 700+ get significantly better rates and terms. Scores below 640 may still qualify through specialty DSCR lenders or with higher down payments, but expect higher interest rates and more stringent requirements.
5. Do I need experience to get a commercial real estate loan?
Not necessarily. While experience managing rental properties is preferred and can get you better terms, many lenders (especially DSCR lenders) will work with first-time investors if the property has strong cash flow, you have good credit, and adequate reserves. Starting with residential rental properties (1-4 units) can help build experience before moving to larger commercial properties.
6. What is a DSCR loan and how is it different?
DSCR (Debt Service Coverage Ratio) loans qualify you based ONLY on the property's rental income—no personal income verification required. You don't need to provide tax returns, W-2s, or employment verification. Perfect for self-employed investors, retirees, or those with multiple properties. Requirements are similar to conventional commercial loans (640+ credit, 20-25% down) but underwriting focuses entirely on property performance.
7. Can I finance multiple properties at once?
Yes, through blanket loans or portfolio loans. A blanket loan finances multiple properties under one loan with a single payment, often with better terms than individual loans. Most lenders have limits on how many financed properties you can have (typically 4-10 conventional, unlimited for portfolio/blanket loans with experienced investors).
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