3 Ways to Finance a Commercial Real Estate Purchase

With education and professional experience in finance, Geoff Block currently works in the commercial real estate industry. Geoffrey J Block has worked in finance his entire career. He has accrued commercial real estate financing knowledge and experience.

Getting financing for commercial real estate is from residential real estate. The entire process of purchasing commercial real estate is more complex and time-consuming. There are numerous ways to obtain financing.

Bank loans are still the most common financing choice for commercial real estate. These loans are not typically from major banks. Smaller institutions have the ability to be more flexible and focused. This option is the most desired but requires stellar credit and experience from the borrower.

Commercial mortgage-backed security loans are another option. Large banks package numerous loans together and sell them as bonds. These loans have higher approval rates but are less flexible.

Life insurance companies are another entity that offers commercial real estate loans. These companies require a steady cash flow. If a commercial property has a proven income record, a life insurance company is a great option for securing the financing.