Commercial real estate loans are used to finance the purchase or refinance of income-producing properties, such as office buildings, retail stores, warehouses, and apartment buildings.
Loans are created to give businesses and investors the money needed to buy or upgrade commercial property assets.
Banks, alternate lenders, and other specialized finance companies typically offer commercial real estate loans that can be set up as either short-term or long-term financing.
Typically, the loan terms, such as the interest rate and repayment duration, are determined by the value and income capabilities of the asset used as security, as well as the borrower’s credit rating and financial status.
Commercial real estate loans can provide businesses and investors with the money needed to acquire or improve properties that generate revenue, which can be a profitable way to make money, increase wealth, and reach financial objectives.