July 21, 2015
It’s simple – less moving parts. An analogy is the difference between the construction of a lawn mower engine and the construction of an automobile engine.
For example, let’s look at the difference between getting a loan for an apartment complex and a retail mall. For an apartment complex loan you have one borrower for the property. For the retail mall, let’s say that you have 35 tenants.
For the apartment complex, you just need to get the financial strength of the borrower. For the retail mall, you have to get the financial strength of all 35 tenants. It’s a lot more work.
Another thing that makes a retail mall much more complex to lend on – each tenant has a lease with expiration dates. For the tenants who have leases that are too short to do a loan, the leases have to be negotiated to be extended.
For an office building with multiple tenants, you’ve also got similar complexity. Multiple tenants and multiple leases.
How about a hotel? There are numerous complexities. This is not to say that multifamily properties are necessarily better to own. Commercial properties other than multifamily properties can offer great opportunities. It’s just that it’s important to know the difference in each type of commercial property as far as loan requirements and other types of requirements.
Contact us to see if you qualify for our best multifamily, commercial, or bridge loan rates and terms. Keep in mind that one of our specialties is commercial bridge lending. Also, contact us if you would like to discuss your particular commercial lending needs, or if you have questions. Call 214-695-7310 or send an email to email@example.com
Bruce Painter, Director of Marketing, Business Loan Store