What Are Investor-Owned Commercial Real Estate Loans?
Investor-owned commercial real estate loans are designed for individuals or businesses looking to purchase, refinance, or develop income-generating properties. Unlike owner-occupied properties, these loans cater to investments where the owner leases the property to tenants rather than occupying it themselves.
- Retail centers and shopping
- Office buildings leased to multiple
- Industrial
- Multifamily apartment
- Hotels and hospitality
These loans offer competitive rates, flexible terms, and the ability to finance a variety of property types, making them a vital tool for growing real estate portfolios.
Who Qualifies?
Borrowers are evaluated based on:
- Credit Score: Typically 680 or higher.
- Experience: Previous experience managing or owning similar properties
- Financial History: Stable personal and business financials are
- Reserves: Lenders often require cash reserves for unexpected
Properties must be income-generating and align with investment goals, such as stable cash flow or plans for value-add improvements.
Loan Options
- Traditional Financing: Best for stable, long-term investments with proven
- Bridge Loans: Short-term financing for quick acquisitions or property
- Non-Recourse Loans: Limits personal liability, ideal for experienced investors with strong property cash flow.
What Can It Be Used For?
- Acquisition of Properties: Expand your portfolio with income-generating assets like multifamily complexes, office spaces, or industrial facilities.
- Refinancing Existing Loans: Lower interest rates, consolidate payments, or free up equity for new investments.
- Property Upgrades: Fund renovations that increase property value or rental
- Development Projects: Finance the construction of new income-generating
What Are the Benefits?
- Access to High-Value Investments: Leverage funds to acquire premium properties without tying up all your capital.
- Long-Term Cash Flow and Appreciation: Generate steady rental income and build equity over time.
- Flexible Terms: Tailored financing options that align with your investment
What Are the Risks and Limitations?
- Market Risks: Vacancies, market fluctuations, and economic downturns can impact cash flow and profitability.
- Loan Restrictions: Funds cannot be used for personal expenses or speculative projects like undeveloped land.
Frequently Asked Questions (FAQs)
What is the difference between owner-occupied and investor-owned CRE loans?
- Owner-Occupied Loans: For properties where the borrower occupies at least 51% of the space, often qualifying for SBA programs.
- Investor-Owned Loans: For properties purchased purely as investments, leased to
What kind of down payment is required?
Down payments typically range from 20% to 35%, depending on the property and loan type.
Get Started Today
Ready to take the next step toward achieving your commercial real estate investment goals? Our team is here to guide you every step of the way. Whether you’re looking to acquire, refinance, or develop a property, we’ll help you find the perfect financing solution tailored to your needs.
How to Get Started
- Schedule a Consultation: Speak directly with our experts to discuss your investment goals and explore financing options. We’ll create a personalized plan to get you on the path to success.
- Prequalify Today: Want to see how much financing you may qualify for? Complete our quick and easy prequalification process to get started on your.
- Ask a Question: Still have questions? Reach out to our team for answers and guidance.
At The Foster Company, we don’t just provide loans—we provide the support and expertise you need to make confident investment decisions. Let’s build your success story together!
