Commercial Loans: Investment Properties
CLD is a correspondent and mortgage banking firm offering a wide variety of financing options for investment loans nationwide. Not only can we save you time by searching hundreds of loan programs for you, but we can also save you money. Because we have access to various financial institutions’ wholesale programs, we can offer you the most competitive interest rates with no up-front fees and reduced financing costs. We can also help you to build a real estate portfolio that maximizes your returns, whether that means financing for a long term hold, a short term flip, or any other specialized structure—just let your Loan Specialist know and we’ll do our best to accommodate your specific needs.
Investment Property Loan Types
An investment loan can be made for any property type where the Borrower occupies none of or less than 50% of the property’s leasable space. The most common commercial investment property types are: office, retail, industrial/warehouse, self-storage, and hospitality, although other property types may be considered on a case-by-case basis. In order to underwrite an investment property, we use the in-place cash flow over the annual debt payments (with a pre-determine underwriting interest rate). The required debt service coverage ratio (DSCR or DCR) changes based on the property type, LTV, and program.
Conventional Mortgages
A Conventional Loan is a mortgage that is provided by a bank, credit union, savings institution, or other traditional financial institution and is secured by a first lien position on the subject property being financed. The collateral may be any type of commercial real estate and do not always require previous experience. These loans are typically best suited for inexperienced borrowers, small loan balances, specialty properties, or any other structure that may require a personal guaranty.
| Loan Type | Property Type * | Min Loan Amount | Max LTV | Term Length | Amortization |
| Conventional | A, H/M, I/W, M/H, MU, O, R, SS | $1,000,000 | 80% | 3-15 Years | 15-30 Years |
| *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage | |||||
| Conventional Info Conventional Rates | |||||
Conduit / CMBS Financing
Conduit / CMBS loans are securitized loans that are pooled and sold on the secondary market. They are available nationwide in all markets and are available for stabilized properties with a minimum $2 million loan amount. CMBS commercial loans are typically only for office, retail, industrial, flagged hospitality, and self-storage. Maximum leverage is 75% on both purchases and refinances and loans are always non-recourse.
| Loan Type | Property Type * | Min Loan Amount | Max LTV | Term Length | Amortization |
| Conduit / CMBS | A, H/M, I/W, M/H,MU O, R, SS | $2,000,000 | 75% | 5-10 Years | 20-30 Years |
| *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage | |||||
| Conduit Info Conduit Rates | |||||
Insurance Loans
An Insurance Commercial Real Estate Loan is a mortgage that is provided by a life insurance company or conglomerate of life insurance companies and is secured by a first lien position on the subject property being financed. Most insurance companies favor the “four food groups,” for their collateral (apartment, office, retail, and industrial properties), but may finance other property types (i.e. hotel or mixed used) on a case-by-case basis. These loans are typically best suited for transactions that have strong borrowers with good credit, newer, well-maintained properties, low leverage, and where the collateral is situated in or around a major MSA.
| Loan Type | Property Type * | Min Loan Amount | Max LTV | Term Length | Amortization | |
| Insurance | A, H/M, I/W, MU, O, R | $5,000,000 | 75% | 5-30 Years | 15-30 Years | |
| *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse MU = Mixed Use O = Office R = Retail | ||||||
| Insurance Info Insurance Rates | ||||||
United States Department of Agriculture (USDA) Loans
USDA Loans are available for any commercial property type in rural areas with populations of less than 50,000 people. LTVs, term length, prepayment penalties, and other loan terms will depend on the conventional lender in partnership with the USDA, which is guaranteeing the loan.
| Loan Type | *Property Type | Min Loan Amount | Max LTV | Term Length | Amortization | |
| USDA | A, H/M, I/W, M/H, MU, O, R, SS | $1,000,000 | 90% | 5-15 Years | 15-30 Years | |
| *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage | ||||||
| USDA Info USDA Rates | ||||||
Bridge Loans
Bridge loans are used for the light rehabilitation and/or stabilization of a commercial real estate property including office, retail, and industrial/warehouse. Cash flows are underwritten to pro forma numbers, but still must meet a 1.0x DSCR with current cash flow. Loans are generally recourse for most programs.
| Loan Type | *Property Type | Min Loan Amount | Max LTV | Term Length | Amortization | |
| Bridge | A, I/W, M/H, MU, O, R, SS | $3,000,000 | 90% | 12-36 Months | Interest-Only | |
| *A = Apartment I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage | ||||||
| Bridge Info Bridge Rates | ||||||
Construction Loans
Construction loans are for the ground-up construction or substantial rehabilitation of any commercial real estate that cannot currently service loans at a 1.0x DSCR. These loans are generally interest-only until stabilization at which point that loan will either convert to an amortizing model or must be refinanced. Loan amounts and LTVs depend on the program under which the project is financed.
| Loan Type | *Property Type | Min Loan Amount | Max LTV | Term Length | Amortization | |
| Construction | A, I/W, M/H, MU, O, R, SS | $3,000,000 | 80% | 12-36 Months | Interest-Only | |
| *A = Apartment I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage | ||||||
| Construction Info Construction Rates | ||||||