Commercial Real Estate Loans

Commercial real estate financing is much differently looked at and underwritten than a residential loan. If you don't already own Commercial Property, you’ll want to familiarize yourself and  get a basic understanding of the differences between a residential and commercial mortgage loan.  Residential real estate uses a debt-to-income formula to qualify your ability to repay a loan while commercial real estate is based on the debt service coverage ratio (or DSCR) formula to qualify a loan applicant.  To help qualify for a commercial loan, you should have a good understanding of what your projected return on investment (ROI) will be when making a commercial property purchase or refinance.

The cash flow generated from your commercial real estate property will be one of the factors in determining both the value of the property as well as its future return.  The type and amount of your commercial loan is also dependent on other factors, including your business and personal credit history and fico scores, your net worth or financial strength, the type of property and its overall condition, its cash flow, the geographical location of the property, and the general economic outlook of the local market in your particular area.

The first step to purchasing or refinancing your commercial property is to know exactly how you’ll use the property.  What type of property will you acquire?  How will the property be used to improve your cash flow and financial goals?  How long will you hold the property?  Will you be an owner/tenant or just an investor?  And do you have an exit strategy?  These are all questions you’ll want to think about before applying for your commercial financing.

After you’ve established the market need and use for the property, you’ll also want to analyze its current and future cash flow that will contribute to your ROI.   Please  give us a call today  or better yet, submit our easy and secure 7 Minute Online Loan Application by clicking on "Apply Here for Low Rate button" on the home page. We’ll help you get started,  answer any other questions you may have and be there for you every step of the way til funding!  For a more in-depth overview of our Commercial Lending Division you may click on the COMMERCIALLOANS button located in the header section of our home page. 

For over 22 years, Pinnacle Mortgage Group in Anaheim Hills CA has been helping property buyers/owners achieve their financial goals!  We'd love to Earn your business too.