Commercial Loans

Commercial real estate lending includes acquisition, development, construction financing financing income-producing real estate.  They typically feature shorter terms (5–20 years), higher interest rates, and lower loan-to-value ratios (65%–80%) compared to residential mortgages.  

Repayment Structure: Many loans feature a "balloon payment" at the end, requiring the full remaining balance to be paid at once.

Recourse vs. Non-Recourse: Some loans require personal guarantees (recourse), while others are non-recourse, meaning only the property is at risk in a default. 

Bridge Loans: Short-term (1-3 years) financing to "bridge" a gap while securing long-term financing or stabilizing a property.

Construction Loans: Short-term financing for building new, or renovating existing, properties.

Mezzanine Loans: A hybrid of debt and equity that sits behind senior debt, often used for large, high-leverage projects.

Commercial Refinancing/Cash-Out: Replacing an existing loan with new terms or pulling equity out of a property.

Blanket Loans: A single loan that covers multiple pieces of collateral (properties).