Commercial loans for income-producing property
Financing for multifamily, mixed-use, retail, office and warehouse property, placed with the bank, private lender or agency program that fits the deal. Business-purpose loans only.
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Overview
A commercial real estate loan finances property that is used for business or that produces income, such as apartment buildings with five or more units, mixed-use buildings, retail centers, offices and warehouses. These loans are for business purposes only and cannot be used for an owner-occupied home. Borrowers are usually an LLC, corporation or partnership, and the owners often sign a personal guarantee.
Commercial lenders focus on the property's net operating income and how well it covers the debt, along with the loan-to-value, the borrower's experience and the strength of the guarantors. Expect requests for a rent roll, operating statements, leases and a schedule of real estate you own. Loan structures, prepayment terms and amortization vary much more than in residential lending, so comparing offers takes careful review.
QMS places commercial loans with community and regional banks, private lenders, debt funds and agency multifamily programs offered through approved lenders, depending on the deal. We package your property and financial information into a clear loan request, gather term sheets and walk you through the differences in structure and cost. Every loan is subject to credit approval and lender guidelines.
Commercial, multifamily, hard money, fix and flip and stated income loans are business-purpose loans and are not available for a home you will live in.
Is it a good fit?
- Are buying or refinancing an apartment building with five or more units
- Own or are buying mixed-use, retail, office or warehouse property
- Hold or plan to hold the property in an LLC or corporation
- Can provide rent rolls and operating statements for the property
- Want cash out of a commercial property to reinvest
- Need a business-purpose loan matched to the right capital source
What you'll need
- Rent roll and copies of current leases
- Operating statements for the past two years and year to date
- Entity documents, including articles, operating agreement and EIN letter
- Personal financial statement and real estate schedule for each guarantor
- Business and personal tax returns, depending on the lender
- Purchase contract, or current loan statement for a refinance
- Property photos, surveys and environmental reports, if available
How it works
How it works with QMS
Package the deal
We organize the property's income, expenses and your sponsor information into a clear loan request.
Collect term sheets
We present the deal to banks, private lenders and agency sources and compare their term sheets.
Diligence and close
We coordinate the appraisal, environmental review and legal review through closing.
FAQ
Commercial loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990What types of property qualify for a commercial loan?
Commercial loans cover apartment buildings with five or more units, mixed-use buildings, retail, office, industrial and warehouse property, and some special-purpose properties. Rentals with one to four units are usually financed with residential investor programs such as DSCR. The property must be held for business or investment purposes. We can tell you which category your property falls into.
Can I use a commercial loan for my own home?
No. Commercial loans are for business purposes only and cannot finance a home that you or your family live in. If you want to buy or refinance your own home, a conventional, FHA, VA, jumbo or non-QM residential loan is the right path. QMS offers both residential and commercial financing and can point you to the program that fits.
What is a debt service coverage ratio in commercial lending?
It compares the property's net operating income with its yearly debt payments. Lenders use it to judge whether the property earns enough to cover the loan after operating expenses. Minimum ratios differ by lender and property type, and a stronger ratio usually improves terms. We calculate it before we approach lenders so there are no surprises later in underwriting.
How long does a commercial loan take to close?
Timing depends on the property, the lender and third-party reports such as the appraisal and environmental review. Bank and agency loans usually take longer than private loans because underwriting is more detailed. A complete package with current financials shortens the process. We give you a realistic timeline once a lender issues a term sheet and keep the deal on schedule.
Get started
Know your numbers before you make an offer.
Tell us about your scenario and we'll price it across our lenders the same business day.