Commercial real estate (CRE) is income-producing real estate that is used solely for business purposes, such as retail centers, office complexes, hotels and apartments. Financing – including the acquisition, development and construction of these properties – is typically accomplished through commercial real estate loans: mortgage loans secured by liens on commercial, rather than residential, property.
Just as with residential loans, banks and independent lenders are actively involved in making loans on commercial real estate. In addition, insurance companies, pension funds, private investors and other capital sources, including the U.S. Small Business Administration’s 504 Loan program, make loans for commercial real estate.
Here, we take a look at commercial real estate loans: how they differ from residential loans, their characteristics and what lenders look for.
Read more: Commercial Real Estate Loans http://www.investopedia.com/articles/personal-finance/100314/commercial-real-estate-loans.asp#ixzz3nIM8nqsf
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