Commercial Real Estate Loans

 

What is Commercial Real Estate?

It is property used solely for business/commercial purposes, such as office buildings, malls, restaurants, stand-alone stores, hotels, etc. Borrowers usually purchase these types of structures with the intention of renting out each unit for various business purposes. Purchasing and/or owning Commercial Real Estate often requires a large amount of capital, and a deep understanding of the impending legal, financial and regulatory responsibilities. 

 

There are four main types of commercial real estate leases, which include Single Net, Double Net (NN), Triple Net (NNN) and Gross. Single Net makes the tenant responsible for paying property taxes; NN makes the tenant responsible for both property taxes and insurance; NNN makes the tenant responsible for property taxes, insurance and maintenance; and Gross makes the landlord responsible for property taxes, insurance and maintenance, while the tenant is responsible only for rent. 

 

Western highland Mortgage carefully considers potential rental income and business income (if owner-occupied). Unlike many other hard money lenders, we will lend on gas stations, industrial properties and even landfills. Although we will aim for a 50% Loan-To-Value based on the purchase price, we may be lenient if expected income is high.