How to Get Funding for a Commercial Property Purchase

Buying commercial property means convincing a lender the asset will repay them. Everything else in the process follows from that.

Start with the property, not the paperwork

Lenders underwrite the building first and you second. Before collecting documents, establish what the asset is worth, what it produces, and what class it sits in.

Office and retail collateral face tighter leverage today. Multifamily, industrial, and mixed-use remain the most readily funded categories.

Choose the structure that matches the deal

• Bridge: 9 to 14 percent interest-only, short term, for property needing work or repositioning
• Fix and flip: 9.5 to 13 percent with 1.5 to 3 points, sized against after-repair value
• Construction: 9.75 to 11 percent with a 650+ FICO floor
• Debt-service coverage: 6.125 to 8.5 percent over 30 years on stabilized, cash-flowing assets

The common mistake is financing a value-add project on permanent debt terms, or a stabilized building on expensive bridge money.

Assemble what underwriting will ask for

Purchase contract or existing payoff, property financials, entity documents, and identification, plus a personal financial statement for larger requests.

Bank statements substitute for tax returns on many private-lender programs, which is the main reason these deals close faster than bank financing.

Timeline expectations

A complete file closes in 7 to 15 days with a direct balance-sheet lender. Bank financing runs 45 to 90 days and rarely moves faster regardless of what you are told.

If your purchase contract has a short contingency period, the structure you choose at the start determines whether you can meet it.

Secure the property and the exit together

Before committing, know how you get out. Refinancing into permanent debt, selling, or holding on the bridge term each require different assumptions.

Get pre-qualified against the actual property rather than in the abstract.

Start the application or call (888) 562-1119 with the address and your target timeline.