My previous piece, “How to Finance Your First Commercial Real Estate Deal”, discussed what you should expect to know when you’re looking to finance your first CRE deal. It’s helpful to those that are familiar with residential financing and want to cross over into commercial real estate investing.
This piece provides specific differences between the two sides of real estate finance: Residential vs. Commercial.
The inspiration for his table came from Mortgage Calculator as they do a great job highlighting high-level differences.
I pared it down to simply and updated it with more current data.
Please note that this is only an initial guide and NOT a comprehensive list of all the differences, all the options, and all the potential exceptions. Please contact me or another capital advisor (for commercial) or a loan originator (for residential) for additional advice.
StackSource is a tech-enabled commercial real estate loan platform. We connect investors who are developing or acquiring commercial properties with financing options like banks, insurance companies, and debt funds through a transparent online process. We’re taking the best of commercial mortgage brokerage and updating it for the 21st century. Learn more at StackSource.com.