Investing in commercial real estate can be a great way to grow your business. But getting the financing for your investment can be tricky. Depending on the type of property you’re looking to buy, there are different types of commercial mortgages available. In this blog post, we’ll explore the differences between four common commercial mortgage types: commercial real estate loans, SBA loans, bridge loans, and hard money loans. 

Commercial Loans 

A commercial real estate loan is a secured loan that is used to purchase or refinance a piece of commercial property. These loans typically have lower interest rates than other types of financing and can be used to finance properties such as office buildings, warehouses, medical facilities, retail stores, apartment buildings and more. Generally speaking, the longer the term length and higher the amount you borrow will result in lower rates.  

SBA Loans 

A Small Business Administration (SBA) loan is another type of financing that is available for commercial properties. These government-backed loans are designed to help small businesses start or expand their operations and often come with more favorable terms than traditional bank loans. The most common type of SBA loan is the 7(a) Loan Program which offers long-term financing for up to 25 years at a fixed rate and requires only 10% down payment from the borrower. 

Bridge Loans 

Bridge loans are short-term financing solutions that provide capital while you wait for other funding sources such as long-term mortgages or equity investments. These loans are typically offered by private lenders and can be used to purchase commercial properties quickly while waiting for longer-term funding sources to become available. Bridge loans tend to have higher interest rates but can be beneficial if you need quick access to capital in order to close on a deal quickly before someone else does.

Hard Money Loans                 

Hard money loans are similar to bridge loans in that they provide quick capital with higher interest rates than traditional bank lending products but they tend not to require as much paperwork as bank loan processes do. These types of financing are typically offered by private investors who specialize in providing short-term capital for real estate transactions without having strict criteria for approval like banks do. Hard money loans also tend to have shorter terms than traditional bank loans so it’s important that borrowers understand what they’re getting into before taking out these types of financing products - they should always keep an eye out for any potential prepayment penalties or other fees associated with hard money lending agreements!  

There are many different types of commercial mortgages available depending on your specific needs and financial situation. It’s important that you evaluate each option carefully before making a decision so you understand all the risks involved with each one – this will ensure that you get the best possible deal when it comes time to fund your next project! Real estate investors should consider all their options before committing funds so they can make an informed decision on which type of financing will work best for them based on their current goals and objectives. With careful research and planning, you should be able to find the perfect fit when it comes time to finance your next real estate venture!