The Best Ways on How to Evaluate Commercial Real Estate Financing Options

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The Best Ways on How to Evaluate Commercial Real Estate Financing Options

3page_img2Before taking a dive into a big investment, it is a good idea to understand all of the difference between all of the different types of commercial real estate financing. Some of these types include office space, retail space and plenty of more properties.

Believe it or not, office spaces happen to be one of the most popular options to invest in. These buildings are broken up into three different classes and include single tenant offices and skyscrapers. If you’re thinking of looking into commercial real estate financing for an office space, make sure to do plenty of research so that you know you are making the right decision. You will be able to find plenty of information on the property you are interested in so that you can get a better idea if it is going to be a smart investment.

Retail buildings and industrial buildings are also popular types of commercial real estate properties. Since retail buildings can range anywhere between a tiny 5000 square-foot space to a larger 350,000 square-foot space, commercial real estate financing options can definitely range. Warehouses and other industrial buildings are more commonly involved with investment opportunities.

Another popular commercial property you can invest in our multifamily units like apartments and condominiums. These buildings compared to office buildings or even retail buildings are a little different when it comes to the lease terms. The terms for these units are usually much shorter, so always keep that in mind. Also, keep in mind that usually the best properties are going to be in high demand, so it is best to focus on factors like location and property value.

Commercial Real Estate Financing can come with many benefits if executed right

When it comes to commercial real estate financing, you need to first decide if you want to go at it as an individual or with entities. Entities like corporations, partnerships and developers are often where the majority of investments stem from. But with the right documents and providing impressive numbers, you will be able to complete the application process easily as an individual as well. With the right numbers and documentation, individuals can still receive approval.

When done successfully, commercial real estate financing can be a win-win solution for all involved

Before taking a leap into your next investment, you must remember to take a lot of things into consideration. You need to first decide if you want to go about it as an individual or with entities. Next, you also have to consider if you are going to use the finances for an office space, for multiple units or for another type of property. There are many different options you can choose from and it is best to just evaluate the entire agreement to make sure it is in line with your plans and long-term business goals.


Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177 NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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