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Commercial financing
Structure financing around the property and business plan.
Commercial financing can support an eligible property purchase, refinance, or improvement project. The right structure depends on the asset, its income, your ownership plans, and the lender’s appetite for the transaction.
Discuss commercial financingOn this page
Who may find this useful
- Investors evaluating income-producing commercial real estate or multifamily properties.
- Business owners considering a building for their own operations.
What lenders typically review
- Rent roll, operating statements, leases, occupancy, and property condition.
- Borrowing entity, guarantor finances, equity, liquidity, and experience.
- Debt coverage, amortization, maturity, recourse, prepayment terms, and the exit strategy.
BUY · RENOVATE · SELL
Financing a fix-and-flip project.
Short-term investment financing serves a different goal from renovating a home you will occupy. Discuss acquisition costs, the renovation budget, contractor draws, expected after-repair value, and a realistic sale or refinance exit. First-time investors can ask which lenders will consider their experience and project.
A project example
| Item | Illustrative amount |
|---|---|
| Purchase price | $200,000 |
| Renovation budget | $50,000 |
| Purchase plus renovation | $250,000 |
| Estimated resale value | $320,000 |
| Gross project margin before other costs | $70,000 |
The $70,000 difference is not net profit. Deduct financing charges, holding costs, taxes, insurance, purchase and sale closing costs, agent commissions, and overruns. Resale value and timing are estimates, not guarantees.
Ask about available loan-to-cost financing and short-term structures. Maximum leverage, eligible property types, cash-out options, reserves, and terms depend on the lender and project. Confirm extension options and costs if work or resale takes longer than expected.
Common questions
What should I send for an initial review?
Start with the property address and type, purchase price or estimated value, requested loan amount, purpose, timing, and available operating information. We will identify the next documents needed.
Is owner-occupied business financing different from rental investment financing?
Yes. Lenders evaluate the business and occupancy as well as the property. Certain SBA programs serve eligible operating businesses and are not designed for passive rental investment.
Let’s review your next step.
Talk with our team about eligibility, documentation, estimated costs, and lender options for your property.
Contact Faulkner Financial GroupConnect with Jindra Faulkner, NMLS #225020: (847) 401-8237 · jindra@barrettfinancial.com
Educational information only. This is not a rate quote, approval, or commitment to lend. Programs, terms, and eligibility vary by lender, state, property, and borrower. All loans are subject to underwriting.
Learn more: SBA owner-occupied business financing education. External program information does not guarantee availability through our team.
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