Commercial Real Estate Loans: Expert Guide for Property Investors
Expert Insights from America's Trusted Lending Partner
This comprehensive guide is based on our experience facilitating over $2.5 billion in commercial real estate financing for more than 15,000 satisfied clients nationwide. Get proven strategies and expert insights you won't find anywhere else.
Commercial Real Estate Financing in 2025
Commercial real estate loans are specialized financing products designed for purchasing, refinancing, or improving income-producing properties. At Tesni LLC, we specialize in commercial real estate financing with over $2.5 billion funded across all property types.
Types of Commercial Properties
Office Buildings
Class A, B, and C office spaces ranging from small professional buildings to large corporate towers.
Retail Properties
Shopping centers, strip malls, standalone retail buildings, and mixed-use developments.
Industrial Properties
Warehouses, distribution centers, manufacturing facilities, and flex spaces.
Multifamily Properties
Apartment buildings, condominiums, and mixed-use residential developments with 5+ units.
Special Purpose Properties
Hotels, self-storage facilities, medical buildings, and other specialized commercial spaces.
Commercial Loan Products
1. Traditional Commercial Mortgages
- Loan amounts: $500,000 to $50,000,000+
- Terms: 5 to 25 years
- Amortization: 15 to 30 years
- Rates: Competitive market rates
- LTV: Up to 80% for owner-occupied, 75% for investment
2. SBA 504 Loans
- Up to 90% LTV with as little as 10% down
- Fixed rates for entire term
- 25-year amortization
- Owner-occupancy required (51%+)
- Job creation requirements
3. DSCR Loans
- No personal income verification
- Qualification based on property cash flow
- Perfect for self-employed investors
- Terms: 30-year fixed or adjustable
- LTV: Up to 80%
4. Bridge Loans
- Short-term financing (6-36 months)
- Quick closings (10-20 days)
- Interest-only payments
- Perfect for value-add properties
- Rates: 7% to 12%
Qualification Requirements
Commercial lenders evaluate several factors:
Property Analysis
- Location: Property location and market conditions
- Condition: Physical condition and deferred maintenance
- Occupancy: Current occupancy rates and tenant quality
- Cash Flow: Net operating income (NOI) and debt service coverage ratio (DSCR)
- Appraisal: Professional appraisal required
Borrower Qualifications
- Credit Score: 680+ for best rates, 650+ minimum
- Experience: Prior commercial real estate experience preferred
- Liquidity: 6-12 months of reserves
- Down Payment: 20% to 30% depending on property type
- Financial Strength: Strong personal and business financials
Property Requirements
- DSCR: Minimum 1.20x to 1.25x (property income covers debt 1.2-1.25 times)
- Occupancy: Typically 80%+ for stabilized properties
- Lease Terms: Long-term leases with creditworthy tenants
- Environmental: Phase I environmental assessment
The Application Process
Step 1: Property Analysis
- Identify target property
- Review purchase contract or current ownership
- Analyze rent roll and operating statements
- Calculate projected cash flow and returns
Step 2: Document Preparation
- Property rent roll and leases
- Last 2 years of property tax returns
- Operating statements (3 years)
- Personal and business tax returns (2 years)
- Personal financial statement
- Real estate portfolio summary
- Business plan for the property
Step 3: Lender Selection
Work with Tesni LLC to access:
- Local and regional banks
- Credit unions
- Life insurance companies
- CMBS lenders
- Private money lenders
- SBA preferred lenders
Step 4: Underwriting
- Appraisal ordered (2-3 weeks)
- Environmental Phase I (1-2 weeks)
- Property condition report
- Financial analysis and underwriting
- Loan committee approval
Step 5: Closing
- Title insurance and search
- Survey if required
- Property insurance
- Final walkthrough
- Loan documents execution
- Funding and recording
Current Market Rates and Terms
As of 2025, typical commercial real estate loan terms:
- Owner-Occupied: Competitive rates, up to 90% LTV
- Investment Properties: Market-based rates, up to 80% LTV
- SBA 504 Loans: Favorable government-backed rates, up to 90% LTV
- DSCR Loans: Rates based on debt service coverage, up to 80% LTV
- Bridge Financing: Short-term rates, up to 75% LTV
Why Choose Tesni LLC?
- Specialized Expertise: Focus on commercial real estate financing
- Extensive Lender Network: Access to 100+ commercial lenders
- All Property Types: Experience with every property class
- Nationwide Service: Connecting businesses in all 50 states
- Fast Pre-Approval: Initial approval within 48 hours
- Competitive Rates: Shop multiple lenders for best terms
Tax Benefits of Commercial Real Estate
- Depreciation deductions (27.5 to 39 years)
- Interest expense deductions
- Operating expense deductions
- Cost segregation studies for accelerated depreciation
- 1031 exchange for deferring capital gains
- Pass-through deductions for partnerships and LLCs
Investment Strategies
Value-Add Opportunities
Purchase underperforming properties, improve operations, increase rents, and refinance or sell at higher valuations.
Cash Flow Investments
Acquire stabilized properties with strong cash flow and hold long-term for income and appreciation.
Development Projects
Ground-up construction or major renovations to create value and maximize returns.
Get Started with Your Commercial Property Purchase
Ready to finance your next commercial real estate investment? Contact Tesni LLC today at (281) 653-6760 for a free consultation. Our commercial lending specialists will analyze your property and present the best financing options.
Expertise you can trust. Rates you can afford. Service that exceeds expectations.
Ready to Secure Your Commercial Real Estate Financing?
Contact Tesni LLC today for expert guidance and competitive rate quotes on your commercial real estate loan.