Do all lending institutions make commercial loans?
No, they actually don’t. And not every institution does the same types of commercial mortgages. Each has its preferences. Some prefer to deal with industrial property, others like to do golf courses or storage units or gas stations. You would think you could go to one large institution that would cover the gamut of commercial mortgages, but you can’t. Why don’t they do all kinds of commercial mortgages? They tend to choose niches based on their secondary market, which is their investors. Each of these institutional investors has a matrix in place for the loans they’re willing to buy from the primary lender. Are there other options for small-business owners who don’t qualify for commercial mortgages, but would still like to purchase their business property? Sure. The most common strategy we employ is to investigate whether the business owner owns a primary residence or some investment property. If so, we look at the possibility of tapping the equity in those properties and using it to f
