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Investment Property Loans: Viable Options for Your Commercial Real Estate Needs

When investing in real estate, investment property loans can help with the large quantity of capital that you will initially need. Real estate can be very profitable but also risky without the proper knowledge. Having basic knowledge about investment property loans and other lending options can help you get started the right way.

The biggest obstacle when you are trying to buy a piece of real estate is getting the capital you need to actually purchase the property. Many funding sources are available, but the safest way to begin is by applying for an investment property loan with a reliable lending institution. Investment property loans are one option offered by these institutions and are worthwhile to check out when considering a loan to get started.

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Before applying for an investment property loan, you must determine how you will make profit through real estate. Most financial institutions offer two types of investment property loans and they fall under the commercial and residential investment property loan categories. If you are buying property to rent for commercial use, then you will want to apply for a commercial loan.

Renting to individuals for living accommodations requires applying for residential investment property loans. Residential investment property loans have specific requirements that must be met for qualification. Some residential properties do fall under commercial. The purpose and number of dwellings determine the type of investment property loan.

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Residential investment property loans require four or less dwellings. When the investment property loan is for residential use, most of the profit is made through rent charges. Any real estate that has five or more dwellings is considered commercial property and requires a commercial investment property loan. Any time the investment property will be used for storage, office space, or retail purposes, it also falls under commercial property. Income on this type of property is acquired through the renting businesses profits.

Lending companies have one main goal when contemplating approving investment property loans. All financial institutions want to keep risks at a minimum when considering applications for investment property loans. Most require an extensive application process that will allow them to evaluate your ability to make the regular monthly payments on time.

The type of information required will vary per institution and by the type of investment property loan being applied for. If you are applying for a commercial investment property loan, the institution will want to know more about the businesses nature and setup. Business real estate investments are higher risk and financial institutions require more detailed information when applying for investment property loans.

Many people choose to invest in real estate because turning a profit is fairly easy with the right investment property loan. When you own a residence for living purposes, the value does not always increase; however, investment real estate properties do increase in value and are a great way to make a profit. Investment property loans can help you get started with one of these promising ventures. If you are considering investing in real estate, don’t forget to speak with your bank about the possibility of investment property loans.


Investment property loans are a great solution for anyone considering purchasing real estate for the purpose of using the investment for profit. These loans can be for residential or commercial use and have separate qualifications to meet when applying. Residential investment property loans are used for condos, homes, and apartments with four or less units.

Commercial investment property loans apply to residential rental property that has five or more units. They also apply to any property that will be rented by a business for commercial use. Be sure to speak with your bank about these lending options to see if the real estate you are purchasing qualifies and to determine how investment property loans can help you in your profitable business endeavor.

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