CalculateRealEstateROI

Financing · Guide

Commercial Real Estate Loans

5+ unit multifamily and commercial — local bank, regional, agency, CMBS options.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Local bank flexible; balloon risk.
  • Regional bank larger; relationship-based.
  • Agency (Fannie/Freddie) for stabilized.
  • CMBS for $5M+.
  • Recourse varies.

Core concepts

Local bank

Relationship + flexibility.

Agency

Cheapest for stabilized.

CMBS

Non-recourse; institutional.

Step-by-step framework

  1. 1Build broker relationships.
  2. 2Match product to deal.
  3. 3Compare 3 quotes.
  4. 4Close.

Common mistakes to avoid

  • Wrong product for stage.

Frequently asked questions

LTV?

65–80%.

Term?

5–10 years.

Recourse?

Varies.

Min loan?

$1M typical.

Action checklist

  • Broker engaged.
  • Three quotes.
  • Product matches plan.

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