Commercial Real Estate Financing
A practical guide to financing the purchase, refinance, or repositioning of commercial and investment real estate.
Commercial real estate financing is not one product. Owner-occupied properties, stabilized investment properties, transitional assets, multifamily, mixed-use, and bridge transactions can be underwritten under very different programs.
FLS evaluates the property, borrower or sponsor, cash flow, leverage, occupancy, use of proceeds, and exit strategy before determining which financing path may be appropriate.
Common use cases
- Purchase an owner-occupied business property
- Acquire a stabilized investment property
- Refinance existing commercial debt
- Access equity through an eligible cash-out refinance
- Bridge a transitional or time-sensitive property transaction
- Finance small-balance commercial, mixed-use, or multifamily assets
How lenders look at it
What typically drives the financing decision
Property and occupancy
Property type, condition, tenant mix, occupancy, owner-use percentage, location, and marketability can affect program selection.
Leverage
Purchase price, current value, requested loan amount, existing debt, and borrower equity determine LTV/LTC and can materially affect terms.
Property cash flow
For income-producing assets, lenders may evaluate NOI, rents, expenses, DSCR, lease terms, and tenant concentration.
Sponsor profile
Experience, credit, liquidity, net worth, track record, and exit strategy may be important, particularly for bridge or transitional assets.
Preparing your request
What to have ready
Requirements vary by program, but a complete and organized package helps FLS identify the right path and reduces unnecessary back-and-forth.
Property package
Purchase contract or payoff statement, property details, rent roll, leases, trailing operating statements, and current photos when applicable.
Borrower / sponsor
Application, entity documents, ownership schedule, personal financial statement, liquidity verification, and experience information.
Third-party items
Appraisal, environmental review, title, insurance, inspections, and other reports are typically ordered or required later depending on program.
Process
From request to funding
- 1
Identify the transaction
Identify owner-occupied vs. investment use and the transaction type.
- 2
Review the request
Review value, requested leverage, property cash flow, sponsor strength, and timeline.
- 3
Match the program
Match the transaction to SBA, stabilized CRE, bridge, DSCR, or other appropriate programs.
- 4
Lender underwriting
Complete lender underwriting and required third-party reports.
- 5
Closing & funding
Satisfy closing conditions and fund if approved.
What can strengthen the request?
Lower leverage, strong property cash flow, experienced sponsorship, adequate liquidity, clean title/ownership, stable occupancy, and a credible exit strategy can improve a CRE request.
Find the right commercial real estate financing path
FLS Capital Advisors works across multiple financing sources rather than forcing every request into one program. Answer a few questions about your business and financing objective, and a specialist will review the paths that may fit.
General information only. This guide is intended for educational purposes and does not constitute an approval, commitment to lend, or guarantee of financing. Programs, eligibility, rates, fees, terms, collateral requirements, and documentation requirements vary by funding source and may change. Final eligibility and terms are determined by the applicable funding source after review of a complete application.