Investment Property Loans

Investment Property Loan Mortgage Rates - Rates updated November 20th, 2024

Loan Product	Rates (start as low as)	LTV
Commercial Mortgage Rates	6.92%	Up to 75%	Get Free Quote
Apartment Building Mortgage Rates	5.51%	Up to 80%	Get Free Quote
Business Real Estate Loans	6.72%	Up to 90%	Get Free Quote

Investment property loans are loans used to acquire or refinance investment real estate. Investment properties are commercial real estate properties which are rented to others and usually generate positive cash flow for their owners. In today’s market, interest paid on bank deposits is very low and many investors are buying investment properties using loans to leverage their purchases.

We are a nationwide commercial mortgage broker specializing in all types of commercial mortgage loans, apartment loans, multifamily loans, and credit tenant lease loans.

Benefits of our Investment Property Loan Program

Investment Property Loan Outlook for 2024 - Commercial Mortgage Rates

As we navigate through 2024, the commercial real estate market showcases a dynamic landscape with varied performances across different property types. Multifamily and industrial properties continue to lead in demand and investment potential, making them the top performers this year.

Multifamily Loans

High mortgage rates, near 7%, are strengthening demand for rental apartments as home buying becomes less accessible. Despite a 120% jump in net absorption last year, increased apartment completions have kept vacancy rates steady at 7.6%. Rising mortgage rates have intensified the shortage of affordable housing, boosting demand for multifamily apartments. Vacancy rates in multifamily properties remain steady at 5%, although the luxury apartment segment is struggling with reduced demand and rent decreases. Investors may find opportunities in multifamily loans, which offer attractive financing options for apartment buildings and mixed-use properties.

Industrial Property Loans

The industrial sector remains robust, driven by increased consumer spending and the ongoing e-commerce boom. Net absorption has decreased by 70% from last year, yet rent growth in this sector continues to be the fastest among all commercial real estate segments. Regulatory incentives like energy credits and tax deductions from legislation such as the Inflation Reduction Act and the CHIPS Act support this positive outlook. Investors can explore financing options through industrial property loans, which cater to warehouses, manufacturing plants, and distribution centers.

Office Properties

The office sector faces challenges as utilization rates have stalled at around 50% of pre-pandemic levels. In Q3 2023, the national office vacancy rate reached 19.2%, with suburban markets outperforming downtown areas. Despite these fluctuations, there’s continued demand for Class A commercial space, driven by the normalization of hybrid working arrangements and companies re-evaluating their office needs. However, commercial mortgage rates for office properties are higher due to the sector's instability. Investors may find opportunities in office building loans.

Retail Properties

Retail demand surged in the last 18 months, leading to nearly 35 million square feet of new retail space across various shopping center types in 2023. Forecasts for 2024 anticipate stable performance, especially in neighborhood centers, with vacancy rates at a ten-year low of 4.1%. The sector faces potential challenges from inflation and recession risks, but essential services and neighborhood retail centers are expected to perform well. Retail properties with strong tenant profiles and long-term leases remain attractive to investors. Financing options for retail centers can be found in shopping center loans.

Hotel Properties

The hospitality sector continues to recover, with gains in average daily rates and revenue per available room. However, hotel occupancy is still lagging behind pre-pandemic levels by 2.9%. The sector faces challenges from higher operating costs and labor shortages, but the rebound in leisure travel and business conventions is supporting a positive outlook. Investors in hotel and motel properties are finding opportunities in markets with high tourism and business activity. Explore financing options for hospitality properties in hotel loans.

Select Commercial, a nationwide commercial real estate lender and broker, offers a variety of loan products for owners and purchasers of commercial real estate, including apartment buildings, industrial properties, office buildings, retail centers, and hotels. Our expertise and extensive experience enable us to provide competitive financing options tailored to your specific needs. Explore our commercial mortgage rates and use our commercial mortgage calculator to calculate monthly principal and interest.

Investment Property Loan - Types of Loans

• Apartment Loan – We are experts in securing apartment loans and mixed use mortgages. Sometimes referred to as multifamily loans, these types of loans have traditionally constituted the largest portion of our total business volume.
• Commercial Real Estate Loan – Select Commercial, a nationwide commercial real estate lender and broker, has excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate and apartment buildings throughout the country.
• Bad Credit Commercial MortgageMany borrowers who are self-employed, or have experienced credit problems, have difficulty qualifying for a commercial mortgage from their bank. We offer many loan options for borrowers with less than perfect credit.
• Bridge Loans – we are pleased to offer bowling alley loans for the purchase or refinance of bowling alley properties nationwide.
• Hard Money Commercial Mortgage Loans – Select Commercial has excellent options available for hard money commercial mortgage loans. Many borrowers who are self-employed, or have experienced credit problems, have difficulty qualifying for a loan at their bank.
• No Income Check Commercial Mortgage Loans Select Commercial has excellent options available for no income check commercial mortgage loans. Many borrowers who are self-employed, or have trouble submitting their tax returns, have difficulty qualifying for a loan at their bank. We offer many loan options based on Stated Income, and in many cases, do not require tax returns.
• No Credit Check Commercial Mortgage Loans – Many borrowers who are self-employed, or have experienced credit problems, have difficulty qualifying for a commercial mortgage from their bank. We offer no credit check loan options for borrowers with less than perfect credit.
• Self Employed Commercial Mortgage Loans Many self-employed borrowers have trouble submitting their tax returns, and have difficulty qualifying for a loan at their bank. We offer many loan options based on Stated Income, and in many cases, do not require tax returns. These loans are sometimes called Self Employed Mortgage Loans, No Income Check loans, No Income Verification loans, Stated Income loans, Lite Doc loans or NIV loans.