Investment Property Loans
Investment Property Loan Mortgage Rates - Rates updated December 3rd, 2021
|Loan Product||Rates (start as low as)||LTV|
|Commercial Mortgage Rates||3.64%||Up to 75%||Get Free Quote|
|Apartment Building Mortgage Rates||2.65%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.62%||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.
Investment Property Loans include:Apartment building loans - apartment properties are a great way for small and large investors to invest in commercial real estate. In today’s economy, many people are choosing to rent rather than purchase a home. The market for apartment building purchases is very strong and many investors are choosing to buy apartment buildings as investments.
Commercial mortgage loans - other common types of investment property loans are loans used to acquire or refinance office buildings, retail properties, warehouse and industrial properties and many other types of income producing properties. Many of these properties contain multiple tenants while others might be single tenant properties. Some examples might include a supermarket anchored retail shopping center, a suburban office property, or a single tenant chain drugstore. Regardless of the type, these properties often yield returns that are higher than other current investments.
Portfolios of single family homes – some investors choose to own many single-family homes for rental purposes. These investors often find that residential lenders have a maximum number of home loans that they will approve for one borrower. We are able to make one commercial mortgage covering an entire portfolio (minimum 5 properties) of these properties. This type of investment mortgage allows an investor to obtain additional cash to acquire more investment properties.
At Select Commercial, we specialize in investment property loans beginning at $1,000,000. We offer excellent long-term fixed rates and common sense underwriting. Our application process is simple, we do not charge any application fees, and we typically offer pre-approvals within 1 to 2 days.
If you are looking to invest in commercial real estate or purchase an investment property, and are looking for financing, we look forward to speaking with you. Please call us today at 1–877–548–9454 for a free quote.
Benefits of our Investment Property Loan program:
Investment Property loan rates start as low as 2.65% (as of December 3rd, 2021)
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on apartments, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Investment Property Loan Outlook for 2021 - Commercial Mortgage Rates
The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021.
With regard to investment property loans, availability of mortgage capital and interest rates will be determined by the property type and location of the property. Borrowers seeking investment property loans for an apartment building in a prime location will find it much easier to secure attractive investment property financing. On the other hand, hard hit retail properties in tertiary markets will find less availability of funds, lower loan to value ratios and higher rates. In 2021, property type and location have been key.