Lender Types

There are many different types of institutions that offer commercial mortgages, bridge loans, or hard money loans. An introduction to different lender types is shared below.

Borrowers who request multiple loan offers through InvestmentProperty.loans can connect to a variety of different types of lenders directly, without going through a broker. This can ultimately save borrowers from paying extra fees down the line, and can help them enjoy a faster time to close.

Small Balance
Some non-bank lenders specialize exclusively in offering financing from $250,000 to $5M on commercial real estate (typically including multifamily, mixed-use, office, retail, light industrial, self-storage, automotive, mobile home park, daycare center, restaurant, bar and warehouse property types). Certain community and regional banks also focus on small-balance lending.

Small balance commercial lenders are ideal partners for owner-operators and investors seeking mortgages of $5M or less, since they specialize in understanding the upside on loans that larger lenders may avoid.

Large Balance
A variety of different lenders focus on large-balance loans of more than $5M, with banks being the most common. Large balance lenders may be commercial banks, investment banks, syndicates of banks, or a more specialist lender type – such as a conduit lender, insurance company, or government agency. (See ‘Lender Categories’ for more information.)

Focused on Property or Loan Purpose
Some non-bank lenders opt to focus on asset classes or loan purposes in which they have specialized underwriting expertise: Lending only to a particular asset class (such as apartment buildings or hotels) or offering loans only for a defined reason (such as refinances or renovations).

By submitting your quote request through InvestmentPropertyloans, you can receive offers from lenders focused exclusively on the type of property or purpose you’re seeking, which can otherwise be difficult: Lenders of this nature tend to work with repeat borrowers who have extensive track records of experience in their desired property types or loan purposes.


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