Briefly, commercial real estate (CRE) is any property owned to produce income. This includes:

• property owned by investors to rent or lease to businesses or residential tenants

• property owned or leased by a business (i.e. storefront, office) to conduct business

• property that is owned or occupied by nonprofit organizations

• property that is owned or occupied by religious organizations

Examples of CRE properties are:

• multifamily (residential apartment building)

• mixed-use (combination of residential and retail or office units)

• office

• retail

• industrial

• land

There are 6 main property types:

1. Multi-unit/family (apartment buildings)

2. Mixed Use (combination of retail or office space and residential apartments)

3. Office

4. Retail

5. Industrial

6. Land

According to most definitions, residential real estate includes single family homes, condominiums, co-ops and typically, smaller (4 units or less) apartment buildings. These properties are usually owner occupied. At R4 Commercial we include 2-4 unit apartment buildings in the multi-family space because of the owner’s ability to lease units to produce income.

A typical loan for a commercial property is a 5-year balloon. That said, there are programs that offer longer mortgage loan terms for multi-family properties and owner-occupied businesses. These programs require certain conditions to be met.

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