Income Property Loans

Those of you in need of income property loans right away can submit your applications using C-Loans.com, the most popular of the income property loan portals. It takes just four minutes to complete a mini-app for any of the various kinds of income property loans. You then select six of the suggested income property lenders and then press, "Submit." Within minutes a half-dozen, hungry, income property lenders will respond to your application. And C-Loans.com is free! Click here to submit applications for income property loans.

There are six different types of income property loans - permanent loans, second mortgage loans, construction loans, takeout loans, bridge loans and mezzanine loans. Below we will explain each of these types of income property loans.
Types of Income Property Loans

Permanent loans are the kind of income property loans that most commercial property owners use. A permanent loan is an income property loan in a first mortgage position and with a loan term of at least five years. Banks make a lot of income property loans that would be considered permanent loans. If you refinance your commercial center or an apartment building, this new first mortgage is usually considered a permanent loan.

Of all of the income property loans made annually by commercial lenders, very few of them are second mortgage loans. The reason why is because a great many income property lenders that used to make second mortgage loans were completely wiped out in the commercial real estate depression of the early 1990's.

Commercial construction loans are used to build apartment buildings, commercial buildings and industrial buildings. If the developer or sponsor is willing to contribute 35% to 40% of the total costs of the project, it is still possible to get a commercial construction loan during the current economic slump; however, of all the income property loans made recently, very few of them were commercial construction loans. Commercial banks are the lenders making most of the commercial construction loans these days. Most commercial construction loans have a term of 18 months or less.

Takeout loans are just permanent loans that are used to pay off commercial construction loans.

Bridge loans are short-term income property loans that are used while a property is in transition. For example, a speculator might use a bridge loan to buy a foreclosed and empty commercial center from a bank. The new owner then fixes the commercial property up, leases it out, and then refinances the property when it is stabilized. Bridge loans are the favorite kind of income property loans made by hard money lenders. Bridge loans usually have a term of less than 2 years (often just one year), and they are the most expensive of the various kinds of income property loans.

Mezzanine loans are the most complicated and sophisticated of the various kinds of income property loans. A mezzanine loan is a large loan (usually $3 million or larger) that is made when the commercial property already has a large (usually $10 million or larger) first mortgage in place. The mezzanine lender makes a loan to the LLC that owns the commercial property, and the loan is secured, not by a mortgage on the property, but rather by the membership interests (think of them like stock) in the LLC. Most of us mortals will never be involved in a deal involving a mezzanine loan, but the big boys in New York City use mezzanine loans to finance those $50 million office towers.

C-Loans.com® is sponsored by C-Loans, Inc. — For more information, contact Alicia Gandy
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Department of Real Estate -- License Number 01330173
Read our many client Success Stories.









Income Property Loans Those of you in need of income property loans right away can submit your applications using C-Loans.com, the most popular of the income property loan portals. It takes just four minutes to complete a mini-app for any of the various kinds of income property loans. You then select six of the suggested income property lenders and then press, "Submit." Within minutes a half-dozen, hungry, income property lenders will respond to your application. And C-Loans.com is free! Click here to submit applications for income property loans. There are six different types of income property loans - permanent loans, second mortgage loans, construction loans, takeout loans, bridge loans and mezzanine loans. Below we will explain each of these types of income property loans. Types of Income Property Loans Permanent loans are the kind of income property loans that most commercial property owners use. A permanent loan is an income property loan in a first mortgage position and with a loan term of at least five years. Banks make a lot of income property loans that would be considered permanent loans. If you refinance your commercial center or an apartment building, this new first mortgage is usually considered a permanent loan. Of all of the income property loans made annually by commercial lenders, very few of them are second mortgage loans. The reason why is because a great many income property lenders that used to make second mortgage loans were completely wiped out in the commercial real estate depression of the early 1990's. Commercial construction loans are used to build apartment buildings, commercial buildings and industrial buildings. If the developer or sponsor is willing to contribute 35% to 40% of the total costs of the project, it is still possible to get a commercial construction loan during the current economic slump; however, of all the income property loans made recently, very few of them were commercial construction loans. Commercial banks are the lenders making most of the commercial construction loans these days. Most commercial construction loans have a term of 18 months or less. Takeout loans are just permanent loans that are used to pay off commercial construction loans. Bridge loans are short-term income property loans that are used while a property is in transition. For example, a speculator might use a bridge loan to buy a foreclosed and empty commercial center from a bank. The new owner then fixes the commercial property up, leases it out, and then refinances the property when it is stabilized. Bridge loans are the favorite kind of income property loans made by hard money lenders. Bridge loans usually have a term of less than 2 years (often just one year), and they are the most expensive of the various kinds of income property loans. Mezzanine loans are the most complicated and sophisticated of the various kinds of income property loans. A mezzanine loan is a large loan (usually $3 million or larger) that is made when the commercial property already has a large (usually $10 million or larger) first mortgage in place. The mezzanine lender makes a loan to the LLC that owns the commercial property, and the loan is secured, not by a mortgage on the property, but rather by the membership interests (think of them like stock) in the LLC. Most of us mortals will never be involved in a deal involving a mezzanine loan, but the big boys in New York City use mezzanine loans to finance those $50 million office towers. Those of you in need of income property loans right away can submit your applications using C-Loans.com, the most popular of the income property loan portals. It takes just four minutes to complete a mini-app for any of the various kinds of income property loans. You then select six of the suggested income property lenders and then press, "Submit." Within minutes a half-dozen, hungry, income property lenders will respond to your application. And C-Loans.com is free! Click here to submit applications for income property loans.				Apply for a Commercial Loan List of Lender Phone Numbers Learn Commercial Mortgage Finance Find Your Own Private Investors Intermediate Commercial Mortgage Training Market for Commercial Loans Fee Collection Course Earn Referral Fees in Your Sleep Combo Packages Cool Mortgage Broker Stuff Cool Lender Stuff Cool Realty Agent Stuff Cool Builder Stuff Commercial Real Estate Loan Tips Construction Loan - Apply Past Newsletters Subscribe to C-Loans Newsletter Loan Servicing Software Commercial Real Estate Loans Construction Loans Structured Finance Hard Money Loans Bridge Loans Land Loans Acquisition and Development Loans Contact Us


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