Different Types of Commercial Real Estate Loans

Our next podcast in our commercial real estate loans series is here, this time with a focus on the different types of commercial loans available.

There is a commercial real estate loan available for just about any type of property you’re interested in investing in. Let’s take a look at the different ways you can invest.

Featuring:
René Nelson, Eugene commercial real estate broker
Isaac Grant, Eugene commercial loan officer

Investing with Commercial Real Estate Loans – Part 2

René Nelson: Joining me today is Isaac Grant, Loan Officer with Oregon Community Credit Union. Hey, Isaac.

Isaac Grant: Hey, René. Pleasure to be here again.

René Nelson: Thanks. Okay, let’s talk about the types of loans that you do. What’s your sweet spot?

Isaac Grant: Yeah, we do a vast array of loans. If we’re talking specifically about commercial real estate loans, we’ll do everything from a small residential rental property, so maybe one to four units in size, all the way up to your larger apartment complexes. We’ll look at office space, retail. Typically market conditions dependent, so obviously there’s various factors but we’d look at hospitality, light industrial. At the moment, some of those entity types are a little bit more difficult for us to be able to finance. But most of the real estate property types, we’d be very willing to take a look at.

René Nelson: Wow, that’s great. Okay. And do you do SBA loans? And if you do, talk to the listeners about SBA. What’s the benefit of that?

Isaac Grant: Yeah. OCCU is just starting to get into SBA lending. So we haven’t done that historically. We’ve done SBA 504, which is commercial real estate specific, but we’re also beginning to get into the wider array of SBA products. So you’ll be seeing some more from us we hope here in 2021 with some announcements about the type of SBA lending that we’ll be able to do. At the moment we’ve been focused on SBA 504, but we are going to be opening that up to more and more of the SBA products that are available to the general public.

René Nelson: Okay. And SBA, you get to owner occupy. So this would be primarily for somebody that would be buying an office building, an industrial building and they have to occupy 51%?

Isaac Grant: Correct.

René Nelson: Okay.

Isaac Grant: For SBA 504, you have to occupy at least 51% of the square footage of that property.

René Nelson: Okay. And I’m going to pepper you with questions in the next couple of series but for an SBA loan, how many years of tax returns do you need to see to get them qualified?

Isaac Grant: Typically, we’re going to want to see a minimum of three years of tax returns.

René Nelson: Okay. So if you’re a new business, you may not be ready yet, but you will always want to talk to Isaac to find out how to get your ducks in a row. Isaac, give them your phone number.

Isaac Grant: It’s (541) 681-6418.

René is available to answer your real estate investment questions. Schedule a 15-minute discovery call to better understand your investments and the market today.

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