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Commercial Income Producing Properties

Income property loans are to finance or refinance the construction, renovation and/or ownership of an operating property, e.g., office buildings, warehouses, apartment buildings, hotels/motels, etc.  These rely upon third party lease income as the primary source of repayment.

In the commercial real estate field, income producing loans are used to finance the purchase or renovation of properties intended for rental or lease. These properties may be intended for residential or commercial occupation and provide an ongoing source of income for the company through lease or rental payments. Income producing real estate loans are generally secured by using the property itself as collateral. Lenders may consider the credit history of the company, its projected ability to repay and the overall occupancy rates and real estate market in the area of the proposed purchase when evaluating the loan applications. For existing buildings, the current occupancy rate and rental incomes may be taking into consideration as well; new construction will require additional due diligence on the part of the lender before income producing property loans can be approved. Borrowers should also consider these factors, as they are likely to have a significant impact in the overall profitability of the business venture once construction, renovation or purchase has been completed. Steps should be taken to retain current tenants and to achieve full occupancy in order to ensure maximum profitability for the new business venture.

The CNF Exchange online platform can allow borrowers to identify the most financially advantageous income producing loans for their particular situation. By uploading their funding application through the CNF Exchange website, commercial real estate management companies can make their case for funding directly to lenders and can more readily obtain the funding they need for their acquisition or construction project.


commercial-income-producing-properties Funding Source Registration