CRE Frequently Asked Questions

FAQs – Commercial Hard Money Loan

Hard Money Loan Definition – A “hard” money loan is called such because it is backed by a tangible property—a “hard” asset that quickly produces enough income to pay off the loan.

It’s an alternative way to get funding without using conventional mortgage lenders like banks or government-regulated financial institutions. Instead, the funds come from private money lenders.

FAQs – Commercial Real Estate Investment

Commercial real estate or CRE refers to property used solely for business purposes. CRE’s six categories are office space, retail, industrial, multi-family rentals (apartments with five and more units), land, and miscellaneous.

CRE investments provide rental income and the potential for capital appreciation. Also, refer to the wiki definition for commercial property.

FAQs – Commercial Mortgage Loans

Commercial mortgages are property loans that are uniquely delegated to purchasers of real estate assets considered “commercial.” Unlike residential property loans that are granted to individuals, commercial mortgages are made out to businesses.

This is why, if you want to be a commercial real estate investor, you have to form an s-corporation or a limited liability company.

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