GCF Direct-Asset Based Commercial Real Estate Financing

Investment Property Loans

Investment property loans offer a familiar starting point.

Residential rental properties like single-family homes, condominiums, townhomes, and small apartment buildings provide the perfect opportunity for brokers to grow their business by adding investment property loans to their offering.

Most brokers are already familiar with these properties, so the move from consumer home loans to rental property loans provides a fast track for creating a new revenue stream without having to change the way they already do business. All that need, is a simple two page Loan Application.

At Gateway Capital Funding, we add value by providing a smart, fast and easy way to fund residential investment property loans. Submitting a loan is a familiar process. 

As a direct lender, we have the freedom to set our own underwriting guidelines. And because our common-sense, asset-based lending approach is focused on the property’s value and revenue-generating potential instead of the borrower’s personal income, you’ll have the ability to fund loans that traditional lenders can’t.

Our rental property loan financing specialists are experts at qualifying W-2 and self‑employed real estate investors — the extraordinary people who drive the residential investment property market. You’ll have the ability to attract an entirely new set of clients with investment property loans built to meet their needs, including:

Flex Perm Loan: An uncomplicated option that combines the security of a fixed-term loan with flexible fixed-term lengths and the option to remain in the loan for up to 30 years with no balloon payment.

Credit Quick Fix Loan: An interim solution designed for investors with minor credit issues seeking a lower-cost, interest-only, short-term loan as an alternative to hard money financing.

ARV Pro Loan: Designed for “fix-and-flip” investors looking for a short-term, interest-only loan to acquire and improve a residential investment property based on its “as repaired value” (ARV).

Multi-Family Financing for Apartment Buildings

We make financing for apartment buildings easy.

Offering financing for apartment buildings, otherwise known as multi-family properties, is an excellent strategy for brokers to expand their business offerings and client base.

To qualify as a multi-family investment property, the building must have five or more dwellings (apartments), whereas buildings with four or fewer units are still classified as residential 1-4 investment properties in most states.

To real estate investors, a multi-family apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.

While a larger multi-family property lowers the risk for investors, it’s important for brokers to communicate that lenders typically assign a higher risk profile to apartment building loans since the properties are harder to liquidate than smaller residential investment properties.

Lenders often use a lower LTV in financing an apartment building to offset the increased risk, so your borrower may need to provide a larger down-payment.

If you have investors interested in financing for apartment buildings with five or more units, our asset-based mortgage programs can help you meet the needs of self-employed borrowers who often invest in multi-family buildings and write off their expenses against income. While this is a wise tax-saving strategy for real estate investors, it reduces the borrower’s personal income and may make it difficult to qualify them for a traditional mortgage loan.

Asset-based investment property mortgage programs are an excellent alternative because they focus on the value of the property and its revenue-generating potential, thus eliminating the personal income reporting requirements of traditional loans.

Our FlexPerm loan is a great option for multi-family property investors since it offers:

• A simple financing solution on a purchase or cash-out refinance.
• A 30-year fixed term loans amortized over 30 year
• The flexibility to remain in the loan for up to 30 years with no balloon payment.
• Lower monthly payments than a hard money loan.

Mixed-Use Property Financing

Understanding the differences between mixed-use property financing.

Mixed-use property financing applies to properties that are comprised of multiple units zoned for different uses, including residential, commercial, industrial and institutional. Almost any building with at least two units of different usage qualifies for mixed-use financing.

Both business owners and real estate investors may seek a mixed-use property loan. Business owners will often live in one of the residential units and operate out of the commercial space while real estate investors will typically act as the landlord for both the residential and commercial tenants.

While residential tenants provide a more stable source of rental income, commercial tenants, such as ground-floor retail, are usually willing to pay more for rent. Therefore, commercial tenants play an important role in evaluating the revenue potential of mixed-use properties. As a result, the value of two different buildings in the same area may differ simply because of the composition of their tenants.

Our FlexPerm mixed-use property financing program offers your investors easy qualification on the purchase or cash-out refinance of a mixed-use building and includes the flexibility to remain in the loan for up to 30 years.

Since our FlexPerm loan is asset-based, personal income isn’t required. The loan amount is based on the value of the property and its revenue-generating potential. This is where our expertise in evaluating the tenant mix and value of mixed-use buildings is essential in approving loans for self-employed investors and small business owners.

Commercial Real Estate Loans

We’re big on small-balance commercial real estate loans.

Small business owners and investors utilize small commercial properties nationwide to support and operate their businesses. We believe strongly in this type of asset and have developed financing solutions for commercial real estate loans designed specifically to help entrepreneurs achieve their vision of real estate ownership.

Whether you are a seasoned commercial mortgage broker or thinking about offering small-balance commercial real estate loans for the first time, it’s important you understand how the type of property financed can affect the commercial loan terms.

From a lender’s perspective, commercial buildings with more general use capacity like a retail, warehouse or office space are easier to finance than properties built for a specific purpose (i.e., bowling alley, bank or manufacturing plant) because they have an inherently lower risk due to higher market demand from investors. Lenders often avoid financing specific use properties or require a lower LTV (e.g., higher down payment) on them to offset their higher risk profile.

At Gateway Capital Funding, we provide loans for a wide variety of commercial properties, including:

• Office Buildings
• Retail Stores
• Warehouses
• Self-Storage Buildings
• Automotive Repair Shops

While we do provide investment property financing for up to $5 million on small-balance commercial real estate buildings, most of our commercial real estate loans fall under $2 million in value. These smaller loans are much easier to approve and close in comparison to “institutional” loans for larger properties, so they’re a great place to start if you’re a broker who hasn’t done commercial real estate loans in the past.

Starting with smaller, easier-to-approve buildings will help you establish your commercial mortgage lending practice. Once you’ve completed a few commercial loan deals, you can quickly move on to larger properties to generate more revenue per deal.

Less frustration. More inspiration.

We know small business owners and investors only have a short runway to get their vision up and running. Our uncomplicated, asset-based commercial loans are designed to help you give them the Gateway Capital Funding they need to acquire or refinance properties quickly and easily.

Less paperwork, flexible terms and the freedom to look beyond a borrower’s personal income, allow us to offer investors funding options beyond what’s traditionally available to them. Whether your client needs a loan for a new property or a cash-out refinance, the terms of our commercial loans will make it simple to qualify.

Our FlexPerm Loan has many benefits for commercial real estate investors and small business owners:

• A simple financing solution on a purchase or cash-out refinance.
• Flexibility to remain in the loan for up to 30 years.
• Lower monthly payments than a hard money loan.
• A 30-year fixed term loans amortized over 30 years

We are just a call away, call us at 1.888.598.8319