Commercial Real Estate
Commercial Real Estate Financing
Capital for commercial property — acquisition, refinance, and improvement — structured around the property's income and value, not just the borrower's personal income.
The short answer
Commercial real estate financing is capital secured by commercial property — office, retail, industrial, multifamily, or mixed-use. It is distinct from general business-purpose financing: the property's income, value and debt service coverage shape what is available, not only the borrower's personal income. Structures include commercial mortgages, DSCR financing (qualification centered on the property's cash flow), bridge financing, and construction financing. This page does not publish rates, LTV maximums, DSCR minimums or closing times — those depend on the provider and program.
Key takeaways
What to know first
Commercial real estate financing is secured by the property — it is not general business-purpose capital.
DSCR financing qualifies on the property's cash flow, not primarily on personal income.
Loan-to-value (LTV) and debt service coverage ratio (DSCR) are core concepts that shape availability — but no specific maximums or minimums are guaranteed.
Structures include purchase, refinance, cash-out refinance, bridge, fix-and-flip, and construction financing.
Nifty is a capital platform, not a direct lender. We do not publish rates, LTV maximums, DSCR minimums or closing times.
What it is
Commercial Real Estate Financing, explained
Commercial real estate financing is capital secured by commercial property — office, retail, industrial, multifamily, mixed-use, or investment property. Because the property itself secures the financing, the structure, cost and documentation differ from unsecured business financing. The property's income, value and the borrower's experience all shape what is available.
It is distinct from general business-purpose financing. A working-capital loan or a term loan funds business operations or growth; commercial real estate financing funds the property itself. The qualification often centers on the property's ability to cover its debt payments (the debt service coverage ratio, or DSCR) rather than only on the borrower's personal income.
How it works
The process, end to end
- 01
Tell us about the property and the deal — purchase, refinance, or improvement.
- 02
Provide property and entity documentation, including operating statements and rent roll for income-producing property.
- 03
Review financing options made available, including the structure and the provider's process.
- 04
Complete appraisal, due diligence and closing with the provider.
Right fit
When it fits — and when it doesn't
When it fits
- Acquiring an investment or owner-occupied commercial property
- Refinancing existing commercial debt or accessing equity
- Renovating or repositioning a property
- New construction or ground-up development
- Expanding a portfolio across multiple properties
When it may not
- Covering operating gaps like payroll or inventory — that is working capital.
- Buying equipment or a vehicle — that is equipment financing.
- A general business investment that is not property-related — a business term loan may be a better fit.
Structures
How this financing can be structured
Commercial Mortgage
Real estate financingFinancing for office, retail, industrial and mixed-use properties, secured by the property.
DSCR Financing
Real estate financingQualification centered on the property's debt service coverage ratio rather than primarily on personal income.
Investment Property Financing
Real estate financingCapital for income-producing residential and commercial investment properties.
Bridge Financing
Real estate financingShort-term capital to acquire or reposition a property before longer-term financing.
Fix & Flip
Real estate financingAcquisition and renovation capital for properties intended for resale.
Construction Financing
Real estate financingCapital drawn in stages to fund construction and major renovation.
Cash-Out Refinance
Real estate financingRefinance an existing property and access a portion of its equity.
Compare
Commercial real estate structures at a glance
| Structure | Best suited for | Concept |
|---|---|---|
| Commercial mortgage | Acquiring or refinancing a property | Long-term financing secured by the property |
| DSCR financing | Investment property where cash flow qualifies | Qualification on the property's debt service coverage |
| Bridge financing | Acquiring or repositioning before long-term financing | Short-term capital, then refinance |
| Fix & flip | Properties for resale | Acquisition + renovation, then sale |
| Construction financing | New construction or major renovation | Capital drawn in stages |
Eligibility
What may affect availability
- Property type and condition
- Property value and loan-to-value (LTV)
- Property income and debt service coverage ratio (DSCR)
- Borrower and sponsor experience
- Credit profile and liquidity
Prepare
Documents you may need
- Purchase contract, if applicable
- Rent roll and leases (for income-producing property)
- Property operating statements
- Schedule of real estate owned
- Entity formation documents
- Government-issued identification
Cost & structure
Understanding the cost
Commercial real estate financing cost depends on the property — its type, value, income and condition — alongside the borrower's experience and profile. No rates, LTV maximums, DSCR minimums or closing times are published here; they depend on the provider and program.
Use the DSCR calculator below to estimate a property's debt service coverage ratio before you build your profile.
In practice
In practice
An investor acquires a multifamily property using DSCR financing, qualifying on the rent roll's ability to cover debt payments.
An operator refinances an industrial property to access equity for a portfolio expansion, structuring a cash-out refinance.
Tool
Run the numbers first
DSCR Calculator
Estimate a property's debt service coverage ratio before you build your capital profile — so you know how the property's income relates to its debt.
How Nifty works
From profile to funded
- 01
Tell us about the property and the deal — purchase, refinance, or improvement.
- 02
Provide property and entity documentation, including operating statements and rent roll.
- 03
Review financing options made available, including the structure and the provider's process.
- 04
Complete appraisal, due diligence and closing with the provider.
Understand before you choose
Questions.
Next step
Build Your Capital Profile
Tell us about your operation. We'll route your request to the structure that fits — no obligation to accept any option.