What do the majority of commercial and industrial properties use for financing ?

[MIchael McCUe]

I’ve always wanted to know 

Interest only ? Or conventional ?

[Zachary Ware]

When it comes to financing, the options vary based on the type of property:

Residential (1-4 units): Financing for residential properties typically includes conventional 30-year fixed debt or interest-only loans. Interest-only loans can provide greater cash flow in the early years, but the entire principal balance will need to be paid down later.

Smaller multifamily properties (up to 10 or 12 units): Financing options for these properties often include 30-year fixed debt or DSCR loans, which evaluate the property's income potential rather than focusing solely on personal income.

Larger multifamily properties: As properties grow in size, financing options shift towards banks or agencies specializing in multifamily loans. These loans often involve a balloon payment at the end of 5-10 years, requiring the principal balance to be paid in full.

It's important to keep in mind that options and terms may vary depending on factors such as property location, borrower qualifications, and market conditions. Working with a knowledgeable mortgage professional or loan officer is recommended to explore the most suitable financing options for your specific property and financial goals.