Types Of Commercial Property That Banks Will Finance

Before we move on to the topic what kind of properties banks finance. First we need to understand "Banks". Banks are portfolio lenders. They are "portfolio" lenders because they tend to originate loans for their own portfolio (usually adjustable rate loans), not for resale in the secondary market. They have no intention of resale in the secondary market. This enables banks to underwrite the loan or structure the payments in a way that they feel appropriate.

The second significant thing to understand about banks is that they will finance almost any type of income producing property - as long as the borrower is making lots of money and keeps a health bank account.

Now here is a list of the possible property types that a commercial bank will finance as long as it's earning money for the owner who keeps a big chunk of cash in bank:

• Congregate Care Facilities
• Agricultural or Ranch Properties - If the bank has special expertise in underwriting them
• Marinas - Must enjoy good occupancy and a good cash flow
• Mobile Home Parks
• Convalescent
• Hospitals
• Industrial Buildings
• Commercial or Retail Buildings
• Hotels & Motels - Must be either flagged or making tons of money.
• Churches - Only filthy rich ones in superb neighborhoods
• Cooperatives - Requires special expertise
• Land - Purchase money deals for experienced developers greatly preferred.
• Assisted Living Facilities
• Apartment Buildings
• Parking Garage - Needs to be making reliable money
• Auto Repair
• Shopping Centers / Strip Centers (Mini-Malls)
• Skilled Nursing Facilities
• Mixed Use Property - Apartments over retail or commercial very acceptable
• Office or Commercial Condo's
• Office Building
• Restaurants - Needs to pay lots of taxes and the owner must keep lots of cash.
• Self Storage - Ideally they should be gated

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