Vanguard Properties
Kyla Brooke, Vanguard PropertiesPhone: (707) 481-0098
Email: [email protected]

What is a commercial mortgage?

by Kyla Brooke 05/24/2023

What is a commercial mortgage featured image

As your business expands and becomes more profitable, you may find yourself on the hunt for a commercial property. Acquiring a commercial mortgage can give you more leeway as a business owner to find a building or complex best suiting your trade. 

Understanding commercial mortgages

A commercial mortgage, also known as a business mortgage, is a loan used to purchase property for the operation of a business. 

A business property is often used to store inventory, as office space for retail operations and more. You can also use a commercial mortgage to refinance a commercial property you already own to make loan terms more agreeable. 

Residential loans versus commercial real estate loans

A commercial loan is usually awarded to corporations, trusts and developers and terms usually fall between 5 and 20 years. 

Residential mortgages are awarded to individual borrowers, often who are seeking residential properties (such as a house to live in), with a 30-year term being the most popular option. 

How do I qualify for a commercial mortgage?

To qualify for a commercial mortgage loan, the property being purchased or refinances should be occupied by no less than 51 percent of your business venture. After this is disclosed, lenders consider the location, profit, credit history and other financial factors to determine if giving you a loan is a good investment. 

A residential mortgage is often associated with higher interest rates and fees, so it pays to shop around as a business owner. Working with a commercial mortgage lender, you can hunt down the best loan plans offering interest rates and terms to your liking.

About the Author

Kyla Brooke

With a passion for real estate, my background as a Licensed Marriage Family Therapist, successful real estate investor, property manager for my own real estate ventures, business owner, educator, and strategic planner brings you:
  • Excellent listening, communication, and negotiating skills
  • Ability to clarify goals and issues.
  • Excellent problem-solving skills.
  • Management & marketing skills, with attention to the big picture and to the details.
  • Knowledge of houses, both funky and fine.
  • Knowledge of the housing market, both locally and nationally.
  • Patience and humor.
Why work with me:   
  • Support in clarifying and achieving your real estate goals.  
  • Consistent sales record in both appreciating and downturn markets.
  • One of the Top 5 Producing Agents in the Russian River, 2022-2012, A Vanguard Top Producer in Sonoma County 2022-2014.
  • Member of Top Agents Network (Requires being in the top 10% of Market Share).
  • A Team of Real Estate & Construction Professionals to make your transactions easier. 
  • Ease in transactions and step-by-step support throughout the buying and selling process and     
  •                beyond.
  • Knowledge of real estate in the Russian River, Sonoma County & knowledge of national markets.
  • Investment and property management experience in the Russian River area.
  • Best tools for creating custom marketing for you and your property needs for both sellers and buyers.
  • Amazing negotiating skills.
I love Sonoma County and the Russian River area. With a long-term interest in affordable housing and in improving the quality of people’s lives, I am actively involved on a community level in social and cultural issues, in life transitions, and in issues related to aging. My life work is about making sure that you can have the greatest quality of life possible. I have sold the Blue Heron, The Pink Elephant & Patterson Point Preserve. This involved creating a grant with Sonoma County Agricultural & Open Space District and devising a loan plan for individuals in the community to provide the additional funds necessary to purchase this exceptional property. I am a creative thinker and am able to market and sell properties of many kinds. I also have worked on issues relating to water, septics, and riparian habitat in the Russian River area on both the county and state levels. Adventurous, curious, and open-minded with a background in trauma and disaster mental health, I work predominantly by referral, which means that I spend time making sure that you receive excellent care. I am NEVER too busy for you and for your referrals, and know how to go the extra mile for you. Now, let’s get down to business!