Avatar's Blog
» Owner Occupied Investment Properties
Hard money commercial lenders are generally restricted to funding commercial and investment residential real estate properties only. They are generally not licensed to provide residential mortgages. In some cases, such as with Avatar Financial Group, the company is able to lend on owner occupied residential real estate in one or states - Avatar is able to lend on owner occupied residential real estate in the states of Washington and California.
If you occupy a commercial property, using it as your place of business, then you have an owner occupied commercial property. You or your company, whether a sole proprietorship or a corporate entity, can own the property. If you own commercial property and rent or lease that space to other parties, you have a non-owner occupied or investment commercial property. If you us part of the property and rent or lease the balance, it may be referred to as a mixed use commercial real estate property.
These distinctions become important when asking for a hard money commercial bridge loan. Learn in advance whether the lenders you are communicating with fund the specific situation or type of property you own or wish to purchase. Ask about whether rates, points and fees will differ. This knowledge can save you time and money.
