Small balance commercial lending (from $100k to $3Million) has become a hot market over the last several years as Wall Street investors have recognized the significance (and returns) from the pools of performing loans. As the small commercial mortgage industry gains momentum, rates and programs will become more and more competitive and offer programs for what used to be considered "local bank" or "hard money" paper.

Another advantage of working with these small commercial lenders is that, in most cases, you do not need a complete phase I environmental report. Instead the lender takes out an an environmental insurance policy which the borower pays for. These policies generally cost around $2,000 versus $10,000 to $20,000 for a full phase I report. This also allows them to loan to businesses that have difficulty getting standard commercial loans - such as auto repair shops.

These type of loans also close quicker than most commercial loans because they are not going to tie the borrower up with all the red tape paperwork that a bank may ask for. Approvals are usually with 48 hours and closing is usually 30-45 days. The appraisal takes the longest time so if time is of an essence and the business is looking for permanent financing, these small commercial resoruces are the way to go.

Mixed Use Properties are also considered small commercial.
A Mixed Use Property is a building that has commercial space on the street level (can be a restaurant, store etc...) and on the 2nd and/or 3rd floor are residential apartments.
In New York City there are thousands of mixed use properties.
Financing is available on these types of proprieties by calling 888-920-0123 x302 or at info@charleslight.com