How to Finance Your First Commercial Property

Are you currently underwriting apartment buildings and wondering how to finance a commercial property?

If you want to close faster, with fewer surprises, and higher odds of approval — this post is for you.

Getting a commercial real estate loan isn’t as straightforward as running a credit check and getting approved for a certain amount.

Several factors are involved including how your deal is structured [SEE: Syndication] , Net Operating Income (NOI), location of property, and who’s advocating for it behind the scenes.

Every lender has their own rules and deal preferences.

Every broker charges their own fees.

And most commercial real estate investors get stuck with the wrong loan, no loan at all — or worse, points and/or junk fees, they did not agree to prior to getting to the closing table.

As you can already see, the commercial financing world can feel like the Wild, Wild West.

So here’s a fun fact:

80% of commercial real estate loans are declined by the bank.

Why? Because the banks are looking for low risk deals since they are loaning your money – and grandma’s $20,000 CD. The deal types they prefer are usually:

Turnkey, Class A
Cash flowing
Minimal risk
Higher dollar deals
And an investor with high net worth, 800 credit score, and good liquidity in the outside event the deal goes sideways.

But here’s the irony: most real-world Commercial Real Estate deals that need funding are small value-add deals. They need updates, repositioning, or elbow grease because that’s how we boost rents, increase NOI, and create the value in ‘value-add’.

Since the bank is not likely to fund this deal, you will reach out and find a commercial mortgage broker like yours truly (because most lenders don’t work direct with borrowers). Their financial institutions are not structured to be handling – ‘how do I’ calls all day, with very low percentage of approvals.

At Live Better Capital, we do things differently. We try to automate part of the transaction to handle a bit more deal flow, without compromising human relationships. On the lender side, we try to work with those whose fees are more favorable with our small balance borrowers. Finally, we use smart data mapping to connect your deal with the lenders that actually fit.

This means you benefit from more reputable lenders, better odds of approval, faster closings, and no more guesswork.

Now, that we’ve gotten that out of the way, here’s where the real work for you begins!

🔍 Step 1: Understand What Lenders Really Want

Before you apply, know this: lenders are focusing more on the property and it’s value-adds than your credit score. Does your credit score, matter? Yes, in terms of your ability to manage money. But again, different lenders weigh more emphasis on different factors. And there are options such as guarantors and debt sponsors, depending on your deal type and structure.

This list below is very condensed.

If you want to know more about what you’ll need, take our funding quiz/scorecard.

But here’s where you can start:

✅ A solid deal – with income, equity, or exit potential
✅ Liquidity – enough reserves to cover fees, carry, or surprises
✅ Clear documents – no missing pieces, no fuzzy math
✅ Responsiveness – a single point of contact who keeps things moving. Bonus, they are business-minded and not an a-hole.
✅ Character – yes, it still counts (and no, we don’t mean the ‘memorable’ type)

💡 Pro Tip: Experience helps a lot, but some lenders are flexible if the deal is strong and the paperwork’s tight. But be advised you will pay slightly higher rates.

⚡ Step 2: Start with a 1-Minute Pre-Qual (Self-Assessment).

We’ve made it super simple to get started — no 15-page PDFs or financial interrogations or credit checks or document collections.

Take our Funding Readiness Quiz to quickly assess your strengths and gaps.

From there, you’ll be able to:

Schedule a fast strategy call
Securely upload your documents via our encrypted portal
Get clarity before anything goes to underwriting (we discourage sending everything to the lender without a second set of eyes. Sometimes, they can’t unsee things)!!

🛠 Step 3: Let Us Do the Hands On Work

Once we’ve got your info:

✅ We verify your docs — clean, signed, lender-ready
🔍 We match your deal to lenders using our national database with heatmap
🎯 We handpick the top options — not just anyone who’ll say yes
📩 We push for term sheets — often within days
🚀 We manage the timeline all the way through closing

Depending on your loan type, deals can close in 3 weeks or less — sometimes faster. SBA 7(a) express loans are a little longer. They take 60 days to close. These variable rate loans have lower down payment requirements and are ideal for businesses where you will occupy the building and maybe live above.

💰 Types of Commercial Real Estate Loans We Offer (Even When Banks Say No)

We’re not married to any one lender or product. Instead, we help you choose based on your strategy and situation:

Commercial DSCR Loans – cash-flow based, no tax returns
Bridge Loans & Hard Money – fast closings, high flexibility
Mixed-Use Property Financing – even if the big banks won’t touch it
SBA 7a Loans – for owner-users and expansion plays
DSCR & Fix & Flip/Hold Loans – perfect for residential investment properties

You bring the deal. We bring the funding strategy and capital.

✅ Step 4: What Makes a Deal Close Faster (and Easier)

Want to get to the finish line with fewer headaches?
These factors can tip the scale in your favor:

📈 A growing or stable market with a population (or within proximity of
👷‍♂️ Solid partners — GC, broker, or property manager
💵 Liquidity for reserves and upfront costs
📚 A clean, presentable deal package
📞 A responsive contact (again: that’s us!)

🎯 Don’t Just Get Funded — Get Funded Right

The key is finding the one who wants your deal — at this stage of your journey — on your timeline.

Whether you’re buying your first commercial asset or scaling a portfolio, we’re here to match you with the right funding path — and make it smoother than the usual rodeo.

Ready to begin the funding pre-qual process?

Start by grabbing your free Funding Scorecard.

It’s a simple quiz.

Takes 5 minutes.

Shows you exactly where you stand — and what to do next to get funded.

DISCLAIMER: This is not real estate, legal, or financial advice. Please contact your preferred attorney or financial adviser for help specific to your needs or issue.