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Navigating Commercial Real Estate Financing Options
By Jason Taken · Principal, Jaken Finance Group
Map CRE financing — bank vs bridge 8.99%–13.5% IO vs DSCR 5.75%–10.5%, SBA limits, asset-class fit, timelines, and exit planning for investors.
Commercial real estate financing is not one product — it is a decision tree driven by occupancy, hold period, and whether the borrower needs speed or long-term amortization. Jaken Finance Group serves non-owner-occupied investment property nationwide: bridge at 8.99%–13.5% interest-only for acquisition and value-add, DSCR permanent at 5.75%–10.5% when stabilized cash flow supports coverage. This guide maps every major capital type, shows where Jaken Finance Group fits, and gives sizing and timeline benchmarks so your next LOI matches a fundable structure.
Use alongside commercial property loans by asset class and succeeding in commercial CRE financing.
Jaken Finance Group commercial financing snapshot — 2026
| Product | Rate band | Typical use |
|---|---|---|
| Bridge / fix-and-flip | 8.99%–13.5% IO | Value-add, lease-up, reposition |
| DSCR permanent | 5.75%–10.5% | Stabilized NNN, multifamily, mixed-use hold |
| Coverage | 50 states | Business-purpose entity closings |
| Term sheet (complete file) | 24–48 hours | After scope + comps in file |
| Close | 7–14 business days | Appraisal paid, conditions cleared |
What is hard money · DSCR hub · Loan process
The CRE financing landscape — product overview
| Capital type | Typical rate / structure | Best fit | Jaken Finance Group? |
|---|---|---|---|
| Bank commercial mortgage | Market amortizing | Stabilized, strong borrower financials | No — use for stabilized bank-eligible |
| SBA 504 / 7a | Below-market, long term | Owner-occupied business | No — not investment-purpose |
| CMBS | Securitized permanent | Large stabilized assets | No |
| Bridge / hard money | 8.99%–13.5% IO | Vacant, value-add, speed | Yes |
| DSCR investor loan | 5.75%–10.5% | Non-owner-occupied hold | Yes |
| Mezzanine / pref equity | 12%+ or equity kicker | Equity gap above senior | No — equity layer |
| Seller financing | Negotiated | Gap filler, rare on CRE | No |
Owner-occupied and SBA paths sit outside Jaken Finance Group’s box — see SBA 504 vs 7a owner-occupied for context. Investment sponsors focus on bridge-to-DSCR or bridge-to-sale sequences.
Decision flow — pick debt before you write the LOI
Asset condition?
├── Vacant / distressed / heavy rehab → Bridge 8.99%–13.5% IO
├── Stabilized leased (investment) → DSCR 5.75%–10.5%
└── Owner-occupied business → SBA / bank (not Jaken Finance Group)
Hold period?
├── under 18 months, flip or reposition → Bridge IO
└── 5+ years, cash-flow hold → DSCR permanent
Speed required?
├── under 30 days to close → Bridge / asset-based
└── 60+ days acceptable → Bank or DSCR with seasoningWrong product choice costs more than wrong price — carrying bank decline for six weeks while the seller moves on is a common failure mode. Bridge loans for real estate investors exist for that gap.
Asset-class matrix — which product fits
| Asset class | Bridge IO fit | DSCR fit | Common pitfall |
|---|---|---|---|
| Retail strip / NNN | Moderate — tenant rollover | Strong when leased | Ignoring TI in scope |
| Small multifamily (2–20 units) | Strong for value-add | Strong post-stabilization | Gross rent without vacancy |
| Mixed-use | Strong on vacant upper floors | Strong with executed leases | Zoning mismatch at refi |
| Office / medical | Selective — long lease-up | Strong with credit tenants | IO through 12+ mo vacancy |
| Industrial / warehouse | Moderate — shell condition | Strong with NNN lease | Environmental delay |
Vacant assets belong on bridge until DSCR ≥1.0 supports permanent sizing — DSCR loan for investment property.
Sizing — LTC, LTV, and coverage
Bridge / value-add
- LTC — often 70%–90% of purchase + documented rehab on qualified files
- ARV cap — total debt typically 65%–75% of stabilized or after-repair value
- Contingency — 10%–15% on scope expected
- IO carry — model at 8.99%–13.5% on outstanding balance monthly
DSCR permanent
- Coverage — program-specific, often ≥1.0 DSCR on in-place or market rent
- LTV — up to 85% purchase, 80% cash-out, 85% rate-and-term on select qualified markets
- Entity — vesting consistent from acquisition through refi
Run numbers in fix and flip calculator and mastering DSCR calculation.
Worked example — mixed-use value-add
Scenario: 5,200 SF mixed-use (2 retail + 2 residential units), $715,000 purchase, $165,000 rehab, 10-month hold.
| Line item | Amount |
|---|---|
| Purchase | $715,000 |
| Rehab | $165,000 |
| All-in cost | $880,000 |
| Stabilized value (blended NOI approach) | ~$1,050,000 |
| Bridge at 78% LTC | ~$686,000 |
| IO at 11.0% | ~$6,289/mo |
| 10-month carry | ~$62,890 |
Exit A — sale: $1,050,000 less 8% ≈ $966,000 net.
Exit B — DSCR refi: 75% LTV on $1,050,000 ≈ $787,500 at 6.5%–8.5% band — confirm residential unit count and commercial use zoning before LOI.
Document both exits at submission. See commercial rehab loans for scope standards.
Benefits and risks by capital type
Benefits of leveraged CRE investment
- Scale — control larger assets with less equity than all-cash
- Value creation — bridge enables purchase below stabilized value
- Tax and depreciation — consult your CPA; financing preserves equity for next deal
- Refi optionality — DSCR permanent lowers carry after lease-up
Risks to model explicitly
| Risk | Mitigation |
|---|---|
| IO carry overrun | Dual-exit budget; 10%–15% scope contingency |
| Lease-up delay | Conservative rent and vacancy in DSCR pro forma |
| Bank decline after bridge | Pre-clear DSCR path before bridge close |
| Liquidity trap | Stagger bridge maturities; avoid dual IO without reserves |
| Rate reset | Lock permanent refi triggers at 90% economic occupancy |
Compare bank rigidity in hard money vs traditional loans.
Timeline benchmarks
| Milestone | Bridge (Jaken Finance Group) | Bank commercial |
|---|---|---|
| Term sheet | 24–48 hours | 1–3 weeks |
| Appraisal | 5–10 business days | 2–4 weeks |
| Close | 7–14 business days | 45–90+ days |
| First rehab draw | 3–5 business days post-inspection | N/A or slow LOC |
Delays on bridge files usually mean incomplete entity docs, scope without bids, or appraiser access — not inherent product slowness.
Entity, insurance, and compliance
Most investment CRE closes in LLC with:
- Operating agreement matching title vesting
- EIN and certificate of good standing
- Commercial landlord / investor policy
- Business-purpose representations and accurate rent roll
For mixed-use and retail, confirm CO, zoning, and use align with your DSCR exit before draw one. Down payment norms vary by product — commercial down payment requirements.
When bridge beats bank — and when DSCR wins
| Scenario | Bridge 8.99%–13.5% IO | Bank / DSCR 5.75%–10.5% |
|---|---|---|
| Vacant or distressed CRE | Yes | Unlikely until stabilized |
| Auction / off-market speed | Yes | Rare inside 30 days |
| Heavy TI / reposition | Yes | Scope often kills approval |
| Turnkey leased NNN | No | Yes |
| 10+ year hold | No | Yes |
Stacking the capital stack — practical sequence
- Bridge — acquire and execute scope on IO
- Lease-up — document executed leases or credible rent roll monthly
- DSCR refi — retire bridge; optional cash-out for next acquisition
- Repeat — treat each asset’s financing as a phase, not a lifetime product
Avoid parallel IO bridges without documented reserves — understanding gap financing covers shortfall structures Jaken Finance Group does not replace.
Application checklist — fundable first submission
| Document | Purpose |
|---|---|
| Purchase contract or LOI | Price, close date, assignment |
| Sold comps or rent roll | Collateral / NOI anchor |
| Scope + contractor bids | LTC sizing, draw schedule |
| Entity docs | LLC OA, EIN, good standing |
| Insurance quote | Investor / commercial landlord policy |
| Exit memo | Sale timeline or DSCR refi with target LTV and DSCR |
Credit-flexible programs exist on select files — see hard money loan application process and asset-based lending solutions.
Related resources
- Potential commercial real estate financing
- Benefits of hard money for commercial CRE
- Real estate financing options hub
- Pre-qualify · (833) 264-7776
Navigating Commercial Real Estate Financing Options — next step (2026)
Permanent 5.75%–10.5% DSCR sizes on executed lease rent with investor tax and insurance in NOI — not seller bills or STR pro forma.
Submit scenario · Pre-qualify · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access . All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196