Mixed-use real estate investments

A mixed use commercial property is a property that is used for a combination of residential and commercial purposes. For example, a mixed use commercial property could be a combination of apartments and stores. The first floor, street-side could be any variety of businesses, with the above floors housing apartments. Really investing in mixed use commercial property is the best of both worlds, and here’s why.

Many people don’t realize that they will need a commercial loan to buy a mixed use property even if the majority of the income produced is from the residential section of the property. As long as the property has some component of commercially zoned property then the buyer who uses financing will have to apply for and qualify for a commercial loan. If the property is a small, free standing building, then the buyer may have difficulty finding a lender or broker to work with him or her. The reason for this is the fact that preparing a commercial loan requires more hours and work then a residential loan and most commercial loan brokers only charge about 1 to 2 points of interest in compensation.