Commercial Mortgages Owner Occupied Properties

business planning

A property is a property to the outside world.  However, to the lender it makes a big difference if the property's main tenant is also the property-owner (even if the actual legal entity is different), or if the tenants are all 3rd party. For this reason, at most banks there are different teams that look at financing of investment properties vs. owner-occupied ones.

Owner-occupied properties have the same considerations as the ones listed for investment properties above, plus more. The lender will take a deep dive into the business of the owner and assess it on its own merits, knowing that the lease is worth something only if the business successfully cash flows. The cash flow of the business is more important than the lease itself, assuming it is an OpCo/HoldCo scenario (most common). Therefore, it is very important to have a financing expert who understands your business on your side. The right packaging can make all the difference between a mortgage and a “No thank you!”

This is an area of commercial financing which has very few independent experts – at Platinum Consulting we pride ourselves on being part of a rare breed.