California investors: finance mixed-use, storage, multifamily 5+, light industrial, and specialty commercial properties. NOI-based underwriting. LLC borrowing. 30-60 day close. Licensed financing firm with commercial lender relationships.
Check My California Rate →California commercial real estate covers mixed-use properties, light industrial, storage facilities, small office, retail, and 5+ unit multifamily. Los Angeles and San Diego remain the primary markets, but secondary cities across California offer better cap rates for cash-flow focused investors.
Commercial investment loans are different from residential DSCR or bridge loans. Underwriting focuses on the property's Net Operating Income (NOI) and debt service coverage. LendingStreet works with commercial lenders that understand investor scenarios — LLC borrowing, no personal income verification, and faster close times than bank commercial financing.
California commercial deals tend to be larger than SFR investment loans — typically $500K to $5M+. That means per-deal capital source relationships matter. LendingStreet's lender network includes commercial specialists who quote same-day on qualifying scenarios and close in 21-45 days depending on property type.
Median residential price: $785K · Population growth (12 mo): -75,000 · Property tax: 0.75% · State income tax: Yes (1%-13.3%)
Commercial loans in California are different from residential investment financing in three key ways. First, underwriting focuses on the property's Net Operating Income (NOI) and debt service coverage — not just your credit and DTI. Second, close times run 30-60 days vs 10-21 for residential. Third, loan amounts typically start at $250K and go to $10M+, with different pricing tiers at each range.
For qualifying properties, commercial underwriting actually favors investors: no personal income verification required, LLC borrowing is standard, and the NOI-based calculation lets you scale without hitting DTI walls that limit residential borrowers. This is why serious California investors migrate from SFR DSCR to commercial multifamily as their portfolios grow.
LendingStreet's commercial lenders specialize in investor-scale deals — $500K to $5M — which is the sweet spot most banks won't touch. Bank commercial requires relationship and takes 90+ days. LendingStreet closes in 30-60 with similar or better rates for qualified borrowers.
Largest metro at 13M. Median $920K. Diverse economy, high rents but very high entry. Multifamily plays work better than SFR for cash flow.
Biotech, military, tourism. Median $875K. Strong long-term appreciation and rental demand.
State capital with faster-growing suburbs. Median $545K. Better cash flow than coastal CA.
Central Valley. Median $395K. Agricultural economy, healthcare, and university. Strong rental yields by CA standards.
Oil and agriculture economy. Median $345K. Highest cash flow potential in California.
Inland Empire. Median $545K. Logistics and manufacturing. Strong appreciation from LA spillover.
Commercial loans on 5+ unit properties use different underwriting than residential DSCR. The lender calculates NOI (gross income minus operating expenses) and requires typically 1.20x to 1.35x DSCR on the mortgage payment. California multifamily over 4 units falls into this category.
Mixed-use (residential over retail), storage facilities, light industrial, small office, strip retail, 5+ unit multifamily, and specialty commercial. Not typical: large office towers, major shopping centers, hotels. Our focus is investor-scale commercial — deals most banks won't touch.
Commercial loans typically have longer close times than residential — budget 30-60 days depending on property complexity. Environmental reviews (Phase I ESA) may be required for older commercial buildings. California's environmental regulations vary by property history — brownfield sites require additional due diligence.
Commercial rates typically run 0.5-1.5% higher than residential DSCR because of transaction complexity. Terms range from 5-year balloon to 30-year fixed depending on property type and lender. Prepayment penalties are more common on commercial than residential — review terms carefully.
All case studies are anonymized examples of actual closed deals. Borrower names and exact addresses are not disclosed per privacy agreements.
We finance mixed-use, storage facilities, light industrial, small office, strip retail, 5+ unit multifamily apartments, and specialty commercial. We do not finance major office towers, large shopping centers, or hotels — our focus is investor-scale commercial deals.
$250K typical minimum. Most commercial deals are $500K-$5M, though we've closed commercial transactions up to $10M+. Smaller deals (under $250K) may be better served by conventional residential investment financing if they're 1-4 unit properties.
Most programs require 660+ for standard commercial. Better pricing at 700+. Some programs with very strong DSCR and low LTV accept 640 credit. Commercial lenders weight deal quality heavily — strong property with weak credit often works.
Commercial takes longer than residential — typically 30-60 days depending on property type and complexity. Simpler deals (mixed-use in good condition, strong DSCR) close in 21-30 days. Complex deals (older buildings, environmental concerns, unusual zoning) take 45-60.
Up to 75% LTV purchase, up to 70% LTV cash-out refinance for most property types. Specialty properties (storage, industrial) sometimes go to 80% LTV with strong borrowers. Multifamily 5+ units typically caps at 75%.
Minimum 1.20x DSCR for most commercial programs. Stronger pricing with 1.35x+. Unlike residential DSCR (which allows 1.0x), commercial lenders require more cushion because larger properties have more expense volatility.
Yes — nearly all commercial loans are structured through LLCs or other entities. This is standard for commercial real estate. Personal guarantees may be required depending on LTV and credit.
Often yes. Commercial loans typically have prepayment penalties structured as step-downs (e.g., 5% year 1, 4% year 2, decreasing to 0% by year 5) or defeasance. Always review prepayment terms carefully — they affect your exit strategy flexibility.
NOI-based underwriting. LLC standard. Speak with a specialist who understands investor-scale commercial.
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