The financing of Commercial Real Estate (CRE) entails assessing the investment's suitability for funding against benchmarks while still allowing flexibility for project specific nuances. The financial strength of the commercial real estate and the borrower are scrutinized to quantify the applicable risk associated with funding the project and the likelihood of debt repayment, level of collateralization, applicable rate and terms, etc.  Lenders differ in their risk tolerance which can be altered by various factors, e.g. percentage of capital allocated to property type, concentration of properties within region, cost of capital, etc.  

Borrowers and lenders sometimes perceive a different level of associative risk with a commercial real estate investment which affects the equity or debt they are willing to risk in the project. However, there is usually some degree of trade-off in the process of negotiating, finalizing the debt instrument, getting to the closing table and closing the loan. Various capital structures can help you to consummate your acquisition, refinance your commercial real estate inventory and maximize your cash flow.  This is predicated on the liquidity in the capital markets, lenders being bullish on your deals supported by the projects presented are financially viable.