Commercial real estate loans come in a lot of varieties, many of which are specialized for a singular purpose. Luckily, there are a few very versatile loan types you can keep an eye out for if you are a new investor. These three key loan types have a few variations that make them ideal for specific circumstances, but overall, they are broadly useful for many investments because they are built around simple concepts that apply to many situations. In time, it will pay to learn more about specialized loans for key investment strategies, but for most transactions one of these three loan types will work out.

1. Bridge or Asset Loans

These products are also commonly called flipper loans because of their popularity with investors who turn single-family homes to make them retail-ready. They are structured for three years or less, with most providers offering interest-only payments. This allows investors to focus on improving the property with minimal overhead, and they usually pay off the principal by selling the property before the loan is due. These loans can also be used to close quickly before refinancing into a long-term instrument or to tap into equity in a property you already own when you need working capital.

2. Commercial Real Estate Mortgages

These loans are most familiar to new investors because they mirror traditional mortgages in many key ways. They have amortizing payments, fixed minimum down payment sizes to limit the lender’s risk, and long repayment terms. This simplicity coupled with the low monthly payment makes them ideal for those buying long-term income property, facilities, or those speculating on the real estate market with no intention of improving properties. In fact, this type of loan is so popular that the SBA even offers a variation on it for small businesses seeking facilities.

3. Stated Income Real Estate Loans

When you are purchasing an investment property that is already generating income or you own one that you want to use to finance another deal, this loan type is a good fit. It is based on the building’s earnings and not its market value, although both do come into consideration since the property serves as collateral. The real advantage is that stated income commercial real estate loans are cash-out financing, so they can be used to fund any other project you have going. The best part is that since the loan is tied to the income the building generates, a stable investment property can pay for its own loan while you focus on the deal at hand.