In order to understand the business of commercial real estate loans, it’s important to note the differences between commercial financing and residential financing. Residential loans focus on single family or perhaps 2 to 4 unit housing.

Residential financing deals with single family homes or small apartment houses with between 2 and 4 units, with loans being usually under several hundred thousand dollars. Commercial real estate loans and financing covers much larger amounts of money and can include office buildings and condominium complexes.