What's important to know about financing for each asset type?
If you're using Janover Pro to secure financing for an asset type you've not spent a lot of time with in the past, you're in good company. While there's no substitute for experience, there are some tips and tricks you ought to know about each property type to make sure you're going about your hunt for best-in-class financing the right way.
This guide is a very brief look at the basics of each asset type, with links to in-depth articles on financing each — and will be useful whether you're a commercial mortgage broker, an investor, or a developer.
Multifamily
Apartment properties with five or more residential units remain one of the most resilient asset classes, driven by consistent demand for housing. Agency financing from Fannie Mae and Freddie Mac dominates, offering non-recourse options with strong leverage — but underwriting has tightened due to rising expenses and regulatory pressure.
Industrial
Warehouses, cold storage, and flex spaces are essential infrastructure for logistics, e-commerce, and light manufacturing. Lenders favor long-term leases with credit tenants, but older or single-tenant facilities require a stronger borrower profile.
Retail
This asset class has evolved beyond the mall, with lenders showing strong interest in necessity-based retail like grocery-anchored centers and medical uses. Tenant mix and credit quality play a major role in financing success.
Office
Office buildings are still viable assets, but demand has shifted significantly with the rise of hybrid work. Financing tends to favor Class A properties with long leases and stable tenants, while Class B/C space is under increased scrutiny.
Self Storage
These facilities offer low operating costs and a diversified tenant base, making them a favorite for many lenders. Underwriting typically focuses on market saturation, lease-up risk, and management capability.
Healthcare
Properties like assisted living, memory care, and rehab facilities serve a growing population with long-term care needs. Financing depends on whether the property is purely real estate or also includes an operational business — with lender scrutiny around regulation, reimbursement, and operator strength.
Hospitality
Hotels, motels, and short-term rentals can generate strong returns but are highly cyclical and operationally intensive. Flag affiliation, location, and RevPAR metrics are key drivers for lender confidence.
Land
Undeveloped land offers upside, but no current income makes it difficult to finance. Entitlements, sponsor experience, and a clear development or exit plan are critical to securing capital.
Mixed-Use
Properties combining residential, retail, office, or other uses can be highly attractive but complex to finance. Lenders typically underwrite to the riskiest component and prefer deals with a heavy multifamily share.
Manufactured Housing
These communities provide affordable housing with relatively low turnover and stable cash flow. Agency lenders have robust programs for tenant-owned home (TOH) communities, while parks with high park-owned home (POH) concentrations are scrutinized more heavily.
1-4 Unit Residential
These small-scale residential investments blur the line between consumer and commercial lending. DSCR loans allow financing based on the asset’s income rather than the borrower’s personal finances — ideal for investors scaling their portfolios.