The quick definition of a commercial mortgage transaction is “a mortgage on any property not considered a residential property.”  The best definition for a residential mortgage that is offered is “Any mortgage secured by a real property upon which there is located or will be constructed following settlement using proceeds of the mortgage loan, a structure or structures designed principally for the occupancy of one to four families. Anything not meeting this definition is a commercial mortgage.”

Many people who originate residential mortgages believe that commercial mortgages are not worth pursuing.  They could not be further from the truth!  In reality, commercial mortgages provide an incredible opportunity to generate substantial profits.  Here are some issues to ponder: