What it is
Financing for investment assets such as apartment buildings and commercial properties. Lenders assess the property’s operating performance alongside the borrower, structure and transaction.
Who it may suit
Investors purchasing or refinancing larger multifamily or commercial assets, including Canadians where the lender accepts the ownership structure.
Typical uses
- Purchase or refinance an apartment building
- Finance an eligible commercial investment property
- Discuss a mobile home park or another income-producing asset
More detail, when you need it
What is net operating income?
Net operating income (NOI) is effective property income minus operating expenses, before loan payments, depreciation and income tax. A lender may adjust income and expenses during its review.
Can a Canadian entity own the U.S. borrower?
Ownership-chain requirements vary and need early review. Do not assume a Canadian parent entity or a particular U.S. structure will be accepted; discuss it with me and your legal and tax advisers.