This article explores the differences between commercial and residential real estate loans, detailing the advantages and drawbacks of each. Commercial loans often have lower interest rates with longer repayment terms, benefiting cash flow and overall financial stability. However, they are more difficult to qualify for and require more substantial due diligence and higher fees. On the other hand, residential loans offer shorter terms with higher interest rates, but are generally accessible to a wider range of borrowers and provide more flexibility around down payments and closing costs. Ultimately, the decision of which type of loan to pursue depends on the specific financial needs and goals of the investor.