Most real estate investors start off with residential properties: a house or a condo, which they rent out. They qualify for the mortgage: based on their annual income and their credit score and credit history, the financial institution will award them a loan. This has its limits and soon the investor will hit a wall: the banks will qualify the investors for only so many mortgages, such a total amount in mortgage loan.
Technically, a commercial property contains 5 residential units or more (multifamily) or is made of the other commercial categories: industrial, office, retail, hotels. In that particular case, it is the property, not the investor, that qualifies for the mortgage. The purchaser's main worry is to come up with the downpayment. Sometimes the vendor will carry some of the downpayment, if the numbers allow it.
This is how I bought one of my largest properties: an 8-unit building. I had literally none of my own money into the deal: the bank financed 70%, 20% came from a private loan and the last 10% came from the vendor.
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