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Mortgage Modification- Do It Yourself

How to Choose a Commercial Mortgage Lender for Your Business

Commercial Mortgage Lenders are agencies that provide funding to businesses and other organizations for the purchase of property. A commercial mortgage lender acts in much the same capacity as a mortgage lender for a private individual would. Commercial Mortgage Lenders are important because they allow businesses to purchase office space, warehouse space, production space, and more. Many commercial lenders provide generous rates to businesses. But choosing can be tough. Click here if you want help.

Along with the mortgage itself, many businesses rely on their commercial mortgage lenders for additional funding so they can increase the size of their office space. This additional funding is built into the mortgage itself so that businesses can make improvements without having to pay up-front costs.

There are hundreds of commercial mortgage lenders across the country. Finding the right commercial mortgage lender often involves doing plenty of research into rates, fees, and the reputation of the lender. Take the following considerations into mind when looking for the right commercial mortgage lender:

Rate – Commercial mortgage lenders compete to offer the lowest rate to businesses. However, keep in mind that what is the lowest rate now might be a higher rate down the road if you sign an adjustable rate mortgage (ARM) as opposed to a fixed rate mortgage (FRM). Therefore, be sure that you understand not only what the current rate amount is, but also what kind of future rate you will be getting so that you can anticipate costs down the road.

Fees – When purchasing property, there are always fees that you will have to pay, such as a down payment for the property and closing costs. Depending on your budget, you may not have a lot of money to put down for these fees, especially if you are still raising capital for your business. Ask mortgage lenders what down payment percentage they require and what additional fees you will be expected to pay. In some cases, these fees can be negotiated.

Reputation – The reputation of the commercial mortgage lender is very important. You want to ensure that you look for a lender that has a track record of credibility will work with you in a favorable way if there comes a time when you have difficulty paying the mortgage. Search the Better Business Bureau records and Google for information about a particular company and any complaints that may have been filed against that company.

Loan Amount – Depending on the credit history of the business and the key players, the amount of the loan that you will be able to get may vary by mortgage lender. Therefore, you will want to preauthorize the loan prior to looking for office spaces to buy. It’s not always the best choice to go with the mortgage lender that will give you the biggest loan – as you will probably have a substantial monthly payment that may be difficult to meet if you do purchase a large office space.

If you want commercial loan vendors to compete for your business, click here. For additional information, you can visit our commercial mortgage wiki

Commercial Mortgage Lenders – Overview

There are essentially four sources of capital from commercial mortgage lenders.  Basically all commercial mortgages come from theses sources, which are commercial private money lenders, conduit or CMBS lenders, SBA lenders and portfolio bank/lenders.  Though these distinctions can be somewhat blurred, for example some national banks pool and sell their loans like CMBS lenders, these four categories are what make up the commercial mortgage market.  Let’s take a brief look at each individually.

Commercial Mortgage Lenders - Private Money

This category is comprised of individuals to private hedge funds that loan their own money secured by commercial real estate.  These sources also go under the names bridge loans and or commercial hard money.  There terms are usually short at 12 -24 month, with interest only payments with rates and fees on the high side.  Borrowers should expect to shell out 3 -6% on the front with rates between 12% – 16%.  These programs are often used by individuals that have short time frames and or have been turned down by banks. 

Commercial Mortgage Lenders – Conduit or CMBS Lenders

CMBS or Commercial Mortgage Backed Securities type loans have been getting a lot of press lately as this category has been dragged down by the residential subprime mess.  Basically this is the Wall Street side of the business where commercial loans are originated and then pooled together in batches often over $100 million and securitized into bonds.  These bonds are than sold to large investment companies such as insurance firms or pension funds.  The main benefit for the banks and lenders is the liquidity created by selling the loans off rather than holding onto them.  By freeing up their capital, they are in the position to reinvest into other commercial mortgages.  The main benefit for borrowers with these types of loans are many, such as long term fixed rates, longer amortization periods and competitive rates. 

SBA Lenders

Lenders and banks that are set up with the SBA boast a few strong advantages over traditional bank loans.  I.e. 90% financing and longer fixed term rates are 2 examples.  It’s important to note that the SBA does not lend its own money but guarantees banks, in case of borrower default, that the bank will receive all or a portion of their money back.  Think of it as an insurance program for the bank.  The funding bank or lender are often more aggressive with their terms because of these guarantees.  Unfortunately SBA loans are only for businesses that occupy their building and not available for investors. 

Commercial Mortgage Lenders – Portfolio

Portfolio banks or lenders essentially loan their own money which they often receive from deposits.  This is the most traditional type of banking and was the norm in the past.  These banks that still operate in this fashion are often smaller local banks that often only cover one or two states.  They do have some flexibility with their underwriting as they are making much of the decisions to fund on their own.  However most portfolio lenders are conservative in nature.   It’s interesting to note that portfolio lenders are experiencing good growth (relative to the whole banking industry) right now as many are in strong positions as they are not dependant on Wall Street for their capital. 

 

 

Does buying a house/building with a store front require a commercial loan?

I’m considering buying a 2 apartment building with a store front. Does this require that I get a commercial loan or can I still use the lower rate Residential loan if I plan to use it as my primary residence?

The Magic Ingredient to Get to “YES!” with Sellers, Buyers, & Private Money Lenders

www.mustknowinvesting.com What’s the magic ingredient to get to “YES!” when negotiating with sellers, buyers, and private money lenders? Watch the video and find out. Enjoy Patrick … aka P-Rid

Does any commercial mortgage brokers out their have a list of the top lenders for commercial loans.?

I would like to refinance a commercial property and payoff a second mortgage?

I have a second mortgage on my personal property with a 6.50% I want to refinance a commercial property and pay off that second mortgage. My first mortgage has a 4.7% My commercial property has a 6.50% This is a 5 year balloon rate the 5th year is quickly approaching. What should i do? Would this be in my best intersest?

Private Money Lenders Arizona – The Ultimate Real Estate Investing Loan Problem Solver

Welcome to Real Estate Investing Today brought to you by private money lenders arizona. My name is Ryan Wright and today I want to talk about how Private Money Lenders Arizona is the absolute solution to your real estate investing loan problems.You see there are so many lenders out there that are looking first off at you as the borrower and they want to go the borrower. Not only do they want to look at your credit scores and look at your history and look at your payments and your late they also want to look at what your income is and if you have a job and how long you had that job for. They also want to look at your tax returns and your W-2 statements. They want a blood sample and a urine sample and they want to know your kid’s middle name and fill out applications and stacks and stacks and stacks of paper work.You see our friends at Private Money Lenders Arizona; they do not really care about all that. They lend based upon the property not based upon the individual. The only qualification that they have to lend to you or not is to make sure you do not have judgments because judgments will attach the property and if you have judgments that creates a nightmare when it comes to the property because they will attach. Other than that credit scores are not the problem. How many lates are not problems? What your blood type is is not a problem and I have to mention that application process in online it is easy. You can do electronic signatures and it is all of four pages that you have to fill out. Three of which are pages that you will fill out. Two of which are about the property and then one of which is about you and that is all how simple it is.Now the other thing that is very simple with private money lenders and why they are the solution to your real estate investing needs is because they will lend 100% of your purchased price. You heard me right 100% of your purchased price. There are so many people out there that say it is impossible to get 100% financing on a real estate investment property and I am here to shatter their dreams and tell you it is absolutely true. You can get a 100% financing or a real estate investment property. The key to that is to make sure you are buying the property right.If you are buying a property and lets say the property does not need any repairs and it is going to be worth $100,000 they will lend $70,000 if it is a single family home. So if you are buying the property for $70,000 you will be able to get 100% financing in that scenario. If you are buying the property for $75,000 you will still be able to get $70,000 financing, which means you have to put $5000 down in order to make a transaction happen but the 100% financing is there if you are able to make a property work. If you are able to buy it right.The other think that is important about how Private Money Lenders Arizona is a solution to you real estate investment, rehab and retrial lending needs is that they will qualify the property and give you an absolute guarantee that they will fund on the property prior to you making an application. So you can get what is called a property approval, which guarantees funding on the property.Now the property approval does not guarantee an exact amount. It only guarantees that funding is guaranteed on the property. The exact amount of what can be funded on that property is established once evaluation is done by having some one on the ground, go look at the property and establish a final value and at that point the final value of what can be lent is determined. But prior to doing that you can get an absolute guarantee that funding will happen on the property with property approval.Let me tell you why real estate investors chose hard money lenders is because they do not have to make any monthly payments. So for the initial terminal loan no monthly payments are required whatsoever. Loans range anywhere from a month up to six months and there are no monthly payments required whatsoever. Another reason why Do Hard Money.com is the lender of choice for rehab and retail investors is because they offer two guaranteed extensions.

A Fantastic Distressed Debt in Institutional Investor

Confidence High Among Multifamily Investors
LIVINGSTON, NJ-Some of the strongest signs of economic recovery in the commercial real estate sector are rooted in multifamily investments, as highlighted by the more than 44 deals recorded by locally based Gebroe-Hammer Associates in 2010 thus far.

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Space Limited For Annual Trigild Lender Conference
SAN DIEGO–(BUSINESS WIRE)–More than 60 legal and lending industry pros will examine sound strategies and smart solutions for maximizing commercial loan recovery at the 2010 Trigild Lender Conference Oct. 20-22 in San Diego.

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A Fantastic Distressed Debt in Institutional Investor
By Hunter. Here is a fantastic distressed debt article that was sent to me earlier today. I have copied and pasted both below (sorry for the length) – My comments will be in a post later tonight (in addition to my notes on Michael Tennenbaum’s interview on Distressed Debt) Read more » »

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1st Service Solutions Advises on $3M CMBS Loan Extension for Southern California Shopping Center Owner

Moody’s Launches Small Business Information Zone to Assist U.S. Small Businesses
NEW YORK—-Moody’s Corporation today announced the launch of Moody’s Small Business Information Zone, an online resource center that provides U.S. small business owners with free access to economic information and planning tools that can help them manage their business through difficult economic times.

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Moody’s Launches Small Business Information Zone to Assist U.S. Small Businesses
NEW YORK–(BUSINESS WIRE)–Moody’s Corporation launched Moody’s Small Business Information Zone, an online resource center that provides U.S. small business owners with free access to economic information a

Read more on Business Wire

1st Service Solutions Advises on $3M CMBS Loan Extension for Southern California Shopping Center Owner
Dallas – 1st Service Solutions, the first firm dedicated to serving as a borrower advocate in loan restructuring and assumptions, facilitated a $3 million commercial mortgage-backed securities (CMBS) loan extension for the owner and operator of a major retail shopping center developer located in Los Angeles County, California.

Read more on dBusinessNews.com

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