Here are some tips for dealing with commercial mortgage brokers:
- Shop around. Ask for referrals and meet with at least three to find a broker who understands your business.
- Rely on your broker to find the loan that best fits your needs.
- Expect to pay an application fee of several thousand dollars.
Action Steps
The best contacts and resources to help you get it done
Have the broker come to you
By visiting your place of business, your mortgage broker will get a better feel for your enterprise and your real estate goals.I recommend: BizJournals offers helpful advice on dealing with brokers.
Discuss down payment
Commercial loans typically require a down payment of 20 to 25 percent. However, a variety of loan programs allow for loan-to-value ratios of as much as 100 percent.I recommend: Inland Mortgage Capital is among the mortgage bankers that offer 100 percent loans.
Shop online
Referrals and face-to-face contact are the tried-and-true methods of dealing with a broker, but you can shop for loans on the Internet, too.I recommend: Visit LendingTree Commercial or iBank to solicit bids.
Understand the wide variety of choices
Commercial mortgages come in as many flavors as home loans.I recommend: Read Crown Commercial Finance's guide and see Column Financial's list of loan programs.
Get a handle on fees
Brokers are paid by lenders, but they'll often give referral fees to the real estate brokers who steer borrowers to them. Ask your broker to cut you in on the referral fee.I recommend: Crown Commercial Finance offers this eye-opening overview of referral fees.
Consider an SBA loan
If you run a small business and need to borrow less than $2 million, ask your broker about a Small Business Administration loan. These loans typically require a down payment of 10 percent. SBA lending is its own niche in the commercial mortgage market.I recommend: Study the SBA's 7(a) and 504 programs.
Tips & Tactics
Helpful advice for making the most of this Guide
- Prepare to paper your broker with documents. He'll need to see financial statements that establish your history.
- Expect to see a prepayment penalty on your loan.
- Do your own due diligence: Know current interest rates, don't let your lawyer drag out the legal side of the deal.
the Real Estate Finance page at Business.com
Make Commercial Real Estate Loans Simple
Providers of customized commercial lending and loan services for investors across all markets. Hundreds of loan programs โ apply online today!
Brokers | Rate List | Contact Us | Apply Now
www.clcnationwide.com
Providers of customized commercial lending and loan services for investors across all markets. Hundreds of loan programs โ apply online today!
Brokers | Rate List | Contact Us | Apply Now
www.clcnationwide.com
Compare Commercial Mortgage Quotes
Compare competitive commercial mortgage quotes from multiple lenders. No obligation. Check your options, rates and payments and save.
Free Quotes | Compare Lenders | Find Low Rates
www.AllOptions.com
Compare competitive commercial mortgage quotes from multiple lenders. No obligation. Check your options, rates and payments and save.
Free Quotes | Compare Lenders | Find Low Rates
www.AllOptions.com
Commercial Mortgage Lenders Resource
Find Commercial Mortgage Lenders. Search listings and reviews of retailers, specialists and services in your local area now.
JustClickLocal.com
Find Commercial Mortgage Lenders. Search listings and reviews of retailers, specialists and services in your local area now.
JustClickLocal.com
Bank of America Refinancing in California
Take Advantage of Low Refinance Rates for Home Loans up to $3 Million.
www.BankofAmerica.com
Take Advantage of Low Refinance Rates for Home Loans up to $3 Million.
www.BankofAmerica.com
Free B2B search marketing whitepaper, B2B Search Marketing Strategy Guide: Advice From the Pros.
