Apartment Loans & Commercial Mortgage Loans
Loans from $1 Million to $25 Million+

What you need to know about obtaining an apartment loan and apartment loan rates:
Select Commercial specializes in financing apartment loans and has excellent apartment loan rates for purchase or refinance. Many clients ask us for advice when it comes to understanding apartment loan fundamentals, especially as it pertains to valuing apartment properties. We start by looking at the apartment rent roll to see if the units are all occupied (vacancy is usually a red flag) and to see if the units are rented at market levels. Underwriting an apartment loan requires income or cash flow and looking at the rent roll is the first place to start. Next, apartment lenders look at the operating statement. An operating statement will show actual rent collections and all expenses. The difference is the apartment’s net cash flow. The net cash flow will determine the size of the apartment loan. Apartment lenders look for solid and stable income when underwriting an apartment loan. Apartment properties that have high vacancy rates or display un-stabilized cash flow will probably be better with an apartment bridge loan until the property qualifies for a standard apartment loan. Also very important to apartment lenders is the location and condition of the property. Lenders prefer properties in urban and suburban areas and will take a hard look at apartment loan requests in rural or tertiary markets. Apartment properties in good or excellent condition are preferred. Properties in need of renovations or displaying deferred maintenance will be highly scrutinized.

Select Commercial can help you with NNN Lease Loans.
We are often asked questions from our clients about investing in Net Lease or NNN properties. Investors love the idea of investing in a property and not having to be responsible for property expenses. We often tell our clients interested in NNN lease properties to, first and foremost, look for high rated credit tenants. Lenders are not bullish on retail right now. However, if you find a highly rated credit tenant with a corporately guaranteed lease (such as Walgreens, CVS, Dollar General, etc.), great rates and terms are available. Secondly, it is crucial to look for properties with longer leases. No lender is interested in financing a property with a short-term lease. We typically like to see at least 10 years remaining on the primary lease. Lastly, scrutinize the location of the property. You are much more likely to get great rates and terms in highly rated markets than in secondary or tertiary markets. Please contact us for any specific questions regarding Credit Tenant Lease Loans.

What you need to know about obtaining a commercial real estate loan for an owner-occupied property.
Owner-occupied properties are properties that are used to house an owner’s business. Examples include medical offices, restaurants, general offices, retail stores, motels, etc. Commercial real estate loans are loans that are used to finance the acquisition of these properties or refinance these properties (often to free up equity for other business purposes). The self-employed borrowers that own these properties need to work with lenders who understand and have experience lending to small businesses. Many commercial mortgage lenders do not focus on these properties as they lack the necessary experience working with small business owners. When commercial real estate lenders look at an investment property, they look at the rents collected, the expenses necessary to run the property, and calculate the net operating income. This NOI is used to determine the property’s ability to cover the mortgage debt. With properties that are used by the owner, the calculations are different. The lender must understand the entire business operation to determine what income and expenses are attributable to the property and to the business separately. The underlying business must be healthy to take on the debt of a commercial real estate loan. In addition to analyzing the income, lenders also need to understand the owner occupant’s credit scores and ratings. The stronger the credit scores, the less risky the loan. Commercial mortgage rates will often be determined by analyzing both the business’s income and the credit of the applicant. At Select Commercial, we have over 30 years of commercial real estate financing experience lending to small business owners. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

Select Commercial can assist you with your 1031 Exchange Financing needs!
Ordinarily, when an investor sells an investment property, the profit realized is subject to capital gains taxes. However, if the investor exchanges the property for another property, the IRS will allow the investor to defer capital gains taxes. This process is called a 1031 Tax Free Exchange. Select Commercial specializes in helping investors utilizing a 1031 Exchange obtain commercial mortgage financing to facilitate the new purchase. Please contact us for more details on 1031 Tax Free Exchange Financing. (Always consult your tax advisor for specific advice when it comes to your tax situation).

CMBS loans are one of the most popular types of commercial real estate loans in the market.
CMBS stands for commercial mortgage backed security. As such, these loans are pooled together in a package with many like kind loans and sold to investors as bonds. CMBS loans typically have softer requirements than many traditional lenders. For example, problem borrowers with low net worth/ liquidity or credit issues can often qualify for CMBS loans. These loans are typically offered as fixed rate terms for 5, 7, or 10 years. CMBS loans can be amortized over 30 years and often can qualify for interest only terms. In addition, these loans are non-recourse and assumable.