How to Find a Commercial Lender that Specializes in your Needs

Many of our applicants ask why they should do businesses with Select Commercial and not their local bank. Select Commercial is a commercial mortgage banker with access to capital from many different sources including Wall Street investment banks, insurance companies, national commercial banks, local savings institutions and many others. Accordingly, we are able to provide many different loan programs to meet in individual borrower’s needs. Whereas a local bank has a specific set of lending guidelines, we are not limited to any one institution.

Some examples include:

Cash-Out Refinances – These days, we see a large number of requests from borrowers seeking to refinance their commercial properties and obtain cash out for other purposes, including reinvestment. Many local banks are very hesitant to allow these cash out refinances. Borrowers seeking cash out from their properties are often turned away. We have no hesitation making cash out refinances to commercial property owners. Just this week, Select Commercial provided a loan to a small property owner in which he took over $1 million of cash out from his property.

Property Types – Select Commercial lends on all types of commercial and apartment properties. We have programs for owner occupied properties as well as investor occupied properties. We have years of experience lending on specialty properties such as motels, gas stations, restaurants and many other property types traditionally shunned by other commercial lenders. No one single bank can possibly satisfy all of these requests.

Loan Terms – Many, if not all, banks like to limit their fixed-rate loans to five-year terms as they do not want to take on unnecessary long-term credit risk. At Select Commercial, we often make fixed-rate loans for 10, 15, 20, and even 30 years. We also offer longer term amortizations than most local banks.

Borrower Credit – Most banks require that their borrowers have perfect or excellent credit in order to qualify. In real life, borrowers often have minor blemishes or events that have caused a temporary setback. We are willing to listen to the story and lend despite past problems. As long as a borrower demonstrates that the problems have been corrected, we are willing to lend when other lenders are not.

Rates – Local bank’s rates are often high as they need to pay for deposits and to maintain their branches. By accessing the capital markets, we are often able to provide much more competitive pricing than these local institutions. Our Wall Street investment banks and insurance companies provide pricing on a national level and not based on any one local market.

Recourse – Almost every single local bank will require that a borrower sign the loan personally. Many borrowers do not wish to put their personal assets on the line for a commercial real estate investment. Very often, our investors will not require personal guarantees. This is a very important issue should not be overlooked.

Certainty of Closing – We have seen many examples of banks making promises, and then after months of processing, their loan committees change the terms of the loan approval. This often results in the borrower canceling or delaying the closing. We are proud of our reputation for delivering approvals on the same terms as originally quoted, and timely closings.

Application Fees – Most banks will collect an application fee in order to review your application. This fee is often nonrefundable even if you do not accept the terms the bank proposes. At Select Commercial, our application process is without cost or obligation. We will review your information, and if we like the transaction, we will issue a written letter of intent spelling out the terms of the approval upfront. We do not collect an application fee for this service. Should you choose not to proceed with our loan approval, you may cancel without cost or obligation.

If you have a specific transaction that you would like to discuss with us, please feel free to call 1-877-548-9454 or click here to request a free quote.

Using a Commercial Mortgage Calculator and How Lenders Determine Commercial Mortgage Rates

A commercial mortgage calculator is a very handy tool when shopping for a commercial mortgage loan. Whether you are purchasing a new investment property or refinancing an existing commercial mortgage, it is helpful to know how much of a loan you can afford at today’s rates. A commercial mortgage calculator will calculate your new monthly payment. You will be asked to enter the loan amount, number of years, and interest rate. The calculator will calculate your monthly payment for you.

Access Select Commercial’s calculator.

Many borrowers ask us how commercial mortgage lenders determine rates that they offer commercial mortgage requests. There are many criteria that lenders use when determining rates, but lenders will assess the relative risk of a loan when determining the rate they offer. The lower the risk, the lower the rate. The higher the risk, the higher the rate. It is important to know what factors lenders use when determining relative risk.
– Property location and market. Good quality properties in large metropolitan and suburban areas are considered lower risk than inferior properties and properties in small rural locations.

– Tenant mix. Multi-tenanted properties with good quality tenants and long-term leases are very desirable when financing office and retail properties.

– Stabilized occupancy. Lenders look for properties that have enjoyed high occupancy levels with minimal disruption for the last 2 to 3 years. Properties with vacancies and fluctuating rental histories are considered higher risk.

– Property Condition. Properties in good condition with little deferred maintenance are considered lower risk than properties in need of major capital improvements.

– Leverage. Loan-to-Value is very important in determining risk. A 50% LTV loan will price better than a loan at 80% LTV.

– Borrower Qualifications. Lenders look closely at a borrower or guarantor’s net worth, liquidity, cash flow, credit history and real estate experience in determining overall risk.

If you have a specific transaction that you would like to discuss, please call us at 1-877-548-9454 or click here for a free quote.

Selectcommercial.com Funds $750,000 MI Commercial Mortgage Loan Located in Fenton Michigan

Selectcommercial.com announced on Monday, August 20th, 2012, that it originated a $750,000 MI commercial mortgage loan for the refinance an Office Building located in Fenton, MI.

About Select Commercial
Select Commercial offers a very simplified application process with no upfront application fees and no processing fees. We will discuss you loan request with you during our initial phone conversation and have you provide some basic information about the property and the borrower. Written pre-approvals are generally provided within 24 hours with no absolutely cost or obligation. We always offer professional service with excellent rates and terms.

Select Commercial is focused on providing the best commercial mortgage financing solutions for each client’s needs. All details of the commercial mortgage lending process are meticulously managed from the beginning of the loan process to closing. We’ve worked hard to earn the reputation we’ve established with our clients and continue to look for ways to improve our service. We advise each individual client and try to find the perfect solution for his or her needs. How do we find the perfect solution?  We identify and screen lenders that best suit the needs of the client and ensure their ability to close on the terms provided.

Here are some of the loan types Select Commercial can help you with:

  • Office Building Loans – multi-tenant or single tenant, owner occupied or investor
  • Retail Building Loans – shopping centers, retail strip centers, or individual stores
  • Industrial Property Loans – warehouses, distribution centers, manufacturing facilities
  • Bridge Loans – short term loans to overcome short term problems
  • Single/Special Use Loans – motels, gas stations, restaurants, etc.
  • Apartment Building Loans – garden apartments, high-rises, cooperatives, etc.
  • Investment Property Loans – any income producing property


About Our President, Stephen A. Sobin

Stephen A. Sobin is the President and Founder of Select Commercial Funding LLC.  Mr. Sobin has over 30 years’ experience in mortgage lending.  Mr. Sobin is the past president of the mortgage lending division of a federally chartered Federal Savings Bank. He founded Select Commercial to provide commercial mortgage advisory services to his clients nationwide.