Why Should I Use Select Commercial?

Many of our customers have asked us why they should use Select Commercial instead of just going to their local bank to obtain a commercial mortgage loan. Select Commercial has the ability to close loans that other lending institutions can not close. Since we have numerous sources of capital available to us, we can offer better commercial mortgage terms than most other individual lenders.
We would like to share some examples with you:

1) One of our recent clients was looking to purchase an apartment building in Oklahoma. The client lived out of state. Their local bank would not approve this transaction. We approved and closed this deal and at a lower rate than their bank was charging for local customers! We lend nationwide and the fact that the borrower lived out of state did not concern us.

2) Another one of our clients owned a retail strip center in New York. He was looking to buy out his partner and needed cash. His local bank did not offer cash out refinances. We allowed him to cash out over $1,000,000 to help him acquire the property from his partner, and we offered a great rate as well.

3) We recently had a client in Colorado that owned and operated a restaurant. His current rate was very high. He wanted to lower his rate and withdraw cash to open a second location. His local banks were not interested in making loans to restaurants, and certainly could not offer cash out. We had no problem with either of these situations and closed the loan.

4) Another client was looking to purchase a trailer park in Maryland. This was his first property of this type and the location was somewhat remote. None of his local banks wanted to make this loan. Again, we were fine with this transaction and we closed this transaction with no hesitation.

5) We currently have a client looking to refinance a New York City co-operative mortgage loan. Their current loan matures in 2016 but they want to lock in today’s low rates. We offered them an extended rate lock option, allowing them to apply early, lock in the rate now, and close next year!

These are just a few examples of commercial mortgage transactions that we have offered our clients recently. If you would like to discuss a scenario, please call us today at 516-596-8537 or click here for a free quote.

Federal Reserve Announces Likely Rate Hikes

Since the economic crisis and financial meltdown in 2008, the Federal Reserve has kept the Fed Funds rate at very close to zero. The Fed Funds rate is the rate that the Federal Reserve charges to its member institutions. By keeping this rate very low, banks and other financial institutions have been able to keep the interest rates they charge to their customers at historically low rates. This has allowed individuals to buy homes, cars and other large items at very low rates – stimulating an economic recovery. Business customers and commercial real estate owners have likewise been able to buy and refinance commercial property at historically low rates. Most consumer and business loan rates are tied into the rates in the United States treasury market. Since the Fed funds rate has been so low, United States treasury securities have also been very low for the past seven years.

The Federal Reserve is starting to reassess their strategy and have announced that it is likely that rates will begin to rise between now and the end of this year. An increase from the Federal Reserve will cause an increase in the United States treasuries, which in turn will mean an increase in the rates charged to consumers and business owners. For more information on likely policy from the Federal Reserve, click this Washington Post article.

If you are considering purchasing a new commercial property, investment property, or refinancing the debt on your existing commercial mortgage loan, you should consider acting now before rates increase. For more information, please contact us at 1-877-548-9454 or visit our website at selectcommercial.com.

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.

Commercial mortgage loans that Select Commercial is actively closing….

Select Commercial, a nationwide leader in commercial mortgage loans and apartment building lending, is pleased to announce that we are actively lending and closing loans. Some of our loan programs are as follows:


Apartment building loans
– We are actively lending from $750,000 and up on all types of apartment buildings.

Owner occupied real estate – Business owners who own their property or are looking to acquire a business property are finding great rates at Select Commercial with LTV ratios up to 90% (and maybe even higher!)

Commercial mortgage loans – Multitenant and investor properties, including office, retail, warehouse, industrial and self-storage.

Special use properties – We are not afraid of motels, gas stations, bowling alleys, and other special use properties that many lenders shy away from.

Properties that are not fully rented – We have many programs geared towards owners of properties where the property is not currently stabilized due to vacancies or those in need of tenant improvements.

Credit/income problems – We do not automatically reject applicants due to credit or income which is less than perfect. If the deal otherwise make sense, we will look past temporary setbacks.

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 loans 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.


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 loans to his clients nationwide.

Selectcommercial.com Funds $3,116,000 Florida Apartment Building Loan Located in Bradenton, FL

Selectcommercial.com Funds $3,116,000 Florida Apartment Building Loan Located in Bradenton, FL

Selectcommercial.com announced on Wednesday, May 21st, 2014 the refinancing of a $3,116,000, 84 unit apartment building located in Bradenton, Florida. The borrower received a 5 year fixed rate loan with a 10 year term and a 25 year amortization. This allowed the borrower to pay off a high rate loan and lock in a low fixed rate.

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.

 

Select Commercial Nor Providing Small Business Property Loans To Owners Who Own Their Own Properties

Select Commercial is now providing small business property loans to owners who own their own properties.  Many small business owners find that they have trouble obtaining traditional bank loans due to their company’s size, specialized property type, credit rating, or difficulty producing tax returns.  In addition, if you are starting up a new business or expanding an existing business, it may be possible for us to use projection based income in order to qualify.  Traditional banks can’t match the ability we have to “stretch the guidelines” to help your business grow.  These loans have always been a large portion of our business.  We actively lend on gas stations, restaurants, hotels and motels, bed and breakfasts, laundromats, service stations, bowling alleys, movie theaters, golf courses, marinas, retail stores, independent groceries, franchises, auto repair, manufacturing plants, liquor stores, health clubs, self-storage, mini-storage, parking garages, campgrounds, recreational facilities, RV parks, and many other single purpose properties.  Let us help you start, purchase, refinance or grow your business!  Our minimum loan size is $750,000.

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.

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.

Selectcommercial.com Funds $1,040,000 CA Apartment Building Loan

Selectcommercial.com announced on Thursday, February 6th, 2014, that it originated a $1,040,000 CA apartment building loan for the refinance of an apartment building located in Santa Cruz, CA.

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.

It Looks Like 2014 Will Be Another Strong Year for TX Commercial Real Estate Loans

It looks like 2014 will be another strong year for TX commercial real estate loans. Texas continues to show strong growth for commercial real estate developers and investors.  “I think the market is amazing,” said Segal, CEO of Houston-based Boxer Property, which owns almost 6 million square feet of North Texas office space. “I hope to make many more acquisitions in the Dallas Fort Worth area in 2014, if the deals persist,” Segal says. “It’s getting harder all over the metroplex.”

Texas’ booming economy has pushed Dallas-Fort Worth’s commercial real estate market to the highest point in almost two decades.

Office, retail and industrial vacancies are below where they were at before the recession. “We’ve never been as positive about a year as we are about 2014,” said Denton Walker, Trammell Crow senior managing director. “We think 2014 will be a breakout year for us in retail, office and industrial real estate.”

Growth in North Texas seems to be almost a certainty, because nearly 3 million square feet of office real estate in Dallas-Fort Worth was obtained in 2013, according to Jones Lang LaSalle’s end-of-year research.

Dallas-Fort Worth had a net job growth of 96,000 positions year-over-year, which coupled with the lack of new construction in the market has led to a much healthier market, Daryl Mullin, senior vice president of Jones Lang LaSalle told the Dallas Business Journal.

Investors looking for Apartment Building Loans, Commercial Mortgages and Business Real Estate Loans should look no further than Select Commercial. They offer loan quotes within 24 hours with NO cost, NO obligation, and NO upfront application fees. They can be reached at 877-548-9454 or you can fill out a Free Loan Request.

Selectcommercial.com Funds $1,100,000 IN Commercial Mortgage Loan

Selectcommercial.com announced on Thursday, January 8th, 2014, a IN Commercial Mortgage Loan in the amount of $1,100,000 for a FedEx/Kinko’s property located in Indianapolis, Indiana. The borrower received a 10 year fixed rate loan and a 25 year term and amortization. This allowed the borrower to pay off a high rate loan and lock in a long term fixed rate.

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.