Commercial Mortgage Broker
Select Commercial is a leading commercial mortgage broker specializing in apartment building financing and commercial mortgage loans nationwide. As an experienced commercial mortgage broker, with over 30 years of lending experience, we have many sources of capital to choose from when placing a commercial mortgage request with a lender. Having many lenders to choose from gives a commercial mortgage broker advantages over any one individual source. Who are these lenders, and which is best for your particular needs? As a licensed and experienced commercial mortgage broker, we know the best lender to use for your particular situation. See our article published in a major magazine on Why Use a Commercial Mortgage Broker. Here are some of the lending institutions that we use to fund our commercial mortgage loans:
Commercial Banks – Commercial banks are a major source of commercial mortgage capital. These lenders often seek larger loans in major markets nationwide. While rates are often very competitive, the qualifying guidelines and terms are sometimes more conservative than other lenders.
Local and Community Banks – Local and regional banks are also very actively lending on commercial real estate. These lenders often look for banking relationships and are often able to make loans with easier qualifying guidelines. Most of these lenders like to stay local to their market.
Agency Lenders – Fannie Mae and Freddie Mac are actively engaged in apartment building and multi-family lending for qualifying properties and strong borrowers. Borrowers seeking agency loans should have excellent credit, personal net worth, liquidity, and experience. The property should be in good condition with a solid rental history. Properties with high turnover, vacancy or deferred maintenance may not qualify.
Conduit Lenders – Wall Street lenders have traditionally been active with Commercial Mortgage Backed Securities (CMBS) loans. These loans, usually $2,000,000 and more, are an excellent source of mortgage capital. CMBS lenders have returned to lending after several years of sitting on the sidelines due to the recession. These loans are now aggressively priced and often have easier qualifying terms.
Insurance Companies – Insurance companies have always provided low rate and long term loans on commercial real estate. These loans are underwritten conservatively (low loan to value ratios) and are offered on strong properties and to strong borrowers. Insurance company rates do not fluctuate with each and every move in the market as these loans are tied to the company’s internal cost of funds.
Credit Unions – Many credit unions are beginning to aggressively lend on commercial real estate. These lenders typically like deals close to home and like to establish relationships (they like deposits). They most often compete with the local and community banks in the area. These lenders weren’t very active in the past and don’t usually have any bad loans on their books at this time.
Private Lenders – Private lenders give access to capital for those borrowers unable to obtain conventional financing. These loans are usually short term and at rates considerably higher than conventional rates. These loans require less underwriting time and usually close within 30 days. Private lenders are more concerned with property value and potential cash flow than with borrower credit issues.
A good commercial mortgage broker will have solid, long-standing, relationships with each type of lender listed above. This will enable the commercial mortgage broker to ensure that its clients are getting the very best rates and terms available in the market. A commercial mortgage broker will help you negotiate all facets and structure of your commercial mortgage loan, including: rate, term, amortization, adjustment options, prepayment penalty, recourse obligations, loan proceeds, closing costs, lender fees, etc. Each type of lender listed above will have different requirements for each of these items. A commercial mortgage broker should prepare and analyze several competing quotes for you to decide between.
The past mortgage crisis has changed the way commercial mortgage borrowers obtain financing today. The days of walking into your local bank and obtaining the loan you need (and that is best for you) are long gone. An experienced commercial mortgage broker who understands your needs and has access to all of the lenders described above is a necessity to get you the best commercial mortgage loan available. He will be able to guide you through this process and help you obtain a commercial mortgage that meets your needs.
And don’t forget to make sure that your commercial mortgage broker is licensed and has a good reputation with the local Better Business Bureau. Be sure to check for reviews and testimonials – the reputation of your commercial mortgage broker is important. At Select Commercial, we have an “A+” Better Business Bureau rating and thousands of satisfied customers!
Our Commercial Real Estate Loan Benefits
Rates start as low as 4.60% (as of
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on apartments, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation