Investing in Commercial Real Estate
Are you thinking of investing in commercial real estate? Are you looking for a solid return on your investment? If you answered yes to these questions, you may want to speak to a commercial mortgage broker. Why should you deal with a commercial mortgage broker? With today’s market conditions, the loan approval process is getting tougher and tougher. Banks and other lenders are very selective in determining what types of investment properties they are willing to finance. By paying attention to which types of properties lenders are willing to finance and which they aren’t, you may be able to make better investment decisions. Commercial mortgage lenders are constantly evaluating which types of properties to finance. This valuable data may help you determine which type of investment property to consider.
Which types of loans are banks and other lenders are currently considering? Apartment building loans are very popular right now. Due to the turmoil in the housing and employment markets, many people are choosing renting over buying. This is creating demand in the rental sector. Other favorable property types include: anchored retail centers, medical office buildings, and other general purpose multi-tenanted properties. In addition, lenders like business mortgage loans where the owner will occupy the property and use the property to operate his/her own business.
You may want to think twice before investing in any of these properties, as they are tough to finance: vacant property, raw land, construction projects, or retail space without anchor tenants. In addition, lenders do not want to finance projects with insufficient down payments. Seller financing and no-down payment deals will not be considered in today’s market. Lenders expect to see the borrower invest a significant amount of money before risking their investment capital.
You can check out our commercial real estate loan rates here. Then use our commercial mortgage calculator to determine your monthly principal and interest payment.
To learn more about what commercial underwriters consider when evaluating a commercial loan request, please call us at 877-548-9454 or visit our website at https://selectcommercial.com.
Author
Stephen A. Sobin is the President and Founder of Select Commercial Funding LLC. Mr. Sobin has over 35 years’ experience originating commercial real estate loans. He formed Select Commercial to offer commercial mortgage banking and real estate capital advisory services to his clients on a national basis. His goal was to become an advocate for his clients and to help them navigate the ever-changing economic conditions facing the banking industry and to assist them by providing access to commercial real estate funds despite the uncertainty of the capital markets. The company was founded on the belief that most small to medium sized property and business owners lacked the expertise and sources to obtain the best financing options in the $1,500,000 to $10,000,000 range. While large real estate companies often have in-house finance professionals, most small to medium sized borrowers do not have the same access to professional advice and sources of funds. Mr. Sobin focuses on providing those services to this segment of the market.