Montana Commercial Real Estate Loans
Select Commercial is a leading Montana commercial mortgage broker specializing in apartment building financing and commercial real estate 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.
Montana Commercial Mortgage Rates - Rates updated December 7th, 2022
|Commercial Mortgage Loan Product||Rates (start as low as)||LTV|
|Commercial Real Estate Loans||5.90%||Up to 75%||Get Free Quote|
|Multi-family Loans (Over $6,000,000)||5.60%||Up to 80%||Get Free Quote|
|Multi-family Loans (Under $6,000,000)||5.70%||Up to 80%||Get Free Quote|
|Single Tenant Lease Loans||5.70%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||5.80%||Up to 90%||Get Free Quote|
Select Commercial is a leading Montana commercial real estate loan provider. We have excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate throughout the state of Montana. While we lend across the entire continental United States, we are able to give our best commercial mortgage rates and loan programs to certain areas that we feel are strong markets. Montana is one of the states that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified MT borrowers looking to purchase or refinance a commercial property. If you are looking to obtain a commercial real estate loan, don't hesitate to contact us. There are many reasons why our customers like doing business with Select Commercial. We have a simplified application process and we do not charge any upfront application or processing fees. We typically offer 24-hour pre-approvals with no-cost and no-obligation. Our long term fixed rates are excellent, and we look to close within 45 days of application. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.
Montana Commercial Mortgage Benefits
Montana commercial mortgage rates start as low as 5.42% (as of December 7th, 2022)
• Over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multi family , 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
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Montana Commercial Real Estate Loan Trends in 2022
The Montana commercial real estate loan market in 2022 has been impacted by two major factors: the ability to rebound from the Covid-19 pandemic and the effect of inflation and higher interest rates. We will start with a discussion about market interest rates. As we began 2022, the 10 year treasury rate was around 1.66%. By June of 2022, this rate had almost doubled to 3.38%. The 10 year treasury rate is one of the most important benchmarks that lenders use when pricing commercial mortgage loans. Due to decades high inflation, the Federal Reserve has been raising rates to slow the rate of inflation. In May of 2022, the Federal Reserve raised the federal funds rate by 50 basis points. In June of 2022, The Federal Reserve raised the federal funds rate by 75 basis points and signaled that they expect to continue to increase rates throughout the remainder of 2022 as they intend to aggressively control inflation by raising rates. Commercial mortgage lending is directly impacted by these Federal Reserve actions. Commercial mortgage rates and U.S. Treasury rates have risen right along with the federal funds rate, making commercial mortgages more expensive than we have seen in years. Many commercial real estate investors are reevaluating potential purchases as higher interest rates are affecting cash flow by lowering the loans amounts available on a commercial mortgage. Since higher commercial mortgage rates cause higher monthly mortgage payments, many commercial real estate deals are not able to support the sane levels of debt as they once did. If this trend continues, we may see a decrease in commercial real estate values and an increase in market cap rates. This is a trend that we are watching closely in 2022.
The other factor impacting the commercial mortgage market is the lingering effects of Covid-19. Montana commercial real estate loans and commercial mortgage lending was severely affected by the pandemic. Many businesses were forced to close, and most workers were not able to go to their offices, stores and most other locations. Many commercial mortgage lenders paused their lending activities during the pandemic while they waited for the market to return to normal. Some segments of the commercial mortgage market have rebounded nicely, while others are still suffering. We will offer a brief summary of some of the major commercial asset classes here:
Office CRE Loans in 2022
Industrial CRE Loans in 2022
Retail CRE Loans in 2022
Hotel/Motel CRE Loans in 2022
Self Storage CRE Loans in 2022
Mobile Home Park CRE Loans in 2022
Medical Office CRE Loans in 2022
Single Tenant Net Lease Loans in 2022
Montana Commercial Mortgage BrokerSelect Commercial is a leading commercial mortgage broker specializing in apartment building financing and CRE(commercial real estate) 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 loan broker, we know the best lender to use for your particular situation. 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 Montana 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!
Why Use a Montana Commercial Mortgage Broker?Commercial real estate investors have a choice to make when it comes to financing their commercial real estate loans. They often wonder “Should I apply to my local bank directly, or should I employ the services of a professional commercial mortgage broker to assist?” In order to answer this question, the following points need to be considered:
Most large real estate investment firms employ in-house financing professionals to source, negotiate and place their commercial mortgage loans. It is often cost prohibitive for smaller firms or individual investors to employ financing professionals on a full-time basis. These investors are best served by hiring a competent commercial mortgage broker to represent their interests on a deal-by-deal basis.
Commercial Mortgage Loan Outlook 2021
The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial real estate loan rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
Montana Commercial Real Estate Loan Options
We arrange commercial mortgage financing in the state of Montana for the following:
- Office Building Loans – we lend on all types of office properties, including multi-tenant and single tenant buildings in all locations. We lend on both owner occupied and investor properties. We typically lend up to 75% LTV on investor properties and up to 90% on owner occupied properties. Most loans are written for either 5, 7, or 10 years at a fixed rate with a 25-year amortization.
- Retail Building Loans – we gladly consider requests for commercial mortgage loans on shopping centers, retail strip centers, and individual retail stores. We are a little bit more conservative on retail loans these days based on the current climate for retailers and will consider LTV ratios of 65%-75% depending on the deal. We actively lend on NNN single tenant retail locations such as Starbuck’s, CVS, Walgreens, Dollar General, and other national credit rated tenants.
- Industrial Property Loans – we love to lend on warehouses, distribution centers, manufacturing facilities and other industrial properties. Often, these properties are owner occupied by the owner’s business. We also lend on multi-tenant industrial properties as well. We look for properties in good locations with access to population centers and transportation.
- Single/Special Use Loans – we have a special lending division that understands small business lending secured by owner occupied businesses such as motels, gas stations, restaurants, car washes, retail stores, and other specialty properties. Many banks have a hard time with this type of lending as they often do not understand the underlying businesses.
- Investment Property Loans – any and all income producing property will be considered. We are cash flow driven lenders and look for properties that generate positive cash flow for their owners. We will consider portfolios of single family residences under this group.
- Bridge Loans – many borrowers do not qualify for regular institutional financing due to various short-term obstacles which need to be resolved before they can qualify for bank type financing. These borrowers often require short term loans, or bridge loans, to overcome these short-term problems.
Our company has multiple capital sources for these loans, including: national banks, regional and local banks, Fannie Mae, Freddie Mac, FHA, HUD, insurance companies, Wall Street conduit lenders (CMBS deals), credit unions and private lenders/hedge funds. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.