Commercial Property
When you need a loan, you are not alone!TM
Commercial Financing Must be Done Right
If you’re looking for commercial property and require financing, we can help!
While working with a broker for residential loans is advantageous to the consumer. It is more so on commercial properties, as briefly explained here.
Residential loans and commercial loans are very different in terms of qualification and lending processes.
Residential loans are similar in qualification criteria since they are highly regulated, are sold to the same secondary markets, and/or are guaranteed by the same government related institutions. The main differentiator when selecting a residential broker is quality and efficiency of service and fairness of pricing.
Commercial loans, however, are far less regulated, and are often carried by a vast range of investors with vastly different go to market strategies which are continuously evolving.
For instance, a lender may be offering attractive terms for apartment buildings for a period of time. However, once a certain number of loans for apartment buildings have been disbursed, the lender may feel that they are too leveraged in one type of property, and make the terms less attractive, in order to reduce the rate of incoming apartment building loan applications, and switch to offering better terms on other types of properties (e. g. office buildings or industrial buildings). This is often called “balancing their portfolio”.
So by the time the word spreads that a particular lender is a good source for apartment buildings, that may no longer be true.
So it is critical to work with a broker who keeps taps on the market conditions and can utilize live and very recent information to assist the client to make good choices.
Contact us today, and let us answer any questions which you may have.
