Commercial Loan Blog
July 15, 2015
There are big differences between commercial apartment properties and residential investment properties. You could say it’s somewhat like two different planets. People new to the commercial apartment world need to understand the differences before getting involved. Before we continue, it’s important to know that commercial apartment properties are also known as multifamily properties.
First, there is one particular key distinction to keep in mind. A residential investment property has 1 to 4 units. A commercial apartment property is defined as having 5 or more…
Read MoreJune 21, 2015
In the previous blog, we covered some key characteristics of a commercial loan broker who does inferior work. This can include a direct lender too. In the blog were several negative characteristics to stay away from including: A commercial broker asking for upfront fees unless it was a project of great complexity – like a New York skyscraper, the lender refusing to give you some of his customers to talk to as references, and getting an inexperienced lender.
This week we include 4 more key characteristics of a poor commercial loan broker, or direct lender.
… Read MoreJune 17, 2015
In your quest for a commercial loan it is so important to know some key qualities of a Commercial Loan Broker to avoid:
June 10, 2015
Going for the lowest rate could be a good practice generally. But, as we covered in the previous blog, there are quite a few lenders who quote a rate too low to hook you into working with them. Later on when you are well into the loan process, they give you a higher rate than originally quoted. They may tell you that rates have gone up, but the problem is they changed the rate artificially to try to get your business.
This most recent past article also covered what you can do to help prevent this from happening.
This week we are going to continue…
Read MoreNo.
Why? Even though there are arguments lenders could give you that you should go with them because they are quoting you a low rate at the inception of the loan process – the low rate quite possibly is deceptive.
A lender can quote you anything they want to quote you at the beginning of the loan process. Because you are not trained in commercial loans, whatever they quote you, you very well could believe.
Let’s say for example that they quote you 4.25% for a 10 year fixed rate, 30 year amortized apartment loan purchase, but the problem is, at that rate they…
Read MoreMay 29, 2015
This is an important question to the writer of this blog because the motives having to do with why a commercial lender is in the commercial loan business is connected to the effectiveness of that lender.
I believe this would be a good question to ask a commercial lender you are interviewing to see if you want that lender to represent you. It is an unusual question to ask, but it could give insight into the quality of the commercial loan person as well as the commercial loan company.
I believe this is the kind of question that may be able to help bring out…
Read MoreMay 25, 2015
This is an important question in certain types of situations in purchasing a multifamily property, or in refinancing a multifamily property. An apartment bridge loan may be able to help you acquire a property that an agency loan or other high quality type of loan would not.
However, before getting an apartment bridge loan, know that bridge loans have increased risk. If you are not experienced in owning properties in which you have done…
Read MoreMay 21, 2015
In the previous article, we looked at the question of why choose a commercial lender who represents a good number of loan programs as opposed to choosing a direct lender who represents their one loan program.
To summarize this first part,
May 11, 2015
When you are in the market for a commercial loan, you have the choice of:
There are a number of advantages in working with a commercial lender who represents a good number of different loan programs.
April 27, 2014
This week’s article and the previous one are on how to find various types of information regarding commercial real-estate.
Regarding the previous article I posted, it included a website where you can find commercial properties for sale in various cities – https://www.loopnet.com/.
Also in the same article I posted about another website which is on how to get some information to learn more about the area of commercial real-estate – https://www.ccim.com/cire-magazine.
This week we will first look at a way to get information on how well different…
Read MoreApril 23, 2015
The past 2 weeks, I have posted blog articles on how important it is to have strong sources to locate apartment properties for sale in cities that you may be searching for property. Also, the information included source information to find the strength on the apartment market in cities of interest.
This week we are broadening our scope to the spectrum of commercial real-estate, which can include retail, office, senior housing, hotel and motel, industrial, etc., and of course multifamily. We will be looking at where to find commercial properties for sale, and…
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