You need to be pre-qualified to avail a real estate loan. When you apply for a loan the loan officer looks into your credit report, and also figures out the maximum loan amount that you can have, by working backward. This could also be done by you, and you can first start by establishing your monthly income. This is not an easy task, for the lenders always take into account that incomes which they can document. In taking out a real estate loan, you would need to qualify as regards to your earnings and your earnings needs to be proven in order that they may be taken into account by the loan officer, who arrives at the loan amount. The loan amount would necessarily depend on the kind of earnings that you have.

Let us find out how the officer would calculate your earnings under different circumstances.

In case you are employed and you receive salaries, and do not get to earn bonuses, the task becomes easy. All you need to do is to refer to your paycheck, and if you get paid every twice in a month, you would be multiplying the amount you get by two. Similarly, if you get paid every two weeks, you would multiply that by 26, considering that, in your case, there are 26 paydays in a year. You need to divide this by 12 in order to get your monthly earning figure. There are people who do not work all through the year, and the rules in their case would be different.

If you earn by hourly payment, and do not earn over-time, it becomes easy to calculate your monthly income. All you would need to do is to multiply your hourly pay by 40, being 40 hours of work per week, which gives you your weekly pay. This way you need to convert into a yearly figure and to do this you multiply that weekly figure by 52, there being 52 weeks in a year. After that, you divide that yearly figure by 12 in order to get your monthly pay amount.

All this is easy to calculate. But if you should be earning overtime, bonuses, or commissions, the matter gets to be complicated. In this case the lenders would not consider the earnings that you have from those sources. Instead they will average out that income that you had for the last two years, and add that amount to your regular income, be it hourly, weekly, or monthly. In order that you can quickly know your monthly income, you should get your W2 forms for the last two years, add up the amounts, and divide that by 24 in order to get your monthly income.

In similar fashion, if you are a teacher, a nurse, a seasonal worker in construction, or a worker earning from a part-time job, you can use the same way to calculate your near monthly income. You would need to add all your pay amounts for the last two years from your two year's W2 form, and divide that by 24. This will get you an approximate monthly income.

You would need a two-year track record if you are a self-employed person or receive 1099 income. The income shown in your IRS is taken to be the documented income that you have. It is quite usual that many of us over-state our expenses while we show our income in the IRS, and this real income may be understated. If you look at the schedule "C" of your tax return, there you will find an amount mentioned as "Profit". This amount is then your annual income, and calculating any depreciation on that value and adding the two sums together, and dividing that by 24, you get your near monthly income.

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Las Vegas real estate experts Kendall Trotter and Steve Hawks of Platinum Real Estate Professionals discuss loan modifications for upside down homeowners and the effects of scam artist currently preying on unsuspecting consumers.

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J Amalorpava Mary is the owner of The Loans Line, to find out more information on Real Estate Loan, Secured Loan and much more financial topic visit her site.

 

With change comes opportunity.  We are seeing many, very interesting developments with commercial real estate loans.  One happens to be banks offering to reduce balances owed and waive any prepayment penalties in an effort to entice strong borrowers to refinance their debt. 

And no, we are not referring to borrowers that are late, have negative trends, etc.  We are talking about stable commercial real estate loans, that the existing bank needs out of, for their own internal issues.  I.e. the bank needs liquidity to survive.  They have their own capital problems and, apparently freeing up commercial loans is a potential solution. 

Commercial Real Estate Loans

For example, a hotel client of ours called this week.  They owe $3.5 million with a property value at approximately $5.2 million.  Their occupancy is great at 84% year end and they have strong cash flow which easily services the existing debt.  Their existing bank has offered to waive the existing 3% prepayment penalty and reduce their balance by $300,000 to get them to "go away".  The bank called them out of the blue.   

Fluke???

Another borrower called us this week as well that happens to own 14 Kentucky Fried Chickens.  They owe their existing bank over $7 million and where offered a reduction of $3,000,000 dollars...  Again the borrower is strong, cash flowing, etc.  These, by the way are not the same banks. 

Borrowers that are in good financial positions, may want to make a few phone calls to see if they can save a substantially amount of money.  Borrowers should keep in mind that just because your existing bank maybe in trouble doesn't mean that you can't find a healthy bank, as we and some of our competition continue to grind out commercial real estate loans.   

The old saying, "got lemons? make lemonade" comes to mind.    

 

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Jeff Rauth is President of Commercial Finance Advisors, Inc. They close commercial mortgages nationwide. 248 885-8797. Commercial SBA Loans or commercial real estate loans or commercial bridge loans

Commercial Real Estate Loans are very popular these days, and it's not hard to understand why. They are currently appreciating at roughly 11% per year. In some cases the property doubles in value every 5 years or so, it's not uncommon. So even if you acquire a Hard Money Commercial Loan at 17%, which is the high end. You can get a Hard Money Commercial Loan in many cases as low as 11%. You can see how this appreciation even at these high rates would offset the high interest.

What are the Similarities of Commercial Real Estate Loans?

They Propose Continuing Set in Stone Rates for the life of the loan. That is until you decide to sell the property or pay it off in full. They are a Profitable Investment Vehicle that is backed by Real Estate. You can use these loans to generate a Business or Enhance your current Business. These loans can also %serve% as a method to refinance an existing property.

Whether you're searching for Commercial Mortgage Real Estate Loans Washington State or Wells Fargo Bank Commercial Real Estate Loans, there is bound to be a solution that will mold to your personal and business needs.

You have several options, either a Hard Money Commercial Loan, a Conventional Loan or a Government Guaranteed Accommodation. In most cases you can borrow up to 80% of the LTV or Loan to Value ratio. This is a measure of how much the property is currently worth. The ideal payback time frame for these types of loans is most frequently 6-36 months.

Types of Commercial Real Estate Loans:

Before you apply for a loan, just keep in mind the two main types of loans. They are the Private Loan a.k.a. Hard Money Commercial Loan. These are very simple to get, but expect to pay a more robust percentage rate. Don't let this stop you from applying, but it's just something you need to be aware of.

There are 3 occurences you should do before signing for a Commercial Real Estate Loan:

1.) Have a Competent attorney you hire skim the contract. Don't rely on the sellers underagent to cover your tail. A competent attorney will let you know of anything in the contract that may not be in your favor.

2.) Always go for a fixed rate loan over a variable rate. This will shield you from unexpected rises in your monthly payments in the future. If your predictable income is lower than what these rising payments can open in the future, you can potentially end up in a crunch.

3.) Conduct an Interview of the money lender. Make sure you write a comprehensive list of questions they can reply to. The conference does not need to be in person. There's nothing at all wrong with an over the phone interview, being that many lenders offer loans Nationwide Commercial loans.

Tax Benefits

When a parcel of Real Estate increases its value, you can simply take cash out and use that cash to purchase more assets to increase your wealth even more. You won't have to pay taxes on any amount you acquire as a result of the refinance as long as it's used to purchase more business assets. Anything you spend for personal use you're amenable to pay taxes on. So you're secured in the event that you're obtaining another asset which can be resold as well.

Closing a Commercial Real Estate Loan deal is potentially confusing to the neophyte Real Estate Investor. But don't worry. There are attorneys and brokers that will make sure your not being exploited. Use them, work out the numbers and you might be on the road to closing a deal of a life time.

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The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you "must have" and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You've no doubt heard the saying that "all real estate is local," so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc.

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as "comparables" or "comps").

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let's you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller's Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to "fall in love" with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.

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In nearly every city or town in America there are a few different types of real estate agents and brokers. Some of these professionals deal primarily in single family homes for individuals, others deal with commercial real estate transactions, and yet a third type deal primarily in investment real estate. If you are looking to invest in the real estate market, you will want to find a real estate agent or broker who deals with investment properties and the unique needs of real estate investors on a day-to-day basis.

The Investment Real Estate Specialist

The reason for dealing with a realtor who specializes in investment properties and transactions specifically with investors is simple; they understand what we do for a living and how we handle our transactions differently than other real estate buyers.

For example, real estate loan prequalification letters have become the norm these days for anyone who wants a realtor to show them available property. And, if you think about it, this does make sense for the realtors. Why should they bother spending their valuable time with buyers who cannot ultimately qualify for a loan? They don’t want to. So, they pretty much all require home loan prequalification before they will deal much with a buyer these days.

The good news is that for those of us who are investors, and who often use creative financing in one form or another on our deals, we are able to do business with the investment real estate agents without having to produce mortgage loan prequalification letters and lots of other documentation. All we have to do is let them know that if they can find us the deal, then we can get it financed one way or another.

Hard Money Lenders and Real Estate Loan Prequalification Letters

If you will be using hard money for your investment transaction, then it is possible for you to get a hard money lender to write you a mortgage loan prequalification letter. The hard money lenders deal with realtors as well, and they understand that some of them can be pretty insistent on mortgage loan prequalification.

Ultimately, if you deal with an investment realtor and try to avoid those who do not thoroughly understand our business, you should be able to minimize your document and prequalification headaches.

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The reason Commercial Real Estate Loans are so popular is because these properties pull down cash, and lots of it. Lets say you get a Hard Money Commercial Loan at 13%. The property you purchased appreciates at 11% per year on average. In a few years it doesn't take a mathematician to figure out that the appreciation will offset the high interest loan.

What are the Similarities of Commercial Real Estate Loans?

They Offer Permanent Fixed Rates for the life of the loan. That is until you decide to relinquish ownership of the property or pay it off in full. They are a Profitable Investment Vehicle that is backed by Real Estate. You can use these loans to construct a Enterprise or enlarge your current Enterprise. These loans can also %serve% as a method to refinance an existing property.

Whether you're searching for Commercial Mortgage Real Estate Loans Washington State or Washington DC Commercial Real Estate Loans, there is bound to be a solution that will fit your personal and business needs.

You have several options, either a Hard Money Commercial Loan, a Conventional Loan or a Government Guaranteed Accommodation. In most cases you can borrow up to 80% of the LTV or Loan to Value proportion. This is a measure of how much the property is currently worth. The standard payback time frame for these types of loans is most often 6-36 months.

Types of Commercial Real Estate Loans:

You can get a Private or Conventional Commercial Loan. Private loans, otherwise known as Hard Money Commercial Loans tend to cut a lot of the red tape associated with a Conventional Loan and the acceptance process is pretty straight forward.

There are 3 circumstances you should do before signing for a Commercial Real Estate Loan:

1.) Have a Competent attorney you hire examine the contract. Don't depend on the sellers negotiator to cover your tail. A good attorney will let you know of anything in the contract that may not be in your favor.

2.) Always go for a fixed rate loan over a variable rate. This will shield you from unexpected rises in your monthly payments in the future. If your predictable income is lower than what these rising payments can recommence in the future, you can potentially end up in a crunch.

3.) Conduct an Interview of the money lender. Make sure you write a comprehensive list of questions they can reply to. The chat does not need to be in person. There's nothing at all wrong with an over the phone interview, being that many lenders offer loans Nationwide Commercial loans.

Tax Benefits

When a parcel of Real Estate increases its value, you can simply take cash out and use that cash to purchase more belongings to increase your wealth even more. You won't have to pay taxes on any amount you acquire as a result of the refinance as long as it's used to purchase more business assets. Anything you spend for personal use you're under obligation to pay taxes on. So you're protected in the aspect that you're purchasing another asset which can be resold as well.

Closing a Commercial Real Estate Loan deal is potentially confusing to the neophyte Real Estate Investor. But don't worry. There are attorneys and brokers that will make sure your not being exploited. Use them, work out the numbers and you might be on the road to closing a deal of a life time.

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Current information on how the new FHA loan limits will effect home ownership in Orange County. Diane Luongo Gazich of the Mortgage Plan is interviewed by Stacey Sloan of Fidelity National Title.

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Read Brian Garvin & Jeff West's Free Real Estate Articles and find out more about Commercial Real Estate Loans today. You can always call us for Free Real Estate Advice as we have a lot of resources to help you find what you need, with no obligation of course.

Article Source: ArticlesBase.com - Commercial Real Estate Loans: A Third Party Honest Review

Non-traditional lending companies provide investors with loans for small to mid-sized investment endeavors. The loan amounts to $500,000 - $5,000,000 and are 1%-3% lower compared to the interest rates of traditional lenders. As far as alternative loan solutions go, there are a number of loan packages for investors with various business and loan needs.

The Security Imposed on Loans

Business loans are taken out to buy business premises, widen business boundaries, develop property, and to invest in commercial or residential lots. Borrowers can negotiate for the type of collateral to get maximum loan satisfaction.

Private lenders offer fast and dependable service to those who want to apply for a small or a big loan because they do away with the red tape and unnecessary documentations that prolongs the loan application procedure.

There is a standard loan application procedure for refinancing and getting a mortgage from banks and other traditional lending agencies. On the contrary, in commercial loans, lenders are very particular with the worth of the collateral rather than your credit standing.

A commercial real estate property is needed in applying for a commercial loan. Be Certain that your asset is in good condition, otherwise, lenders will require a considerable amount of money as downpayment and disqualify you from an apartment loan.

The Buyer-Seller Transaction

The sellers and the buyers are the two entities involved in commercial real estate loans. Buyers should provide themselves with a number of alternatives first prior to selecting an investment property. On the contrary, the sellers must ensure that the property for sale is in good condition and that all its paperworks are available for future reference.

Buyers evaluate the properties for location and condition. When considering location, buyers are after ease-of-access because they do not like to spend extensive travel expenses just to follow up on the property's repairs or to manage it themselves. In addition, since they recognize that the flow of customers will srely affect business, buyers don?t like a place that is located in a congested area. Also, they don?t want a property that requires major repairs every now and then simply because of the applicable expenses.

The LTV Ratio and Commercial Real Estate Loans

The lenders evaluate the loan amount on a loan-to-value (LTV) ratio. This calculation gives the amount of the initial mortgage lien as a fraction of the total value of the real property after appraisal. A borrower can get $150,000 for a property quoted at $180,000.

The LTV ratio is indirectly proportional to the risk of the borrower. This implies that higher LTV ratios are provided to low risk borrowers who have clean credit history. A bigger ratio shields lenders from the possibilities of foreclosures. Some may also be granted with a full ratio, but this a very rare case.

Generally, factors like the borrower?s credit standing, stability and type of the business you are managing and nature of the estate about to be acquired are assessed by the lenders before approving a commercial loan. The good thing is, the NCF has a better method of processing loans as compared to those of the traditional lenders.

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This may seem like a boring podcast, but so many people have e-mailed Paul Dizmang of "(417) Dwellings!" for his opinion on loan types for purchasing investment real estate. Visit his blog at www.getpaul.com to get the whole scoop.

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Need to expand business? Try one of those commercial real estate loans, multifamily apartment loans, or mobile home park loans that are sure to earn you revenues. Let NationalCommercialFunding.com help you get the loan you need.

Buying a real estate is one of the toughest jobs for anyone since this gets bought for a lifetime and if you buy the wrong one, mending the thing is not an easy nut to crack. However, even if you get one worth, you may not have the required money. So, what one should do. Drop the idea? Obviously not, since there are real estate loans to make your go easy.

Real estate loans are those funds which allow you to buy a real estate property or an immovable asset. These are the financial support you may have for buying both the commercial sectors and the personal real estate property. You can buy a commercial real estate for any purpose, for office buying, retail or hotel or anything on earth which may have some commercial use. For personal use also, you can buy any type of real estate property, be it residence or for any farm house.

The buy of your real estate may take several bucks and that’s why the lenders provide a huge amount. This whopping sum may go up to a million from £ 50000. The tenure of real estate loans may go up to 25 years at the most. However, there are lenders who want you to pay a down payment in real estate loans. This may go up to 20% of the total cost of your real estate loans. Yet, you can find lenders without charging any down payment too with a variety of lenders. If one goes online for real estate loans, the probability of getting cheap rates in real estate loans gets increased since most of the lenders keep the web flocked. Loan processing also gets smarter there while the pace increases too.

There are two options of paying the installments in real estate loans, fixed and variable. Fixed interest rates are those where you can get your interest rates fixed at the starting of the tenure. Fixed interest rates in real estate loans in fact allow you to block the interest rates and are especially beneficial if they are low enough. At the opposite of it, variable interest rates mean that you can adjust your interest rates. There are however, balloon rates also where you can pay off the amount in intervals and theses are huge amounts. Real estate loans in fact, have got all the options for everyone. There are so many viable options available in real estate loans that you may wander how buying real estate has become so easy a task with these real estate loans.

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Tim Kelly is an expert in finance having completed his LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. He is currently working with Commercial Reale State Loan as a financial advisor. To find real estate loan, commercial real estate loan major that best site's you need visit http://www.commercialrealestateloan.co.uk

One of the most frustrating and confusing situations for a business owner occurs when lenders disapprove commercial real estate loans. Since rejected business loans are quite common, it is advisable for commercial borrowers to have a contingency plan in place for commercial loans.

Business owners are likely to be distressed when a commercial loan application is turned down and will be unsure as to why it took place and how to avoid a similar problem again. For each of the five primary reasons that a commercial lender might decline commercial real estate loans, a practical solution is suggested for transforming the rejected commercial funding into approved business loans.

Two reasons (tax returns and business plan requirements) could impact virtually all commercial loans. Many loan officers will begin their review of potential commercial real estate loans by stating "We will need to see at least three years of tax returns" and "Can you show me your business plan?" before proceeding.

Small business mortgage requests are sometimes too unique for a traditional commercial lender. In these situations (even if a business owner has an adequate business plan and favorable tax returns), it is not unusual for commercial borrowers to be declined for business loans by a traditional commercial bank.

The reasons provided below do not represent obscure issues. It is likely that two or three of the reasons described will be important for typical commercial real estate loans.

(1) Commercial Real Estate That is Used for Special Purposes. Reason number one for business loan rejections is that the lender does not make commercial mortgage loans for the type of business involved. In a typical example, fewer commercial banks are offering financing for bar and restaurant properties. In a similar fashion, an auto service business is often given expensive and unnecessary environmental stipulations. There are many special purpose commercial properties such as campgrounds, churches, funeral homes and gas stations that most traditional lenders have eliminated from their commercial lending program.

Strategy number one for converting the disapproved business loan into an approved commercial mortgage loan is realizing that there are reasonable options beyond traditional commercial lenders. There are capable lenders that are interested in special purpose properties. The best loan might be available only from a non-traditional commercial lender when traditional banks won't make the requested commercial loan.

(2) Tax Returns. Reason number two for commercial loan disapprovals is when loan officers find a problem on an income tax return that disqualifies a commercial borrower under the bank's loan guidelines. This "problem" will typically be related to net income after business deductions, but when loan officers review tax returns, there are many possibilities which will result in the same outcome.

Strategy number two for converting the declined commercial mortgage into an approved commercial real estate loan is to apply for a "Stated Income" commercial loan. Very few traditional banks use Stated Income (no tax returns, no income verification, no IRS Form 4506) for business loans. Borrowers should search for commercial lenders using Stated Income commercial financing. Unfortunately, this suggested solution will not work for all loans because of a normal maximum loan amount of about $2-3 million for a Stated Income loan.

(3) Cash Out Limitations. The third reason for rejection of business loans will be seen frequently during refinancing attempts which involve a need to obtain cash by the borrower. It is common for a traditional commercial lender to limit what the funds are used for and to restrict the amount of cash to as little as $100,000. Even though the bank will provide the commercial loan, if they won't offer the amount of cash requested by the borrower, this is equivalent to a loan disapproval.

Strategy number three for converting the declined commercial mortgage into an approved commercial real estate loan is to seek alternative business financing. An important goal for a commercial borrower is to find a lender that will not impose unfair restrictions in how refinancing cash is to be used.

(4) Collateral Required. Reason number four for commercial mortgage loan disapprovals is that the bank will not make a commercial loan without sufficient collateral such as a lien on personal assets.

Strategy number four for converting the declined commercial mortgage into an approved commercial real estate loan is for commercial borrowers to seek out lenders that do not "cross collateralize" assets as a condition for obtaining a business loan. This will provide greater flexibility for the commercial borrower and avoid unnecessary (and unwise) connections between personal and business assets.

(5) Required Business Plan. 0Reason number five for commercial mortgage disapprovals is when a bank's loan officer determines that the business plan does not support the needed commercial loan.

The fifth strategy is to avoid lenders which require a business plan, and this approach can save both time and money. This can result in several primary advantages:

(A) Decrease commercial mortgage costs by several thousand dollars. A typical business plan (prepared to normal bank specifications) costs $5,000 to $10,000.

(B) Reduce the period needed to complete business financing. A typical time for a business plan to be prepared is one to two months.

(C) Commercial financing approvals will involve fewer requirements when a business plan is not mandatory.

Unfortunately, the circumstances described in this article are responsible for many commercial finance difficulties. However, as noted above, the five key reasons for loan officers rejecting business loans can be overcome by most business owners. Similarly, with proper advice and strategies for small business mortgages, commercial real estate loans that are disapproved for other reasons (beyond the five issues described here) can also result in successful and effective commercial loans.

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Stephen Bush is a small business cash management expert - learn how to avoid problems with business loans and obtain candid business cash advance advice at AEX Commercial Financing Group => http://aexcommercialfinancing.com

Who would have guessed that the commercial real estate loan market would be so scattered in 2008.  CBMS lenders have been taking a beating and the corner banks are on a comeback.  The employees at these banks that for so many years just couldn’t compete with conduit loans, due to higher rates, shorter amortization periods and shorter fixed terms, must be quietly smiling, patting themselves on the back. 

Many of these banks never jumped on the band wagon of loosening underwriting standards or creating more aggressive loan programs.  They stuck to the basics and stayed conservative.  If the commercial real estate loan didn’t fit their guidelines, they passed.   Now many of these smaller or regional banks are flush with cash and are in the position to cheery pick the deals they want, on their terms.  Borrower much of the time simply have to conform to their demands because all of the other  options have dried up, or they just won’t get their commercial real estate loan funded.

I had a conversation with a vice president who was modestly boasting that “nothing really has changed here, or default rates are still low and showing no signs of increasing and our funding percentages haven’t been altered at all”.  To him all of this talk about the so called credit crisis certainly seems overstated.

Meanwhile as the rest of the industry seemed to chuckle at these quaint little banks, they are now having to go back to them in order to get loans funded.  And we are no exception.  Dealing with the corner bank is still no joke.  They still have the committees (that seem to meet only once a month), the “one step at a time process” and are in general not commercial mortgage broker friendly.  But they have the capital to lend so I guess we will all have to adapt. 

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Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He has a STORE for commercial loan brokers. Contracts, spreadsheets, books, etc. Products starting at $4.95! Check it out commercial real estate loans or commercial mortgage broker store or commercial loan bad credit