When developers and property owners are searching for the best options to finance their next big project, commercial mortgages are the way to go. The key to finding the right loan is to shop around, comparing terms and rates. Whether your next project is a retail shopping center, hotel, apartment complex or other multi-family property, commercial mortgages provide a variety of financing options for long-term real estate assets.
Commercial mortgages work a lot like residential home mortgages. They allow you to finance a real estate purchase without using short-term credit or tying up large amounts of cash needed for other aspects of your business. Commercial mortgages also offer the convenience of mortgage refinancing for your property once it builds up enough equity, which can finance the growth of your business. There are a variety of commercial mortgages available, but getting the best deal requires an understanding of your business needs, and thorough research of the various mortgage options. When choosing a lender, consider:
1. Comparing commercial mortgage bank loan rates and lender fees.
2. Using third-party lenders who can offer an alternative option for mortgage financing.
3. Hiring commercial mortgage brokers to shop around for the best rates.
Action Steps
The best contacts and resources to help you get it done
Check with banks to compare mortgage loans
Banks are the first financing source most commercial borrowers turn to when looking for a mortgage. Banks also require more documentation than alternative mortgage sources. You will also find that each bank has different fees which can effect your loan rate. A mortgage calculator can help you analyze and compare loan offers so you can choose the best rate for you.
I recommend: Wells Fargo offers commercial real estate lending options to support developers and investors throughout the U.S.
Bank of America has mortgage loans to finance commercial real estate assets for up to 20 years. They have a variety of loan options, including mortgage refinancing.
Use third-party lenders to obtain a commercial mortgage loan fast
Also called "hard money lenders," third-party lenders can process mortgage loans much more quickly than banks and other financing sources. They also require much less documentation, and are more forgiving of many credit issues. Third-party interest rates are much higher than those of banks because the lenders use private funding, but for many investors and developers, the convenience may outweigh the costs.
I recommend: Avatar Financial Group offers borrowers unable to secure a loan through banks an alternative to obtaining real estate loans.
Prime Asset Funding also provides creative commercial financing options for large construction projects, claiming to close on your loan in as few as 10 days.
Let commercial mortgage brokers find you the best real estate mortgage deals
Commercial mortgage brokers don't actually lend you money, but compare various banks and lenders to find you the best mortgage at the most competitive rate. Brokers build relationships with various banks and lenders to negotiate rates you may not be able to get on your own, and will research and perform background checks on lenders and institutions to save you time. Brokers work a lot like a mortgage calculator?they help determine the best rate available.
I recommend: Wholesale Commercial Capital Group specializes in securing the best commercial mortgage loan solutions for your business. They also manage the loan process for each client from start to finish.
Real Web Funds commercial mortgage brokers specialize in locating and closing a variety of debt and equity commercial real estate loans for projects anywhere in the U.S.
Tips & Tactics
Helpful advice for making the most of this Guide
- It is a good idea to hire a lawyer to check the terms and conditions of the mortgage loan, and check for any hidden fees. You can also have a lawyer represent you when you close on your loan.
The official source of Mortgages is the Mortgages page at Business.com
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