December 02, 2015
In the previous article, fundamental points were covered having to do with a type of multifamily construction loan called an FHA construction loan. It is a great type of loan if you want to put less money down, get a great rate, and be able to keep your loan for a long time – 40 years.
In today’s article, I am covering the qualities to look for in a good commercial construction lender. It is known that the selection of a good lender is paramount to successful property investment. But, if you know the fine points to be able to select a great lender, as opposed to a good or average lender, you could very well save time, money, have an easier process, and have less headaches. The following is a list of some of the things to look for in a great commercial construction lender (This list will also apply for other types of commercial loans):
- The lender has quite a few years of experience in doing commercial construction lending. Construction lending, and for that matter, other types of commercial lending is quite involved, and takes years of lending experience to be exemplary in the loan process.
- The lender has a very good reputation. The way you can help verify this is to talk with at least 4 references – customers who have done business with that lender. Ask tough questions such as, “What are some weaknesses of the lender?” or “How could that lender do better?” If the lender hesitates to give you references, that is a red flag. A lender should be proud to have you talk with their customers. For example, if you talk with us (Apartment Loan Store), we have more than 20 references you can talk with, and we are proud for you to talk with them. We’ll give you several references to start with.
- Continuing with the lender’s reputation, the lender comes out clean when you do your due diligence online – Better Business Bureau report, www.scambusters.com etc. When you check our company out – Apartment Loan Store, we have a distinct advantage – our Websites show that we have an A+ rating with The Better Business Bureau.
- The lender does not charge upfront fees. Be very careful about upfront fees. Unscrupulous lenders use them. Sometimes a good lender will use upfront fees for a certain situation. But, be very careful and do very strong due diligence.
- The lender picks up the phone quickly when you call, or returns calls promptly.
- The lender works on your loan in a timely manner. A poor lender could drop attention on your loan and there can be big delays.
- The lender is friendly, and glad to do business with you.
- The lender goes out of their way to take care of your loan needs and give you great customer service. For example, if there is a tight deadline, they will put in extra time to do their best to meet the deadline.
Contact us to see if you pre-qualify for our best multifamily, commercial, or bridge loan rates and terms. Keep in mind that one of our specialties is Commercial Construction Lending. Also, contact us if you would like to discuss your particular commercial lending needs, or if you have any questions. 214-695-7310, or send an email to email@example.com
Bruce Painter, Director of Marketing, Business Loan Store