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Commercial Loan Blog

February 18, 2016

Commercial Loans: 3 Mistakes to Avoid

Some investors shop aggressively looking for the best commercial loan they can find, talking to many loan companies. Other investors may talk to just one loan company and decide on that one. Importantly though, many investors miss the boat when they... Read More

December 12, 2015

Commercial Property Investment is a serious business.

There are commercial property investors, especially those just getting into commercial property investing, who do not treat commercial property investments as a serious business. This can have dire financial consequences.

As... Read More

December 18, 2015

Fannie Mae and Freddie Mac are the best loan programs in America today. Why are they the best? Because of very good rate and terms.

The answer is simple. If you are looking to purchase or refinance a multifamily property (defined as 5 or more apartment units), Fannie Mae and Freddie Mac are the best loan... Read More

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... Read More

November 19, 2015

Recently I posted an article entitled "Commercial Construction Loans, Deconstructed" Here are two key points I made:

  • It is a complicated type of commercial loan, definitely not for the beginner. This is because there are so many different, complex parts to it and without sufficient knowledge you could be vulnerable to financial loss. For example, one component has to do with the estimation of material costs and labor costs concerning construction materials. A problem is that an inexperienced investor could greatly underestimate costs because of inexperience... Read More
  • November 10, 2015

    One type of commercial loan is a commercial construction loan. It is quite a complex type of commercial loan and not for someone to jump into without quite a bit of experience, without quite a bit of knowledge, or without a partner who is experienced.

    Why is doing a commercial construction loan such a complex type of loan? It's because there are so many additional parts to a construction loan than a simple non-construction commercial loan such as multifamily or self-storage. And this means so many more skills that are needed having to do with building, and... Read More

    And how do they differ from residential mortgage rates? We will also be looking at terms, because terms work so closely with rates.

    Commercial property rates work quite differently from residential property rates. Generally with commercial property rates, the higher the number of years of a loan, the higher the interest rate, while with residential property rates, the higher the number of years of a loan equals a lower interest rate.

    Most of the time with commercial rates you get terms with a lower number of years than with residential rates. For example, if you are to get an... Read More

    September 29, 2014

    This is part 4 in a series about hard money commercial lending. For a bit of a review, hard money loans have quite a bit more risk involved than conventional loans, but their purpose is to help you acquire properties that you would not be able to get with a conventional loan. Keep in mind that hard money loans are also called bridge loans.

    One example of a hard money commercial loan could be seen in the following scenario: an investor looking to purchase an apartment complex that only has 50% occupancy. She is interested in the  apartment complex because... Read More

    September 16, 2015

    Recently, I have written two blogs on the topic, “What is Hard Money Commercial Lending?” In this blog, I’m writing Part 3 on the topic. It has to do with 2 very important ways to soften risk when you are acquiring a bridge loan.

    In the meanwhile, why do a bridge loan with us? Visit our bridge loans page and you will be able to see some competitive bridge loan products. They may surprise you – rates and terms to help you save money. And importantly, check with us to see if we can pre-qualify you for a bridge loan.

    First, before we get to the topic... Read More

    September 09, 2015

    In the previous blog, I covered what hard money commercial lending is as well as how it is different from traditional lending.

    Go to our Bridge Loans/Hard Money loan product page to discover what may be important information for you about our commercial bridge loan products. You will be able to learn that we are competitive regarding rates and terms.

    A hard money loan (which is often referred to as a bridge loan) is an non-bankable loan. A bank doesn’t want to do a hard money commercial loan because there is too much risk for a bank. A hard money... Read More

    September 04, 2015

    Commercial Construction Loans (5 Key Steps for Success)

    It's not easy to obtain a commercial construction loan. People who are successful have learned from experience these 5 critical steps. I have been doing commercial construction lending for 17 years. I have found... Read More

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