Commercial Loan Blog

July 21, 2015

It’s simple – less moving parts. An analogy is the difference between the construction of a lawn mower engine and the construction of an automobile engine.

For example, let’s look at the difference between getting a loan for an apartment complex and a retail mall. For an apartment complex loan you have one borrower for the property. For the retail mall, let’s say that you have 35 tenants.

For the apartment complex, you just need to get the financial strength of the borrower. For the retail mall, you have to get the financial strength of all 35 tenants. It... Read More

June 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.

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 looking... Read More

May 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 More

May 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,