Apartment Loan Store has been providing low rate commercial loans in your area since 1997. Do you want a 30 year fixed rate mortgage with a 30-year amortization? Well, we have that. An interest only loan? Yes, we can do that. A bridge loan to acquire a property that needs rehab so you can fix and flip? Well, we have that too. Do you own a piece of land that you want to build an apartment building on, but you do not have the experience as a developer, and need to bring in investors? Well… you guessed it, we are really good at that too. Do you want the whole transaction to be non-recourse (no personal guarantees) Yes, that too. As an advisory firm, we will even help put your investment or development team together, help you with your pro forma, and analyze the property for value and financing.
At Apartment Loan Store, we are experts in packaging your loan to put your transaction in its best light. If your deal has any holes in it, we will make sure they get filled in before we submit your loan. With over 20 years experience as commercial loan brokers, we have developed deep affiliations with over 80 commercial lenders and banks. Our funds come from FHA, Fannie Mae, Freddie Mac, Hedge Funds, Insurance Companies, Pension Funds, Wall Street Funds, Private Funds, and National, Regional, and Community Banks. Let us do the shopping for you.
So why not just go to a lender directly? Why work with us? We are a middle man. Is it better for you to use a commercial loan broker or a direct lender? It is only fair to mention that I work in the field of commercial mortgage brokering, so I might be a bit bias. If you are very strong financially, have the experience and have a great relationship with a lender already, plus have confidence they will get the job done for you then working with a direct lender sounds good. But, are there any loan programs out there that are better? Why not give us a call and find out.
You might have noticed that we have an A+ Better Business Bureau rating. I am very proud of this. The reason being at Apartment Loan Store, we have a 97% success rate in closing our loans. When you take people’s money and do not close their loan, it makes them mad as hell! (As you can probably imagine.)
What I love about my job foremost is working with entrepreneurs like you – usually smart, hard-working creative people who are risk takers, and have a sense of humor. It is fun for me to crunch the numbers, identify the strengths and weakness, mitigate the weaknesses, and highlight the strengths. Then comes the really intriguing part – packaging the whole lot of it (I wanted to say mess!) into a masterpiece. And it doesn’t always stop there. Sometimes, I get to solve what seem to be unsolvable problems (I love a good challenge) tell an underwriter to “go to hell” (No I never do that) But I do sometimes tell them – “I will be talking to the credit manager (their boss) about this”. Finally—yes, finally—negotiating my way to a happy ending. As a good friend of mine says, “if it were easy, everyone would do it”.
Why Not Work Directly With A Lender?
It’s obvious that you can just go online and find many direct commercial lenders. But it can take time for them to return your calls and weeks or longer for you to know if you have found the right lender. As commercial brokers, we know the underwriting guidelines of our lenders, and when we submit your loan we make sure that the credit officers or loan committee that will eventually be approving your loan are on board – thus helping you sleep better at night.
Keep in mind that most lenders just have variations of one loan product. Are you better off with more choices? With many lenders and loan programs to choose from, we will compete lenders against each other to get the best deal for you. At Apartment Loan Store, we work for you.
Definition of a Commercial Loan Broker:
A commercial mortgage broker is skilled in the complex world of originating commercial loans. Residential mortgage brokers make loans to customers purchasing or refinancing residentially zoned 1 – 4 unit properties. Commercial mortgage brokers make loans on properties of 5 units or more that are zoned commercially and/or have a business purpose such as office or retail. A commercial mortgage broker is skilled in evaluating the income of the property, the quality of the property, and the financial quality of the borrower. A commercial loan broker works on behalf of investors of commercial properties as an intermediary between a borrower and a lender. Commercial mortgage brokers have many lending sources and do not lend their own funds. The main purpose of a commercial mortgage broker is to evaluate the commercial transaction and place it with the lending source that will provide the best deal for the borrower.
What Can a Good Commercial Loan Broker Do For You?
1. Help When You Are Having Difficulty Qualifying for a Commercial Loan. A commercial loan broker has loan products that do not require tax returns, are stated income and even allow for fair or poor credit. Here are some situations that a commercial mortgage broker could help an investor who has been turned down by their bank:
- Credit scores too low
- Not enough net worth
- Not enough liquidity (savings)
- Not enough personal income showing on tax returns
- Property is in not good enough condition.
- Property has insufficient operating income
- Borrower does not have enough experience
- Property has lower than market occupancy
- Property is in a small market
2. Give you a broad choice of lenders to choose from and knows the underwriting guidelines of each lender. He/she can do the shopping for you, and package your loan so it has the best chance to be a fit for the best loan program.
3. Package your loan professionally and write an executive loan summary highlighting the strength of the property and the borrower, thus showcasing the strengths of the deal and mitigating the weaknesses.
4, Tailor a loan more specifically to the needs of the borrower. After doing an in-depth interview, a commercial loan broker will consult with you to determine your financial goals for the property, exit strategy, and offer you many options. For example, let us say that an investor wants a non-recourse, 30-year fixed rate loan, with a 30-year amortization because she wants to keep the property long term and pass it down to her children. Commercial mortgage brokers have access to longer fixed rate programs than commercial banks usually have and often with longer amortizations.
5. A Commercial Mortgage Broker represents you, and can negotiate with the lender on your behalf.
6. Pre-Qualify You and the Property when you are purchasing, and write you a Pre-Qualification Letter to be used with the seller and the listing agent. Banks can do this too of course, but they are only one source and if you don’t qualify for their one program you won’t likely get the letter. A Commercial Mortgage Broker can likely qualify you for many loan programs.
7. Give you access to Non-Recourse Lending, that does not require a personal guarantee by the borrowers/key principals. Federal regulation mandates that commercial banks have to have their loans personally guaranteed.
8. Commercial mortgage brokers are much less restricted – they have many lending sources that are not regulated or lightly regulated. National, Regional and Community Banks have auditors looking through their files, and they have to follow strict banking regulations. These banking regulations often tie their hands. A good commercial loan broker will have access to many loan programs that make sense underwriting.
9. A commercial mortgage broker will have many lenders to choose from and knows the underwriting guidelines of each lender. He/she can do the shopping for you and save you time and money.
10. A Commercial Mortgage Broker can often lend you More Money. This is because they can offer you the best loan programs with the lowest rates, longest amortizations, and lowest Debt Coverage Ratio – all of which result in a larger loan. To learn more about Debt Coverage Ratio view this article:
Or view this video:
Please Call one of our friendly loan specialists to get a free consultation on you commercial loan or for us to provide you with a pre-qualification letter for a commercial property you want to purchase: 503-376-7303
By: Terry Painter, President of Apartment Loan Store and Business Loan Store