COMMERCIAL MORTGAGES
You may already know the difficulties of doing business with a bank. Let’s face it, between all the red tape involved and the impersonal service, you are more likely to be turned down than approved for a small commercial loan.
Like most small business and commercial property owners, you may assume that a bank is the only place to go when your business needs cash. And, like others, you may already have experienced the frustration of all the red tape involved with applying for a bank loan.
You’ve worked hard to build your business and so why should it be any harder to get a commercial loan?
Obtaining commercial financing is often unknown territory for many… from providing the necessary documentation, to the appraisal process, to the time it takes to close the loan.
As you already know, I arrange all types of residential mortgages but I can also help you with your small or large commercial loan.
I have access to dozens of commercial mortgage lenders who provide commercial mortgages from $50,000 up to 25 million dollars.
Each commercial mortgage lender has its own set of guidelines and very different requirements for approving your loan.
Let me break them down into 3 groups for you:
1) In the first group we have “Mr. Moan & Loan”. He is your “good old-fashioned traditional lender” and he wants to make it real hard for you. These are all large lenders including major banks. Their minimum loan amount is usually from 1 million and if you don’t have all your documents in order then you are out of luck. I call this group one lenders “The Red Tape Lenders”.
2) In the second group we have commercial mortgage lenders specializing in small commercial loans from $100,000 dollars to just over a million dollars. I like working with them because they can cut through the red tape and they can get the job done.
3) In the third group of commercial mortgage lenders are private mortgage lenders. These private guys will usually take anything and everything what the first two groups of lenders don’t want. Their loans start from $50,000 and can go up to 10 million dollars.
I can help you to achieve your goals. Maybe you want new financing for operational requirements such as the need for cash to finance new inventory, receivables or business expansion.
But there are other reasons too... You may have other loans coming due or you may want to buy out an associate or partner, or even pay off a divorce settlement.
I want you to know that I am on your side…
I work for you and not the lender and I can do a quick pre-qualification to make sure you are eligible to get a loan.
The pre-qualification process is simple and it will quickly determine if you are “bankable”, meaning if you could qualify for your loan at the bank in which case you will need to provide all documents including tax returns and financial statements and wait 90 to 120 days for your money or if you fit into second or third group of lenders where you may be able to qualify for “low documentation” commercial loan and close in less than 30 days.
Let me go over the different fees you will incur when obtaining a commercial mortgage loan.
Brokerage Fees: Each case is different and I’ll quote a fee after receipt of your application.
Appraisal Fee: Commercial property appraisals are very comprehensive, often 50 pages or more. Appraisal pricing is a 3rd party fee and is standard, regardless of the lender and cost range from $1,500 to $3,500 dollars. You must be prepared to pay for this upfront cost either by certified check or charge to your credit card. The cost of the report reflects the level of information and analysis required by the lender/investor.
Lender Fees: Lender fees start from 1% and can go up to 3.5% of loan amount. These lender administration fees are usually deducted from loan amount on closing but some banks will ask you for non-refundable deposit ranging anywhere from $1,000 to $3,000 dollars.
Environmental Insurance: Environmental insurance is generally used in place of a Phase I and Phase II environmental assessment. Phase I and Phase II environmental reports can be very expensive third party reports paid out of your pocket prior to the loan closing. Environmental insurance is a one time cost and paid from the proceeds at closing and the cost of the insurance can range on average $1,000 - $3,000. This is a minimal cost considering the average price of a Phase II and is important to the securitization of the loan.
Legal Fees: Lender legal fees are usually between $2,000 to $3,000 and the process takes a longer period of time to complete (approximately 10-14 days) than do residential mortgages.
Now let’s talk about interest rates…
Commercial interest rates are NOT comparable to residential rates and group two and three lenders are not meant to be competitive with bank offerings.
If you were already approved by group one lender then please don’t apply here to shop the rate because group two and three lender rates are always higher then rates offered by group one lender. You could be wasting your time…
Group two and three commercial mortgage lenders do not have set rates. They price their mortgages on case by case basis and their rates could be at least 2% higher than group one lender rates.
My job is to provide you with the lowest commercial mortgage rate for your situation and I will make sure I satisfy your needs and objectives.
I understand cash businesses and I make it easy to get the cash you need - FAST!
I can help you to get cash for:
- Purchase
- Refinance
- Debt Consolidation
- Refinancing
- And much more...
Pre-Approval is fast!
My commercial mortgage expertise will take the guess work out of the application process. In fact, I can get you pre-approved in as few as 48 hours. No waiting, wondering or worrying.
Easy, flexible funding to meet your needs
Unlike most bank loans, group two commercial loan programs are a stated income/stated asset programs. That means full document paperwork isn’t required… and you enjoy greater flexibility and faster turnaround times.
- No T1s, T4s or NOA’s required!
- No income verification!
- Unrestricted equity take-out!
- Loan amounts up to $1.2 million!
Secured on commercial properties like multifamily, mixed use, warehouse, office, retail, industrial, automotive, rooming houses and more
Several affordable payment options… 7 year terms with 20 or 25 year amortization
Eligible Properties for Group Two Commercial Loans
Mixed Use: These properties integrate residential spaces with commercial uses, such as retail or office space. Often these properties have a ground floor retail store or office with apartment(s) above, all in the same building.
Self-Storage Facilities: Now one of the most competitive building classes in the country, these facilities are designed primarily for storage. This category also includes cold storage, RV and boat storage facilities, and truck terminals (transit facilities).
Retail/Office Buildings: Designed for retail or office sales and display, this category includes stand-alone buildings such as offices, supermarkets, convenience stores, drug stores, department stores, bakeries, and beauty shops - as well as strip centers, and neighborhood and community shopping centers.
Warehouses/Light Industrial Properties: Single and multi-tenant facilities that are used for warehousing, light manufacturing, distribution, research, and development. Does not include buildings where heavy manufacturing or specialized industrial operations, such as welding, occur.
Automotive Services: Includes everything from auto repair facilities to retail auto shops and part supply stores.
Special Purpose/Unique Properties: all commercial and unique including day care and educational facilities, funeral homes, campgrounds, outdoor entertainment centers, trailer and mobile home parks and marinas.
Hotels/Motels: With our industry knowledge and expertise, we feel we understand the non-flagged world of hotels and motels better than most. Our valuation assumptions are based on facts relative to the specific property.
Restaurants: Competitively priced financing for a wide range of properties, including owner-occupied and leased facilities as well as fast-food and full-serve restaurants in neighborhood or urban settings.
Multi-Family Housing: We fund residential structures that contain five or more dwelling units in the same building. These multi-story buildings generally offer individual apartments for rent with common area facilities, such as an entrance, lobby, elevator, stairs, hallway, walks, or grounds.
Canada’s large financial institutions are among the world’s best but they often just cannot satisfy the needs of the small commercial client.
One of the biggest shocks many business owners face is when they meet representatives from financial institutions for the first time in their capacity as entrepreneurs. That’s because as consumers, Canadians generally get pretty decent treatment from their banks. But surveys show that when entrepreneurs look for support for their commercial ideas, they are often disappointed.
Rejection rates tend to be high, particularly for firms that have been in business for less than 10 years. In fact, many entrepreneurs report that they don’t even bother to apply for new loans anymore.
There are many reasons that large financial institutions have trouble serving small commercial accounts. One common complaint is the fact that account managers tend to be mover around frequently. This benefits the large financial institutions, because it gives their account managers broad training in a wide variety of fields. The problem is that clients suffer, because by the time an account manager begins to understand their businesses, he is moved to another portfolio.
Another complaint by credit applicants is about the stiff, often excessive lending requirements that financial institutions tend to have. Beyond the typical credit application form, documents requested by traditional financial institutions often include a background information sheet, personal history, management resume, T4s, T1s and notice of assessment, purchase and lease agreements, environmental assessments, insurance information - and the list goes on.
Group Two Lending Stated Income/Stated Asset philosophy offers small commercial borrowers a different approach. Unlike banks, typically the only income verification that we conduct is on the property being financed, such as the rent payments that are collected coupled with other revenue sources.
This gives you the opportunity to qualify for financing when otherwise you would have had to do without… particularly when you have a large amount of real estate equity and need for short-term cash.
The bottom line is that not only you will get the respect you deserve; you will also avoid the strenuous and time-consuming underwriting process that conventional lenders typically put you through.
To apply for your small commercial loan please click here to print commercial application and fax it to me to 1-888-415-4096 to get started.
