Commercial Mortgage Company

An argument for...

Due to the residential mortgage mess, and all of the extensive media coverage of it, the words commercial mortgage broker, now seems to carry with it an implication of fraud, mistrust and or a general lack of professionalism.

However, experienced commercial mortgage brokers still play a vital role in the commercial mortgage industry and can provide outstanding benefits to their clients.  The key for borrowers, is to make sure that the commercial mortgage company they work with, has the credentials and experience to really handle their loan request.

Commercial Mortgage Bankers

Here are some of the major benefits, to borrowers, when they work with a reputable commercial banker:

1. Access to sources of capital that most borrowers would have almost no way of finding (like hedge funds, non bank lenders, foreign banks, etc), and or are not allowed to submit deals directly to.  For example, life insurance companies, which are one of the classic non bank lenders, provide some of the best loan programs in the business (currently a few insurance companies are offering 10 year fixed rates, on 30 year amortization schedules for NON multifamily loans).  They however, will not take loan request directly from borrowers, but depend on a network of corespondent brokers to screen and package loans for them.

2.  Commercial mortgage brokers can help you take your loan request to VIABLE sources.  Knowing which lenders are really closing loans is now perhaps most important.  With us for example, we "shop" banks everyday, and have been for years.  We know who the aggressive sources of capital are, the ones that still have cash and that are still funding loans.  In this market, this is such an important point.  Because we only get paid when your loan closes (we never charge application fees or retainers), we do everything in our power to take your deal to sources we know and are confident that they will actually close your loan.    

The flip side to this, is the commercial loan officer at your local bank, which may tell you he can get your loan closed, and you may believe him.  Perhaps you have a relationship with him.  But think about it for a second.  He is tied to his bank, and has several incentives to bring in your applications, even if he knows he really can't close the loan.  Bank loan officers typically have meeting quotas, daily call quota, application quotas, etc.  He is under the gun to "throw anything against the wall" to cram as much into the bank system as possible.  He may look at your deal and think he's got a 30/70 shot of getting it done, but convinces you that he's more confident than he really is.  He is protecting his job. 

However, seeing "what sticks" is not a good strategy to get your loan closed in this market.  Can you afford to waste 3 months and $5,000 in third party fees?

3.  Commercial loan brokers can save you money (REALLY).  With us, for example, we create a competitive environment with our sources of capital.  Most of them know us, respect us and they know we are taking our clients loans to many potential sources.  They tighten their pricing in an effort to win the deal.  Also, because of our reputation as a legitimate, experienced firm, they spend extra time on our loans because the deals we work on are fundable.

Good brokers know which banks/lenders offer the best pricing as well.  This source maybe on the other side of the country than you.

Also, as far as other potential savings for you, we may have a totally different loan structure than what the bank loan officer is pushing.  He may be limited to only a few loan programs, where we are motivated to get the best deal for our borrower.  We don't care what the loan program is, we just want a satisfied client and a closed loan.      

4.  Good brokers will save you a lot of time.  They know how to effectively put together a real package.  They also know, as discussed in point number 2, which banks/lender to NOT take your loan request to.  It is easy to have your loan tied up and put into processing with the wrong bank.  It's another thing to have it funded in this market.  

5.  Commercial mortgage brokers should serve as your advocate to lenders and as your adviser.  Again, with us for example, when we get done pre approving a loan request, and believe that we can get it done and chose to work on it, we take the proper amount of time to present the loan to lenders.  We understand what the weakness and strengths of the individual deal is.  If there are issues with the loan request we present why we still think it makes sense to the lenders, talking in their language, and encourage the lenders to see the "whole picture."

A real commercial mortgage broker, should act as your adviser, guiding you through the whole process of packaging your loan request, selecting the right source, structuring the best loan program and avoiding issues before they come up.  They should give you candid, thoughtful advice, even if you don't like it.  They should also, tell you what you will need to do in order to prepare yourself so that you will be in a position to close you loan in the future, if it is currently "unfundable". If you do not have enough respect and or trust in what your broker is telling you, you should not work with them.   

We want to work with you on your loan request. We have the expertise and experience you need to get you loan closed and to provide the best terms the market can bear.  Fill out our pre approval form now for meaningful answers.