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What is a Commercial Mortgage Broker?
A commercial mortgage brokers simply arranges financing for commercial properties with a lender, on behalf of a client, for a fee to be paid at closing.
Commercial properties are simply business properties or residential properties of five or more units. Some examples are: shopping centers, apartment buildings, hotels, resorts, golf courses, office buildings, industrial buildings and others.
Most states do not require commercial mortgage brokers to be licensed Make at Least $150,000 a Year, GUARANTEED! Even if you live in a state that requires a license, it is still possible to broker in other states via the internet.
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Commissions of $50,000+ are just as achievable with the SAME AMOUNT OF EFFORT as securing less expensive mortgages
Multifamily
All types of multifamily properties, from those with only a few units to large multi-building complexes with hundreds or thousands of residences.Office
The office market provides diverse opportunities for owners and developers. Whether it be a leasing issue, a need for significant tenant improvements or a complicated ground lease, there are unique opportunities in the office financing market. New or existing properties offer exciting opportunities in the dynamic office building marketplace.Retail
Whether it's a new acquisition, or a major repositioning, there is a need to secure financing for retail real estate. In the ebb and flow of business, repositioning and re-tenanting is critical to the success of any retail center. From the purchase and revitalization of strip centers and regional malls to power malls and lifestyle centers, there are a broad range of lenders who understand the nuances and needs of the retail real estate industry.Industrial
Changes in industry have created a need for new industrial buildings and older warehouses which have become attractive for a variety of alternate uses. These uses vary from retail space to research and development to newer flex products. Exciting opportunities are plentiful for repositioning older structures and acquiring or developing new ones. Take advantage of opportunities and the evolving nature of the industrial market and its market potential.Co-op
There are many unique needs for co-op boards and their financing strategies. Co-op financing including credit lines, secondary financing, flexible prepayment penalties, forward rate locks, minimal documentation requirements, and terms ranging from 5 to 30 years.Hotel
In the hospitality industry, there’s no such thing as ‘one size fits all.’ Each transaction is unique and requires extensive creativity and knowledge of the industry. There are many types of hotel projects in the hospitality industry including new construction, mixed-use developments, renovations, re-branding, conversions and resorts.Self-Storage
Self-storage is an investment property, which compares favorably to many more glamorous types of real estate. There are seasonal and economic cycles of this industry, providing opportunities for building or expansion of self-storage facilities.Mixed-Use
The mixed-use market, particularly in urban markets, are comprised of income from residential and retail space. Buildings may have only one corner deli, or a majority of retail tenants.
Brokerage fees generally range from 1% - 3% of the total loan amount. So if, by way of illustration, you arrange financing for the acquisition of an apartment complex, where the amount borrowed is $5,000,000, your fee would be in the ballpark of $50,000 for a few weeks work. Generally speaking, the bulk of your work is generally on the front end, since once you find a lender to handle your client’s request, they will take it from there. Earn at Least $150,000 a Year, Online as a Commercial Mortgage Broker, GUARANTEED!o
enders include commercial banks, mutual companies, private lending institutions, hard money lenders and other financial groups. These lenders typically have wide
varying standards on which they base their loan criteria and evaluate potential borrowers-- but are often focused exclusively on the private market Commercial Mortgage Brokers and have more lenient financial qualifications than banks.
Commercial brokers provide an evaluation of a borrower and then recommend the loan to a number of different commercial lenders whom they feel will be most likely to fund the borrower's request.
Thanks to freedom from regulation, the commercial lending industry operates with speed. Going through a broker rather than directly through a lender may cause longer wait times for loan financing and more up-front fees. In this very competitive environment, many companies refer loans to one another (brokering), increasing the price and loan points with each referral.
There are even some lending companies in the industry who require up front payments to investigate loans and refuse to lend on virtually all properties and wind up keeping this fee.
Commercial Lenders & Loan Terms
Most commercial lenders prefer to offer terms for shorter periods of time than residential lenders. Typical five or ten year loans are common with a balloon payment due at the loan expiration. Often that requires the property owner to come up with the balloon payment himself, or to refinance or sell.
Sometimes a commercial lender might attempt to charge a "pre-payment penalty" in order to guarantee a certain return. in the event the loan is not kept the entire term. Frequently pre-payment penalties range between one and five years. This is done by calculating the amount of interest or number of months such as frequently will be seen a "six month interest guarantee" etc.
Commercial Bridge Loan
Commercial Bridge Loans are sometimes referred to as bridge financing, short term financing or even hard money. If there is remaining equity in the property, bridge loans are easy to qualify for, and the assets are sufficient to cover the commercial lender's risk capital.
Commercial bridge lenders will tend to overlook property issues, incomplete permits, credit and other problems in exchange for a higher rate of return. To offset the risk they lend at a lower Loan to Value ratio usually of under 65% of the property's value.
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Commercial Loans
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