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There are changes coming in how lenders process third party reports such as appraisals and environmental phase 1s. Do you know how best to advise your commercial real estate clients when it comes to ordering these reports? Watch the video and find out.
Also what is the difference between an “agent” and a “broker”..
And is it better to do commercial real estate or residential?
Thanks!
www.CommercialMortgageTips.com Discover the inside tips to avoiding the most common Commercial Mortgage mistakes. You need to close your loan, and we can help you do that. Call 561-208-6469!
Commercial financing has changed dramatically during the past few months. The net result has been a reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding, so an important change issue is to realize that for commercial lending there are both apparent changes and real changes.
As is often the case with financial changes, it remains to be seen how many will be temporary or permanent. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing commercial finance environment. Regardless of how long the changes might be kept in place, small business owners must be prepared to operate within a more complicated climate for commercial real estate loans and business financing.
Perhaps the most dramatic change has been a significant reduction in business lending activity overall. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Many banks have stopped business finance lending while continuing consumer lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.
What should commercial borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial real estate financing and other commercial loans. To accomplish this, it should be helpful to contact a working capital financing expert operating throughout the United States.
In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by small business owners before seeking new business financing. First, most lenders have cancelled or are about to eliminate unsecured lines of credit for many businesses. Second, commercial lenders are increasingly demanding more collateral for virtually all commercial finance funding.
One effective commercial financing strategy for overcoming the combined obstacles of fewer lenders, more collateral and fewer unsecured credit lines is to consider a business cash advance program based on future credit card processing activity. This is proving to be one of the few sources of commercial funding that has not been adversely impacted by recent events. To learn more, it will be advisable to discuss the potential with a small business financing expert who can provide advice about business cash advances as well as other business finance solutions.
Another key change issue for commercial mortgage loans and working capital loans is simply the likelihood that more changes will be forthcoming in the near future. It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions as they occur.
To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for commercial loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business.
Steve Bush is a working capital financing expert. Small business financing and commercial real estate financing advice. Commercial finance and business cash advance programs at AEX Commercial Financing Group
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Commercial Loans Are Disappearing Rapidly. Keeping Savvy with commercial loan lenders in this market place.
Even Small and Regional Commercial Banks Have Cut Back Sharply on Commercial Loans Lending
In these times its important to get your fingers on the pulse of the commercial real estate lending market. The CMBS lenders started to die late last year and now they are not lending at all.
Most of the mega commercial bank lenders got crushed in the subprime residential lending debacle. Their balance sheets are so underwater that they are making at most 2% of their 2007 volume of commercial loans. Essentially the mega-banks are out of the commercial loans lending market.
Until very recently, however, the smaller banks were still making some commercial loans. We were greatly disturbed last week, however, when several smaller commercial banks – lenders with no exposure to the subprime crisis – contacted us and confided that their balance sheets were so troubled that they too had stopped making any commercial loans.
We are pretty sure that this is a trend that will continue among the surviving small and regional commercial banks. As their commercial loans to local industrial companies start to go bad (sales of widgets and other industrial products are cratering), soon most commercial banks will stop making commercial loans completely – even permanent loans on standing commercial properties.
Many people are thinking that this is the last call for commercial loans from banks. If you don\’t close your loans in the next 90 to 120 days, you may have to wait five to ten years before commercial loans with decent interest rates reappear.
There is some truth in the idea that even the small bank commercial lending is going to dry up, although there will still be a handful of very savvy commercial loan lenders who can broker deals even in times of severe financial crisis. The key to success the current commercial loan climate will be finding the elite few lenders who are capable, and relying on them to broker your loans.
Reliant C Loans is the leader in savvy commercial loan lenders. Contact 1 888 972 1948 for FREE consultation on your commercial loan!
In troubled financial markets with tightening credit you will need a savvy comercial loan broker who maintains great relationships with industry niche lenders. Reliant is and has always maintained personalized contacts as a real commercial loan lender ready to weather any marketplace. Contact 1-888-972-1948 for FREE consultation on how to get the commercial loan you need.
Analysis and discussion with President of Commercial Tenant Real Estate Representation Marisa Manley. She says the commercial real estate market continues to get negative absorption. (Taking Stock)
clscause.com There are thousands of commercial lending sources in the Southeast. Only a few focus exclusively on commercial transactions. Why is specializing in commercial lending important? All our energy at CLS is devoted to understanding the borrowers aspirations (cause) and aligning with the optimum lender. We creatively work both sides of the equation as the deal must be win for all parties. We do one thing well: bring commercial deals to the closing table. Through a 10-Step process principled in educational and ethics, we have perfected the system to achieve predictable results. Commercial Lending Solutions is unique in the commercial lending industry because of our exclusive service to borrower and lender called PROPEL. Defined as Progressive Review and Opportunity Proposal for Excellence in Lending, this document builds the business case for qualified borrowers to gain acceptance of optimum lenders. Some brokers may offer an executive summary, but the affect is not very compelling. Our propriety service is propelling, increasing the likelihood of closing with the most favorable terms. Brand PromiseWe first understand your cause, then invest in it. We make a propelling case for the optimum lender, advancing your deal to closing table.
There is an estimated 5.2 million commercial properties within the UK. The commercial property market expanded by over 32 per cent during 1990-2000 (according to the new products started) compared with the previous decade, in itself a decade of exceptional growth. Bank lending for commercial property deals rose by a record £7.7 billion in the first quarter of 2005, according to data provided by the Bank of England, and property experts believe the bulk of the new lending was for investment purchases.
There has also been a substantial rise in the number of investors looking to buy commercial properties to put into Self Invested Personal Pension Schemes. Property investment funds received a boost as of late last year after the Government announced plans to allow them to be included in an ISA (Individual Savings Account) wrapper.
Savers will now be able to add investments, such as property funds and funds of funds, that have previously been restricted from being included in ISA’s because the asset class did not feature on a European standard of eligible investments and commercial property funds are seemingly the greatest beneficiary of the rule change.
With this diversified interest in commercial property by investor, speculator and businesses alike the role of the broker has become a more integral part of the process. Increasing numbers of mortgage brokers have branched out into non regulated markets such as the commercial loan sector since Mortgage Day in late 2004 and subsequent involvement by the Financial Services Authority, interestingly 58 per cent of mortgage brokers claim profits are down since Mortgage Day.
Commercial lending is now not the preserve of the high street banks who, in the past, have not only seemed to cherry pick but have also had a tendency to only lend to their existing business customers. The result was that there are now over 1,200 commercial lenders currently operating within the UK.
The competitive market for commercial lending has also been confirmed by the rates available. There are also many other flexible options such as rolled up interest (No interest payments) for the first year to help with cash flow, start up finance, business expansion finance or even for finance on low yield investment properties.
Lenders will typically lend up to 80 per cent loan to value but 100% is achievable with additional security. Three years audited accounts are also now not the normal requirement as self certification of income has also found its way into commercial lending. Adverse credit clients are now considered and in the majority of cases loans approved. However self certification and bad credit applicants can expect a loading on the rate of typically between 1 to 4 per cent.
A cross section of business funding is available to retail businesses such as convenience stores, fast food outlets, specialist shops and supermarkets. Investment properties, professional practices such as accountants, doctors, vets and solicitors. Property development including speculative or pre-let for both commercial and residential. Offices and factories along with the health care sector including nursing homes, residential care and special needs homes. The leisure market has also been seen as the main stay for commercial lending over many years embracing hotels, guest houses, cafes, restaurants, wine bars and pubs.
Although latterly pubs have often sought brewery loans as a traditional way of borrowing money in the trade often referred to as Advance of Discount (AOD) or “Write Off” loans, the interest rates seem favourable at significant discounts over the banks but barrelage discount is affected and the repayment terms are often shorter over 10 years.
Lending on leasehold is also available up to 65 per cent on the security property (often the applicants main residence). With many businesses failing in the first year and business failure rates up 13 per cent in the first quarter of 2006 applicants must carefully consider whether they should be securing their main residence against the lease.
To calculate monthly charges use one of our many custom built calculators. Commercial loan applications, for both single and joint applicants, are processed on our own dedicated secure server.
Mortgage-Loan-UK is a premier resource for personal finance information along with an extensive collection of mortgage related calculators. Commercial loans are available to 100% with additional security along with non status and self certification lending, for more information, go to http://www.mortgage-loan-uk.net/commercial_loan.htm