Commercial Mortgage Decline

Two of the more common reasons for commercial mortgage decline are property value and or concern over net income.  As capital sources continue to tighten underwriting standards, borrowers feel the pinch in lower loan to values and higher debt coverage ratios.  Transactions that were tight, but doable 3-6 months ago are, in many cases, simply [...]

Commercial Mortgage Refinance – Common Borrower Questions

Below are a few of the typical questions we field on a daily basis regarding commercial mortgage refinance’s.  How long does it take to close?The time to close is universally under estimated by banks, lenders and brokers.  Many firms advertise 30 days, which is simply not the norm.   Despite borrower’s frustration and confusion on why [...]

Commercial Mortgage Refinance – 6 Issues That Can Kill Your Deal

There are several potential issues that can delay or “kill” your commercial mortgage refinance.  Some of which will just tack on a few days or weeks to the process while others will completely eliminate the lenders interest in funding your loan.  A prime example of this is value and environmental issues. 
1.  Title Problems.  A [...]

Underwriting Parameters of Commercial Mortgage Refinance

Property owners conducting a commercial mortgage refinance are often surprised by the new range of loan programs that have become available in the last 5 years.  Programs such as commercial 30 year fixed, second lien position loans, etc are turning heads.  However the process is still expensive and time consuming and underwriting is still tied [...]

Underwriting Parameters of Commercial Equity Lines

Property owners considering a commercial equity loan are often surprised by the flexibility and liquidity that these loans provide.  This loan sits in second lien position (or first) behind any existing first mortgage basically eliminating the need to perform cash out refinance. 
However underwriting is conservative and hinges on a few main categories – combined [...]

Top Ten Benefits of New Commercial Second Mortgage

The Commercial Second Mortgage is one of the most innovative comercial loan programs to come out in decades.   Designed for the “small” commercial borrower (both investor or owner occupant) it is an excellent way to access equity.  Loan amounts range from $100,000 – $500,000 on virtually all commercial properties.   Benefits include:
1.       Commercial Second Loan [...]

Retail Property Refinance

Retail property loans are one of the preferred building/loan types by commercial lenders.  This is a very broad category, that is divided between single tenant owner occupant or investment facilities, corporate credit tenants, neighborhood retail, big box retail, etc. Financing structures as well, depending on the building type as well as many other factors are equally [...]

Restaurant Mortgage Refinance

Historically, from the borrower’s perspective, restaurants loans have been cumbersome with limited loan options.  Further on restaurant loan refinances, borrowers face even more limitations as the SBA (a leader in financing this building type) typically does not perform refinances.  Borrowers are left with a limited pool of lenders that remain cautious within this category and offer [...]

Office Mortgage Refinance – Typical Underwriting Parameters

Owners conducting an office mortgage refinance have a broad range of finance options.  This is due to several factors, such as loan amount, whether the property is owner occupied or an investment, single unit or multi tenant, strength of owner, etc. In addition there are several different types of office buildings (For example, office condo’s, [...]

NNN Property Finance

Refinancing  a NNN property has a few intricacies that set it apart from the typical commercial loan refinance.  Corporate guaranteed leases (among other strengths) have attracted many prominent capital sources to this arena.  However, due to special use nature of many NNN buildings (For example a fast food restaurants, drug stores, etc) and that many [...]