If you are in the market for financing a commercial real estate property your best bet is to go through a commercial finance broker. Choosing simply your local branch office will get you only their rates and products. We have access to the rates and products offered by dozens of banks. When you refinance or buy your commercial real estate property, you have a choice.
Understanding commercial finance, and finding the best financing package, can be complicated. Finding someone competent, who can guide you through the process and remain objective, is even more of a challenge. Commercial mortgage interest rates fluctuate, sometimes on a daily basis, and today more than ever positioning of lenders in the marketplace also changes. Our lending network and experienced advice will help you find the right financial products and services to suit your commercial financing situation. Our careful choice of lenders and loan options ensures you a competitive interest rate.
GETTING STARTED
In order to determine if you have a property that will attract financing I will need to look at a few things. At the very least I will need an executive summary for the property and if you have it an appraisal would be extremely helpful. If I locate an interested source for funding the next thing they will request are financials for the personal guarantor(s) as well as a resume outlining their experience in the commercial real estate field. My sources will also want to know how much money the personal guarantor(s) have into the project. By money, I’m talking actual cash into the deal. Keep in mind when looking into financing your commercial property that unlike residential financing which weighs more heavily on the borrower, commercial finance lenders weigh their decision much more heavily on the property and whether or not it is an income producing property. How will you know if your commercial property will be considered an income producing property by the lenders? Quite simply they will want the DSCR or Debt Service Coverage Ratio to be at least 1.10 but in todays market I would try to be at the 1.25 mark. What this means essentially is that for every $1.00 in debt there must be $1.10 or $1.25 in net income being produced by the property.
If and when I locate a source for your commercial financing I will forward you a commercial loan application as well as a broker agreement and an engagement agreement from the lender which will outline their committment in the deal as well as fees for completing financing on your project.
Contact me directly by phone at 702.526.3133 or by e-mail at mgarnes@garnesmortgage.com if you would like me to answer questions regarding your specific situation. If you already have your ducks in a row you can forward me your executive summary and hopefully an appraisal and I will locate a funding source for you and contact you back.
Tags: Commercial Finance by Matt Garnes
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