Powered by China Products(Top Trade Directory of China Products and Manufacturers) and China Manufacturers(Top China Manufacturers Directory) 网络营销, 网站推广
Formoy Finance&Money Information Service. takes pride in providing honest commercial lenders counseling and commercial lending, commercial lender services to you at the best value for your dollar. Our features is a huge selection of commercial lenders company, quote, commercial real estate lender, commercial mortgage lender counseling, solution, problem and more.
>> Service Show

Commercial property loans from seven hundred different commercial property lenders can be obtained by completing this short commercial mortgage mini-app. Commercial property loans are a type of commercial financing. A property is usually considered a commercial property if the property is other than vacant land, a single family residence, a duplex, a triplex, or a four-plex. A loan on a five-unit apartment building will usually come from a commercial property lender, even though such a property is more precisely known as a multi-family project or a residential income property.

Commercial Property Loans and Commercial Property Lenders. In other words, all multi-family loans are considered to be commercial property loans, but not all commercial property loans are multi-family loans.

Commercial property loans are the larger set. What if the property consists of a single apartment unit over a storefront? Is this a commercial property or a residential property? After all, there is only one living unit. This kind of property is known as a mixed use property. A mixed use property is considered to be a commercial property and you would go to a commercial property lender to get a commercial property loan on such a property.”

Why Most Commercial Lenders Forbid Second Mortgage Loans
Most Commercial Lenders Will Not Allow the Seller to Carry Back a Second Mortgage

Suppose your client is trying to buy a commercial property with a down payment of just 10%. His plan is to have the seller carry back a second mortgage on the commercial property equal to 15% of the purchase price. He will then try to get a loan from a commercial bank for 75% of the purchase price.

Unfortunately the plan will not work. Most banks and all CMBS lenders forbid second mortgages on the property at the time of the purchase. (Many CMBS lenders WILL allow a mezzanine loan, however.) So why are second mortgages forbidden on the sale of commercial properties. The reason is because commercial lenders fear that the property owner, if cash gets tight, will use the repair money to make the payments on the second mortgage rather than to maintain the property.

A good solution is to have the seller carry back the second mortgage on another property owned by the buyer, say a rental duplex or a different office building. When you apply for a commercial mortgage loan using C-Loans, we have a special section called "Special Issues" where you can describe the junior financing that you hope the bank will alllow the seller to carry. C-Loans is a great way to quickly present your deal to 30 lenders to find the one lender aggressive enough to help your client.

Commercial Lenders Use the Lower of Purchase Price or Appraisal
Commercial Lenders Base Their Commercial Loan on Sales Price, Not the Appraisal

Almost every day I see new commercial loan agents with commercial loan requests where they want to get 90% or 100% LTV financing because the buyer is buying the property for less than market. They are dreaming! If a seller can get $1,000,000 for his commercial property, he is NOT going to sell it for $800,000. As far as 99.999% of all commercial lenders are concerned, the purchase price is the best indication of the fair market value of the commercial property. Your commercial loan will be based on the lower of the two - purchase price or appraisal.

German Spanish French Italian Portuguese Japanese Korean Arabic Russian
2000-2015 CopyRight © Formoy Finance&Money Information Service. All Rights Reserved.