Commercial Brokers Price Opinion Form - Even Hard Capital Commercial Mortgage Lenders Have Tightened Lending Standards

Financing Purchase Transactions

First of all, financing purchase transactions for owner occupant (meaning for your business) type loan requests is viable, and much more so than other types of commercial mortgages.

Please keep in mind that other commercial mortgage programs, such a conventional, investor, etc remain difficult. Property values have dropped substantially and 2. Loan to value requirement have also dropped substantially.

Property Values at Historic Lows

After the Commercial Mortgage Backed Securities (CMBS) market, for conventional investor deals is fixed, money via Wall Street will rush back into the market allowing for eased underwriting standards and more aggressive funding for all loan requests. In turn, property values will increase.

Now Is The Best Time to Purchase Commercial Real Estate In Decades

Commercial Brokers Price Opinion Form

Cash

Virtually all lenders, private and conventional, have stopped originating 100% financing.

10% hard equity (cash down or cash previously contributed) is what most commercial hard money people consider reasonable. For loans against quality commercial property, hard money professionals will usually lend up-to 50% of the value of land, 60% on vacant buildings or buildings with insufficient cash flow and 65% on income producing commercial buildings such as multi-family, office or retail.

Experience

First time investors scare loan officers.

Exit

Private loans are short term loans, generally 6-36 month, rarely more. Hard money lenders are not lend-to-own lenders; they don't want to take back your property. Investment and loan standards have tightened up across the entire commercial real estate finance industry.