Understanding the differences between the various options for commercial mortgages is critical in determining which loan is going to serve your needs the best. However, it is not quite as simple as just picking a loan from a list.
Finding the best loan for your commercial property is similar to juggling. All of the pieces need to be handled carefully, work in unison and fall into place at exactly the right moment. Selecting the best loan for you from the vast number of commercial mortgages begins with selecting the right lender.
But how do you make sure that you find the right lender and have them offer the best loan for you? The secret to this is to make them come to you. If lenders are truly interested in financing your loan, they will bring the best terms and rates to your doorstep, instead of you having to beg and plead for any sort of amicable terms.
The first step in doing this is to do a lot of work researching what is happening with commercial mortgages and commercial real estate market near the property. This will do two things to help you become enticing to lenders. First, it will equip you with the knowledge necessary to know exactly how other loans are being handled so that you can have a frame of reference when it comes to the terms that you are being offered. But it will also enable you to play competitive lenders off of each other. You are the customer, after all, and can use this knowledge to make sure that you are getting the rate and terms that will best suit you.
The second step is to start making phone calls about various commercial mortgages. In doing this, you must be completely prepared and know exactly what you are looking for in your loan. If you come off as unorganized or unsure, potential lenders will not take you seriously. So make sure that you know about your potential property and your plans for it. After gathering information about their rates and terms, thank them for their time. Remember, to a loan officer, time is money. Most of them are paid off of commission and do not want to waste time. They do, however, want to close a loan as quickly as they can, so they can move on to the next and collect their commission. Use this knowledge to your advantage.
By knowing the market, you will be able to use various offers to get loan officers to give you the best deal without much negotiation. At the end of the day, they want your business. They want your loan.
How can I better prepare myself for talking about commercial mortgages with a loan officer?
To begin with, you must know the basics of the property you are pursuing. What kind of property is it? How much will the loan be for? Are you refinancing or buying? What would be the expected Net Income of the property? It would also be a good idea to familiarize yourself with the lingo and vocabulary of commercial mortgages so that you understand the answers that are given.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.