Commercial Mortgage Brokerage Service At Capital Network Group
This BLOG On Commercial Mortgage Brokerage Service At Capital Network Group Was UPDATED On October 8th, 2018 By Michael Gracz of Gustan Cho Associates
Commercial mortgage brokerage companies are basically mortgage brokers who’ve got established relationships with direct commercial lenders or institutional commercial investors.
- Commercial Mortgage Brokerage Companies lend funds to real estate investors on non-owner occupied investment or commercial properties
- Commercial mortgage brokers charge a commission on a commercial real estate transaction for putting the deal together
Commercial mortgage brokers can specialize in one or a few areas or some are a one-stop lending shop with dozens of investors and institutions.
Types Of Commercial Financing
Just like residential mortgage brokers, commercial mortgage brokers also specialize for quite a few different types of mortgages.
They’re specified as follows:
Basic commercial mortgages – This is a type of mortgage that’s essentially used for making commercial property purchases, be it office spaces, apartment buildings, warehouses, or rental homes.
Balloon mortgages – Balloon mortgages are fixed for a certain amount of years and it is due all at once:
- Balloon Mortgages are amortized for 20 to 30 years
- But is due in 5 years if it is a 5-year balloon
- The borrower either needs to pay it off at the end of 5 years or refinance it
Interest-only mortgages – This type of mortgage requires borrowers to pay the interest on the commercial loan for say 5 years and the principal balance is the same.
Role Of Commercial Mortgage Brokerage Loan Officers
The commercial mortgage brokers essentially look for mortgages that would work for the real estate projects of their clients.
- They generally get this done by analyzing and reviewing their borrowers needs
- They first determine how much money is required and what types of loans their respective clients would qualify for
- The project needs to make sense and loan officers need to prepare a scope of work and business plan on the overall project
- The underwriting considerations are established too
Once they’ve got all the relevant information, the mortgage broker makes use of their database to find out which lenders and investors would be interested in the kind of real estate venture proposed by the client.
Benefits Becoming Commercial Mortgage Broker
There are quite a few benefits of becoming a commercial mortgage broker.
- Commercial Mortgage Brokers can work for yourself, be it from home or even as a small business set up.
- Moreover, commercial mortgage ventures generally guarantee excellent income provided the loan officer put in the effort required to meet clients’ needs.
- Most importantly, the commercial real estate industry is actually more stable as compared to the residential real estate world.
Commercial real estate undoubtedly has a lot of potential, but loan officers should know that there’s a lot of work involved. Commercial Loan Officers stand to gain from the benefits only when they put in that kind of effort. Residential Loan Officers who want to also want to originate commercial loans, please contact The Gustan Cho Team at 1-800-900-8569 or email us at [email protected] Our sister company, Capital Network Group Inc. is a one-stop commercial lending shop.
Capital Network Group
Here is what Capital Network Group Inc. has to offer:
- Hard Money Loans
- Commercial Loans
- No Doc Fix And Flip Rehab Loans
- No Doc Commercial Loans
- No Doc Bank Statement Mortgage Loans
- Non-QM Loans
- Blanket Lines Of Credit
- Accounts Receivables Financing