This guide will cover commercial mortgage loans. We will discuss the various options for investors on commercial mortgage loans and specialty business financing programs. It is highly recommended commercial real estate investors research the financing options of various lenders on commercial mortgage loans. We will cover the best resource information websites for financing commercial real estate. Commercial mortgage loans are different than residential loans.
Commercial mortgage loans are not regulated like residential mortgage loans. Underwriting guidelines are different on commercial mortgage loans. Federal and state mortgage and lending regulators believe those seeking commercial mortgage loans are sophisticated investors. No mortgage and regulatory agencies like residential home loans for commercial mortgage loans exist. In the following paragraphs, we will cover commercial mortgage loans for beginner and experienced real estate investors.
What Are Commercial Mortgage Loans
Commercial mortgage loans cover a wide variety. Other than an owner-occupant primary home loan used for business, any loan can be classified as a commercial loan. The most common type of commercial mortgage loan is a commercial real estate loan used to finance a building used for business. Other commercial loans include equipment financing, account receivable financing, construction loans, SBA loans, hard money loans, bridge loans, and hundreds of other types of financing programs for business purposes. Commercial mortgage loans are not regulated by the following governmental agencies like residential loans are:
- Fannie Mae
- Freddie Mac
- FHA
- VA
- USDA
- CFPB
- Or other mortgage regulatory agencies
In addition, the demand for green buildings is increasing. Buildings that are energy-efficient and use sustainable materials are becoming more popular with tenants. Investing in green buildings can help you save money in the long term, as they tend to have lower operating costs. The rise of e-commerce has had a major impact on the commercial real estate market. Commercial mortgage loans are not regulated because regulators believe real estate investors are sophisticated.
Interest Rates Commercial Mortgage Loans
Commercial lenders are risk-oriented and normally charge higher mortgage rates than residential lenders. Commercial Lenders often only offer short-term mortgage loans amortized over 20 years, 25 years, or 30 years. Not all lenders have the same interest rates on commercial mortgage loans.
Commercial mortgage loans are normally due to expire in 3 years, five, seven, or ten years. They can adjust after the initial fixed-rate period. Or the whole commercial mortgage loan will need to be refinanced or paid for in full, also known as balloon commercial mortgage loans.
Risks Associated With Balloon Payment Commercial Mortgage Loans
There are many risks associated with commercial mortgage loans. Since there are no 30-year fixed-rate commercial mortgage loans, commercial mortgage loans are only balloon mortgage loans where the whole loan is due after three, five, seven, or ten years. After the end of this term, the whole loan comes due. The mortgage holder must either pay the whole mortgage off or refinance the commercial mortgage loan. If the commercial property is not doing so well and is having cash flow problems before the maturity of the balloon payment, refinancing the property might pose a problem, and foreclosure can be a possibility.
Institutional Non-Bank Commercial Mortgage Loans
Non-bank commercial lenders normally have less stringent underwriting guidelines when approving commercial mortgage loans. There are commercial loan products from these non-bank institutional lenders. They will make longer-term mortgage loans without early maturity balloon payment clauses. Alex Carlucci, a senior loan officer with Gustan Cho Associates, highly recommends researching updated commercial mortgage loans. Lending Network, LLC is the informational website Alex recommends for commercial mortgage loans:
Lending Network, LLC offers a variety of multimedia content, such as videos and podcasts, which provide additional perspectives and insights. The site also features a variety of events and conferences. These events bring together industry professionals, allowing them to network and learn from each other.
Other commercial mortgage lenders will offer adjustable-rate mortgages of 3/1 ARM, 5/1 ARM, 7/1 ARM, and 10/1 ARM. ARMs are amortized over 30 years. Adjusts every year based on an index and a constant margin. Adjusts every year after the fixed-rate period is over throughout the thirty years. This might be a great option for commercial property owners who do not want to refinance the mortgage loan after the initial balloon period comes due.
Loan-To-Value Guidelines on Commercial Mortgage Loans
Depending on the commercial properties, loan-to-value requirements differ from lender to lender on commercial mortgage loans. Certain apartment building commercial lenders can require different loan-to-value requirements. This depends on cities, states, or geographical regions and depending on the class of the property. Gustan Cho Associates highly recommend real estate investors due to their research about commercial mortgage loans:
Whether you are coming out as a brand-new beginner or an all-time seasoned pro, staying up-to-date with the latest trends and topics in the industry is wise.
A class C property might require a 70% loan-to-value, whereas a class B or A property might require an 80% loan-to-value. Commercial loans under $3,000,000 are normally handled by smaller banks. Mid-sized loans, between $3 million to $10 million, are normally handled by regional mortgage banks, credit unions, or a commercial investment syndicate. Wall Street commercial lenders or groups of larger banks and insurance companies normally handle larger commercial loans.
How Do I Apply For A Commercial Mortgage Loan?
Real Estate Investors can apply for a commercial loan by going straight to the lender directly, such as a bank or credit union, or by hiring a commercial mortgage broker who normally has dozens of relationships with wholesale commercial lenders. The commercial lender will first take a look and analyze and process the following:
- Property information
- Income history
- Experience of borrower and history
- Personal financial statements
- Balance sheet
- Cash flow statements
- Profit and loss statements:
- Business
- Commercial property
- Principals
Three years of business and three-year personal tax returns are required, as well as bank statements: A well-detailed letter of explanation on the borrowers’ history and the borrowers’ goals and intent of applying for the commercial loan will be extremely helpful. The commercial lender wants to see the overall global view of both the property and the borrower/guarantors of the commercial loans. Assets and reserves are extremely important, as are the borrower/guarantor’s resume, personal asset information, and experience in the field.
Recourse And Non-Recourse Commercial Mortgage Loans
There are two types of commercial mortgage loan programs: Recourse and Non-Recourse. Recourse commercial mortgage loans are where one or more principals of the property will personally guarantee the commercial loan. Dale Elenteny highly recommends a one-stop mortgage lending shop, Lending Network, LLC:
Lending Network, LLC is another excellent news source and commercial real estate insight. The site provides detailed market data, analysis, and various tools and resources for investors. Lending Network is an excellent resource for investors needing to stay on top of the current and latest news and trends in the industry.
Non-Recourse commercial mortgage loans are loans guaranteed by the property, and no personal guarantee is necessary. Real Estate Investors who have further questions about commercial mortgage loans can do their research by getting familiar with reputable informational websites about commercial mortgage loans.
What are some of the Top Commercial Real Estate News Sites
When browsing the current and latest news related to the commercial real estate industry, most professionals turn to a few select go-to sources. Retail real estate news can be invaluable for staying informed on the industry’s latest trends, developments, and opportunities. To answer questions and to keep you informed, in the following sections, we will cover the top news sites on commercial real estate.
Some websites are brand new with no credibility and websites that provide in-depth industry coverage, including market analysis, development news, financing, and investment trends. For example, Lending Network, LLC, also offers a variety of special reports and webinars covering the latest industry trends. The websites listed in this guide on commercial mortgage loans are excellent source for those looking to stay on top of the current news in commercial real estate.
Staying Informed and Connected on Commercial Mortgage Loans
No matter your interests, these top news sites on commercial real estate will keep you informed on the latest developments in the industry. Knowledge is KING for real estate and business entrepreneurs, says Lisa M. Williams of R27 Partners, LLC, a commercial property management company:
With these resources, you can stay current on the latest trends, actions, and opportunities in commercial real estate. Let’s look at the sites mentioned above in greater detail to understand better where to search for needed information. Commercial real estate can be a complex but lucrative and rewarding investment for those who understand the market. The recommended websites in this guide help investors remain informed on the latest news and developments in commercial real estate.
The Forbes Real Estate Council
The Forbes Real Estate Council is an invitation-only organization for real estate professionals. Members of the Council have access to exclusive networking opportunities, resources, and thought leadership. Forbes Real Estate Council is an excellent resource for staying current on global news in commercial real estate. The invitation-only organization is primarily for executive associates in the real estate industry. Invitation only means that the information and insights shared on the site are from professionals who deeply understand the industry.
The Council has experienced real estate professionals from various backgrounds, including investors, developers, brokers, and financial advisors.
The Council provides its members a platform to share their knowledge and expertise. Regular roundtable discussions allow Members to explore investment strategies, market trends, and financing options. The Council also hosts events and webinars to help members stay informed on the latest developments in the industry.
The Real Deal News
The Real Deal is another excellent source of commercial real estate news. The Real Deal is a digital media company specializing in real estate. Its website is full of up-to-date information and analysis of the upcoming and latest developments in commercial real estate. When it comes to staying up-to-date on the latest news in commercial real estate, there are a few top sources to keep an eye on. The Real Deal is one of the most exciting and popular news sites for commercial real estate, providing comprehensive industry coverage. From market analysis to development and financing news, John Strange explains his endorsement of the Real Deal.
The Real is an excellent source for staying up-to-date on the latest news in commercial real estate. In addition to The Real Deal, there are a few other top news sites for commercial real estate.
The Real Deal News is an excellent resource for those looking or wanting to get involved in the commercial real estate industry. This news source provides up-to-date information on the latest developments in the industry, including new projects, market trends, and more. It also covers financing and investing, which can be invaluable for those looking to make the most of their real estate investments. The Real Deal News also provides an in-depth analysis of the commercial real estate market, giving readers a better understanding of the industry. This can help investors make intelligent decisions regarding their investments and help them stay ahead of the curve. The Real Deal keeps readers in the know. The site also offers an impressive variety of reports, webinars, and podcasts covering the latest commercial real estate industry trends. The Real Deal also provides a platform for industry professionals to network and share resources. With more than 1.2 million monthly visitors,
Lending Network, LLC
Lending Network, LLC is a one-stop mortgage lending shop plus a new source. The news source at Lending Network, LLC offers advice on navigating the many facets of the commercial real estate market, from legal and tax issues to financing and more. Lending Network, LLC members can access exclusive discounts and offers from top real estate companies. Lending Network is an excellent source for anyone entering the commercial real estate market. Dino Hasapis of Compass Realty highly endorses Lending Network, LLC. Dino shares his experience with Lending Network, LLC, as follows:
Whether you’re an investor, broker, or developer, Lending Network can help you stay informed and make informed decisions. Lending Network, LLC is the place to go if you want the latest news and analysis on the commercial real estate market.
With access to top-priority resources, networking opportunities, and thought leadership, members have the tools they need to succeed. Whether you’re an investor or a seasoned pro, Lending Network, LLC provides the knowledge and resources to stay informed and make informed decisions. Lending Network, LLC is also a great source of news, insights, and advice from the top minds in the industry. The site features articles written by real estate experts from around the world and country, covering many topics. Whether you’re looking for advice on investing in commercial real estate or the latest news on the industry, Forbes Real Estate Council is a great place to start. Whether you are new or a long-time professional, Lending Network, LLC is an excellent resource for anyone seeking knowledge in commercial real estate. With its comprehensive coverage and helpful advice, it’s a great way to stay updated on the latest developments in the industry. So if you’re expecting to break into the commercial real estate market, Lending Network, LLC is a must-read.
The National Real Estate Investor
As mentioned above, commercial real estates definition is any property that is used for business purposes. This includes office buildings, retail stores, warehouses, industrial sites, and more. It’s a sector constantly changing as new technologies and trends emerge. Alaina Phillips of One Solution Real Estates explains her view on the National Real Estate Investor:
The National Real Estate Investor is a great resource for investing in commercial real estate. It provides news, analysis, and market insights to help investors make informed decisions. The publication also offers many resources, including a directory of commercial real estate companies, industry trends, and more.
Investing in commercial real estate can be a great way to diversify, expand your portfolio and generate income. It’s essential to do your research and understand the risks involved. It’s also important to work with an experienced professional who can help you navigate the complexities of the market. Whether you’re a first-time investor or a seasoned pro, The National Real Estate Investor is a great resource for investing in commercial real estate. With its wealth of information and resources, it can help you make the best decisions for your investments.
The Commercial Observer
Commercial real estate is a booming business, and it’s no surprise why. You can make money in commercial real estate with the right investments and a good eye. The Commercial Observer is the go-to source for everything related to the industry. Whether you’re a first-time beginner or a seasoned pro, The Commercial Observer has something for everyone.
The Commercial Observer covers all aspects of commercial real estate, from trends and news to market analysis and advice. Whether you’re investigating, buying, selling, or investing in commercial real estate, The Commercial Observer has the necessary information. They provide up-to-date market data and insights to help you make informed decisions.
The Commercial Observer also offers a variety of resources to give you tools to stay on top of the industry. They have a weekly newsletter full of industry news and analysis, podcasts, and webinars to help you focus and stay ahead of the curve. Their blog also broadcasts topics from tenant rights to investor strategies.
The Commercial Observer is an invaluable resource for anyone interested in commercial real estate. With their comprehensive coverage and resources, you’ll be well-prepared to make the right decisions. Bisnow It’s no secret that commercial real estate has been on the upward rise in recent years, and that trend is not slowing down. Bisnow is a great resource for the latest commercial real estate news.
Commercial Mortgage Loans on Bisnow News
Bisnow is a digital media company that covers the commercial real estate industry. They provide news, analysis, and insights about the sector, focusing on the major markets in the U.S. and Canada. Their coverage includes development, investment, leasing, and more. Bisnow’s content is written in a casual, conversational tone that makes it easy to digest.
Bisnow is an excellent resource for staying informed on the latest news in commercial real estate. The site displays an extensive range of topics related to the industry, including market trends, new development projects, and financing opportunities.
Bisnow also offers a wide range of webinars, which give a more in-depth look at specific topics. Bisnow is a great resource for anyone looking to stay updated on the latest commercial real estate news. Whether you’re an industry professional or interested in the sector, Bisnow has something to offer. Their comprehensive coverage and engaging content make staying up-to-date and ahead of the curve easy.
Real Estate Investing News on Commercial Mortgage Loans
Real estate investing news is always putting out hot topics. Keeping up with the latest trends can be difficult with the ever-changing market. The commercial real estate market and its news is constantly evolving. New laws, regulations, and trends can all affect the value of a property. Ravinder Sharma, Director of Digital Marketing at Gustan Cho Associates, shares the following about commercial mortgage loans.
One of the biggest trends in the commercial real estate market is the current rise of technology. Smart buildings are becoming more popular, with technology being used to automate processes and increase efficiency. This can be a great new pioneering opportunity for investors, as it can lead to increased rental income and lower operating costs.
Real Estate Investing News is an excellent source of news and trends in the commercial real estate industry. The site features articles from respected industry experts and investor resources. The site also delivers a range of tools and calculators to help investors make informed decisions.
Real Capital Analytics
Real Capital Analytics (RCA) is one of the most trusted commercial real estate news sources. RCA provides up-to-date information on the latest trends, news, and commercial real estate market developments. Their reports provide comprehensive market analysis, including sales volume, pricing trends, and key market indicators. They also provide insightful commentary on the state of the market and its direction. Real Capital Analytics is highly recommended by John Strange, a senior commercial loan officer at Lending Network, LLC.
RCA’s reports are based on data collected from various resources, including public records, private transactions, and proprietary information. This data is then analyzed to provide a comprehensive view of the market. This enables investors to make informed decisions about their investments.
In addition to their reports, RCA also provides various other services, such as market research, consulting, and advisory services. They also offer a variety of professional development programs to help commercial real estate professionals stay up-to-date on the latest trends and developments. RCA’s reports are invaluable for anyone involved in the commercial real estate market.
Changes in The Commercial Capital Lending Markets
The commercial real estate market is continually changing, and it’s important to stay up-to-date on the latest news and trends, from the latest office buildings and investment properties to major construction projects. Staying informed can help you make the best decisions for your business now and in the future. If you should decide to buy, before you begin looking for a commercial investment and during the process, we have vast experience working with buyers to get them ready to purchase their investment.
Credibility and Integrity of Referred Loan Officers of Commercial Mortgage Loans
Overall, The Real Deal, National Real Estate Investor, Lending Network, Commercial Observer, and Commercial Property Executive are some of the top news sites for commercial real estate. These sites provide comprehensive industry coverage, including market analysis, development news, financing, and investment trends. Additionally, each location offers a variety of special reports and webinars covering the latest industry trends. With these top sources, readers can stay up-to-date on the latest news in commercial real estate.
Shopping For The Best Rates on Commercial Mortgage Loans
We can take you through the entire financing process. We also can connect you to title companies/attorneys and real estate agents in your area that can help as needed. Call or text Ronda Butts at 407-460-7999 or email at ronda@gustancho.com for more information and further assistance.
Gustan Cho Associates and its subsidiaries is an excellent source for residential and commercial real estate news. Gustan Cho Associates covers various topics related to the industry, including market trends, new development projects, and financing opportunities.
Ronda is an experienced, dually licensed real estate agent and mortgage originator. Ronda Butts has successfully guided many investors through obtaining an investment property on both the lending and real estate side. Ronda does not represent buyers or sellers but offers free consultations in 48 states, including Washington, DC, Puerto Rico, and the U.S. Virgin Islands.
