If you ever want to send a mortgage person home early, just mention the words Commercial Property Financing. It conjures up thoughts of long drawn out underwriting and loans that seem to never close.
Luckly for me, my company was visited last night from a representative of a national commercial lender who appears to have taken the mystery out financing commercial property. This includes small business owners and real estate investors. What makes this lender unique is they loan up to 90% of the value of the collateral.
That’s unheard of in commercial lending. They are well below the industry standard in closing costs.
They loan on everything from bed & breakfasts to trailer parks. They help finance retail stores, mixed use properties (live in the back, work in the front), doctors offices, strip malls, just no gas stations or marinas (due to fuel storage issues).
They actually take a “residential” approach to “commercial” lending.
I also like the fact that they don’t have “mandatory payoffs” (most commercial lenders require the loan to be paid off in a couple years) these folks truly give the 30 year amortization and most clients like that.
Another feature is they don’t review you’re business profit and loss once the loan is finalized.
If you continue to make your monthly installments they don’t care what the business does after you’re disbursed your cash. This is typically referred to as “requalification” by lenders and those guys who “requalify” demand covenants which may cause them to call your loan due if you’ve lost a tenant or are experiencing a tough business period.
My guys believe that your business is your business. Once your loan is funded, simply make your monthly payments on time and they won’t ask you for more financial or business information.
Lastly, their approval process is 48 to 72 hours. The average closing time is 30 to 45 days. Combine this with limited appraisals, in house attorneys and assumable mortgages and you’ve found a niche that has speed, flexibility, and high loan limits.
To learn more about financing commercial property in Miami-Dade, you can submit a mortgage application or call me directly at (616) 308-8282.