Commercial mortgages from $100,000 to $10 million don’t have to be a hassle.  We have multiple ways and multiple lenders to work with when you are ready to buy or refinance your property.

     We understand the differences in commercial lending, and business in general.  So whether you have a gas station, apartment building, manufacturing, hotel, light industrial, warehouse, convenience store, storage facility, or any other type of commercial property, Call us, We Can Help.  UNLOCK YOUR POTENTIAL

Commercial mortgages are very different than residential mortgages. Yet there are similar components.  We cannot go into all the various types of structures, and business here as this will be a very lengthy page.  We can and will do an on-site evaluation and work with you through the entire process.

Call our office and speak with the Broker, Bryan.  He has 20 years of expertise in commercial real estate, and can work with you on the acquisition, financing, and or disposition of all types of commercial property.  We can help guide you through acquisition or refinance, construction, a 1031 exchange, defeasance, or mezzanine financing. 

Here are some basic steps and information that is important to understand when you are looking for a commercial asset based loan.  Here are some basic guidelines:

Application and Documentation:
Be prepared to provide copies of everything pertaining to your business.

1. Articles of Organization and incorporation
2. Proof of payment of franchise tax if an S-corp.
3. Statement of good standing from the DOS
4. Company tax returns and/or personal returns pending scenario / ownership
5. Profit and loss statements / balance sheets , Certified
6. Personal financial statements for the principles  , Certified

Evaluation:
The appraisal process is much more detailed and in-depth than a residential appraisal, and therefore more expensive.  There are three types of appraisal formats for valuation. 

1. Comparison: comparing similar structures / business that have has arms length transactions within a similar demographic in the last year. 
2. Income:  using the profitability of the structure or the business to arrive at a capitalized valuation for the business or structure. 
3. Replacement:  what the cost to build the structure today, and then depreciate it based on its current age and condition.

The appraiser will use all three methods to determine a value.  The lender will then make a determination as to what percentage of the value they will approve.  In residential lending, it is typical to see 100% financing of a home.  In commercial, the standard will be 75% or less, but in some cases, as high as 90% for some types of structures.  Again, each scenario will be different.  Expect to pay between $1500 to $5000 for a proper appraisal.

Environmental Evaluation;
Phase I & II studies.  If you do not know what a Phase I & II study are, I would suggest that you Google the following phrases:

• 
  Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) (42 U.S.C. 9601)
• 
  Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process

If your particular property requires a Phase I, then you need to expect to spend a minimum of $1500 to $3500 pending the scope of the analysis required.  For a Phase II, (if the phase I report requires further investigation) you can spend up to and in excess of $10,000.00

TERMS
Commercial lending typically has a higher interest rate as well, with shorter terms.  Typically rates are quotes as prime plus 1-4 points for fixed rates.  Variable rates can be lower, pending the terms. 
In commercial, terms (rate, term, points, and costs) are more important than the initial interest rate can be.  The total costs of the loan over a 5, 10 and 15 period are what may be more important than the interest rate alone.  We can help you with these comparisons. Call our office, ask for the Broker, Bryan. We will visit your site, and work with you to determine the best possible solution that meets your needs.

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