Commercial Mortgage Lenders still lending, don’t believe the hype
Commercial mortgage news these days is depressing if you read the headlines. Statements like “Banks have stopped making commercial mortgage loans” or “Biggest US Banks scale back on Property Lending”. As we know, the media likes to sensationalize. Im sure there is some truth to this but it hasn’t trickled down to Financial Compound in any meaningful way. Well maybe because on tougher deals we are used to getting ‘nos’ and understand that we only need one yes so our brains are probably wired differently.
Reason #1 We are not in a credit freeze
Unlike in 2009 when the banks really were not making loans, there is plenty of capital and liquidity in today’s marketplace. Today’s environment is not a credit freeze. While overall lending volume has certainly decreased, there is still so much capital available. With some effort you can still find todays best commercial mortgage rates.
Reason #2 Hard Money is cheap
An interesting phenomenon in today’s capital markets is that hard money lending is at a premium of maybe 2% over institutional rates. By historical standards this is low. So shell out a couple more points and get your loan closed in two weeks, badda bing, badda boom. Check out our friends at www.fawgetaboutit.com
Reason #3 A Strong Commercial Mortgage Broker is your best friend
When you read headlines like today touting gloom and doom about commercial mortgages, go find you the best and most skilled commercial mortgage broker that you can. Commercial mortgage brokers like Financial Compound know where to find you loans. Don’t fret. Ahh lenders, seems like either they all want the deal or none of them do. Sometimes the strongest deals are the ones that dont fit into their box. A strong broker can articulate the nuances of your deal and explain its creditworthiness.
Reason #4 Make Lemonade out of Lemons
Less lenders in the marketplace could mean that its easier to negotiate the mortgage loan terms that you want. Not all commercial mortgage terms are created equally. Find the loan terms and structure that suit you the best.