The commercial mortgage lending market is a vibrant and dynamic capital marketplace. After the Great Recession and the decline in real estate values, Commercial mortgage lenders became more conservative across many loan products and financial structures. During the credit freeze in 2009, ‘hard money lenders had a field day, with access to private capital that was not subject to the strict regulations that the banks and other institutional lenders complied with.
Transactions that had been easy to qualify for bank and other institutional portfolio loans for a few years starting in 2009 were only possible with the unregulated, hard money lenders. These commercial mortgage lenders enjoyed some of the strongest credit transactions in the history of commercial real estate finance.
By 2011, institutional and commercial loan lenders had come back strong after approximately two and a half years of near dormancy. Dozens of new commercial mortgage lenders and lenders who had been out of the market came into the capital markets closing deals. There have also been a few players re-emerging into the land loan arena.
A strong commercial mortgage broker such as Financial Compound can be very helpful to borrowers seeking financing, whether its construction or permanent loans, as well as land loans. A proficient commercial mortgage broker is able to help borrowers, investors, and developers access the real estate capital markets and the commercial mortgage lender efficiently.
It is the commercial mortgage broker’s job to understand the current status of the real estate capital markets as well as to know the product types and loan structures that each lender offers. Financial Compound typically speaks to about 500 lenders each week, gauging their interest in our transactions as well as probing them to learn which types of transactions they are looking for.
By conducting ongoing and in-depth discussions with such a broad cross-section of the commercial real estate finance markets, Financial Compound is a valuable resource for both borrowers and commercial mortgage lenders alike. Many commercial mortgage lenders in Los Angeles contact Financial Compound to find out what is going on with their competitors and ask us how to price and structure their loan programs.
Commercial mortgage lenders desirous of lending funds often try to ensure that their programs are competitive or at least want to understand how they compare to other lenders financing similar transactions.
When borrowers submit loan requests, commercial mortgage lenders typically like to review historical property operating statements, a rent roll, a site plan, and photos, in addition to various other data. A skillful commercial mortgage broker such as Financial Compound can be a valuable resource to borrowers in preparing the lender submittal.
Financial Compound knows what types of information the commercial mortgage lenders in San Diego are looking for and can help facilitate the loan request process so that the lender can make a quick and firm decision for the transaction.