A strong commercial mortgage broker takes a logical and step by step approach to obtaining financing. Financial Compound’s unique methodology has resulted in a high degree of success in financing transactions that meet our internal underwriting standards, even some when banks and many other lenders have turned those transactions down. While our clients often don’t understand why our process is front loaded, a good commercial mortgage broker tends to prefer not sending any information to the lenders until the analysis is complete, in the end the clients appreciate our process and the results.
Commercial real estate finance and investments represent a significant portion of the capital markets. Between 1995 and 2007, commercial real estate finance and investments were dominated by Wall Street, whether directly through lending or by influence, where virtually all portfolio lenders were formatting their loan documents so that the paper could be sold by wall street into the secondary capital markets.
This, coupled with concerns over other investment asset classes like the stock market, and an extended period of low-interest rates, created a virtual perfect storm for commercial real estate finance and investments culminating at the top of the market in 2007 before the credit crunch of 2007 with high leverage (100% financing in many instances), low rates, inexpensive closing costs, and quick closings. For a decade, it was virtually a borrower’s market, and lenders were differentiating themselves with minutea that seems unimportant since 2008.
Financial Compound, an active commercial mortgage broker, has stayed abreast of the changes in commercial real estate finance and remains active in all market conditions, constantly closing transactions and working with many commercial real estate lenders.