Archive Monthly Archives: October 2010
Cambridge Private Mortgage Financing
“Cambridge Private Mortgage Financing Available For A Wide Variety of Real Estate Applications”
Cambridge private mortgages can be secured on many different types of real estate property holdings including bare land, residential single family dwellings, and commercial buildings, and construction projects.
Most private mortgages are under $2,000,000 in total value with the majority being less than $500,000. Larger projects can be financed through Cambridge private mortgage sources, but there will likely be only a handful of lenders prepared to handle the larger financing exposure connected to these larger mortgage amounts.
Cambridge private mortgage financing is going to be more focused on the value of the real estate today and the lenders opinion of the resale or liquidation value of the property in the future. While most private lending applications are the result of some financial distress or higher leverage that will not allow a conventional mortgage to be secured, there are a growing number of residential and commercial applications that are based on a growth versus distress.
Private mortgage loans can be a valuable tool for getting mortgage financing in place quickly to facilitate closing a transaction, or to simply provide an almost immediate access to money for a number of different applications.
One of the main benefits of private mortgage financing is the ability to get a mortgage in place in a matter of two to five days provided that all the relevant information is in order. This speed to capital can easily offset the higher cost of financing if a profitable deal gets saved or some form of costs are avoided by funds being available by a certain time.
The key to locating and securing a Cambridge private mortgage in the time you have to work with, for the rates and terms you’re looking for, is to work with an experienced private mortgage broker that can help you quickly zero in on the most relevant lenders so that no time is wasted in the process. Most private lenders work through mortgage brokers so access to the available market is greatly increased through the broker network.
If you need a Cambridge private mortgage, I suggest that you give me a call so I can quickly assess your requirements and provide private mortgage financing options for your immediate consideration. If I can’t help you out, I’ll tell you right away so time is lost you search for property financing.
Pickering Commercial Mortgage
“We Place Pickering Commercial Mortgages For a Wide Variety of Real Estate Financing Applications”
Pickering commercial mortgage financing is basically going to be required on any real estate property where the use is for anything other than 4 or less residential housing units. This is includes property applications such as warehouses, self storage, mixed use, office building, strip mall, commercial construction, townhouse, condo, and so on.
For each of these different applications, there are going to different lender programs to consider as all commercial lenders don’t finance all industries, amounts, and property applications at a given point in time.
Commercial property lenders will also need to be categorized by risk and lending ratios for each potential application so its going to be important get a good match between your business financing criteria and what the lender can provide.
Pickering commercial mortgage lenders will range right from major banks to individual private mortgage lending sources as well, each with their own criteria for lending and process for issuing financing.
The best way to determine what commercial mortgage lenders will be a good fit for your business requirements at a given point in time is to work with an experienced mortgage broker who actively monitors the market and stays on top of who’s lending on what type of real estate application and who is not.
Commercial mortgage brokers will also provide you with access to private mortgage property financing sources which may be your best mortgage financing option depending on the situation. As a general rule, faster closing scenarios or situations where funds are required for a period of time no greater than a year may be best addressed through a commercial private mortgage.
If the goal is to locate and secure suitable bank or institutional financing, a mortgage broker will also be invaluable in 1) helping you zero in on the most relevant commercial lending sources, 2) working with you to put together an application package that will proactively address the lenders questions and requirements, and 3) stay on top of the process to get the deal closed and funded as fast as possible.
If you require a Pickering commercial mortgage, I recommend that you give me a call so we can go through your requirements together and discuss different options that would meet your requirements.
Toronto Land Loan & Land Financing Options
“Do You Need a Toronto Land Loan For a Bare Land or Developed Property?”
A Toronto land loan can potentially be acquired via a institutional or private mortgage lending source, depending on the property and the credit profile of the borrower.
Bare land loans are typically financed at a level no greater than 50% of the current market value. In some cases, if a property is very near to being developed or built on, the loan to value can increase to a level of 60%.
Location plays a large role in getting a mortgage lender interested in providing a land loan. If the property is within an existing developed area, or directly adjacent to one, then its likely going to be easier to secure commercial mortgage financing for the site. For bare land sites that are more remote, the general interest in the property may be much lower if mortgage lenders feel that there isn’t going to be much of an active market for the property in the coming year when the mortgage term would be in place.
A Toronto land loan in the form of an institutional mortgage can see rates as low as prime plus 3% which is going to be higher than the mortgage financing on developed real estate property, but still considerably lower than what you would have to be paying a private mortgage lender.
In cases where bare land is held for future development or speculation, mortgage financing can be an excellent source of capital to utilize for other purposes. And as the value of the land increases, so is the potential amount of funding that can be mortgaged against it.
Toronto bare land can also be used as secondary security for a loan facility on another piece of real estate where there is insufficient equity available to secure the initial mortgage request.
Bare land mortgages are also commonly used as security for bridge loans where the loan to value might be significantly lower than 50%, allowing the mortgage to be put into place quickly as the lending risk would be much lower on a security value under 50%.
If you need a Toronto land loan for any of the mentioned applications or some other purpose, give me a call so I can quickly assess your requirements and provide relevant land loan financing options for your immediate consideration.