Commercial Mortgage Keys
“Here Are Some Of The Key Factors For Getting A Commercial Mortgage In Place”
Commercial mortgage financing as well as other forms of business financing remain the most perplexing to business owners since the start of the 2008 recession.
The process for locating and securing a commercial mortgage has become more difficult in a lot of ways, which is catching business owners and property owners off guard as they try to adjust to the new order to things in the market.
Unfortunately, most of the changes in commercial property financing are only understood or internalized when someone is in the middle of trying to get a mortgage in place which may be too late if they are dealing with some sort of time line.
The new order of things in commercial mortgage financing has fewer lenders in the market, lenders in general taking on a more cautious approach, and the costs of completing all the mortgage requirements on the rise.
That all being said, the commercial property market is an enormous market that will always have available sources of financing.
The key is to understand how to approach the market to get the results you’re looking for.
To that end, I would like to provide some keys to commercial mortgage financing in 2011 and beyond.
First, regardless of how many times you have arranged or secured commercial mortgage financing in the past, accept that the world has changed since 2008 and that you’re going to have to up grade your knowledge a bit to properly navigate the market. I find this is a significant issue for many business owners I speak to. And because the commercial market has been so accessible for literally decades, individuals have a hard time believing that things have changed significantly. Unfortunately its not very comforting when I get a call months later saying, “you were right, I should have listened to what you were telling me.
Second, outside of market knowledge, the most important key to business property financing is time. You need to start the process earlier and basically assume it will take longer and be harder than you think. This is not to paint a gloom and doom view of the market. Its more about setting yourself up for success and acknowledging that most things in the commercial mortgage lending space are moving slower than what you likely have become accustom to from past experiences.
Third, get professional help to assist you with the process. An experienced mortgage broker who understands the commercial financing market can potentially save you considerable time and money versus trying to figure out the shifting sands yourself.
Lenders are in and out of the market.
Lenders requirements can add considerable time that you may not have which should be built into lender selection.
Coordination of the lender’s third party requirements can be considerable, costly, and time consuming.
Too often in the last 12 months I have had someone call me, explaining that they are 6 to 9 months into the commercial property financing process and are running out of time because of their lack of understanding of the market and the options they chose to pursue.
If you need a commercial mortgage for property acquisition, mortgage refinance, construction, bridge financing, or debt consolidation, give me a call and we’ll go through your requirements together and review potential financing strategies.
Click Here To Speak With Commercial Mortgage Broker Joe Walsh
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel