Commercial Real Estate Loans
Commercial real estate loans are mostly made these days by commercial banks. Now the really-really large commercial real estate loans - the $5 million to $200 million loans secured by huge office towers and shopping malls - are still made by life insurance companies and conduits; but in terms of the number of separate, often smaller, deals, commercial banks make the most commercial real estate loans.
Here is another type of commercial lender that you might never have thought about - credit unions. They are flush with cash right now, and they are hungy to make a few commercial real estate loans. The commercial mortgage rates offered by credit unions are usually about 0.25% to 0.375% higher than banks, but credit unions are not nearly so fussy. The last active type of commercial lender is a commercial hard money lender, like my own firm, Blackburne & Sons.
Therefore, if you are just starting your commercial loan search, the first place you should contact is a commercial bank. But which bank should you call? There are thousands of commercial banks in the U.S., and not all of them are actively making commercial real estate loans. There are a number of commercial mortgage portals, including C-Loans.com, CommercialMortgage.com, and CommercialLenders.com that will suggest a list of suitable lenders for free. If you are are just surfing the net today, any of these portals will do; but if you actually need a commercial real estate loan right now, your best bet is C-Loans.com. Not only can you get a list of suggested lenders; but you can actually apply to all 750 of these lenders right online in just four minutes.
Most commercial banks and credit unions are not nationwide lenders. In fact, most commercial lenders prefer to lend close to one of their branches. If your commercial loan is less than $5 million, you will definitely want to place it with a local lender. The closer your property is to your proposed commercial lender, the lower the interest rate that are likely to enjoy.
But how do you find the closest local lender if you don't live in the area? You need to plot all of the local banks and credit unions on a map and call the ones located closest to the property you are trying to finance. This is actually much easier than it sounds. Simply go to maps.yahoo.com and type in the address of the commercial property that you are trying to finance. You will see a field entitled, "Find a Business." In this field, simply type in "Banks", and instantly all of the nearby banks will be plotted on the map.