Commercial Real Estate Loans
Commercial real estate
loans are mostly made these days by commercial banks. 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 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 one should you call? There are thousands of them, and far from all of them are actively in the market to make commercial real estate loans.
Most commercial banks and credit unions are NOT national lenders. In fact, most commercial lenders prefer to lend close to one of their branches.
One way to pick the best commercial lender for your deal is 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 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.
Another way to place commercial real estate loans is to use a commercial mortgage portal. A commercial mortgage portal allows you complete one mini-app and then to use that one mini-app to submit your commercial real estate loan to scores of different commercial real estate lenders.
The oldest and largest of these commercial mortgage portals is C-Loans.com. The nice thing about C-Loans is that your use of the portal is free! The 750 hungry participating lenders pay to receive these commercial app's.