Commercial Mortgage Loans

Those of you in need of commercial mortgage loans right away can submit your applications using C-Loans.com, the most popular of the commercial mortgage loan portals.  It takes just four minutes to complete a mini-app for any of the various kinds of commercial mortgage loans.  You then select six of the suggestion commercial mortgage lenders and then press, "Submit."  Within minutes a half-dozen, hungry, commercial mortgage lenders will respond to your application.  And C-Loans.com is free!  Click here to submit applications for commercial mortgage loans.

There are six different types of commercial mortgage loans - permanent loans, second mortgage loans, construction loans, takeout loans, bridge loans and mezzanine loans.  Below we will explain each of these types of commercial mortgage loans.

Types of Commercial Mortgage Loans

1. Permanent loans are the kind of commercial mortgage loans that most commercial property owners use.  A permanent loan is a commercial mortgage loan in a first mortgage position and with a loan term of at least five years.  Banks make a lot of commercial mortgage loans that would be considered permanent loans.  If you refinance your commercial center or an apartment building, this new first mortgage is usually considered a permanent loan.
   
   
2. Of all of the commercial mortgage loans made annually by commercial lenders, very few of them are second mortgage loans.  The reason why is because a great many commercial mortgage lenders that used to make second mortgage loans were completely wiped out in the commercial real estate depression of the early 1990's.  
   
   
3. Commercial construction loans are used to build apartment buildings, commercial buildings and industrial buildings.  If the developer or sponsor is willing to contribute 35% to 40% of the total costs of the project, it is still possible to get a commercial construction loan during the current economic slump; however, of all the commercial mortgage loans made recently, very few of them were commercial construction loans.  Commercial banks are the lenders making most of the commercial construction loans these days.  Most commercial construction loans have a term of 18 months or less.
   
   
4. Takeout loans are just permanent loans that are used to pay off commercial construction loans.
   
   
5. Bridge loans are short-term commercial mortgage loans that are used while a property is in transition.  For example, a speculator might use a bridge loan to buy a foreclosed and empty commercial center from a bank.  The new owner then fixes the commercial property up, leases it out, and then refinances the property when it is stabilized.  Bridge loans are the favorite kind of commercial mortgage loans made by hard money lenders.  Bridge loans usually have a term of less than 2 years (often just one year), and they are the most expensive of the various kinds of commercial mortgage loans.
   
   
6. Mezzanine loans are the most complicated and sophisticated of the various kinds of commercial mortgage loans.  A mezzanine loan is a large loan (usually $3 million or larger) that is made when the commercial property already has a large (usually $10 million or larger) first mortgage in place.  The mezzanine lender makes a loan to the LLC that owns the commercial property, and the loan is secured, not by a mortgage on the property, but rather by the membership interests (think of them like stock) in the LLC.  Most of us mortals will never be involved in a deal involving a mezzanine loan, but the big boys in New York City use mezzanine loans to finance those $50 million office towers.

Those of you in need of commercial mortgage loans right away can submit your applications using C-Loans.com, the most popular of the commercial mortgage loan portals.  It takes just four minutes to complete a mini-app for any of the various kinds of commercial mortgage loans.  You then select six of the suggestion commercial mortgage lenders and then press, "Submit."  Within minutes a half-dozen, hungry, commercial mortgage lenders will respond to your application.  And C-Loans.com is free!  Click here to submit applications for commercial mortgage loans.

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