Commercial Real Estate Loans

Commercial Mortgage Loan Refinance

        Commercial Loans

 
Conventional Commercial Mortgage Loans
Conventional commercial loans are mortgages that are provided by a banks or other traditional financial institution and are secured by a first lien position on the subject properties. The collateral may be any type of commercial real estate and do not always require previous experience.
 
 
Permanent Loans for Commercial Real Estate
We represent a variety of loan products, as well as various loan types to accommodate your specific project. We will work with you to structure the loan rate, term and amortization to suit your particular needs.
 
 
Bridge Loan / Interim Financing for Commercial Real Estate
This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.
 
Bridge financing gives owners the flexibility they need to reposition and stabilize properties
 
Interim financing or bridge loans on commercial properties including; Multifamily, Office, Industrial, Retail, Self Storage, Assisted Living-Congregate, Hotel/Motel, Special Use properties.
 
 
Mezzanine Financing for Commercial Real Estate
Mezzanine financing can provide borrowers the necessary financing to get a deal done, but it doesn’t come without risk. If a project experiences cash flow shortfalls or otherwise gets stuck in a down market, sponsors/owners will have less control and flexibility in the deal.
 
 Provide a Detailed Loan Scenario
on our  Commercial Submission Form  page and we’ll get back to you quickly.
 
Thank you, and we look forward to serving you now and in the future.

Reasons to Refinance Your Commercial Mortgage

There might be several reasons for refinancing your commercial mortgage. It might be high interest rates or inability to bear the monthly payments. You might want to avoid an upcoming balloon payment to lower the long term interest rate. The present condition in the real estate market has always meant a landscape change for the business organizations which were interested to work with the lenders.
 

Consider the reason of refinancing
The first consideration should be why you would want to refinance your commercial mortgage loan. Do you need money for improvements and repairs? Are you seeking a cash-out refinance loan? If the present loan product has an adjustable rate which is making monthly installments a huge issue, you can certainly investigate the benefits of settling with a fixed rate loan. If there are approaching balloon payments, you might as well opt for a refinance mortgage loan as this is certainly a cost-effective alternative.
 
 
Cash-Out Refinance
After accruing a significant amount of equity in the commercial property, it may be possible to pull out a portion of it as cash to be used for other purposes.
 
 
Improve Cash Flow
A primary reason an owner refinances their commercial property is to improve cash flow. By taking advantage of the current interest rate environment, borrowers are able reduce their annual debt service resulting in additional cash flow. In addition, there is the ability to re-financing into a fixed loan up to 30 years.
 
 
Switch to Fixed Rate
In the case that a borrower has a commercial loan with adjustable rate in order to keep initial costs down or to take advantage of the market’s low interest rates. When the beginning period of low rates ends, adjustable rate commercial mortgages can become expensive. Also, constantly adjusting rates can make it difficult for businesses to predict their monthly payments. A refinance loan can remake an ARM loan into fixed-rate commercial mortgage with much more predictability.
 
 
Avoid a Balloon Payment
In the case of a commercial loan “balloon payment” – when the majority of the loan balance comes due at the end of the loan, making that last payment can be nearly impossible, so refinancing into a more conventional commercial mortgage can save borrower from that looming balloon payment.
 
 
Take Advantage of Lower Rates
Reducing overall loan costs is usually a great reason borrowers look at refinancing their commercial loans. When market interest rates drop, borrowers can save thousands of dollars in interest and lower their payments by refinancing into a loan with a lower interest rate.
 
 
Getting out of an Adjustable Rate Loan
Adjustable interest rate loans fluctuate due to a variety of conditions. By refinancing to a fixed rate, property owners can greatly reduce volatility in a portfolio. Locking into today’s low interest rates will guarantee avoidance of unpredictable interest rate fluctuations in the future.
 
 
Borrowing Prepayment Fees
Most borrowers are hesitant to refinance their property prior to maturity because of the prepayment premium associated with a commercial loan payoff. In this low rate environment, if your loan is maturing in the next 2-3 years, it may be to your advantage to consider paying your existing loan off early. By refinancing at a more favorable interest rate you may be able to absorb the cost of the penalty in a short period of time and lower your P&I payment in the process.
 
 
Consolidating Debt
In most instances, borrowers own multiple commercial properties. By refinancing and consolidating various mortgages into one loan, property owners are able to off-set certain risks of certain properties with the strengths of the other properties in a portfolio. In doing so an owner may be able to take advantage of more favorable terms including pricing, amortization, as well as a reduction in fees.


Equity Disbursement
In addition to paying off the existing debt, commercial properties can be refinanced as a means to recoup equity. This cash-out can be of considerable size and free up working capital for other projects.
  
 

 Provide a Detailed Loan Scenario on our  Commercial Submission Form
 
 page and we’ll get back to you quickly.
 
Thank you, and we look forward to serving you now and in the future.




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