capital advisors

commonly asked questions

• Why use a commercial mortgage broker?

  A common misperception borrowers have is that using a commercial mortgage broker is more expensive than going directly to a lender. Why hire a mortgage broker when I can go to my local bank for a loan? The reality is that there are several ways in which you can save time, money and frustration by engaging a mortgage broker to provide assistance with your commercial real estate financing needs and objectives.

  By working with a mortgage broker, your loan application can be submitted to multiple lenders. This not only increases the chances that your loan will be funded, but it also gives you and your broker more bargaining power to get the best  deal.

  A mortgage broker can leverage existing relationships with other industry professionals to help you find the best rate. Our brokers have a preassembled network of professionals including appraisers, accountants, lawyers, and other service  providers.

  Our commercial mortgage brokers have a staff of professionals to manage timelines, keep things on track and see your loan through to closing.

• What does a mortgage broker do for you?

  Our professional commercial mortgage brokers have solid relationships with numerous capital sources, which enables us to match your financial requirement with the best lender based on your unique situation. Whether you need a construction loan, long-term fixed-rate loan or bridge loan, a qualified mortgage broker will be able to provide guidance in choosing the best lending source. If timing is an issue, the broker will be able to leverage their long-term relationship with the lender to meet tight deadlines. Everyone needs an advocate at times – a commercial mortgage broker is your advocate in navigating the commercial lending marketplace.

• Should you use a mortgage broker?

  By working with a broker, your loan application can be submitted to multiple lenders. This not only increases the chances that your loan will be funded, but it also gives you and your broker more bargaining power to get the best deal.

• How to get a commercial mortgage loan:

  Commercial real estate loans are generally used to purchase or renovate commercial property. Lenders usually require that the property be owner-occupied, meaning that your business will have to occupy at least 51% of the building. To get a commercial real estate loan, you’ll need to decide on the type of commercial loan you need — depending on the property and business — and then narrow down your lender options. Commercial real estate loans are put toward the purchasing of existing or new properties. They also can be used after the fact to develop, construct or renovate a physical property or the land. Additionally, you can refinance a loan on an existing commercial property.

• Examples of eligible property types include:

  • Multifamily
  • Office
  • Industrial
  • Retail
  • Hotels
  • Mixed Use
  • Land
  • Special Purpose

  Often, individuals alone can’t take out a commercial real estate loan. Instead, they’re reserved for incorporated business entities. Additionally, some lenders may require the borrower to occupy the space, so if you’re looking to buy property as an investment, be sure to read the fine print. As many business owners know all too well, investing in commercial real estate can prove costly. Thankfully, commercial real estate loans help you pay for these costs. Generally, with these loan types, lenders put a lien on your purchased property. If you default on the loan or cannot make payments, the lender can seize the property to recoup their losses. To mitigate the inherent risk of big-money lending, commercial real estate loan lenders will require a down payment. Conventional lending institutions often require a down payment between 15%-35%, depending on the specific lender. In some cases, certain loans backed by the U.S. Small Business Administration (SBA) may be available with down payments as low as 10%.