8A — November 8 - 21, 2019 — Lender’s Directory — M id A tlantic
Real Estate Journal
www.marej.com
Lender’s Directory
xperienced commercial mortgage originators know that one of the By Enrique Gomez. Commercial Mortgage Depot. 30-Year Fixed Rate Loans: The Non-Bank Opportunity for Originators E help prospective borrowers who fail to meet bank tax re- turn requirements. to concern themselves with looming balloon notes or gen- eral market volatility.
from traditional banks by enhancing their commercial guidelines with new 30-year fixed rate lending solutions. These loans operate much like the typical residential mort- gage investors and business owners are used to. Here are three common bor- rower needs that originators have been able to meet with 30-year fixed rate commercial loans this year. 1. Investors craving greater stability for their commercial investment The commercial real estate mortgage market today contains
a wide range of investor types, from the fix-and-flip investor in need of a quick financing solu- tion to those looking to establish a long-term strategy with com- mercial real estate investments. 30-year fixed rate solutions are naturally a more appeal- ing option for those who wish to hold onto their investment property for a long period of time. These borrowers are not interested in refinancing every few years, especially if they’re able to secure a comparatively low interest rate right now. By locking in a 30-year fixed loan, investors do not need
However, originators and their lending partners have historically offered few op- tions for a commercial loan’s term – mostly in the 5, 7, or 10-year range. In this way, mortgage pros have not been able to provide much of an al- ternative for those prospective borrowers considering bank financing. Thankfully, all that is changing in today’s market. More alternative lenders are further distancing themselves
keys to busi- ness growth i s t o keep a d j u s t i n g one’s prod- uct offering to meet cur- r e n t b o r - rower needs and expecta- tions.
2. Business owners wish- ing to maximize cash flow A 30-year repayment sched- ule gives borrowers more avail- able funds with which to grow their business each month. Those operating relatively young businesses may be inclined to prioritize cash flow over all else. Originators can greatly relieve stress for these owners by providing an alternative to the adjustable rate loans offered by more traditional funding sources. It should be noted that banks and SBA lending pro- grams may include fixed rate options for business owners. But those with cash flow concerns are less likely to be approved for those types of solutions. 3. Residential investors looking to expand into multifamily opportunities One common strategy for diversifying a residential real estate portfolio is to pur- chase a 1-4-unit rental prop- erty, such as a duplex or triplex. This allows investors to familiarize themselves with multi-unit property ownership without dealing with the com- plexity of a retail strip center or apartment complex. Originators can create a smoother transition by offer- ing a 30-year fixed rate lend- ing solution that more closely mirrors the type of financing these investors have likely secured in the past. The next step for com- mercial loan originators Those interested in supple- menting their existing offer- ing with a 30-year fixed rate product should schedule time with their lending partners to determine who is currently offering such an option. From there, one can perform the usual comparative analysis and match the best solution to each prospective client. In today’s commercial mort- gage market, this is the type of evolution that can make a marked difference in an origi- nator’s pipeline. Enrique Gomez is presi- dent of Commercial Mort- gage Depot. Over 30 years of Commercial Mortgage Experience, underwriting commercial mortgages and SBA Loans as well as Bridge (hard money) Loan.
Enrique Gomez
In the past, a mortgage pro- fessional may have adopted reduced documentation or stated income solutions to
In commercial real estate nancing, “experience” is what matters most. Commercial Mortgage Depot (CMD) is a nationwide commercial real estate nancing rm. We o er wholesale rst mortgage commercial loans as a direct lender. We also have the exibility to tailor the right loan product for the borrower, as a correspondent or agent, through our investor network. Our highly trained, knowledgeable sta examines each transaction to place it in the best program based on your unique scenario. We understand the complexity of a commercial transaction in today's market and, most importantly, we have the relationships with lenders, investors and banks to close deals e ciently and quickly.
CMD Commercial
We also work with other Commercial Lenders:
Lite Doc Loans
• 100k - 2.5MM • Min. 700 Credit • Max LTV 80% • 1.15 DSCR • Full Documentation Full Doc Loans
Property Type: Investor 1 to 4 Family, Multi Family, Mixed Use, Office, Retail, Warehouse, Self Storage, Mobile Home Park, Automotive, Gas Stations, Car Wash, Industrial, Funeral Homes, Rooming House, Marinas, Day Care, Hotel/Motel, Medical, Restaurant, other properties considered. All types of businesses considered. Types of Lenders: Conventional Banks, SBA Lenders, CDC Lenders, Fannie Mae, FHA, Hard Money / Private Lenders
• 100k - 2.5MM • Min. 650 Credit • Max LTV 80% • 1.15 DSCR • No Tax Returns, Bank Statement option available
No Doc Loans
1-4 Loans
• 100k - 300k • Min. 650 Credit • Max LTV 75% • 1.15 DSCR • No Documentation
• 100k - 2.5MM • Min. 650 Credit • Max LTV 80% • 1.00 DSCR • No Tax Returns
Enrique Gomez (201) 259-7170 | O ce: 973-742-1111 email: Gomez@cmdnj.com | Fax: 973-742-8899 www.commercialmortgagedepot.com
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