Meeting With A Lender....what Should I Ask??
I am meeting with a lender for financing on a commercial property I am interested in. What should I ask the lender? What do I need to get out of these meeting?
This will be a first time for me so I am a bit nervous :-(
Thanks for any and all advice!!
Chris G
Is is possible to get commecial financing with a fixed rate?
How are you planning on financing it? Most lenders will allow 75% LTV. Find out what their max LTV is and thier max CLTV and if they season the down. Find out what your options are. Points, fees, ammoratization lengths should also be discussed. Walk in there with a plan for the deal. Have a couple of different scenarios that would make the deal work and talk them through. That's a generic answer, but should point you in the right direction.
Yes you can get fixed rate financing on commercial deals. More expensive, but it's out there and common.
Chris,The most important thing to find out is do they do commercial loans. If they do then what their criteria for getting the loan is (LTV,interest rate,maximum lenght of loan,the longer the better 40 or 50 years). Most importantly listen to what they say,it will serve you well as you interview other lenders. Also shop around for the best deal.
Before I learned to be a Mortgage Broker, I was newly returned to civilian life and not fully adjusted. So I followed a method I had used all of my service life. I asked around and found the most qualified man available. I went to visit Mr. Paul Wolf mortgage broker extroidinaire. He knew everything and I put my self in his good hands and he possesed of a desire to fly an airplane put himself in my hands. I taught him to fly and helped him buy a little Cessna put put. He was happy and as a little bonus, I made sure, that every now and then I dropped a small income property into his large and capable hands. I of course managed it for him and let the income hit his office every month. In exchange, whatever I got into he worked out the financing and some of it was through proper manipulation at about 120% of what I was paying for it. Commercial, Manufacturing. Mixed use whatever. He worked his magic. Private Overseas Banks, Local Small Banks. Ethnic only Banks etc. etc. Investor Pension Plans oh my god he had them all. Even the Saudis layed off funds for paper through his most capable hands. I still remember the lambs eyeball I had to eat in celebration of one rather strange purchase of a hotel in Beverly Hills.
This is the easy way to go. You also learn and you of course list everything that happens and all the players. Then one day you turn around and you have your full lists of funds, players, and the ever present middle men. You now do your own thing and ask no more.
Lucius 8-) 8-)
Thank you to everyone for your advice...
I will consider everyones input when talking to the lenders. I was searching for information on SBA loans as well, but I have read off SBA's sights that they will not lend to Real Estate investment firms or investors of real estate. Anyone have any experience with obtaining a loan from the SBA for these purposes?
Thanks again for all you advice TCI!!
Chris G.