Construction, Purchase, or Refinancing via top U.S.A. financial lenders, servicing business owners with the best funding source according to your needs and particulars of your situation. i.e., long term, fixed rate financing for a stabilized property may be best suited for a conduit lender.  Whereas, a short term, variable rate loan for an un-stabilized property may be suited for a regional or local lender, such as a bank or S&L. We can also obtain loan financing through the SBA (Small Business Administration).

• Retail (Grocery Anchored Retail, Other Anchored / Un-Anchored Retail,  Free standing Retail, Strip Center - Anchored / Un-Anchored, Mall – Regional or Super Regional, Outlet Center, Single Tenant Investment (Credit Tenant Lease), Single Tenant Non-Investment, Specialty Center, Other Retail)
  
  
  • Specialty Center, Other Retail, Special-Use (Car Wash, Golf Course,
    Auto Repair, Dry Cleaners, Cemeteries, Church, etc...)
    
    
• Office Buildings  (Central Business District (CBD) Office, Suburban Garden Office, Suburban High Rise Office, Medical Office, Other Office)
  
• Industrial and Warehouse Single or Multi-Tenant, Manufacturing, Flex Space, Light to Heavy Industrial, R&D, Other Industrial
  
  
• Multifamily (5+ Units) (Condo / Townhouse Style, Garden Apartments, Mid-Rise to High-Rise Apartments, Military Housing, Student Housing, Co-Op, Other Apartments)
  
  
• Mobile Home Parks (1 – 5 Star MHP, RV Park, Other Pad-Rent)
  
  
• Health Care (Nursing Home, Congregate Care, Assisted Living, Other Health Care)
  
  
• Lodging - Hotels/Motels: (Luxury, Resort, Midscale - Limited Service to Full Service, Economy, Budget, Extended Stay - Limited Service to Full Service)
  
  
• Self Storage (Mini-Storage, Climate Controlled / Refrigerated Storage, Yard Storage, Other Storage)
  
  
• Mixed Use (A general property type or building type classification characterized by its multiple uses; a real estate development that contains two or more different uses all intended to be harmonious and complementary (e.g. a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor). In MTG Brokers Corp., building types available for mixed-use analysis include office, retail, industrial, and multifamily. Lodging, healthcare and self-storage properties are analyzed as single-purpose properties.)
  
  
• Agricultural (Ranches and Farms, Land if construction plan is in place)  
  (See our Investment_Specials)
  
   

For Definitions of Commercial property types etc... (see Commercial Glossary)

  

Commercial property loan rates are at all time low.

March 01, 2006 - National Average on a $1,000,000 loan amount,
amortized at 25 years.

• Fixed rates are based on a 10-Year fixed rate term.
• Fixed rates reflect conduit lenders and
• Variable rates reflect portfolio lenders.

Construction Loans (Interest Only...starting at 7.25%)

Colorado Rates remain below the above National Avg.
See our rate page for all markets effecting rates

Commercial Loan Amounts, Loan Term, and Amortization Ranges

PERMANENT LOANS (Purchase & Refinancing)
A mortgage loan, usually covering development costs, interim loans, construction loans, financing expenses, and marketing, administrative, legal, and other costs.  This loan differs from the construction loan in that financing goes into place after the project is constructed and open for occupancy.  It is a long-term obligation, generally for a period of 10 years or more.  Permanent Loans are also known for existing Property Purchasing or Refinancing.

Permanent Loan Amounts - $25,000 - $1 Billion
($300 Million max for Health Care)
5 - 25 Year Terms (30 year max. Mobile Home, and Mixed Use)
7- 30 Year Terms for Multifamily properties)
(40 Year Term max for max Health Care)
(3 Year Term min. for Lodgings

Construction Loans
(Interest Only...starting at 7.25%)
Cap Rate: Use market cap based on property type

A short term loan to pay for the construction of commercial buildings.  These loans typically provide periodic disbursements to the builder as each stage of the building is completed.  When construction is completed a take–out or permanent loan is used to pay off the construction loan.

Construction Loan Amounts - $250,000 - $300,000,000 (Billion)
5 - 25 Year Terms (10 year term max for Self Storage, Multifamily, and Mixed Use)
(40 year term max for max Health Care)

Best Rates are associated with: pre-leased buildings, under-built markets, but with sufficient market and similar property-type data to warrant development.

Issues:
Many development deals fail not because of a lack of funding, but because of a lack of preparation on the borrower/developer. Lenders look for experienced principals, developers, builders, contractors as it relates to the proposed project. Project costs should not exceed project as stabilized, and should reflect entrepreneurial profit of 1-3 percent.

General Requirements:

• Zoning and Permit approvals
• Bios on all parties involved: principals, developer, builder, contractor, etc.
• Detailed project plan presenting each phase of construction and the costs associated with each phase.
• A representation of the operating performance of the property, as stabilized
  (at end of ramp up period based on market-occupancy, rental rates, and operating expenses).
• A profit margin of 1-3 percent is preferred.
  

See Construction Mezzanine

BRIDGE LOANS
Short-term mortgage financing that is in place between the termination of one loan and the beginning of another loan.  Also, a form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.

Bridge Loan Amounts - $200,000 - 1,000,000,000 (Billion)
($300,000,000 max for Health Care)
3 - 20 Year Terms (30 year max for Multifamily, Mobile Home Parks, and Mixed Use)

Commercial mortgage lenders typically require specific loan level data about a property in order to analyze the underwriting risk, prepare a loan quote, and ultimately fund a loan. Mortgage brokers are a primary source of commercial loan originations today. As a result, lenders' expectations regarding the level of reporting, analysis and overall quality of the origination are increasing.

Unfortunately, there are many brokers who can't obtain financing for commercial properties because they use a residential loan application to submit to lenders
- BIG MISTAKE !

See Example Loan Package Extracts

Unlike Residential financing where the Borrower must qualify for the mortgage product; Commercial financing differs whereby the Property must qualify (not the borrower).

How MTG Brokers Corp. Gets You the Best Rate for Your Commercial Property

Commercial mortgage rates are commonly based on the 10-Year US Treasury yield plus a lender Margin/Spread.
 
The interest Rate Index change is based upon market and trading conditions, while spreads are influenced by loan/property factors - primarily Debt Service Coverage and Loan To Value.
 
Property that demonstrates a high DSCR and low LTV will likely command a lower interest rate.  

MTG addresses DSCR/LTV issues via calculations to analyze reserves, fees and other lender underwriting constraints that can impact a properties Net Cash Flow and therefore, the overall interest rate and loan pricing at the time of your loan origination.
 
This is where others fail to obtain you a lender commitment and why we don’t collect any fees until after an offer is submitted by a lender to you “for your approval”
(Typically, A National, Regional or Colorado Lender You Know and Trust !)
 

Commonly Required Property Data and Format

While loan submission requirements may vary among lenders, most lenders request the inclusion of the following core loan data:

• General property and building description
  
• Current rent roll to reflect lease start/end dates, square footage or unit type, contract rent, rent escalations, reimbursement issues, and estimated market rent
  
• Property income and expense worksheet including calculations for net operating income (NOI) using at least two historical years of income and expense
  
• Calculation and support of normalized net cash flow (NCF) including appropriate reserves based on property type (e.g., vacancy & collection Loss, management, capital expenditures, tenant improvement costs, leasing commission costs (TILC)
  
• Reconciliation of direct capitalized value to purchase price
  
• Loan amount constrained by maximum loan to value (LTV) and debt service coverage ratio (DSCR)

For a Retail Commercial Loan (Click Here)
Construction, Purchase, Refinance, Bridge, Hard Money

Or Visit One of These Pages


Office Building Commercial property Loan Rates and Financing Info.
Office Includes: Central Business District (CBD) Office, Suburban Garden Office, Suburban High Rise Office, Medical Office, Other Office, Doctor Office (for patients requiring bed space - Choose Health Care)

Retail Commercial property Loan Rates and Financing Info.
Retail Properties Include: Grocery, Strip Center, Mall, Outlet Center, and Specialty Center (Car Wash, Golf Course, Auto Repair, Dry Cleaners, Cemeteries.....), etc...

Industrial Warehouse Commercial property Loan Rates and Financing Info.
Industrial and Warehouse include: Warehouse with Office, R & D, Manufacturing, Flex Space, etc...

Multifamily Commercial property Loan Rates and Financing Info.
Multi Family: Apartments, Condos, Townhomes, Military and Student Housing, Community Developments, etc...

Lodging, Hotel, Motel Commercial property Loan Rates and Financing Info.
Hotel Include all Lodging, Motel, Economy, Luxury, Resort, Extended Stay, etc...

Mobile Home Parks Commercial property Loan Rates and Financing Info.
Mobile Home Parks: RV and other Pad rental space

Healthcare Commercial property Loan Rates and Financing Info.
Health Care: Nursing Home, Cognitive Care, Assisted Living, Hospitals, etc...

Self Storage Units Commercial property Loan Rates and Financing Info.
Self Storage (Mini-Storage, Climate Controlled / Refrigerated Storage, Yard Storage, Other Storage)

Mixed-Use Commercial property Loan Rates and Financing Info.
Mixed-Use: A combination of usually two of the following: Office, Retail, Hotel, Multifamily, Industrial

Including:
Community Development & Financing
Agricultural Use Property
Rural Area Lending
Land Financing

  
for other available financing options - Please see:

• Hard Money
  
  
• Please Visit Bridge Loans for for the development of new commercial properties, or the renovation and repositioning of existing properties, for both pre-leased and speculative development.
  
  

  For Commercial Mortgage industry...
  see our page on CMBS (Commercial Mortgage Backed Securities)
  2nd mortgages not allowed...we show a way around this
  
  
  see Mezzanine Loans ...for Commercial Mortgage Loan Financing
  How to get a Junior Lien (similar to second mortgage)
  
  

• 1 - 4 Unit Financing (Typical Bank Loan Products for Investors), and 2nd home financing.
   
• Fix-N-Flip for 1-19 unit investment financing
   
• Investment_Specials

  
  
Also see Balloon Mortgage for Variable Rate & Cap Rate.
 
  
  
Please see the Commercial Only Glossary
(see Commercial Glossary)