Commercial Property Financing Services
“Commercial Property Financing Services Available To Our Customers In Canada”
In addition the the various options available are the lending/funding requirements of any given lender, their application process, and terms and conditions that must be met to fund any particular deal.
As commercial mortgage financing advisers, our services are centered around the entire process of capital origination and funding. Unless all the pieces are properly managed to completion, there will not be a successful funding event.
Our expertise and services include 1) deal assessment; 2)relevant lender identification; 3) proper application submission; 4) administrative management of lender requirements; 5) deal negotiations and issue resolution; and 6) deal funding and closing.
And while we do work on a wide range of projects, there are certain areas where we have a greater degree of focus.
More specifically, as commercial financing specialists we spend a great deal of time working on capital requests where the client either has not been successful locating funding themselves, or they do not have the time to locate and secure the commercial financing they are looking for.
One area we don’t work on is providing alternative quotes for “A” credit deals.
If you are able to collect two or three market rate quotes from reputable lenders, then there is very little chance we are going to be able to provide the best rate available once the cost of service is factored in.
Commercial mortgage financing can be a considerable undertaking so it comes down to whether you have the time and knowledge to procure funding yourself, or if you require professional assistance.
That being said, here is a brief overview of the more common types of commercial financing facilities we put into place for our clients.
Long Term Commercial Mortgage. A long term mortgage from a bank or institutional lender can be arranged for purchase, refinance, debt consolidation, or construction take out. In many instances there can be considerable work and time required to get a client into the “finance-able position” in terms of financial performance, proper reporting, property condition, and so on. It is also not unusual that short term financing must first be arranged to provide sufficient time for the proper long term financing to be put into place.
Bridge Loans. Bridge financing is a very common form of commercial mortgage lending due to the speed with which it can be put into place as compared to long term mortgage financing. And even though a bridge loan can be placed for a wide variety of applications, all deals have the following common elements: 1) clear amount and use of funds; 2) defined time period for when capital is required; and 3) clear exit strategy for repayment of all fund advanced.
Private Mortgages. Private mortgages in and of themselves are a form of bridge loan in that they are all short term in duration with 90%+ having a term of no more than one year. Private loans can be secured in first, second, and even third mortgage position depending on the equity in the property and the property’s marketability. Private loans can be ideal solutions for situations where strained credit or weak cash flow exists providing bad credit mortgages and/or equity loans.
Construction Loans. Depending on the project, commercial construction financing can be arranged from 1) banks and institutional lenders; 2) sub prime institutional lenders; and 3) private lenders. Construction financing can also be placed in first, second, and potentially third mortgage position. Construction bridge loans are also available for projects that are near completion, but still require additional capital to compete the remaining work.
Equity Financing. Banks and institutional lenders are predominantly cash flow first lenders. When a client cannot match the cash flow requirements for debt service required by an “A” lender, then the next best option is the sub prime institutional lender that will have a higher cost of capital, but also a lower debt service coverage requirement. If a deal cannot qualify within the mid market, then private lending options can also be considered if the equity and exit strategy can meet lender requirements.
Business loans. When owner occupied financing is required, it can come in the form of business loans, which are secured by commercial mortgage, due to the fact that the financing process requires business financial assessment for debt servicing. Business loans secured by real estate can also be arranged for cash flow financing to assist with operational growth and cash flow shortages.
Investment Opportunities. Because we work with many short term financing requests, we are always interested in expanding our private lender network to bring more financing options to our clients. If you are an investor looking to invest in commercial mortgages, then we certainly would like to understand your lending criteria and provide you with relevant deals for your consideration.
There is both art and science to the commercial financing process and while we cannot guarantee results, we can significantly increase the probability of success by properly managing the search, application, and funding processes.
If you are looking for a commercial mortgage for investment or owner occupied use, then I suggest that you give me a call so we can go over your requirements together and discuss the most relevant financing options available to you.