Are you planning to take a commercial loan? If yes, you may be looking for a good commercial mortgage broker.
A commercial mortgage broker is a qualified professional who assists commercial real estate owners in obtaining loans at the best interest rates. Before you select a commercial mortgage broker, it’s extremely important to check whether the lender’s expertise matches your borrowing requirements or not. Below, are steps you need to follow to vet and select the best commercial mortgage broker for you investing needs:
What makes a commercial mortgage broker a great lender?
First things first, how can we decide what characteristics make a commercial mortgage broker a great one?
A great commercial mortgage lender possesses the following characteristics:
- Relevant experience
It’s important to look for a broker who has experience funding commercial properties and have a good understanding of the complexities of commercial real estate.
- Flexibility of lending options
Commercial mortgage brokers work with multiple lenders to offer loans to you. A great broker is someone who has many lending partners who can assist every type of commercial real estate owner.
- Competitive interest rates and friendly terms
A great commercial mortgage broker is one who adjusts the rates and terms offered to meet the current market conditions. They should also have a budget-friendly commission/fee rate.
- Transparent policies
When there is transparency during the lending process, you have clarity about how you’re being charged and how the broker gets paid. You won’t be cheated by a broker who is upfront about his/her policies.
- High responsiveness
Finally, a good commercial mortgage broker is someone responsive to your needs. You may require money urgently, or you may want a custom loan service. The broker should be able to quickly fit his/her services to your requirements as quickly as possible.
Start Your Search:
- Speak to fellow property owners and businesses for referrals
Other landlords, building owners, retailers, and business owners all come in contact with commercial mortgage brokers for loans. You can speak to them and find out about their experience with that broker. Often, the best brokers are the ones who are referred by word-of-mouth from previous clients.
- Seek advice from your real estate agent
Commercial real estate agents usually put commercial mortgage brokers in touch with their clients during the property buying and selling stage. They will have extensive experience working with different brokers and will be able to advise you about who to choose.
- Use social media and Google for reviews about brokers you want to shortlist
Your fellow commercial real estate owners and property agents will certainly have shared a list of commercial mortgage brokers you can potentially partner with. It may be impractical to contact each broker to do your research. This is where social media and search engines like Google help.
Today, most loan applicants post their reviews online. You can find these reviews either on the broker’s Google listing or on the broker’s Facebook/Instagram page. You can check these reviews to shortlist a few to contact.
- Do a thorough background check of the chosen brokers
Once you’ve shortlisted the commercial mortgage brokers you wish to contact, do a complete background check on them. Visit their website to learn about them and their services. Contact a business who has utilized their services to get their feedback. Contact the commercial mortgage brokers in person and ask them questions about their:
- Educational qualification
- Professional experience
- Expertise in commercial real estate lending
- Number of commercial mortgages they have provided to clients like you
- Fees they are charging
- Commissions they will receive on your loan
- Lender panel they work with
After this vetting process, shortlist further 2-3 brokers.
- Compare the rates and terms that each lender is offering
When you’ve narrowed down to your handful of commercial mortgage brokers, it’s time to compare the interest rates and loan terms they’re offering. Choose the one that fits your long-term budgetary constraints and business requirements. Ideally, you should select a commercial mortgage broker who has an extensive list of brokerage services that can benefit your commercial real estate business.
-The Multifamily Team
Hi, my name is Michael Avent. I founded The Multifamily Review in June 2020. I’m a Commercial Agent at Northcap Multifamily located in Las Vegas, Nevada. My vision for The Multifamily Review is to be the most trusted resource for all Multifamily Industry Professionals. We strive to offer the best content to our readers and are always open for suggestions. Make sure you sign up to join our newsletter to stay up to date on our latest blog, ebook, and more exclusive content that’s coming your way! The Multifamily Review team and I look forward to building a deeper relationship with you!
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