6 “Insider Tips” for Commercial Real Estate Loans

financing-commercial-real-estate-mazeWe’re here to help you successfully navigate your way through the maze of choices, decisions, and options that will be presented to you in your search for a commercial real estate loan. Here’s the “inside scoop”. . .

1.  Many commercial lenders exaggerate their speed. 

If a lender tells you that they can complete the process in 30–45 days, you should realize that it’s probably going to be closer to 60–90 days. Be sure to apply for your commercial loan as early as possible so there are no hang-ups to your financing and you can meet your goals as planned.

2.  Never rely on a single commercial lender.

Remember that advice your mother gave you about not putting all your eggs in one basket? Well, the same is true when collecting offers of loan terms from lenders. Commercial banks are very subjective in what types of commercial real estate they decide to finance. So be a smart borrower, and submit your deal to at least four lenders. Don’t leave anything to chance. You should feel free to shop around — You’re the customer here. Hold out for terms that suit you, and lenders who you feel have your best interests in mind.

3.  Commercial lenders must order the appraisal themselves.

Don’t let a mortgage broker talk you into ordering an appraisal yourself. By law, the bank won’t be allowed to accept it. Plus, you shouldn’t have to pay twice for appraisals on the same piece of property. Further, don’t ever agree to pay for an appraisal until a term sheet has been issued to you by the lender. You want to know exactly what you’re agreeing to financially and legally.

4.  Most commercial lenders will require an environmental study of the property (i.e., toxic report). 

If a lender forecloses on an environmentally contaminated property, they are responsible for the costs to clean it up. It’s their job to make sure the property is “clean” before they make a loan on the property. Be sure to ask for this if it isn’t discussed so you can rest easy about the property’s true health.

5.  Starting local for a lender is smart, but don’t ignore the big national lenders.  

Local lenders may be aggressive in pursuing your loan request, but national lenders may have better programs or terms. Looking at options in both camps is wise. If your local lender won’t finance a loan, a national lender might. (Plus, this supports Tip #2 above about submitting your paperwork to at least 4 lenders.)

6.  There are financing options for most commercial real estate loan requests.

Whether your loan request is conventional or non-conventional, there are many types of programs in the marketplace to fulfill your financing needs. Don’t lose hope if the first place you apply doesn’t approve your loan. That’s just part of the process. The right lender is out there for you.

In fact, if you need a commercial real estate loan right now, give our experts at Spectrum Capital a call at 262-456-7613. Our Finance Consultants work with dozens of commercial real estate lenders and can help you find the best solution to match your specific industry and needs. Contact our experts today!

And be sure to keep yourself up to speed on the latest financing news by subscribing to our blog: Spectrum News.



I didn't know what I was doing when I decided to try to find a lender. The article informed me really well of the things to watch out for. I really like that the article said that I should shop around and the right lender will come to me. http://www.dmcloans.com/loanOptions/Featured/


This is good information. My brother just started a business, but he already needs to move it to a different state. It shouldn't be too stressful if we seek all of the right advice. What would you recommend in our search for expert tips? http://www.langlaw.com 

Call Now Button