At California Mortgage Advisors Inc., we understand that purchasing a commercial property isn’t a cut and dry process. An applicant may be looking to expand their real estate portfolio or they could be buying their first commercial property. Maybe the owner of a home operated business is looking for extra office and storage space that a local warehouse can offer. Maybe an existing business has outgrown its current office space. Sometimes it’s a matter of pure speculation as an investor notices a commercial property they think is undervalued for a particular area.
CMA has financed all types of commercial properties including retail, office, industrial, R&D, special use properties, land and apartment buildings. There are many commercial lenders out there and each lender has an appetite for certain property types. Some lenders prefer office buildings over industrial buildings or medical buildings over apartment buildings. Some lenders will not lend on owner-user properties and some will. Each commercial loan is different and unique to the property.
CMA understands the complexity of commercial lending and we understand what each lender is looking for in regards to property type, condition and cash flow. Our Mortgage Advisors are available at (800) 927-6560 to help you work out the details of your commercial loan today.
Fluidity
The biggest difference between a traditional loan and a commercial loan is the fluidity of the situation. Every commercial loan is different because commercial properties vary so wildly. As such, our Mortgage Advisors will take the time to consult prospective commercial loan recipients to fully understand their situation and loan requirements. This extra time gives CMA the opportunity to make loans other lenders can’t make because they lack a dynamic evaluation process. The goal is always to match up clients with a loan that best fits their individual financial needs.
Property Appraisal
Even when being occupied and used, commercial real estate is almost always viewed with an eye towards potential. Owners or potential buyers often imagine what a commercial space could become under ideal conditions. This makes commercial property appraisals especially problematic because lenders are naturally more concerned with the current reality of a property. Appraisers are forced to not only making evaluations based on the physical condition of a property, but they must also evaluate the size, location and accessibility of a commercial location.
Down Payment
Unlike other loan types, which have a static down payment amount, the down payment amount for a commercial property loan is determined by the property type and loan amount. At CMA, we will thoroughly underwrite both the property and the borrower’s qualifications in order to identify the best lender for each and every scenario.
Financial History
The most obvious thing that any lender is looking for when determining whether to provide a particular applicant with any loan is the applicant’s ability to reasonably fulfill the terms of the loan. This leads to lenders establishing arbitrary guidelines and dismissing applicants out of hand when they fail to meet these pre-established financial milestones. Unlike other lenders, California Mortgage Advisors Inc. is not looking for any one particular thing when we review an applicant’s financial history. Instead, we review a multitude of factors and work with applicants to craft a loan proposal tailored to fit their unique situation.
Debt Service Coverage Ratio
Debt service coverage ratio (DSCR) is a term that describes how much money a commercial property generates each month when compared to the total cost of the loan payment. Properties generate income through many ways depending on the nature of the property itself. At CMA, we will closely analyze the DSCR then identify the lenders with the most competitive loan terms that best meet the DSCR of the property.
California Mortgage Advisors Inc. has been helping customers purchase and refinance commercial loans for over 20 years. Our Mortgage Advisors can assist customers in selecting the best commercial loan to fit the customer and the property. When you are ready to start the process, apply online here or contact one of our Mortgage Advisors at (800) 927-6560.
