Commercial Financing & Mortgage Brokerage

It first must be understood that securing the desired/optimum commercial/investment property loan is much more complex than obtaining a conforming loan for a home or small residential rental property. Preparing, packaging and placing a commercial loan package requires not only a significant amount of time but also a thorough understanding of the direct lender underwriting and loan approval process. 

Worth noting is that the rate, terms and loan amount of a commercial/investment property loan is "negotiable".  Having the expertise and experience to fully leverage this opportunity is an invaluable service The Carlson Company brings to our clients.

"A key component and critical value-add The Carlson Company provides is what we refer to as OPERATING STATEMENT OPTIMIZATION.  The benefit to clients is simply more loan dollars! In many/most cases The Carlson Company has been able to secure 10-15% more loan proceeds (whether a refinance or purchase) than what clients were/are initially quoted via "Letter of Interest" through other service providers, including direct lenders."

Mike Carlson, President, Director & Principal Broker

Underwriting and loan approval issues/challenges include:

• Borrower specific factors including real estate experience, credit profile, liquidity, net worth, annual income, etc.

• Property specific items including physical condition, geographic location, financial operating history, occupancy/vacancy rate, performance versus like-kind comparables, etc.

• Lender specific internal guidelines influencing the loan interest rate, loan amount, loan term and pre-payment penalties include loan-to-value ratio, secondary financing (yes/no) and debt service coverage ratio calculations.

To make the process even more complex and ultimately "negotiable" direct lenders have different underwriting criteria and different niches that they can, and want to, serve. A qualified and experienced Mortgage Broker and/or a Commercial Financing Resource will in almost all cases have a tremendous impact on obtaining the dollars requested, at the best possible rate, and with terms that best match the specific situation of the borrower.

One common misconception is that financial professionals that act as intermediaries cost borrowers increased transactions fees. This is simply not true. Most intermediaries are offered wholesale pricing; hence the borrower will usually pay ~1.0% of the loan amount regardless of whether dealing direct with a lender or through a Mortgage Banker/Broker.

The bottom-line is that the most overlooked component of a real estate investment is often the underlying financing that is secured. This decision can equate to tens-of-thousands, if not hundreds-of-thousands of dollars, in overall return on capital (equity) during the ownership period of the investment.

The Carlson Company has particular expertise; experience and a documented track record of success in assisting clients obtain the optimum loan available that best matches the specific situation of the borrower/investor. For more information see The Commercial Loan Process.