If you are working with a Commercial Mortgage Broker/Banker, who has experience and expertise with BOTH Advising/Strategizing and Loan Packaging/Placement, the benefits of working with a Broker/Banker should be significant. Commercial Mortgage Brokers/Bankers, who have an understanding of lender underwriting criteria, (particularly property income/expense issues and debtservice-coverage limitations), can often secure greater loan amounts, because they can make proper “packaging” and “placement” decisions. Furthermore, while there are a multitude of differences, (not only between lenders, but also with the various programs offered by any given lender), a Commercial Mortgage Banker/Broker specializing in Commercial/Investment Properties can provide objective and unbiased assistance, with all critical elements of the mortgage strategy and application process.
In today’s market the final funded loan amount is often the most challenging issue to deal with and overcome. It is far and away the number one reason why real estate sell/buy transactions fail. Furthermore, beyond the interest rate and loan term, other critical decision items and issues need to be addressed, such as loan type, prepayment penalties and final approved loan amount. In this regard, it is imperative to understand that debt/financing is a “tool”, to be used to increase returns. It should NOT be handled as an afterthought, in the real estate acquisition or refinance process.