Posted by Chris_NJ on 8/16/09 3:57pm
Msg #300240

looking for info on current loan rate for commercial prop.

Hope there are some brokers out there that can help. I'd like to find out what the current commercial loan rate is at,. (With excellent credit) for a 15 yr fixed and plenty of equity on the property and a strong existing business. Thanks ahead for your input

Reply by 101livescan on 8/16/09 3:59pm
Msg #300241

Is the property located in New Jersey...lots of things will determine the interest rate....Bank of America, Wells Fargo and Union Bank all lend on commercial properties. Some local lenders will also lend on commercial...

Reply by Chris_NJ on 8/16/09 4:02pm
Msg #300242

yes the property is in jersey. it's a long standing hotel business. I just wanted an Idea of the rates these days for a friend of mine. It currently holds no mort, but my friend wants to buy and will need only an additional 150k.

Reply by 101livescan on 8/16/09 4:13pm
Msg #300244

HSBC and Suntrust in Maryland make loans on business property.

Reply by Charles_Ca on 8/16/09 11:13pm
Msg #300290

Chris, there are many variables that enter into underwriting

the loan for a commercial proplerty. The first thing most novices ask is what is the interest rate this week. it just isn't that simple. The acutal value of the physical proplerty in a commercial transaction is actually less important than how it will be paid for. If there is a healthy cash flow, a good profit margin, a long track record, and the buyer has extensive hotel management experience he might be able to swing a lower rate than someone wiht exactly the same property who has no hotel experience. Without actually toaking to your frined I don't know of any truly ethical loan agent quoting a rate without analyzing the property and the potential success of the buyer. And after getting the rate there are other costs involved that may actually affect the true cost of the loan. Interest rate is not the way to shop for a loan on commercial, the actual cost is. Some lenders may give a low rate but require other costs thereby having a higher effective cost than a higher interest rate.

I broker commercial properties and have for over 30 years.

Reply by PAW on 8/17/09 10:00am
Msg #300313

Re: Chris, there are many variables that enter into underwriting

You are so right, Charles. Having brokered commercial property loans for small businesses (under $2 million), there was no way to simply offer an answer. Unfortunately, small business owners think of mortgages for their business just like they think of mortgages on their home. Many similarities, but the differences are like the difference between dawn and dusk.

Reply by sue_pa on 8/17/09 8:34am
Msg #300297

In my area, ALL the local banks are constantly advertising they have money to lend ... they have none of the national problems, they have always utilized good lending practices, etc. I personally would go to the corner bank and talk to them and then go to the next corner and talk to them. As a matter of fact, in my area, the bank will come to you.

Reply by ME/NJ on 8/17/09 9:06am
Msg #300302

Agree with Sue, smaller is better.

Now for the loan.. My first business loan with a bank I needed to put up my own home to get the loan. Interest is higher terms much shorter 3,5,7 10 years.

Once I showed a proven payment record for 3 years and a perfect D&B score all I needed to do was just sign my name for large lines of credit now.

Reply by Chris_NJ on 8/17/09 2:30pm
Msg #300390

Re: Agree with Sue, smaller is better.

thanks so much for all the info Ill pass it on to my friend