Posted by jmor on 4/20/13 5:29pm
Msg #466478

Commercial Loans

Commercial Purchases and Refi's. Please let the group know if you have done commercial loans and:
1. How they are different from residential loans.
2. What to "look out for".
3. Normal average number of pages.
4. Any other personal advice you could give to our newer members.

I have done plenty, but am just curious about other's perspective.
Thank you all for your input.

Reply by 101livescan on 4/20/13 5:42pm
Msg #466479

It depends on who the lender is. Can be vastly different packages. Also, if it's a ground lease involved, only the business building is being financed, a whole other animal.

Very different, and the borrowers are usually pretty well healed, very well qualified, higher end clients. There is usually no 1003, it's mostly note, deed of trust, loan agreement, no right to cancel, disclosures, hazmat, insurance requirements, etc. I had one on a gas treatment plant in Santa Barbara. Loan was secured in part by an exclusive e residence in North San Diego county. Very small package, small bank. Personal guarantees. Two brothers. Split signing.

No two alike, I'd say. Not much help, huh?!

Reply by James Morgan on 4/20/13 6:47pm
Msg #466487

You're so right! No 2 are alike. I like 'em because keeps one on their toes.
Thanks for your input.

Reply by ananotary on 4/20/13 6:10pm
Msg #466482

I prefer them especially Chase commercial loans. Did two today. Less than 90 pages, one notarized doc approx 12 signed pages (no trust involved), less than 10 minutes at the table. My favorite. Lol

Reply by James Morgan on 4/20/13 6:49pm
Msg #466488

Thanks for your input. I've had 'em 175 pages down to 10. I'm like you, I love 'em.

Reply by ananotary on 4/20/13 6:52pm
Msg #466489

I've had the biggies also. You know the big first, SBA and Bridge loans. I still prefer them because the borrowers are more informed/ savy and have usually already reviewed the docs.

I'm amazed at how fast a 4 million dollar loan can go and how SLOW a 25k HELOC can go. Different borrowers...

Reply by James Morgan on 4/20/13 7:19pm
Msg #466492

You are so right. They can be big or small, but, like your said, the borrowers are SO informed. I don't care how many pages - they always go "fast and smoothly".
Thank you very much for your input. I hope others will read this and learn.
You know how it goes - if you have a good reputation, they call you. The price is always right.
Have a great weekend.

Reply by ananotary on 4/20/13 7:23pm
Msg #466494

You too!

One last thing that I remember learning as a huge difference with "regular" home loans and commercial loans is the notarizing of different signatures. For example; a borrower may be signing has Lessee and Lessor and the lender may require an notary cert for each signature even though it is the same person.

Reply by James Morgan on 4/20/13 7:53pm
Msg #466496

Yep, run into that too! Thanks again for your input.