A commercial real estate mortgage broker works with a borrower to help organize and structure the paperwork and funding requirements for various forms of real estate financing.
A commercial mortgage broker then takes this information on the borrower’s behalf to numerous commercial lenders and investment groups looking for an interested commercial lender that is providing the best interest rate and repayment terms.
Commercial mortgage brokers facilitate the communication between commercial borrower and commercial lender to help expedite the financing and ensure all parties are working together in good faith.
The commercial mortgage funds are lent in the name of the commercial mortgage lender, and the commercial mortgage broker collects an origination fee (typically 1%) once the loan is funded.
Commercial lenders will qualify applicants based on a combination of the following:
-
Property Type
-
The Debt Service Coverage Ratio (DSCR) or cash flow. *Usually lenders look for a DSCR of 1.25% compared to costs (mortgage payment, taxes, condo fees, utilities, etc.)
-
Equity
-
Credit
-
Environmental reports on the property
-
Appraisals are required for commercial mortgages
-
For commercial real estate mortgages, it's a company that purchases the property. In most cases the shareholders of the company purchasing the property will need to provide a personal guarantee.
CMSI is a full service commercial mortgage brokerage partnership and are leaders in commercial real estate debt financing. Our team of experienced commercial mortgage brokers and underwriters work diligently with lenders and investment group to place first and second mortgages for our borrowing clients.
Every deal, no matter the size gets approached the same way. Call us to have a no obligations conversation how CMSI approaches finding you the best commercial financing solution with our straight forward approach.
