Get Adobe Flash player
Archives

Posts Tagged ‘Chase’

We usually do not pay for the typical commercial mortgage broker business to work in commercial construction loans or residential subdivision construction loans. Here’s why:

With the possible exception of the apartments, the U.S. is awash with additional buildings. Homebuilders are sitting on hundreds of thousands of houses unsold. The vacancy rate nationally for office buildings is close to 20%. Retailers are getting clobbered in the current recession, so that the vacancy rate for retail space is skyrocketing. Occupancy rates of hotels are plummeting. The simple fact is that the U.S. does not really need a lot of new buildings.
Even when the economy was strong, the typical mortgage broker business rarely went to work at any decent construction business loans.
The reason is because banks make a ton of money if you do a good construction loan. It has always been easy for skilled developers simply go to a local bank and obtain a construction loan.
As a result, only the developers never unconditional called commercial mortgage brokers to find a construction loan.
A developer can be unconditional because it had very little experience in construction.
Most of the time a developer would be unconditional because it could not contribute 20% of the total project cost in cash or equity in their land.
As a commercial mortgage broker, is that 95% of its lack of commercial construction loan applicants is required for 20% of the equity.
As a result of the subprime and banking crisis, banks are now often requires that developers contribute 30% to 35% of the total project cost in cash.
Very few brokers mortgage business is a promoter who can contribute 30% to 35% of the total project cost.
And if a developer was rich enough to contribute 30% to 35% of the total project cost in cash, you can bet it has tons of contacts directly with banks. He does not need you.
Therefore, if you want to feed your family, do not waste time working on commercial or residential construction loans subdivision construction loans now (if ever).
Does this mean that there is absolutely no construction of commercial mortgage loans that make sense? It does not address that still makes sense today in the market are small business loans for the construction, the owner of users of SBA lenders, usually under the 504 Program. Can be applied to dozens of SBA 504 lenders by building http://www.pro-bargainhunter.com

Wade and IMM Commercial mortgage financing Group provide business opportunity commercial mortgage loan – business loan advice and publish IMM Commercial Real Estate Investment Property Financing Reports by Bargain Trader.

Share