Finding a Commercial Private Lender
In beginning your search for a commercial private lender to finance your commercial mortgage, it is important that the borrower be judicious in his or her approach. Practice prudence when finding a commercial private lender. With the commercial real estate market on the rise, more and more private lenders are surfacing. For individuals who are looking to finance their commercial property, due diligence pays when deciding to work directly with a lender, or hire a broker to act as a middle-man between you and the lender. Many borrowers will find that the convenience of working with a competent broker will outweigh the pros of dealing with the lender directly.
There are many factors that mortgage brokers should consider when finding the right lender to deal with. The first is the type of lender. It is important to distinguish between whether or not the lender is a direct lender or a collection of lenders. Direct lenders are preferred because they do not have to rely on the input of other investors, allowing consistency in terms and efficiency of processes. Secondly, When analyzing and comparing lenders, you should identify their size and funding volume. Size matters, and the larger the pool of capital the lender has access to, the larger the pool of opportunities for the broker and the borrower. Usually, the lender with larger volume has a stronger track record of loaning in large volume. Furthermore, one one should ensure that the private lender offers fair prices and reasonable fees that are stated clearly and consistently with the types of loans they provide. Lastly, one should confirm that the lender can close deals quickly and efficiently. Sophisticated lenders will streamline the loaning process and conduct in house appraisals to facilitate a quick close.
Contact the specialists at HML Investments for further information regarding commercial private loans.