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Working With a Commercial Mortgage Broker

August 23, 2022

If you’re considering buying or constructing a commercial real estate property, it is worth thinking about engaging a commercial mortgage broker to help you negotiate through the commercial real estate market and the process of arranging appropriate financing. While commercial mortgages work on the same basic principles as residential mortgages, some of the details are different and require some expertise to navigate.

Why consider using a commercial mortgage broker

Commercial mortgage brokers act as liaisons between clients that require loans for commercial properties and the lending institutions that offer those loans. They work with a variety of lending partners to find the best commercial mortgage solutions for their clients, based on their specific needs, taking into account factors such as the property type, location and value.

Here are some of the advantages of working with a commercial mortgage broker:
knowledge-of-lenders-and-their-products Knowledge of lenders and their products

As specialists in commercial lending, commercial mortgage brokers are well-versed in the structure, requirements, and options of commercial mortgages and know how lenders vary in their processes, criteria and lending parameters for different product types. They therefore save borrowers valuable time spent shopping around, as they do the legwork and then present the options that best suit your borrowing needs.

network-of-real-estate-partners Network of real estate partners

When population growth can be accommodated within an existing urban area, its land and infrastructure can be used more efficiently – such as roads, schools, water pipes, municipal services and more. In other words, development in already urbanized areas makes use of the existing strengths and resources of a city, instead of spreading them across a widening geographical space. From lawyers to consultants, agents to developers, commercial real estate brokers are well connected to the market. From cap rates, to interest rates to regulatory requirements, an experienced commercial mortgage broker can help give you the inside track and ensure that you are making a fully informed real estate decision.

process-and-paperwork Process and paperwork

There is a fair amount of due diligence required when financing a commercial property. For instance, lenders may require a building condition assessment – a step that helps you decide if the property is worth buying and what issues you may encounter as the owner.

Some also require an environmental assessment, which helps identify the existence of soil or ground water contamination, as well as the presence of asbestos, lead paint or mould in a building.

Both of these assessments can be quite comprehensive. A commercial mortgage broker will be able to connect you with relevant experts and can assist in guiding you through more complex situations, including how they will affect your financing needs.

single-point-of-contact Single point of contact

Applying for a commercial mortgage can come with its share of required documentation – from operating statements to property tax statements to lease agreements and rent rolls, there is a lot of supporting information to gather. When you work with a commercial mortgage broker you work with one point of contact, through which you can submit all of your supporting documentation. An experienced commercial real estate broker will then consolidate this information into a concise, well-structured package for presentation to their lender contacts. This simplifies the process, ensuring the proposal is clear and that it communicates the details of the proposed transaction along with the clients preferred financing terms. This step ensures lenders provide timely responses and their most competitive financing terms, simplifying what could otherwise be a timely and complex process.

Why work with MCAP?

For over 35 years, MCAP has provided reliable, flexible financing for industrial, mixed use, office, retail, and multi-unit residential properties. A key point of distinction is that MCAP’s Commercial Mortgage Group does not broker. Instead, our Commercial Mortgage Group works closely to support our broker partners to provide expert advice and tailored solutions for their clients.

We also provide first-in-class service that enables us to respond to our brokers quickly and efficiently with solutions that can help their clients close deals quickly. We thrive on working in partnership with our existing brokers and aiding the continued growth of their business. We also enjoy developing new broker partnerships as our lending programs continue to grow nationally.

Are you a commercial mortgage broker looking to work with a dedicated commercial lending partner? Contact our team of experienced originators today.

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