It was a difficult transaction
Brooklyn, New York (PRWEB) June 29, 2009
Commercial Finance Advisors, Inc shakes off the "dirt, dusk and blood" with another closed commercial real estate loan in, Brooklyn, New York. The property is an industrial building, with a retail component.
"It was a difficult transaction," states Jeff Rauth, President. "The borrower who has grown accustom to the very best terms in the market, had to accept an adjustable rate loan. They wanted a minimum of a 5 year fixed. We submitted the loan request to over 30, VIABLE, sources. 28 of them flat out declined the file. The borrower also shopped all of his banks as well, who obviously did not offer him anything better."
It was a commercial mortgage refinance, structured under an interest only loan, at .75% over the prime rate (currently at 3.25%) with a floor rate of 5%.
Commercial Real Estate Loans
"As hard as it is to say, and as hard as it is for many borrowers to accept, we are dealing with a market that has limited options. This particular borrower was lucky to have a closed loan. There are others that are equally as strong financially that do not get anything offered to them. It is a frustrating time for borrowers, especially those that either aren't willing to invest a substantial amount of their own time or are unwilling to hire a professional like us to do it for them," continues Rauth.
The market for commercial real estate loans is battered and bruised, but not dead. Conventional commercial bank loans are much less reliable than SBA business loans. If possible, borrowers should seek government backed program as the likelihood of closing is much higher.
Commercial Finance Advisors, Inc works with borrowers nationwide, on loans from $400,000 - $5,000,000. Most of their clients have dealt with many local banks and are "feed up" with getting the run around and now need to get their loan closed.
# # #