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| Who is your Commercial Loan Broker |
What can your commercial loan broker do for you? That all
depends on which broker you choose to do business with. As is
the case for most things in life, there is a variety of
financial institutions to choose from. However, not all brokers
will provide the same options, variations on loans, and
services. Each commercial loan broker will offer similar
products and services, but no two will offer the exact same set
of products and services. Thus it is important to analyze the
advantages and disadvantages of potential commercial loan
brokers before choosing one.
Things to Consider
1. What will the broker finance? - Many brokers
specialize in only financing certain types of opportunities and
investments. For instance, you might be especially interested in
making an investment in an income property, so you will require
a commercial
property loan. The commercial loan broker you are looking
for should fit your |
needs and hopefully be willing to finance a
variety of different income properties. Perhaps you wish to
develop a diverse portfolio of income properties by investing in
an array of apartments, hotels, office buildings, health care
centers, and industrial spaces. To realize this strategy you
will need to find a commercial loan broker willing to extend a
commercial property loan each of these various income
properties.
Some brokers may limit the scope of properties they are willing
to finance as a way to limit their risk or exposure to that
sector of the real estate market. Remember, financial
institutions are in the business of making money just like you.
If they feel the reward of the loan does not justify the risk,
they will not be very interested in financing the venture. Odds
are you can find financing elsewhere, but for simplicity and
efficiency you will want to limit your relationship to one or
two commercial loan brokers.
2. Are the Rates Competitive? - You can't blindly |
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do
business with a commercial loan broker just because they offer a
great commercial property loan along with all the other products
and services you require. One of the driving factors of
successful businesses is minimizing costs. A commercial loan is
not free, and thus the cost of the loan should be analyzed. The
cost of the loan obviously includes the interest rate you will
have to pay on the balance of the loan. This is a real cost, and
should be compared to the rates other competitors offer.
Once you have compared interest rates, don't think you are done
analyzing costs. Financial institutions always charge a variety
of cleverly named and sometimes disguised fees on commercial
loans. Find out what kind of fees your commercial loan broker is
charging and compare those to their competitors. At the very
least, you can keep your commercial loan broker honest by
monitoring the fees charged.
3. Don't Forget about the Intangibles - Products,
services, and rates are all things you |
should consider when
selecting a commercial
loan broker. But do not undervalue the type of relationship
a broker is willing to commit to. Some commercial loan brokers
are completely hands off, and will offer little or no assistance
beyond booking your loans. Others provide more personal
assistance to meet your needs, even serving as a sort of
unofficial consultant to your business. Odds are you will want a
commercial loan broker that is willing to develop a real
relationship with you and your business. The experience and
business knowledge they provide to your business is often worth
more than a slightly better interest rate. Selecting a
commercial loan broker that is committed to seeing you succeed
will go a long way in helping you realize success.
Adam Smith is an informational author for 10X
Marketing. For more financial information, please visit SNCLoans.com
About the author:
None
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