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Commercial Mortgage Liquidity Crisis

We are, indeed, in the midst of a significant and severe credit crunch. Conventional lenders, such as banks, Wall Street investment houses and insurance companies have greatly curtailed their lending activity. Even the very best investors and developers are finding it hard to get projects funded.

The collateralized debt market has dried up. Few bond buyers are interested in mortgaged backed paper today. Big institutional lenders are finding it impossible to turn the mortgages they originate into cash. Put in simple terms; no mortgage buyers, no mortgage loans.

 Property owners, investors and developers are left frustrated and without financing.

 Good Deals have been Sidelined

The dollar volume of pent-up commercial mortgage loan demand now measures in the hundreds of billions of dollars. Deals that, just a year ago, would have enjoyed quick funding are being rejected by banks out-of-hand. Not because they don’t have merit, but because the banks and their counterparts are caught up in the liquidity crises.

With millions in profit potential at stake, commercial property investors are seeking out non-traditional sources of mortgage funds.

 Private Commercial Mortgage Lenders; Funding Deals When Banks Won’t

Privately funded commercial mortgage loans are becoming increasingly popular during this mortgage meltdown. Private lenders, many funded by wealthy individuals, hedge funds or other large pools of capital, often lend their own money for their own portfolios. These unique lenders have not been crippled by the breakdown of the collateralized mortgage bond market. They can still originate loans at will without worrying about who may or may-not want to buy them.

Further, private loans (sometimes called “hard money” loans) can close in just days, as-opposed to conventional loans which, if you get one at all, can take 3 months or more to fund.

There are generally no loan committees, stacks of paperwork or complicated ratios to deal with. If they like your deal and you demonstrate that you can pay them back, they can and will close your loan no-matter-what Wall Street is doing.

 What Private Mortgage Lenders Look for

Private lenders are equity based lenders; loan decisions are not driven by the credit of the borrower. It is essential that the collateral property have substantial equity in it. Most hard money commercial lenders won’t lend more than 70% of the purchase price or, in the case of a refinance, the value of the commercial property. So be prepared for large down-payment requests or a good sized 2nd mortgage. Also, borrowers will need to have some cash, typically 10% or more, in any given deal. There is no-such-thing-as 100% financing today. Documentation requirements will be much less than conventional lenders would require but be prepared to back up any claims you make with some proof.

Income producing buildings are favored by hard money lenders but most are willing to consider all property types.

 Hard Money Commercial Loans are now Indispensable

With the large conventional lending institutions frozen like a deer in the headlights, private, hard money commercial lenders have become indispensable to the commercial sector. They stand ready and willing to lend against quality buildings or well thought-out development projects. Investors should not give up on finding financing for their best deals until they have looked into a privately funded mortgage.

Private Funds Immediately Available for the Purchase, Refinance and Development of all Types of Commercial Real Estate Property and Construction Projects. Apply For a Commercial Mortgage Online at www.masterplancapital.com Simple 1 Page Application. Receive an Answer the Next Business Day. Fast Closings Available.

Glenn Fydenkevez, a 20 year Wall Street veteran, founded MasterPlan Capital, a commercial real estate investment banking firm, to quickly and efficiently provide capital to commercial real estate investors and developers. He can be reached at glenn.fydenkevez@masterplancapital.com

In the UK, there are many different types of mortgage lender, each offering something different from the other. This choice has led to a lot of confusion on the part of anyone looking to buy a house, especially since it’s so important to get your decision right first time.

Contrary to popular belief, a mortgage lender doesn’t just give you the money for your house and that’s it. They also offer a wide range of services and advice that can help you choose what package is best for you. There are even specialist lenders that deal solely with poor credit, offering a mortgage to those who’d otherwise be turned down. The main types of lenders in the UK today are:

Banks and Building Societies

Arguably the most common or popular source for homebuyers is their bank or building society. This is more down to the ease-of-use than anything else – after all, most people have loans or credit cards through their banks, and so it seems a natural choice for them to take care of your mortgage as well. However, this can limit your choice when it comes to different rates and mortgage types, so it’s not always the best option.

Specialist Mortgage Lenders

One area that has really grown in the last 10-15 years is that of specialist or independent mortgage lenders. These can be online companies, or other financial institutions that now offer mortgages – for example, insurance companies now offer homebuyers the option of taking out a mortgage with them, as do estate agents.

The benefit with taking this approach is that you can find a far greater range of mortgages available to you, from buy-to-let to longer repayment times. They can also offer more flexibility when it comes to changing your mortgage throughout the repayment period, whether it’s for a better rate or to accumulate all your debt with one solitary lender. The online companies can even offer cheaper rates, due to the lack of overheads involved.

Lenders for Poor Credit Cases

One of the biggest stumbling blocks for anyone looking to buy a house is poor or bad credit. Yet with the majority of the UK in debt anyway, there are now more options available to people in this situation. Look at the back of most newspapers and you’ll see adverts for companies that advertise with tags such as “Poor Credit – No Problem” or similar.

Whilst these types of companies are good news for people who’d otherwise struggle to buy a house, they do have their drawbacks. The main one is that usually their rates are a lot higher than the normal outlets, sometimes astronomically so. There have also been cases where people have been thrown out of their homes for missing a single payment, so make sure you read all the small print of using this type of mortgage lender. As long as you stay with an FSA-approved lender, there shouldn’t be too many problems – a quick search online will be able to tell you which companies have this accreditation, and which don’t.

If you are in Denver or Colorado and looking for a home loan there are many options for you, thanks to technology. You can look for a loan from anywhere in the country, but that doesn’t mean you should if you are looking to buy a refinance a Denver or Colorado mortgage.

No one has the knowledge of Denver or Colorado home loans like local Denver mortgage lenders, despite the fact you can shop for a Colorado or Denver mortgage online or fill out a Colorado and Denver application with the press of a button. Those far removed from the unique housing market of the area can really give you the understanding you need for a Denver and Colorado mortgage.

Colorado and Denver Mortgage lenders and their knowledge

The real estate market in Colorado is its own animal. It’s unique and a Colorado mortgage company will know that. Denver mortgage lenders understand that you can find modest single family homes, investment properties, luxury homes and vacation

properties all in the same market. Other markets are very different, with not as many kinds of properties available, so lenders outside the market may try to fit only one type of Denver and Colorado home loans to a lender — without success. Those seeking Denver Colorado home loans and properties will be more successful if they find a Denver mortgage lender who can offer more products specifically targeted to the individual’s needs.

The unique nature of the market means you must have someone working for you with a good knowledge base of Denver and Colorado home loans and a Denver or Colorado mortgage company that can get to a variety of products.

The best Denver mortgage lenders should be able to access many different funding sources for Denver Colorado home loans, jumbo loan products for those seeking larger Denver Colorado home loan and standard Denver Colorado home loans for conforming loans under $417,000.

With these products, Denver mortgage lenders can also provide program flexibility, with the ability to access both fixed and variable rate products for Denver mortgage lenders serving short- and long-term home seekers.

Different buyers have different Denver Colorado home loan needs, including those who want to sell after a few years, those who are looking to refinance and those who want to stay in their homes for a long time and want stable Denver Colorado home loan payments (and preferred fixed rate loans from Denver mortgage lenders).

The bottom line for those looking for a loan is that the needs will differ depending on what kind of loan you want and need. Finding the best rates for your needs means finding a good Denver and Colorado mortgage company which is flexible and experienced enough to provide a good Denver and olorado home loan. Consumer watch groups like the Tom Martino mortgage referral system can help those shopping for Denver Colorado home loans. The system makes looking for a good Denver mortgage lender that much easier. Plus, the added security of a good consumer advocate can be a big boost in finding reliable Denver mortgage lenders.