Commercial Loan Direct - FAQs
Welcome to the Q&A section of our website. Listed below are a list of common questions and their corresponding answers. If you cannot find the answer you are looking for, please contact us.
CLD is affiliated with over 200 lenders nationwide including local, regional, and national banks. We also represent a selected group of insurance companies, hedge funds, and agency lenders. It is important to note that most banks offer retail lending pricing (the rate and terms that they offer their clients) and wholesale lending (the rate and terms that they offer to their correspondents or wholesalers). We have heard from our Borrowers many times about the pricing difference we were able to bring to the table (even with their own bank). We understand that this can be frustrating to the Borrower but most banks/lenders do this to attract the large volume that a firm like ours can offer them.
A commercial real estate loan is a loan that is secured by commercial real estate (office, retail, apartments, etc.)
We operate as a correspondent lender. This means that we can lend on behalf of the companies we represent and as such have direct access to pricing. We also underwrite and close the majority of our transactions.
This depends on many variables. Owner occupied properties borrowing ability will be heavily depend on the business’ cash-flow and ability to repay debt. Once we calculate the company’s historical cash-flow we will need to add the property’s debt load. For investment properties we have created a set of tools that will help you get an idea of how much you can borrow against the subject property.
It depends on the product type. Conventional loans (30-45 days), SBA7a, SBA504 and USDA (30-60), insurance company loans (30-60 days), Fannie Mae and Freddie Mac (30-60 days), FHA refinances-acquisitions (90-180 days), FHA construction (180-360 days).
The optimum requirements for commercial real estate are as follows; Borrower’s Net Worth (personal and business) aka Global Net Worth should be equal or higher than the loan amount requested, Borrower should have post-closing liquidity equal or superior to 6 months to service debt or 10% of the loan amount. Prior ownership experience is highly desirable. It is important to note that these should be taken only as general guidelines as these can vary from lender to lender.
It depends on the product you a choosing. Our website is an excellent source for finding out parameters including (down payment). Please contact us if you have questions.
The easiest way to begin the process is to fill out our online application (apply) or call us. Generally speaking for investment properties we will need the property’s (2-3 yrs) operating statements and year to date, rent roll, current pictures and a personal financial statement (PFS) for all Principals. For owner occupied properties you should have personal financial statements (PFS), your last 3 years corporate and personal tax returns and current pictures. You can find a link to our forms here.
We provide loans over $1Million backed by commercial real estate.
Please use our loan selector tool to help you navigate through our process. You can also chat or call us at 800-687-0797.
We try to keep rates as current as possible and you can find them here: Commerical Loan Rates and Apartment Loan Rates.