Professional Commercial Mortgage Services including CMHC Mortgage Insurance
The Real Estate Investor's Best Friend
Mike's Direct Line
1-250-650-6560
MIKE'S COMMERCIAL MORTGAGE EXPERTISE and services
• CMHC Insured Multi-Family Residential Mortgages
• Conventional Multi-Family Residential Mortgages
• Mobile and Modular Home Park Mortgages
• Land Assemblies
• Construction & Development Properties
• Motel & Hotel Properties
• Retail Liquor Stores & Pubs
• Mini Storage Facilities
• Plaza, Office, Retail & Industrial Buildings
THE 4 MAIN TYPES OF MORTGAGES
CMHC INSURED MORTGAGE
Any mulit-family rental building or construction project with 5 suites or more is eligible for a CMHC insured mortgage.
CONVENTIONAL NON-INSURED COMMERCIAL MORTGAGE
These mortgages are, by far, the most common commerical mortgage that is negotiated directly with the lending institution or party.
PRIVATE COMMERCIAL MORTGAGE
There are many varied reasons for a borrower to select a private mortgage. Be it a first, second or third mortgage, the most obvious being necessity as the borrower cannot meet the strict criteria of institutional lenders and/or the private lender's increased flexibility and shorter approval time. Despite the higher interest rates and fees, if used judiciously, a private commercial mortgage can very advantageous overall.
VENDOR-TAKE-BACK MORTGAGES
Used mainly to facilitate a purchase and sale of a property, with this mortgage the Seller accepts a certain per centage of the financiing with terms negotitiated between the Seller and the Buyer. The mortgage can cover all of the required mortgage after considering the Buyer's down payment or any agreed per centage of it.
WHY USE A COMPETENT COMMERCIAL MORTGAGE BROKER?
First and foremost, a good professional mortgage broker knows each of his specific lender's loan preferences. This enables the broker to focus on a few select commercial lenders in BC that have an appetite for your specific type of loan. This avoids the "Shotgun Approach", whereby commercial loan requests are fired off to multiple lenders, in the hopes that the more mud that is thrown against the wall, the more that will stick. The real harm from this approach is that lenders do not like loan applications that have been shopped all over town, and usually view these files disdainfully. Let's be honest, as there are currently so many loan applications and so few lenders, the lending officers are very selective. Every advantage you can get counts toward a timely mortgage approval.
Secondly, commercial mortgage lenders have said that if they can't understand the basics of a mortgage application in less than 15 minutes, they deem it either poorly organized and presented or too complicated. In either case, they discard this file and pick up the next one. As a CPA/CGA, I talk their language, I know how to establish the basic highlights and potential problems with your application. I present the facts to a lender in a clear, concise manner. This technique alone greatly increases our chances of obtaining a commercial mortgage lender's approval.
Finally, always remember it is the lending institution that pays the lending officer's pay cheque. Thus, when push comes to shove, the commercial lending officer will ultimately favor his employer in any lending negotiations. In contrast, as you are my only client, I owe an undivided fiduciary duty and loyalty to you. This fact will be of great importance to you as I negotiate the mortgage interest rates and terms on your behalf.
When you think about it, your time is very valuable and you are not a commercial mortgages specialist. Since you wouldn't use an amateur to a job worth hundreds of thousands or even millions of dollars, you can either spend years learning how to be a commercial mortgage specialist or hire someone who already has the experience. Many companies and investors are now making their commercial mortgage broker a valuable, long-term member of their commercial investment property team, along with their lawyers and accountants.
Hiring a professional commercial mortgage broker frees you up to do what you do best, grow your business.