Expectations for Borrowers Seeking Lenders for Commercial Construction Projects
2004-04-22
Commercial construction loans can be scarcer than hen’s teeth in today’s market. Traditional banks are loathe to take the risk on new construction projects as the economy does not provide the kind of certainty for commercial construction loans that the boom of the 1990’s did.
Nevertheless, there are funding resources out there. One of the most effective approaches may be to locate a commercial construction loan specialist, aka a loan broker. Finding a good loan broker is actually not all that difficult. Search the news articles to find out who has recently closed commercial construction loans of the type that you are seeking. Look for dollar volume, location (state, urban, suburban or rural, etc.) and type to be sure you are comparing a commercial construction loan that matches your own. Just by scanning new construction projects, you will know who got funded. Contact the company and ask who is funding them. Contact the funding source directly or, if the company indicates that they work with a broker, ask for a reference In commercial construction loans or in any other business venture, you’d be amazed at what you can learn and the referrals you can get simply by asking.
Ask your colleagues – even if they are not in exactly the same industry, how they fund their business projects. Commercial construction loans are not very different than other business venture loans.
Finally, look online for a commercial construction loan broker or lending company. Look carefully at the news on the websites you visit. See who is funding the kind of commercial construction loans that would suit your needs. Contact a dozen or more and get comfortable with the kinds of questions you want to ask. Questions about their commercial construction loan experience and their role can include:
As a commercial construction loan company, do you fund these loans directly, or do you serve as a broker to locate an appropriate lender?
If you are a commercial construction loan broker, do you assist in completing and submitting the commercial construction loan application?
Nevertheless, there are funding resources out there. One of the most effective approaches may be to locate a commercial construction loan specialist, aka a loan broker. Finding a good loan broker is actually not all that difficult. Search the news articles to find out who has recently closed commercial construction loans of the type that you are seeking. Look for dollar volume, location (state, urban, suburban or rural, etc.) and type to be sure you are comparing a commercial construction loan that matches your own. Just by scanning new construction projects, you will know who got funded. Contact the company and ask who is funding them. Contact the funding source directly or, if the company indicates that they work with a broker, ask for a reference In commercial construction loans or in any other business venture, you’d be amazed at what you can learn and the referrals you can get simply by asking.
Ask your colleagues – even if they are not in exactly the same industry, how they fund their business projects. Commercial construction loans are not very different than other business venture loans.
Finally, look online for a commercial construction loan broker or lending company. Look carefully at the news on the websites you visit. See who is funding the kind of commercial construction loans that would suit your needs. Contact a dozen or more and get comfortable with the kinds of questions you want to ask. Questions about their commercial construction loan experience and their role can include:
As a commercial construction loan company, do you fund these loans directly, or do you serve as a broker to locate an appropriate lender?
If you are a commercial construction loan broker, do you assist in completing and submitting the commercial construction loan application?
- What are your fees for assisting me in obtaining a commercial construction loan?
- How many commercial construction loans have you funded in the past 6 months?
- What was the dollar amount of the commercial construction loans you have funded in the past 6-12 months?
