Commercial Real Estate Loans - Pricing

Because we represent an extensive network of Banks, Institutional Lenders, Private Investors and Non-Traditional Programs, we are able to provide you with some of the most competitive rates and most flexible programs available.

Interest rates will vary by lender / investor depending on a few key variables such as:

• Property Type: Example: Multi Family and mixed use properties are considered lower risk than a gas station.

• LTV:  If your request is between 60 to 70% of the property value, the loan is considered lower risk than if it were exceeding 80% of value.

• Credit Score:  If your middle credit score is 700 or higher, you loan is considered a lower risk than if it were below 625.

• DSCR:  This is the ratio by which the net operating income of the property covers the proposed debt payments.  If your documentation can show a ratio of 1.25 or higher, most lender consider this normal risk.  If the ratio is at or below 1.00, the risk is considered higher.

• Occupancy:  If you operate your own business from within the property, some lenders consider that owner-occupied and consider that lower risk as they assume you are committed to the property as part of your livelihood.  Other lenders prefer the opposite with the assumption that tenant cash flow is what will make the mortgage payments with less emphasis on your business P&L.

• Program:  Conventional bank financing usually offers lower rates than limited documentation programs. Stated Income and Private / Hard Money programs are offered at a higher interest rate than conventional or limited documentation programs.

Lender / Investor Fees

These will vary however most will assess either a flat fee or a percentage of the loan amount.  At Atlantic, we try to steer clear of capital sources that assess up-front application or review fees.  We have reputable funding sources that charge no fee to review an application package and offer a preliminary, or conditional, approval "subject to verification."  You then review the terms, including the complete fee schedule, and decide whether to proceed.

Appraisal fees

While some funding sources will still honor your property appraisal recently prepared by a certified and licensed commercial appraiser, most now require that it be requested directly through the funding source.  If you haven't already ordered a commercial appraisal, we recommend holding off on that decision until you know the policy of the funding source we're proceeding with.

Also, when you ask "which appraiser will the bank be using?" the answer may be that we won't know until the appraiser is selected through am independent process.  Many banks and lenders, to maintain maximum objectivity, are now requesting commercial appraisals through independent third-party clearing houses.  The third party group then requests bids from qualified commercial appraisers within a distance radius.  The qualified and licensed appraiser who responds with a commitment to provide the appraisal within the quickest time frame and most competitive fee, is awarded the assignment.

Commercial appraisal fees can range from $1,000 to many thousand, based on the complexity of the property.  We often see appraisals on multi-family and mixed use properties with the fees between $1,200 and $2800.

Thank you for considering Atlantic...

When you select us to act as your commercial mortgage broker, we will analyze your needs and will do research in order to find lenders that are suitable for you. In addition to saving you time and energy conducting a search for a lender, we are often able to secure a better deal for you. Our commercial mortgage success service fee is based only on a percentage of the amount that is approved and committed for funding. If we don't present you with a commitment for funding along terms we have discussed, we don't get paid. It's that simple.