Choosing Lenders for Your CRE Investment

Loan Types

Different lenders specialize in different loan types. Some lenders may specialize in short-term loans, while others may focus on long-term financing. Be sure to choose a lender that offers the type of loan you need for your commercial real estate investment.

Interest Rates

The interest rate offered by a lender significantly impacts your monthly payments. Compare interest rates from multiple lenders to find the best deal for your needs.

Loan Terms

The terms of a loan, such as the length of the loan and the repayment schedule, must be realistic for your position. Make sure the terms of the loan match your investment goals and cash flow projections.

Reputation

Research the reputation of potential lenders to ensure they have a solid track record of lending to commercial real estate investors. Check online reviews, ask for references, and talk to other commercial real estate investors to get a feel for the lender's reliability and credibility.

Flexibility

The lender's level of flexibility is important, as some lenders may be more willing to work with you on a loan structure that meets your needs, while others may have more rigid requirements.

Customer Service

The level of customer service offered by a lender is crucial, especially in a hot market. Choose a lender that is responsive and easy to work with, and one that’ll be there to help you throughout the loan process.