COMMERCIAL MORTGAGE BACK SECURITIES / CONDUIT LENDING
Many Commercial Real Estate Investors today are turning to the public capital markets, such as Gateway Capital Funding, versus typical Investment Banks and other Commercial Lenders to obtain Financing for their Real Estate Portfolios. This type of Financing alternative offers Borrowers interest rate protection through fixed-rate loans ranging from 5-15 year terms. It also, depending on the asset type and financing request can offer the Borrower the option to maximize their leverage to acquire other assets once the transaction is complete. Commercial Lenders are currently Lending on assets at up to 75% Loan-to-Value on senior debt and up to 85% Loan-to-Value with certain Mezzanine Financing Structures.
Call now to apply for CRE Financing: 888-598-8319
COST / BENEFIT ANALYSIS FOR CHOOSING CMBS FINANCING VEHICLES
Typically Lenders require a “Good Faith Deposit” of $50,000 to cover all aspects of the transaction including fees for underwriting the Loan, all Third Party reports such as appraisals, environmental reports, and property condition reports. Generally, Loans after approval from the Lender’s committee are rate-locked on the day of Loan closing.
The benefits to using CMBS vehicles are unique to different Borrowers. Some enjoy the non-recourse feature and others prefer to use it for the interest-only feature for prospective shorter projected hold periods. Interest Rate Protection is also key for Borrowers, especially in the economic environment we currently face today. Interest Rates are projected to rise in the near term and this will have a substantial impact on future transaction requests once the Federal Reserve Bank has implemented a strategy known as “rate liftoff”.
The Gateway Capital Funding, LLC ADVANTAGE:
Gateway Capital Funding has the unique advantage to place financing requests through a multitude of relationships with Investment Banks and other Commercial Lenders across America, that are currently originating and securitizing commercial loans. A clear understanding of the entire process from the original financing request to Loan Closing is also a major advantage to ensure Borrowers experience a smooth and seamless process. Lastly, our team of experts consists of highly motivated individuals that are truly enthusiastic about assisting each prospective Borrower with a wide range of advisory services regarding applying for CMBS Financing.
Let us help you realize the full potential of investing in CRE assets by contacting our CMBS Department at 888-598-8319 to speak with a CMBS Financing Professional today.
RATE DISCLAIMER:
All loans are subject to credit approval. Interest rates are subject to change daily and without notice. Current interest rates shown our indicative of market conditions and individual qualifications and will vary upon your lock-in period, loan type, credit score, purpose, and loan to value.
