Commercial Loans

James asks…

Is there a difference on how commission splits are handled between commercial loans & residential loans?

I am looking to get into a mortgage career in California, and was wondering the difference between how commercial loans and residential loans commision splits are handled, since there is a larger amount of money people are borrowing between the two? ( if the is one) ….
If they vary between companies. Could I just get a basic example of each split? ( i.e. I know with Res. loans, you can make commision off of “points” or % of the loan), does that system work for Commercial as well with certain companies? Or is it something totally different?

admin answers:

That entirely depends on brokerage/bank you’re working with and varies wildly. It’s a great question for you to ask in your interview. Keep in mind that the responses will vary, even in your local market by a huge amount.

Nancy asks…

Where do you look for commercial loans involving the purchase of real estate?

I’d like to purchase an apartment building. Is this considered a commercial loan and where do you go to find them and what kind of qualifications are necessary? Is it the same as getting a mortgage where you need 20%? Or is it a little different? I don’t have many liquid assets but have found a good building?

admin answers:

You need an investment loan. You will need 20-25% for a down payment, but other then that they are like any other loan. The qualifications are the same, there is no such thing as a sub-prime. You also have to have funds to make the payments in the case of no occupancy. You can not use rent from this apartment to secure your loan.

Donald asks…

Have the standards for securing a Commercial Loan changed as the home mortgage loans?

Is it going to be more difficult to secure a 800K Commercial Building loan than say 6 months ago? I will be in the market for that kind of loan in the next week or two and haven’t a feel for the market right now.

admin answers:

Commercial loans have not taken the same hits as residential. Underwriting for residential loans had become beyond ridiculous allowing everyone to get a loan, whether they could make the payments or not.

Commercial lending has been constant in its criteria, thus it has remained stable.

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