Commercial Loan Solutions

Commercial Loan Coming Due-Replacement Options

According National Real Estate Investor, (NREIOnline.com) an “avalanche” of CMBS loans (commercial mortgage backed securities) are maturing this year, and this number will increase substantially through 2016. If you’re a commercial real estate investor with a loan coming due next year, you may want to get head start on finding replacement financing. Because so many of these CMBS loans are maturing over the next few years, there will be heightened competition for available financing. Much like musical chairs, you better find a seat quickly, before they are all gone!

 

Many commercial real estate investors have taken huge hits to their property values since the pre-crisis days when these loans were originally underwritten. Whether from lower occupancy levels, or market comparables driving values down, values are down substantially in some U.S. cities compared with pre-crisis highs. Don’t be foolish enough to think you can afford to wait to find replacement financing for your commercial loan coming due in the next 12 to 24 months. Because so many maturing loans will be seeking refinances during this short-term window, it is wise to get a head start on your commercial real estate refinance and search for multiple alternatives.

 

Bridge loans, also called commercial hard money loans, are a higher cost alternative to bank loans. For commercial real estate investors who have always sought bank loans, these bridge loans are a sound option when options are scarce. If you have a commercial loan coming due, create as many alternatives for commercial real estate financing over the next several years that you possibly can. Call us today at California Private Money Lenders to discuss your options.

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