Benefits of using a commercial mortgage broker to finance a hotel
Getting a commercial loan is similar to getting a commercial mortgage for owner-occupied commercial property. However, there are a few differences. Unlike a retail space or office building, the hotel property is only designed to contain a hotel.
For this reason, a hotel commercial mortgage is considered riskier as opposed to a mortgage for other general-purpose commercial properties.
Because of this, finding a commercial mortgage broker like Clopton Capital is important if you want to get financing for your hotel property.
Once a broker knows the type of financing you are looking for, they will help you find a lender with competitive terms to approve your loan.
Here are some of the advantages that can be accrued from working with a commercial mortgage broker to finance a hotel.
1. They have Experience
An excellent mortgage broker will have expertise in your industry to help you access financing tailored to your specific needs.
Unknown to many, working with a competent commercial mortgage broker will enable you to get the right financing for your hotel property.
Based on their experience, they can protect you from certain lenders that have arduous payment terms in their contracts that you would otherwise not have identified on your own.
That being said, it pays to inquire about the broker’s experience before you choose to hire them. Also, ensure that they have completed the 12 modules LIBF accredited training course.
This way, you can be assured that they will help you find lenders with the most competitive rates and terms.
2. Excellent Relations with Hotel Mortgage Lenders
A commercial mortgage lender is indeed as good as its lender network. What this means is that commercial brokers who have excellent relationships with well-know hotel mortgage lenders are more likely to strike a better deal than their counterparts.
Having worked with various lending sources, a trust relationship has already been established. Therefore, it will be easier for them to get the loan closed than it would if you approached the lender yourself.
As a borrower, it will be wise to leverage such a relationship to get financing for your hotel property.
Additionally, it is also important to hire a commercial mortgage broker that has an excellent relationship with both decision-makers and lenders at the lending institution.
This will quicken the process of loan approval and help it get to the stage of funding…
Continue reading the article about commercial mortgages on James Watt’s blog.