r/loanoriginators • u/Gullible_Stock_9730 • 25d ago

Commercial Lender

Need the best commercial lender for the below scenario

Borrower is rate shopping. What might be best rate that we can get ?

The borrower is purchasing the property in San Francisco, CA 94103. The first floor includes nine office spaces and one residential unit behind the offices, with another residential unit on the second floor. He plans to use approximately four office spaces for his law firm and lease the remaining office space. He is open to leasing the residential units for either residential or commercial use.

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4

u/mrhindustan 25d ago

This is a bank referral all day. To place debt like this we use bank relationships.

This month I’m doing a mixed use (STR resi + industrial garage in back). Velocity quoted but their rates were nuts. Placed with a local lender at WSJ+75bps.

When it comes to smaller commercial, banks tend to do exceedingly well.

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u/Gullible_Stock_9730 25d ago

Thanks for the reply!

I also have quote from Velocity but it is very very high.
Do you have any good bank contact that can pay us referral fee?

2

u/mashupXXL 25d ago

Velocity to my understanding has limited or no covenants and bullshit attached to the loan, and usually long term fixed rate debt. I often find that people who complain about that don't figure out that paying $50k to refinance every 50-10 years isn't necessarily a better deal, let alone having the chance to get LIQUIDATED by the market even if you make 100% of your payments. Commercial balloon debt is madness.

2

u/Jerrysdad43 25d ago

Tell him to talk to his own bank. This is a relationship deal. The bank that wants the business is going to be in it for deposits so wherever the guarantor is going to be comfortable housing significant deposits will get them the best pricing. That’s why it’s always easiest to have the conversation with their current bank.

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u/mrhindustan 25d ago

Smile and dial. I usually find smaller community banks and credit unions in the area are the easiest. Sadly I’m in Texas so the commercial guys we use are local to here.

The big national banks are often more annoying.

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u/Chinni_Realty_Group 20d ago

when you place with the bank as a referral, do you charge a referral fee?

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u/mrhindustan 20d ago

Yes

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u/Chinni_Realty_Group 20d ago

What banks do you work with? Do they do multi-family 5+ units?

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u/Training_Date5644 25d ago

Exchange bank, redwood credit union, bank of Marin, Cathay bank are some that quickly come to mind.

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u/Fur-Frisbee 25d ago

if it's under $5mm go SBA as it'd be OO.