Investors looking for a tech-driven approach to negotiating competitive terms on your commercial real estate loan can power up their search with the top TrueRate services.
Updated Mar 30, 2023
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Investing in commercial real estate can be intimidating. There are so many factors to consider and secure before you can begin taking advantage of its potential. Fortunately, modern technology provides a variety of services to make the commercial loan process easier.
TrueRate commercial loan services have become increasingly popular among business owners looking to raise funds these days, especially those in the real estate investment space.
Their focus is helping commercial real estate investors with refinancing, recapitalization, acquisition, dispositions, raising equity, and raising debt. They provide users with a user-friendly platform to secure commercial loans and accurate estimates of interest rates, helping avoid surprises and save time.
TrueRate's services are used by thousands of people every year who wish to venture into the commercial loan marketplace. They're quite effective and offer a range of financial products to help businesses grow and achieve financial freedom.
TrueRate commercial loan services are useful to those seeking a commercial mortgage. It offers convenience with its simple pre-qualification process and gives investors access to experienced professionals who help borrowers understand their financing options and negotiate competitive terms with lenders.
Their technology-driven approach enables borrowers to get an accurate and comprehensive view of their creditworthiness—allowing them to make well-informed decisions and secure the best rates. So if you're looking to get the most bang for your buck, TrueRate's got you covered. After all, nobody likes spending more than they have to.
The TrueRate loan service process saves time and money, which is great news for both borrowers and lenders. Instead of the typical debt placement process taking over two months, TrueRate closes deals in 45 days on average. They’ve completed more than $15 billion in team lifetime closings.
Getting a commercial loan doesn't have to be complicated. TrueRate is a way you can easily submit requests for commercial real estate loans that includes information about your property and the terms you're looking for.
The automated process will then put together a commercial loan package and find qualified capital providers that can offer you a quote. You can review the quotes and pick the one that works best for you, and the automated process will take care of document management and communication to help speed up the process.
Pros
Accurate interest rate information
Better comparison of loan offers
Expert guidance
Time and cost savings
Customization and flexibility
Cons
Potential fees and costs
No guarantee of loan approval
Limited scope
Dependence on service quality
TrueRate’s goal is to facilitate a more efficient, transparent, and competitive bidding process, ultimately yielding the most optimal commercial loan terms so you can get the money you need without all the unnecessary stress and hassle.
Now let's dive into the best commercial real estate loan execution services offered by TrueRate.
Truerate's Hard Money commercial loan service offers a fast and reliable way for real estate investors to secure financing for their projects. With a streamlined loan process and flexible repayment terms, Truerate's Hard Money commercial loans seem like the perfect option if you're looking to purchase or flip a commercial property quickly.
Unlike traditional commercial loans, Truerate's service allows for significantly less paperwork, making it easier for borrowers to get approved. All you need is proof of income, a repayment strategy, a breakdown of the property's value, and the overall fundamentals of the deal. Additionally, borrowers must put down a down payment of 30% to 40% of the commercial property's value in line with the commercial loan agreement.
The interest rates associated with hard money commercial loans range from the high single digits to the mid-teens, making them more expensive than traditional business loans. However, you can customize your repayment plans depending on the project's timeline and requirements. Also, since there are no repayment penalties, repaying hard money commercial loans gets easier and quicker without any additional fees.
Overall, TrueRate can help you secure quick funding for your real estate purchase. They enable you to get the financing you need without the hassle of traditional loan processes.
Truerate's Mezzanine Debt Financing service is the perfect solution for real estate investors who need extra capital for their projects. With traditionally low-risk debt financing options already exhausted, this higher-risk financing is secured by a subordinated claim on the borrower’s assets and may include an equity component as well.
Mezzanine debt commercial loan structures provide tailored borrowing terms that cater to your specific needs. This flexibility allows for a more personalized approach when taking out a commercial loan.
With mezzanine financing, borrowers can finance a portion of the property’s purchase price, reduce their need for additional equity, and help spread risk. This form of financing is also cost-effective compared to additional equity as the interest is tax-deductible and offers higher returns to lenders—between 12% and 20% yearly.
When considering this form of financing, it’s important to note the potential hurdles associated with mezzanine debt. Lenders may require borrowers to provide additional collateral. For example, banks would have you provide 20% to 30% of the property value as a down payment. Your credit quality will always come into consideration and you must typically meet strict repayment terms in a timely manner.
Despite these potential challenges, mezzanine debt financing has upsides and can provide a sound solution for the financing of real estate projects. Aside from increased return on investment (ROI), this type of financing also allows businesses to secure financing with longer maturities—often up to 5 years or more—which can lead to steady growth and increased profitability.
With FHA or HUD loans, you can access financing for the purchase or renovation of commercial properties with the backing of the government, making them a lower-risk option compared to other types of commercial real estate financing. Plus, you’ll benefit from more favorable terms, such as lower interest rates, longer repayment terms, and more flexible credit requirements than traditional commercial real estate loans.
Properties must meet certain requirements to qualify for an FHA or HUD loan. For instance, rental properties must contain at least five units with complete kitchens and baths that have been built or updated in the last three years.
Additionally, any critical repairs must be done prior to closing and the mortgage term cannot exceed 35 years or 75% of the lifespan of the property’s physical improvements. Qualified borrowers can access loan sizes ranging from $2 million to $100 million or more, and enjoy some of the lowest commercial loan rates and highest loan-to-cost proceeds in the industry.
The only real downside to FHA and HUD commercial loans is that the application process can take a while—between four months to a year—and they require annual financial audits that can cost up to $2,500 per year. But these potential hurdles are more than worth it in exchange for the numerous benefits that FHA and HUD loans provide.
The TrueRate bridge loan service is a great way to speed up the purchase of a new property and the sale of an existing property without having to wait for traditional financing.
For real estate investors or those looking to close quickly, bridge loans allow you to quickly purchase a new property without waiting to sell your current one. These loans are typically secured by the existing property and come with higher interest rates than traditional loans due to the risk involved.
TrueRate bridge loans typically last from six months to two years and can fit different scenarios, from purchasing or building a new property to accessing capital to complete a commercial project. Borrowers are evaluated based on the after-repair value of the property, and the loan amount is typically around 70% to 80%, with floating interest rates ranging from 6% to 11% and loan-to-cost (LTC) of up to 90%.
The advantages of bridge loans with TrueRate are their fast processing and shorter closing timelines, flexibility, and less strict requirements than a traditional bank loan. On the other hand, borrowers have to have an exit strategy, and it’s a more expensive type of commercial loan with higher interest rates.
Bridge loans are a great solution for investors needing to close quickly on a property purchase or meet capital requirements. Additionally, these commercial loans can help struggling businesses meet their short-term needs. With flexible terms, fast processing, and fewer documentation requirements, TrueRate's bridge loan service looks like the perfect answer for a wide range of investors.
The Freddie Mac loan execution service offered by TrueRate is great for those looking to purchase or refinance property types like apartments, student accommodations, market-rate properties, and affordable housing.
As one of the nation's largest government-sponsored enterprises, Freddie Mac provides attractive commercial loans with competitive interest rates, low down payments, and flexible terms. What’s more, you can usually close a Freddie Mac loan in 45 to 90 days.
These commercial mortgages are backed by the U.S. government and have low interest rates and fast approval times, making them an attractive choice for property owners and developers. The loan amount can range from $1 million and above, with loan terms that can be customized to suit the needs of the borrower.
Loan terms include floating and fixed-rate options that come with three, five, seven, and ten or more year terms. The loan-to-value (LTV) ratio can typically go up to 80%, with a minimum debt service coverage ratio (DSCR) of 1.25 for market-rate properties.
Freddie Mac requires that half of the loans it gives out should benefit people in need. This includes people whose income is at or below 60% of the area’s median income. While this may not apply to all borrowers, it opens up real estate investment opportunities by offering lower-cost loans.
Overall, Freddie Mac multifamily loans offer some great benefits, such as low interest rates and flexible repayment terms. And while there may be some more stringent requirements in place from 2022, TrueRate’s loan execution service can help smaller real estate investors purchase or refinance a commercial property.
Truerate offers Fannie Mae loan financing execution services for multifamily property investments. An experienced and financially strong borrower with adequate collateral can benefit from Fannie Mae's competitive fixed and floating-rate financing. Loan terms range from five, seven, ten, and 12-year options, depending on the loan product channel.
You can borrow up to 80% if you’re purchasing a home and 75% for cash-out refinancing. This commercial loan service also locks in an interest rate so that you don't have to worry about it changing.
DUS lenders are pre-approved entities that help people get multifamily property loans that are backed by Fannie Mae. This program gives lenders control over the loan process and personal responsibility for making sure the commercial mortgage is successful. It also provides a single-asset mortgage-backed security that makes the commercial loan process simpler.
The Fannie Mae loan program is suitable for multiple property types like senior housing, student housing, manufactured housing, and more. It’s also best for those looking to acquire lower-cost financing with an achievable LTV of up to 80%.
Before accepting a Fannie Mae commercial loan, the lender must ensure the property satisfies certain criteria, including a minimum of five dwelling units, suitable cooking and bathroom facilities, access to police and emergency services, an appropriate level of utilities, compliance with housing codes and statutes, and access to publicly dedicated all-weather roads.
A Fannie Mae mortgage can be for up to 25 or 30 years, and your tax and insurance are included in the escrow payments. You won't have to worry about lockouts if you choose yield maintenance, either.
Additionally, there is an application fee of $15,000 which helps cover things like processing and underwriting costs. If your commercial loan amount is $9 million or less, Fannie Mae also requires a 1% origination fee.
Whether the property is an existing stabilized conventional property, student housing, or manufactured housing, the Fannie Mae DUS Program is an excellent option for those looking for a reliable commercial loan solution.
Choosing the right CMBS loan to finance your real estate investment can make all the difference. TrueRate’s CMBS loan execution service provides a comprehensive procedure that's as seamless and stress-free as possible.
TrueRate understands the complex requirements and processes associated with closing a CMBS loan. The fixed interest rates are competitive and the leverage can be higher. Also, the investor is not responsible for the full loan amount if they default.
Taking out commercial loans can be complicated. Like a mortgage, a CMBS loan may require collateral and can paid back over a set number of years, usually ranging from 25 to 30. There's usually a balloon payment at the end of the loan.
Prepayment penalties can sometimes be part of the loan structure, but TrueRate can help you decide if the fee is worth staying on the loan for its full term.
Popular property types eligible for a CMBS loan include multifamily properties, storage facilities, hotels, industrial buildings, office buildings, warehouses, and retail spaces. TrueRate understands the importance of non-recourse commercial loans—they make it so that the lender cannot attempt to repossess their property if the borrower defaults. Consider CMBS loans if you’re looking to invest in real estate and protect your liability.
If you’re in the market for commercial loans, TrueRate is a proven facilitator with their technology-enhanced service that allows them to offer the latest data, informed advice, and the best customer support. The commercial loan TrueRate service is like a financial wizard for commercial real estate investing in your pocket.
Like other trusted financial institutions, their advisory network and client support team provide the highest quality of service to facilitate investment sales, so you can make informed decisions. Commercial loan brokers and advisors can be your financial superheroes, ready to swoop in and save the day.