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Questions & Answers
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Q:
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What advice would you give to a customer looking to hire a company like yours?
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A:
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People who would be talking to me are those who seek a mortgage loan on commercial real estate. The property is either a business property to operate the business from, or is an investment property intended to produce income and value appreciation. A client might also be a developer seeking a construction loan.
My company is a brokerage so we usually have a number of ways of funding a particular loan, whereas a direct lender has only one. Our rates are some of the industry's lowest for well qualified situations. We also fund difficult situations though rates may be higher, depending on circumstance. Difficult situations are welcome here.
Advice I would share is to begin the financing process early. Too many people treat commercial real estate loans like they would ordering a pizza, expecting quick service based on the details of the request. Things can take longer than many people realize because of the nature of these commercial loans. Add a complication or snafu or two, and expensive difficulties can ensue. Starting the process early can allow time to resolve issues that pop up along the way.
For those contemplating a purchase, its best to get pre-qualified prior to choosing a property and signing a purchase agreement. In so doing, we get to see if there are circumstances that could cause difficulty and resolve them before putting earnest money at risk. We would assemble a complete file for this purpose.
I ask developers to add one more member to their team. Its common to have a real estate broker, an attorney, a CPA, an architect, and engineer... there should also be a finance person. I've seen too many situations were plans are made that are not financable. A loan broker is in a position to steer the team in a financable direction so as to avoid embarrassing disappointment.
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How We Charge For Our Services
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Loans & Lending - Commercial
- $695.00 fixed fee for closing costs
- 1.00 percent for closing costs
Fidelity does not earn money unless/until the loan funds. The typical loan fee is 1% of the loan amount plus processing fee of $695 plus $250 for entity review. When a loan proposal is accepted by a borrower, Fidelity requests a deposit to cover appraisal plus any other required third-party report such as Phase 1 or property condition report. Fidelity does not charge a profit when ordering these reports. Most of the time, Fidelity is paid its 1% success fee and the processing fee at closing, and is paid through escrow or settlement.
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