Podcast: Download (Duration: 5:48 — 5.5MB)
In this episode, we dive into the most common first question commercial mortgage brokers get asked “What is your rate?”
My response is almost always the same, “IT DEPENDS”.
There are so many factors involved in pricing a loan–I wanted to get into this on the show. We talk about factors like:
• What is the anticipated hold period
• Sponsor experience
• Loan to cost
• Sponsor's net worth
• Occupancy
• DSCR (Debt Service Coverage Ratio)
• Any capital expenditures (capex) needed?
• As you can see, there are many factors to consider before you look at the rate.
Plus, it's important to note that your interest rate is just one term in the overall loan. Other parts of the loan could weigh on your funding decision.