Whether its funding the acquisition of commercial property or recapitalizing a real estate portfolio, understanding commercial real estate finance is imperative in maximizing investors’ return on investment. In today’s market environment there are endless sources of real estate capital, including traditional commercial mortgage bankers, high net worth individual investors, private equity groups and hedge funds. These sources of capital provide everything from fully amortizing commercial loans, balloon mortgages, interest only loans, mezzanine financing and equity participation. Locating a multitude of commercial funding avenues is normally an easy task via the internet; however the challenge is finding commercial real estate financiers who are more concerned with the borrowers’ best interest rather than the lenders bottom line. At Irving J. Diaz & Associates, we provide exclusive borrower representation services, ensuring borrowers that their needs and goals are always prioritized.
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FAQ’s
What types of Borrowers are represented?
Two categories of Borrowers are represented:
a) “Accredited Borrowers”: Individuals with a net worth of One-Million-Dollars ($1MM) or greater, excluding the value of their primary residence; and
b) “Institutional Borrowers”: Private Equity Groups, Family Trusts, Partnerships, REIT’s, Corporations, and Limited Liability Companies with a minimum net worth of One-Million-Dollars ($1MM).
Are Lender representation services offered?
No. There are numerous conduits for lenders to market their funding ability, including commercial mortgage brokers and correspondent mortgage lenders. Our services are limited to exclusive borrower representation; however we welcome lenders to contact us and make us aware of their loan products.
What types of real estate finance uses are available?
Funding is available for the acquisition, re-leveraging, development or re-development of office buildings and industrial property in South Florida, particularly Miami-Dade and Broward counties.
What types of real estate finance products are available?
Commercial real estate financing products include commercial mortgage debt, private equity, mezzanine and bridge loans.
What are the loan terms, interest rates and loan-to-value ratios?
Because of the unique needs between borrowers, it is not possible to provide generic estimates of the loan requirements and terms that are available on the market. When a borrower decides to work with us, we make it a priority to fully understand their short and long term needs, and only then do we source funding from adequate lenders who can provide the most effective solutions.
What is the minimum and maximum loan amount?
Although, loan scenarios are evaluated on a case-by-case, we primarily arrange commercial loans between Five-Hundred-Thousand ($500,000) and Twenty-Five-Million ($25MM).
Is it prudent to work with multiple commercial lenders and commercial loan intermediaries?
While soliciting multiple commercial lenders is indeed prudent in creating a competitive environment to receive aggressive rates and terms, it’s not enough in obtaining the maximum results. Although, at first glance, the rates and terms offered by some commercial lenders directly to borrowers may appear to be the most adequate for the borrowers’ needs, there may be better suited financial arrangements that might be withheld. This is where the borrower representation services provided by Irving J. Diaz & Associates can potentially make a difference in sourcing and negotiating the most effective financing packages. After all, keep in mind that real estate lenders and their independent intermediaries do not represent the borrowers’ best interest and all the while borrowers pay the fees and commissions due.
Borrowers tend to solicit and attempt to work with multiple commercial loan intermediaries during the financing of commercial property, however there is normally a sense of frustration because the results are usually minimal and with very good reason. For a borrower to expect the full and undivided efforts of any experienced commercial loan intermediary, they must understand the requirement to reciprocate their loyalty. Most commercial loan intermediaries are hesitant to seriously commit resources in helping borrowers who are unwilling to provide them exclusivity during the meticulous task of completing a commercial loan transaction. Although borrowers may feel they are working with multiple loan sources, the reality is that very few, if any, of those intermediaries have actually taken the borrower seriously and are actively working on their behalf.
Irving J. Diaz & Associates is committed to providing borrower with the detailed attention they deserve and work relentlessly to help them achieve their commercial real estate finance goals; however an Exclusivity Agreement is required for a fixed period of time. This ensures borrowers that their needs and objectives are being actively addressed and reassures Irving J. Diaz & Associates that the undisputable amount of time and resources required in arranging a commercial loan transaction will not be disregarded.