Whether you're coming from the point of view of individual landlording, or if you're an experienced corporate landlord looking to get the latest industry update, this presentation on commercial lending will give you the perspective you need to grow your income property business.
We'll start by covering the different expectations in the commercial world vs residential mortgages. Maturity date, rate, and down payment are just the beginning. We'll also cover minimum loan amounts, and prepayment penalties. Next we'll cover properties where commercial lending does not apply, and talk about how even owner-occupied properties might need or benefit from a commercial loan.
We'll cover the application process. We'll show you what lenders look for and what kinds of projects may not be lendable (including some renovation work or empty buildings). We'll also cover the major difference with residential mortgages, which is ongoing reporting requirements during the life of the loan.
Unlike with residential mortgages, where maturity means the loan is paid off, commercial mortgage maturity often results in refinancing and ongoing debt. We'll talk about this and about the collections process, in case you want to buy a commercial foreclosure. Finally we'll cover special cases, including portfolio lending, lines of credit, and transferring properties into an LLC.
This presentation will be given by Michael Travaglini, MassLandlords member, and George Drugas, both of Brookline Bank.