Review of the Week

Small banks and financial institutions have difficulty competing on a level playing field with large capital banks in the commercial financing market, simply because of the large amounts of money needed to finance commercial products.

This makes the market less competitive compared to the many institutions that fight for the residential market share. Large banks are in the forefront of commercial lending, increasing their bottom line. This is a boon to bank stockholders and management alike, but means less competition, higher prices, and usually poorer service for commercial lenders.

judyh :: Jul.29.2008 :: Finance, Real Estate :: No Comments »

In order to understand the business of commercial real estate loans, it’s important to note the differences between commercial financing and residential financing. Residential loans focus on single family or perhaps 2 to 4 unit housing.

Residential financing deals with single family homes or small apartment houses with between 2 and 4 units, with loans being usually under several hundred thousand dollars. Commercial real estate loans and financing covers much larger amounts of money and can include office buildings and condominium complexes.

judyh :: Jun.26.2008 :: Finance, Real Estate :: 2 Comments »