Commercial mortgage brokers, focus their practice on commercial properties. There is little differences between commercial mortgage brokers and residential mortgage brokers. The main difference obviously is that one broker focuses on commercial lending and the other focuses on residential lending.
A Commercial mortgage broker financial advisor is a middle man of sorts. He works for businesses to secure lending for property that will be used for business purposes. There is a commission for this service that the broker provides. Typically the commission is a percentage of the overall loan. This fee is usually rolled into the loan. The idea behind the practice is that a broker can “shop” the loan for the best rates and overall best deal.
Typically a commercial mortgage broker will have relationships in place with lenders and can easily view a loan application and know where to apply, this cuts back on the time it would take for a business to shop their own loan application. The broker acts as a go between the lender and the business and will advise the business of an special requirements that the lender will have to secure the funding.
Commercial lending is a lot more complex than residential lending. There is more paperwork to fill out, and most commercial loans start at a minimum loan amount. In addition there are more lending options available for commercial funding then there are for residential funding.
Commercial mortgage brokers are a good option for businesses because they take the responsibility off the shoulders of the business to secure financing to build the business or to expand an existing business.