Does anyone know what the difference is between and in what type of loan situation you would want to use each of the following… bank, insurance co. lender, conduit lender, pension fund… basically interested in the typical ltv, property type, rates on the different funding sources. anyone have any good info on this?
It boils down to loan amount.
As a rule of thumb stick with banks under 5 million, Conduits under 10 million and shop conduits, pension funds and Insurance companies for deals where the loan amount is 10 m+.
The big difference is rate. For the most part everyone in commercial prices off of treasuries (as the index) and the higher your loan amount the lower the spread over the treasuries (margin).
Example:
500K loan amount (10 year treasury (5.00) + 2.00 (margin) = 7%
1m loan amount (10 year treasury (5.00) + 1.75 (margin) = 6.750%
5m loan amount (10 year treasury (5.00) + 1.50 (margin) = 6.500%
5m+ loan amount (10 year treasury (5.00) + 0.50 - 1.50 (margin) =
5.500% - 6.500%
Obviously the lenders take the full transaction into consideration when pricing a loan but this should give you a basic answer to your question.