There are obviously good direct lenders to approach for any commercial loan.
However, there are also some huge sources of funds that offer some of the lowest rates and best terms that one can find that even many banks cannot compete. Problem is, some of these sources Do Not deal directly with the public.
They usually offer their programs through some sort of correspondent relationship in an effort to limit the number of employees needed.
The fact they do not have to pay salary or benefits to a staff of employees that would be needed to deal with the retail customer, is also one of the primary reasons there rates can be lower due to lower overhead.
Dealing with a commercial mortgage broker that has access to these type programs or lenders can be of great benefit to your investment success.
As long as you are not dealing with a broker “chain” (where one broker does not have a lender to place a loan and sends a deal to another broker with both expecting a fee), the fees that you can expect to pay can in many cases be no more expensive than dealing direct with a lender.
There is no way to say for sure due to the fact commercial loans are much more complicated than a typical residential or 1-4 unit property loan.
I would recommend that you prepare a short Executive Summary of exactly what is is you want to do. The values that are involved, loan amount requested, etc. (usually does not need to be more than 1-2 pages), then send this to several brokers and lenders. You should quickly get an idea of what rates and terms are being offered for your situation and then you can make a better choice as to what might be best for you.
I will tell you that as far as the 10 year rates you were asking about, they are very attractice right now and in some cases some of the programs I see actually are offering lower rates on the 10 year fixed rate than the 5 or 7 year.
Would be happy to look at your deal for you, just do not automatically believe a broker is more expensive than a bank or other direct lender.
Wes
Commercial Loan broker
Highland Mortgage
800-611-8421
wesloans@earthlink.net