Bank Mortgage Loans

To qualify for a commercial mortgage from a bank, you need a well-maintained building with a solid net income, although the rents may come from your own company. You'll also need a recent appraisal from a certified appraiser, and if you haven't got one, it's best to let the bank choose an appraiser it likes. Insist on obtaining a copy of the appraisal, however, as all too many banks think they own the appraisal after they've received it. A bank won't be too interested in a mortgage for less than $250,000, but if you're a good customer they may relax their standards. If you're an exceptional customer, the bank may advance more than 75% of the appraised loan-to-value. Porter Capital can refer you to a number of mortgage sources.

Advantages: Low cost, little scrutiny after initial funding.

Disadvantages: Long due-diligence process.

Current Availability: There's always a market for loans to good income-producing properties.


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