Description of Commercial Lender Types – Winston Rowe & Associates

Winston Rowe & Associates, a no advance fee commercial real estate advisory and finance firm has prepared this news article to provide a very general overview of the various types of commercial lenders.

If speed and experience are important and crucial to your real estate success, contact Winston Rowe & Associates, a principle is always available to speak with prospective clients.

They can be contacted at 248-246-2243 or email them at

They also have many other commercial real estate financing solutions that meet almost every need. Check them out online at

Bridge Lenders:

Direct commercial bridge lenders occupy their own niche within the commercial mortgage industry, known as the secondary lending market, which has evolved to provide financing to a particular set of borrowers, transaction and property types that other types of lenders are unable to accommodate.

In order to understand the role bridge loans play within the commercial financing market, a brief review of the different types of commercial lenders and their practices is helpful.

The distinctions between the types of commercial lenders are less than clear at times, but they can generally split them into the following categories:

Portfolio Lenders:

So-called "portfolio" lenders make commercial mortgages with the intention of retaining the generated asset as part of the company's portfolio. The two most common types of portfolio lenders are commercial banks and life insurance companies; but this category also includes such entities as pension funds, REITs, and credit unions. Portfolio lenders are currently a competitive source for commercial construction loans, SBA loans.

CMBS Conduit Lenders:

Commercial mortgage-backed securities (CMBS) arose in the late '80s following the savings and loans crash as a way of enabling investors to participate in commercial mortgage lending within a managed context. Commercial mortgages that the conduit originates become part of a standardized pool of such assets, shares of which are then sold to investors.

Thereafter, the conduit lender may service the loan, but the interest payments are collected on behalf of the investors. Conduit lenders are the main source for long-term financing for purchase and refinance of conventional commercial properties.

Private Investors and Funds:

A more diverse and fluid category of commercial mortgage lenders is occupied by so-called "private" or "hard money" lenders. Generally the main distinctions between these lenders and the above "institutional" lenders are: (1) that the loaned funds generally derive from a private individual or a group of private individuals, rather than from a company's assets, and (2) that hard money lenders are willing to make loans with higher levels of risk in return for a higher return on the investment.

However, there are now many self-described hard money lenders whose internal funding structure is quite similar to that of portfolio lenders, so the latter distinction is probably more crucial. Most bridge lenders fall into this latter category.

The Winston Rowe & Associates Advantage:

Winston Rowe & Associates best business practices process ensures that their clients receive lighting fast funding with the most aggressive rates and terms available, while managing every step of the financing process from document collection to commitment negotiation and closing.

Winston Rowe & Associates provides no upfront or advance fee commercial bridge loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

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