Forget Banks!

In 2012, commercial property owners should finally do what they should have done years ago - look for their next commercial mortgages from non-bank lenders! As traditional commercial banks continue to refuse to lend, "private" sources of capital are playing increasingly larger role in filling the void. Private equity firms, pension funds, insurance companies and others continue to pour billions of dollars into commercial mortgages nationwide.

"But private commercial mortgages must be expensive!" This is simply not true. Privately placed commercial mortgages have always competed favorably with traditional bank loans. Unlike banks, private funds have the ability to customize mortgages to the needs of the property owners; there is no such thing as one-size-fits-all mortgage program.

2012 will continue the recent retrenchment in commercial real estate. Depending on the market, commercial property values may be continuing to fall or may be stabilizing. In a handful of markets such as Washington DC, prices may actually be rising. But regardless of the property's value, mortgages continue to come due, requiring property owners to refinance. So don't lose heart if your bank refuses to refinance your mortgage or if all the banks you've contacted show no interest in refinancing your maturing loan. Instead broaden your horizons and look into private commercial mortgages which can range from a $100,000 to hundreds of millions of dollars. You'll be happy you did.