Expert: Terrence Cullen - 1/22/2009

Question
Hi,
So much has changed in such a short period of time.  In 2006 Wells Fargo offered a no closing cost financing of commercial real estate.  Other than the interest rate, the only fee they charged was a 1% origination fee.  They covered environmental review and property valuation.  Taxes, recording fees were for borrower.  At the time I did not do the deal.  

Wells is no longer doing these, not in Florida anyway.  Do you know if any bank is still doing such things or are they all retrenching?
Art

Answer
The institutions that are lending are facing little competition. They are offering very little or no extra incentives because they have all the leverage. In Florida, you are lucky to find a lender for commercial. I am hoping that lending will open up somewhat after the
government bailout is done and they have obligated the banks to use the money rather than hoard it. There are desperate commercial originators that may promise more than they deliver, be careful how you spend your app fees.  Good Luck TC