To better understand how commercial real estate loans work, it is important to differentiate between commercial financing and residential financing.

Commercial loans can include anything from an office building to a high-rise condominium complex. Residential loans are usually limited to several hundred thousand dollars, while commercial real estate loans can reach millions or even billions of dollars.

Posted: August 25th, 2008 under Finance, Real Estate.
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Small banks and financial institutions have difficulty competing on a level playing field with large capital banks in the commercial financing market, simply because of the large amounts of money needed to finance commercial products.

This situation makes the commercial market much less competitive than the residential market. Large banks increase their bottom line by being in the forefront of commercial lending, which benefits stockholders.

Unfortunately borrowers of commercial funds do not benefit from such a system. What is required is more smaller companies such as East Coast Commercial Finance - companies that offer better service and reduced fees.

Posted: July 29th, 2008 under Finance, Real Estate.
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