Mars Hill Realty Group

You would expect the interest rates and terms for a commercial real estate loan to be following the downward spiral of the residential side of things. You would expect.

Last week, I decided to investigate how much money I would need and what my payment would be on my future real estate office building in Georgetown, Texas. I decided to take my daughter, Sabrina, with me and do a little Father/Daughter bonding at the same time.

The first bank I went to was Chase Bank in Wolf Ranch. I was pretty much handed a business card and told that I would need to get in touch with their commercial lending specialist. I haven't called him yet.

The second bank I went to was Capital One in Wolf Ranch. The moment I walked in I was greeted nicely and the branch manager brought me into her office. She took some information down and then told me to expect a call from their commercial lending specialist. I got the call a few days later with a follow-up email. As an added bonus, this bank has a little play area for the kids. Sabrina liked this bank and I think I did too.

The third bank I visited was Wachovia at the Rivery. They have a pretty high-tech looking bank, but no play area. Sabrina managed to get her hands on a dum-dum lollipop (her favorite) so this bank gets high marks. When we used the bathroom here, they had to unlock the door and allow us access into the break area. Kind of strange. Bottom line here: I was told I would get a call, but haven't heard from anyone yet. Bank seemed a bit too sterile.

Lastly, I visited the bank I do business with the most: Extraco Banks off Williams Drive. I was able to sit down with the in-house commercial lending specialist, something all the other 3 banks didn't have. She basically gave me some brief info on what the products were in the market and gave me a rough run-down on what I needed to provide in order to determine my qualification and some exact numbers. Unlike a residential mortgage with a 30 year amortization and 30 year term to pay back the note, much of what I'm seeing is a 5 year term with maybe a 20 year amortization or something close to that. I'll be putting my financials together and getting some hard numbers soon. I'll let you know which bank offers me the best deal. Stay tuned!

~Your Favorite Homeboy, Edward

11/2/2009 Update: Looks like Austin TELCO Credit Union is, hands down, the most competitive bank right now. Even these other banks are telling me that. They're offering interest rates under 6% and terms as far out as 15 years! That's unheard of for a commercial real estate loan. They have a branch right here in Georgetown, Texas but you pretty much need to deal with them via email/phone. I'll post the results once I get them! One caveat, their customer service isn't the greatest...if you want to deal with somebody who has more personality and great customer service, check out Adam Chong at Capitol One.