FREQUENTLY ASKED QUESTIONS

  • SF Capital Group is located at 34975 West Twelve Mile Rd, Farmington Hills, MI 48331. Our main phone number is 248.537.2000.

    Yes, we operate nationwide. SF Capital provides debt and equity placement services for commercial real estate transactions nationwide, with expertise across major asset classes including multifamily, office, industrial, retail, healthcare, and hospitality.

  • Working with a mortgage banking firm like SF Capital Group gives borrowers access to a broader network of capital sources and financing options. Strong lender relationships can help identify the right loan structure, improve execution speed, and create more flexibility when a transaction requires a tailored solution.

    Because SF Capital Group maintains long-standing relationships with life companies, banks, debt funds, and private lenders, our team is able to navigate lender requirements, address challenges early, and help move transactions toward closing with greater confidence. These relationships can be especially valuable when borrowers need competitive terms, reliable execution, and guidance beyond simply finding the lowest rate.

  • When choosing a commercial real estate financing partner, borrowers should look beyond the interest rate alone. The right partner should understand your property type, your market, your investment strategy, and the capital structure that best supports your goals.

    Key factors to consider include the partner’s lender relationships, experience with similar transactions, responsiveness, underwriting knowledge, and ability to structure financing around your specific needs. Loan terms such as rate, amortization, leverage, DSCR requirements, covenants, prepayment flexibility, and recourse should all be evaluated in the context of your broader business plan.

    A strong financing partner should also help you think ahead. Whether you are acquiring, refinancing, repositioning, or planning for a future exit, SF Capital Group helps borrowers evaluate options, navigate lender requirements, and secure financing solutions designed to support both the transaction and the long-term investment strategy.

  • CRE stands for Commercial Real Estate and refers to bank lending focused on income-producing properties.

  • CRE stands for Commercial Real Estate and refers to bank lending focused on income-producing properties.

  • A commercial loan is debt financing provided by a bank to a business entity for various business purposes. goes here

  • Risks of commercial lending include credit risk, market risk, collateral risk, interest rate risk, refinancing risk, liquidity risk, concentration risk, and regulatory/legal risk. 

  • The 5Cs of commercial lending are Character, Capacity, Capital, Collateral, and Conditions. 

  • Pros include access to significant capital and supporting business growth, while cons include a complex application process and strict eligibility requirements. 

  • Commercial mortgages differ from residential mortgages in borrower, property type, underwriting focus, loan terms, complexity, and recourse.

  • Common property types include multifamily, office, retail, industrial, hospitality, and mixed-use properties. 

  • Key financial metrics include Loan-to-Value (LTV) and Debt Service Coverage Ratio (DSCR), as well as borrower financial strength and experience. 

  • Life company correspondent lending involves insurance companies (life companies) providing commercial real estate loans through a network of approved third-party originators (correspondents). 

  • Advantages often include competitive interest rates, longer loan terms, and a focus on high-quality, stable assets.

  • A commercial mortgage banker can act as a correspondent, originating loans that meet the life company's criteria and submitting them for funding. 

  • Life companies often finance stable, income-producing properties such as apartments, office buildings, industrial facilities, and retail centers.

  • Typical loan terms can range from 10 to 30 years, often with fixed interest rates. 

  • Fees can include origination fees, servicing fees, and other transaction-based charges. 

  • Debt Yield is a metric calculated by dividing the property's Net Operating Income (NOI) by the loan amount, indicating the lender's initial cash-on-cash return if they took ownership. 

  • A commercial bank mortgage is a loan provided by a bank to finance income-producing real estate, such as office buildings, retail centers, industrial properties, or multifamily housing. These loans are typically secured by the property itself and come with specific terms based on the bank’s underwriting standards.

  • How do I choose the right commercial mortgage banking firm?

    When choosing a commercial mortgage banking firm, start by identifying the essentials: experience, lender access, loan capabilities, geographic reach, and a proven track record with transactions similar to yours. A strong partner should have the history, relationships, and market knowledge needed to help structure financing around your specific property, timeline, and investment goals.

    Borrowers should review the firm’s operating history, team experience, closed transaction examples, lender network, and ability to handle the type of financing needed, whether acquisition, refinance, construction, bridge, permanent debt, or equity placement. It is also important to ask for references, compare sample terms, and understand how the firm approaches underwriting, lender communication, and execution.

    With more than 35 years of experience, SF Capital Group helps clients evaluate financing options, access a broad network of capital sources, and move through the lending process with confidence. Our team works with borrowers nationwide to structure debt and equity solutions aligned with each client’s business plan.

  • This integrated approach can be valuable for owners and investors who want guidance beyond a single transaction. A firm with both financing and advisory capabilities can help clients evaluate acquisition opportunities, structure debt and equity, assess market conditions, and plan long-term investment strategies.

    SF Capital Group provides commercial loan origination, loan servicing, investment advisory, and equity placement services. By offering these capabilities together, SF Capital helps clients evaluate capital options, navigate the lending market, and make informed decisions across the full life cycle of a commercial real estate investment.

  • Commercial real estate owners and investors can work with a mortgage banking firm or capital markets advisor that specializes in debt and equity placement. These firms help borrowers source financing, compare capital options, and structure solutions for acquisitions, refinances, recapitalizations, construction projects, and other commercial real estate needs.

    SF Capital Group specializes in debt and equity placement for commercial real estate. Our team works with a broad network of capital sources, including life companies, banks, debt funds, private lenders, and equity providers, to help clients identify financing solutions aligned with their property, timeline, and investment strategy.

    With more than 35 years of experience, SF Capital Group helps borrowers and investors nationwide access capital, navigate lender requirements, and move transactions forward with confidence.

  • An appraisal contingency allows the borrower to withdraw from the loan if the property appraisal comes in below a certain value.

  • A Loan Commitment is a formal agreement from the lender to provide financing under specific terms and conditions. 

  • Due diligence includes reviewing property financials, leases, environmental reports, and legal documentation. 

  • Freddie Mac provides liquidity and stability to the multifamily rental housing market by purchasing and securitizing apartment building loans.    

  • Freddie Mac finances various multifamily properties, including conventional apartments, affordable housing, seniors housing, and student housing.  

  • Fannie Mae supports the multifamily housing market by purchasing and securitizing mortgages on apartment buildings through its DUS (Delegated Underwriting and Servicing) program.    

  • Fannie Mae offers fixed-rate loans, variable-rate loans, small balance loans, and affordable housing loans for multifamily properties.

  • Loan terms typically range from 5 to 30 years, with amortization up to 30 years for both Freddie Mac and Fannie Mae.

  • Both Freddie Mac and Fannie Mae may allow LTVs up to 80% for certain multifamily properties

  • The minimum DSCR requirements generally start around 1.20x to 1.25x for both agencies, but can vary.  

  • Most Freddie Mac and Fannie Mae multifamily loans above a certain size are non-recourse with standard "bad boy" carve-outs.    

  • Commercial mortgage bankers act as approved lenders or correspondents, originating and underwriting loans according to Freddie Mac's or Fannie Mae's guidelines.

  • Advantages include competitive interest rates, non-recourse options, and the stability of government-sponsored enterprises. 

  • A calculator is a helpful starting tool, but it cannot account for all the variables in a real-world transaction. We highly recommend calling SF Capital Group to get a tailored, accurate quote that reflects your specific situation.

  • Commercial loan rates vary depending on the loan type, property, borrower profile, and current market conditions. While online sources may provide general averages, SF Capital Group offers rates tailored to your unique situation.