Learn To Be A Fix & Flip Investor: commercial lending in texas

Showing posts with label commercial lending in texas. Show all posts

Sunday, June 3, 2018

Spotting a Business Loan Arizona That Is Too Good To Be True

(Looking for a great deal on a business loan Arizona is smart. But you need to be able to determine which offers are legitimate and which are actually a scam.)

When you are searching for a business loan Arizona, it can be difficult to tell which lenders are legitimate and which are actually running a scam just to collect fees from unsuspecting potential borrowers. But completing your due diligence will reveal some information that will give you a good indication of which firms are legitimate and which are scams. There are some legitimate lenders who do request a processing fee when you submit your request. So that is not always a sure sign of a scam but there are a few dead giveaways.

When researching lenders to submit loan applications to, it is wise to always eliminate any that are outside the United States. This will greatly help to reduce the number of shady or fake lenders that you will be speaking to. Any lender who is outside the country is not going to be forced to follow any U.S. laws and that greatly increases the potential for you to become a victim of a scam or to have your personal information and identity stolen. In addition, if you are working with a firm who claims to be in the United States and then in fact is not, stop all transactions. A business who is hiding their location is more than likely not legitimate.

If you are told that there are no qualifications to be met for business loan Arizona approval, you are likely dealing with a fake company. These “firms” are likely to say that they charge a somewhat substantial fee for the loan request to be processed but then the fees are applied to your loan points. And that it is just a formality because there are no criteria that you must meet to get approved. These are all lies to get you to pay the fee. Once you pay then the lender never calls you again and will not return your calls or emails.

Don’t Be Fooled By an Office

Even if the company has a nice office in a respectable neighborhood there is no guarantee that they are legitimate. In most cases the office is in another state or city and all that you are seeing are pictures on a website. Not only is the office likely to belong to someone else but the entire business could be nothing more than a person who is running a website and collecting application information to sell as well as bilking borrowers out of application fees.

There Is No Free Loan

You are never going to find a legitimate business loan Arizona that is offered without any fees or interest. Lenders are in business to make money just as you are. So always look very closely at the entire contract and all of the fee and payment structure of any loan that appears to be too good to be true.

Tuesday, April 3, 2018

When is the right time to cut your losses in the real estate business?

The real estate industry can be extremely tumultuous under normal conditions. If you are doing it correctly, you will run into a few extra problems that come with investing. What separates the inexperienced investor from the pro is knowing when to throw in the towel. Now, we are not saying that as soon as you find a water leak in your property you should give up, but you need to be aware of your investment as all times.

For many investors, this means having a solid exit strategy before you are able to commit to a new project. A solid exit strategy allows you to drop one project and go after another within a few days. For some investors, this could be after a certain number of repairs exceed their comfort level. Along the lines of property renovation, an investor could have a financial cap set in place before they decide to pull out on their investment.

Research makes perfect in real estate

An experienced real estate investor takes their time to thoroughly vet a property and the geographic area before making an offer. They will most likely go through an extensive checklist before making a decision. Sometimes hard money lenders in Texas are able to help you with your research, however, most of the legwork is up to you.

Enough research can tell you the right amount of money you should put into the property. Often many investors bite off more than expected with a property. In the event that the repairs begin to outweigh the possible revenue that you are expecting you should begin implementing your exit strategy.

When is time to step away from your investment?

The moment you feel as though you are not going to make any profit on the property is the time you step away. Some investors will tell you to stick it out a little longer, while most will tell you to stick with it. In the long run, you must do what is right for you. Maybe you have expended all the money you set aside for the project.

Most of the time at this point other investors will not want to or be able to help you in your investment. One of the most important details that you want to remember about real estate is timing. Your timing is everything.

Say you ask your hard money lender in Texas for an additional loan from more construction, however, recently there has been a decline in the demand for homes. Now, you have a home that may not sell for the next two or three months. With a hard money lender, usually you will have a fairly short term loans this will not work.

With an exit strategy, you give yourself more options

Allowing yourself to leave your investment if you need to, till ultimately save you thousands of dollars in the end. It may seem like a loss at first, but a loss will hurt much worse if you are left with debt.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, November 3, 2017

Commercial Lending In Texas – Do I Need A Commercial Broker?

You have decided that you want to take advantage of some of the unique potential of the commercial lending market in Texas, but you are unsure of how to proceed. Maybe you like to do things for yourself and make it a learning process, or maybe you simply don’t have the time to do it yourself. If so, then you need to decide if it is in your best interest to hire a commercial broker.

Deciding whether or not to utilize a mortgage broker is a big decision and one that is entirely up to you as an individual and as a business owner. It is quite possible that a broker could make your commercial lending experience very easy, but there is also a chance that using one could cost you a significant amount of money.

When deciding whether you need a commercial broker or not, there are several things to consider. First, is the amount of time that you are willing to spend hunting down your own lenders. If this is a project that you would like to devote many hours to, on the phone and in person, speaking with lenders and setting up appointments, then using a commercial broker will not save you time. Maybe you even like this part of the process and do not mind spending the time to do it. However, if you do not want to spend the time to shop around to different banks and lending sources to track down the perfect commercial lending program for your needs, then hiring a commercial broker might be an excellent investment for you because of the time that you are bound to save.

Another deciding in factor is whether or not you are familiar with the commercial loan process in general. If this is your first time, it might not be a bad idea to get a recommendation from a colleague or mentor and work with a commercial broker. They will know much more than you do at this point. However, if you are experienced in this, and have a good handle on the process, then perhaps you don’t need one. If you have done many investments, then you might even have some preferred lenders to cut through some of the leg work.

If you have a unique situation, whether it be for qualifying, for the terms of the loan, or for something else, it also might be in your best interest to work with a commercial broker. Lenders want to get as many qualified loans out as possible and might not take the time necessary to hear your specific situation, unless you have a professional to advocate for you. Whether you decide to use a commercial broker or not is a decision only you can make, but there are many benefits to securing commercial lending in this manner.

What if I tried commercial lending in the past, but was not happy with the outcome?

If that is the case, that it is probably very important that you work with a broker if you are looking for another commercial loan. They will be able to find lenders to compare for you and you will have more choices than you did before. If you didn’t have a good experience the first time and you would like to try again, having a commercial broker as your advocate could drastically change your experience in commercial lending.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, November 2, 2017

Commercial Lending In Texas – What Can I Expect From A Commercial Broker?

Entering into a commercial real estate venture can be an intimidating decision. Whether you are looking to purchase your first property or are simply trying to scale up from what you already have, going at it alone might seem like a noble challenge, but with so much money on the line, it is often wise to seek the help of a broker in commercial lending.

The market of funding sources for property investors has been expanding and it will continue to do so as new and creative ways of funding commercial mortgages keep emerging for small business owners. As an individual, it can be a huge work load to try to stay on top of all of these various options, while still maintaining a small business. This is where a commercial broker could be of tremendous help to a potential borrower. This is not to say that a borrower should not spend a great deal of time learning what they can, it is a lot of money, but brokers know the commercial lending landscape better than anyone, especially in local markets like the one emerging in Texas.

So what exactly does a commercial broker do and what can a lender expect out of one? Essentially, a good commercial broker will have lots of experience in a large variety commercial lending options. This can be any property from a strip mall, to an office building to a multifamily housing unit, although each individual broker will most likely have an area of specialty.

A huge benefit of working with a commercial broker is that they have connections with a variety of lenders. This gives them a great deal of flexibility when searching for the best possible loan for a borrower. While some brokers only specialize in certain regions, this can actually be a benefit, as they will be able to guide a potential borrower to very specific lenders for very specific properties.

Typically, a commercial broker will take a borrower through the entire process of securing commercial lending. Sometimes this might mean that they even assist a borrower after the loan has been approved, if there are additional requirements. A broker will review a borrower’s financial needs and qualifications and then being “shopping” for a potential lender. Brokers will also help with finding appraisers for the property. However, one of the greatest aspects of working with a broker is that when all of the appraising and paperwork is done, they will present the borrower with a list of options to choose from. Compiling such a list as a small business owner going at it on their own would take an extensive amount of time and would most likely be incomplete, as a borrower is not going to have the same type of relationship with lenders as the broker. The borrower then simply chooses which option is best and the process moves forward.

How are commercial brokers paid on commercial lending in Texas?

Typically, brokers are paid from a percentage of the final loan amount. This can be anywhere from 1% to 5%, traditionally. While some brokers have an upfront fee, many do not, which is very beneficial for borrowers. Brokers also usually depend on referrals, rather than active recruitment, so it is in their best interest to do everything that they can to help you secure the best commercial lending option possible for a borrower.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, October 10, 2017

Preparing Loan Documents for Commercial Lenders as a Startup

There are many documents and financial statements that commercial lenders will require from a business when applying for a loan. And that information can be even more critical when your business is a new startup.

When you are submitting loan applications to commercial lenders it is critical that you provide as much information as possible and that you understand the purpose of each document. The packet that you are compiling is very much a letter of introduction to you and your business and it provides the information that commercial lenders will use to form an opinion about your creditworthiness. The challenge begins when you try to give an accurate image of your new business. Without years of documented credit history and industry or trade credit it is difficult to demonstrate how responsible you will be when it comes time to repay the loan.

One major document that commercial lenders will examine for a startup company is the business plan. This is a detailed document that describes the company, the goals and the plan of attack for attaining the goals. It is in essence a road map that you plan to follow to grow the company. This will also explain to the lender your experience in the industry, your history of success in the industry and your management abilities. All of these are critical factors in the success of your new business. In addition to your business plan you will need to prepare detailed projections for the company. These should include your projected income for the next two or more years, projected operating costs and projected cash flow statements.

Because your business is an unknown entity due to its age, your personal financial and business history are going to have to provide the information and reputation to prove your worthiness as a business owner and as a business person. Financial documents including tax returns and net worth for the past 3 to 5 years will be needed as well as any documents displaying your ownership in other assets which might be used as collateral on the loan. You should also expect that the lender is going to require you to personally guarantee the loan in the event that your business fail. This is the reason that your personal finances are important.

Tell Your Story

Because the business is new, you are actually the narrative that the lender will be interested in. Your past business experience and accomplishments are what is important. Your resume and work history will be the beginning of the story of how you decided to launch your own business. In addition, letters of reference from other business professionals can be a great tool for you. Having respected members of your industry and the business world express their confidence in your abilities will provide a great insight to the lenders who are evaluating you and your business.

Understand the Qualifications for the Loan

As a startup business owner, it is imperative that you understand what lenders are looking for to approve a loan application. Once you have that information, then you can determine how you can best meet those needs and requests. In some cases you will not have the established credit or business history to qualify. But you might be able to apply to a less conventional lender to get that first commercial loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, October 1, 2017

Tips to Getting Approved for Commercial Lending Texas

Commercial lending Texas is all based on a risk assessment. So investing some time to learn what your lender is looking for can provide a great return on your investment.

Knowing that commercial lending Texas is all about the risk that your company represents to a lender can make it easier to understand why the application process is so daunting. No one is going to walk into a lenders office and admit that they never pay their bills or that they are a poor business manager. So the lenders need to run businesses and their owners through a lengthy process to determine creditworthiness. But each lender might have different criteria and different motivation for making their decision. So taking the time to talk to each lender can afford you some very important information about the process and how you need to present yourself and your business during the application process.

Getting a copy of the application is a critical first step. This will tell you what information the lender wants. Read all of the questions and make a list of any issues or questions that you have about the application so that you can discuss them in person with a representative. Understand that some commercial lending Texas criteria will be fairly common but other criteria could be more obscure. All of the lenders will want to see financial reports, taxes and credit information. But some lenders might also be very interested in your industry, mentorships that you work with or other work experiences that you might have had. Providing that information can greatly improve your chances for approval.

Another key for some lenders is the length of time that you have been in business. If your company is new then providing a well-documented business plan can demonstrate your dedication to planning and growing your business. Other lenders might only be focusing on your Dunn & Bradstreet score. Know your number and understand that a score of 75 will almost certainly get you a loan.

Have Supporting Documents

Applying for commercial lending Texas is a long process and one that will require some effort and work on your part. Have documents to support the claims that you are making about your business. Show your long term profitability with several years of P & L sheets. Demonstrate your cash flow with years of monthly statements showing deposits. And have documents to show that you have gotten loans before and paid them off with no issues.

Tell Your Story

Some lenders are going to want to know more about you than just what the numbers can tell. If this is the case then be ready to tell the story of your business. Explain your motivation for starting the company and how you have grown it to the current point. Also give credit to all of the supporting members of your team. A well balanced management team will be less risky than a one man show. Take the time to get to know the lender and what they want to know to grant your request for a loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, September 28, 2017

Banks Known for Commercial Lending in Texas Reach a Mutual Termination Agreement That Benefits Both Parties

Two top commercial lending in Texas banks have recently terminated their merger agreement that was established at the beginning of this year, on January 23^rd. The mutual termination was needed for bother companies to continue to be successful on their own.
Hope Bancorp, Inc., the holding company for Bank of Hope had reached a merger agreement in January of 2017 with U & I Financial, which is the holding company for UniBank. Just last week, Globe Newswire reported that the two companies entered a mutual termination agreement.
Hope Bancorp, who specialize in commercial lending in Texas, had reported financial weaknesses after the 2016 audits of financial statements. Luckily, they have since made progress to improve and fix these issues in their own financial systems. As stated in the original merger agreement, because of the financial weaknesses found with Hope Bancorp, it has been agreed for the merger to not be complete.
The termination of the merger agreement includes that each party involved is responsible for their own costs and expenses that are associated with the termination transaction. However, this does exclude any fees or penalties that are caused by the actual termination between Hope Bancorp and U & I Financial.
Top commercial lending in Texas bank is eager to bounce back after financial instability
Hope of Bank happens to be the first and also only Korean bank in the country. They have $13.9 billion dollars in total assets and Kevin Kim serves as President and Chief Executive Operator. Kim has expressed his disappointment in the merger not going through, but he agrees this is the best decision for both parties involved. Bank of Hope currently has 64 branches across the United States, including some in Texas who specialize in commercial lending in Texas. They also specialize in other business banking products for small to medium size businesses.
Bank of Hope is trained in commercial lending in Texas and also lends a helping hand to the Small Business Administration
Hurricane Harvey hit the southeastern part of Texas hard just a few weeks ago and the entire area is trying to make progress and rebuild, especially those needing commercial lending in Texas. With the merger, not being completed between Hope Bancorp and U & I Financial, these two establishments are able to focus more of their efforts on helping the area rebuild after Hurricane Harvey damaged 18 counties in the state.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, September 27, 2017

A Handful of Successful Banks Offering Commercial Lending in Texas Recognized by American Banker

Each year, American Banker are eager to report their list of the Best Places to Work for across America. Some of the top banks who happen to specialize in commercial lending in Texas were named on this year’s 2017 list.

The Lubbock-Avalanche Journal recently reported that several banks with commercial lending in Texas experience in the Lubbock area were on American Banker’s list as one of the American Banker’s Best Places to Work. First Capital Bank of Texas, Peoples Bank, American Bank of Commerce, City Bank, Happy State Bank, First United Bank and Vista Bank were all honored by American Banker.

Banks from all across America were evaluated on a number of different things that included workplace policies, workplace practices and also demographics. Employees were asked to conduct surveys relating to their experience working for the bank. It is important that other banks are encouraged to take note of the winning banks’ policies in hopes that they may be able to adopt similar policies that will help their bank and community thrive.

This year’s ranking happens to be the fifth year for American Banker’s Best Places to Work list. This year, a total of 75 banks from across America were put on the list for 2017. But western Texas happened to have the most banks recognized by American Banker compared to other parts of the country. Texas is home to many banks that offer commercial lending in Texas and the state happens to be a big capital for the market.

American Banker recognizes those with commercial lending in Texas experience to set standards.

For five years, American Banker has recognized the best banks to work for in hopes of promoting a culture of high performance along with positive experiences for all of those involved. American Banker hopes that others can learn from these notable banks that they can learn and adapt a similar culture to improve the experiences of their employees and customers.

Banks hope that being recognized means that they are the real deal in the commercial lending in Texas market.

Banks with commercial lending in Texas experience that were acknowledged were able to properly accommodate employees and all of their needs to feel more appreciated. On top of this, the banks also delivered exceptional customer service while maintaining positive relationships with not just their customers, but also their employees.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Banks Eager to Assist the Small Business Administration with Commercial Lending in Texas after Hurricane Harvey

After Hurricane Harvey hit and severely damaged southeaster Texas, the Small Business Administration has stepped in the lend a helping hand. But local banks think that they should help to speed up the commercial lending in Texas process.

The Small Business Administration is helping small businesses with commercial lending in Texas to those who have been hit by Hurricane Harvey. The government organization offers support and disaster loans up to $2 millions to those impacted by natural disasters. The Small Business Administration has already processed close to 100 loans, totaling $8.5 million dollars.

Local banks usually do not assist with disaster funding because they are more of a financial risk compared to conventional lending. But many are currently in need of disaster commercial lending in Texas and many of the banks in the area that were hit hardest by the category 4 storm want to help the community without making a profit for it. Banks and lenders have first-hand seen the devastation that Hurricane Harvey brought, causing 18 counties in Texas to be declared disaster areas.

However, the Small Business Administration feels that disaster funding is unsuitable for banks and lenders. A law was placed in 2008 that directed the Small Business Administration to be in charge of disaster funding. The administration was established to help small businesses get back on their feet after being impacted by a natural disaster. This is why the Small Business Administration want to deal with disaster loans themselves.

With $19.4 billion backed by commercial lending in Texas were put at risk due to flooding, the Small Business Administration could actually benefit from any help they can get.

The idea of the Small Business Administration working with local banks and lenders would really help the community get back on their feet faster. It would be more effective to process the high number of applications for commercial lending in Texas, if there were more hands on deck. Many across the state of Texas will need assistance and if banks are willing to help, then it is a win-win solution for all involved.

Nearly three quarters of banks polled want to lend a helping hand with commercial lending in Texas after Hurricane Harvey

People in the area that was impacted by Hurricane Harvey know how much damaged was caused. This could be the reason why 70 percent of the 40 banks polled by the Coleman Report and reported by the American Banker said they would welcome the opportunity to help the Small Business administration with funding disaster loans to those in need after Hurricane Harvey hit.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Featured Post

Sunday, June 3, 2018

Spotting a Business Loan Arizona That Is Too Good To Be True

Don’t Be Fooled By an Office

There Is No Free Loan

Tuesday, April 3, 2018

Friday, November 3, 2017

What if I tried commercial lending in the past, but was not happy with the outcome?

Thursday, November 2, 2017

How are commercial brokers paid on commercial lending in Texas?

Tuesday, October 10, 2017

There are many documents and financial statements that commercial lenders will require from a business when applying for a loan. And that information can be even more critical when your business is a new startup.

Tell Your Story

Understand the Qualifications for the Loan

Sunday, October 1, 2017

Commercial lending Texas is all based on a risk assessment. So investing some time to learn what your lender is looking for can provide a great return on your investment.

Have Supporting Documents

Tell Your Story

Thursday, September 28, 2017

Two top commercial lending in Texas banks have recently terminated their merger agreement that was established at the beginning of this year, on January 23rd. The mutual termination was needed for bother companies to continue to be successful on their own.

Top commercial lending in Texas bank is eager to bounce back after financial instability

Bank of Hope is trained in commercial lending in Texas and also lends a helping hand to the Small Business Administration

Wednesday, September 27, 2017

Each year, American Banker are eager to report their list of the Best Places to Work for across America. Some of the top banks who happen to specialize in commercial lending in Texas were named on this year’s 2017 list.

American Banker recognizes those with commercial lending in Texas experience to set standards.

Banks hope that being recognized means that they are the real deal in the commercial lending in Texas market.

After Hurricane Harvey hit and severely damaged southeaster Texas, the Small Business Administration has stepped in the lend a helping hand. But local banks think that they should help to speed up the commercial lending in Texas process.

With $19.4 billion backed by commercial lending in Texas were put at risk due to flooding, the Small Business Administration could actually benefit from any help they can get.

Nearly three quarters of banks polled want to lend a helping hand with commercial lending in Texas after Hurricane Harvey

Two top commercial lending in Texas banks have recently terminated their merger agreement that was established at the beginning of this year, on January 23^rd. The mutual termination was needed for bother companies to continue to be successful on their own.