Learn To Be A Fix & Flip Investor: commercial real estate loans in texas

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Sunday, May 27, 2018

Understanding Loan to Value Ratio for Hard Money Loans Arizona

Understanding the loan to value ratio for hard money loans Arizona is critical to knowing how much money you can request. Without knowing the LTV you have no idea what lenders would be willing to fund.

Because hard money loans are secured with real estate, it is critical to understand how lenders determine the dollar amount that they are willing to lend. This determination process uses the loan to value ratio which is the loan amount divided by the property value. In most cases a hard money lender will fund up to 65% to 75% of the current property value. What this means for anyone who wants to use funding from hard money loans Arizona to make a purchase is that they must have cash or other financing for the remaining 25% to 35% of the purchase price.

It is important to understand what the loan to value ratio is on the property that you are purchasing so that you can be prepared to pay the remaining balance to complete the purchase. Some borrowers will seek a partner to contribute the remaining funds or others will use other properties as collateral to borrow the remaining funds.

On some rare occasions lenders will use an alternative ratio called the after repair value. This is basing the value of the property on its potential value after the buyer makes the repairs. It works in the borrowers favor as he or she is able to get a larger amount for the hard money loan. The down side is that this type of loan poses a greater risk to the lender who is likely to demand that the borrower pay a higher interest rate as compensation.

Hard Money is Always Secured

Understanding that hard money loans Arizona are all based predominantly on the value of the property being purchased is Important. It is also important to know that the lender will only offer a percentage of that property value as a way to ensure that the property is always worth more than the balance of the loan. This is so that in the event of a default on the loan, the lender can sell the collateral property and recover the full loan amount.

More Risk=More Cost

Hard money lenders are in business to make money just as real estate investors are buying properties to make money. All lenders calculate the amount of hard money loans Arizona in the same way. The only reason that some are willing to offer a higher percentage is because they are willing to assume a greater risk. And in return for that greater risk, the lender is going to require that the borrower pay a higher interest rate on the loan. But if you have no other way to secure the funds needed to close the deal, then paying a higher interest rate is better than losing the deal all together. You will always have the opportunity to refinance the loan in a more traditional manner at a later point in time to improve the interest rate.

Sunday, October 15, 2017

What You Need to Know About Working Capital Commercial Real Estate Financing

If you need cash fast to get through a rough spot in your business or to catapult your business to the next level, you may benefit from working capital commercial real estate financing. Before applying for this type of loan, find out the benefits, and drawbacks, of this loan so you can up your chances of being eligible to receive funding.

When you need a loan, you may hear the term “working capital.” While it sounds formal, it’s really just a term that means the cash that a lender can loan to a borrower. This working capital can be used for important company needs for continued business operations such as employee payroll, monthly utilities, paying invoices and rent. There is always the chance of a company getting tight on funds and in that instance, working capital commercial real estate financing can be very helpful. A loan like this can make sure you keep your business running through tight times, even if you are low on cash flow and don’t have the ability to liquefy any assets.

Working capital loans have multiple benefits. They usually don’t require a lengthy or complication application process or approval time. The application process is not as strict as conventional loan processes sometimes can be, so this speeds up the process as well. Also, once a business is approved for the finances, funding can be received very quickly. Usually, once approved, funds are available to the borrower within seven working days. Another benefit is that the company is not required to use the funds for a specified purpose, unlike conventional bank loans that sometime have restrictions on how borrowers can use the working capital funds. Finally, companies that have less than perfect credit scores or history are still eligible for this type of financing.

Along with the benefits of working capital commercial real estate financing, there are some downsides. Though credit report review and application approval may be a bit ore lenient than a conventional application process, you may be responsible for more collateral to secure the funding. These loans also have shorter terms, which usually equates to higher interest rates than traditional long-term loans that have longer repayment schedules.

If your business represents a niche market, you may find that working capital commercial real estate financing is the right loan for your company.

Even if your business is a bit “out of the box” for traditional lenders to approve your loan, with certain loans that don’t require the loan money to be used in a specific way, this is ideal for new companies and small businesses in need of cash. This financing can be very helpful for companies that need to purchase inventory, supplies, equipment or other business needs. But beyond that, even if the company does need to use the funding for other purposes, it’s not an issue.

When you are in need of working capital, find a lender that specializes in this type of loan.

There are many lenders that focus on this type of loan, and know how to help companies like yours get the loan approval you need. Do your homework prior to meeting with a lender to ensure they can help you get the kind of working capital loan you need to help your business grow and succeed.

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

Sunday, October 1, 2017

Tips for Success in Commercial Real Estate Loans Texas

There is more to the gravity of commercial real estate loans Texas than just the dollar amount. Using a few tips can help you to be more prepared and more successful when submitting a loan application.

Preparation will have a huge impact on the success or failure of an application for commercial real estate loans Texas. There are a lot of important factors that you will need to prove to the lender to be approved. The first is that you have a well-documented and stable cash flow. This is going to assure the lender that you have and will continue to have the means to make the loan payments. In addition, you will need to provide documents showing your assets and liabilities, and previous tax information for several years. This is going to speak to the longevity of the business as well as its financial stability and ability to weather a variety of economic conditions.

Even if you have a great relationship with your current bank, you will want to broaden your search for lenders for commercial real estate loans Texas. Knowing a banker is always helpful but in the case of commercial real estate loans Texas, it could be more important to select a lender who is better suited to your commercial needs. If you are looking for a small to medium sized loan but you are currently using a large national bank, then they might not be the best choice for a commercial loan. And likewise, if you are banking with a local or regional bank but need a very substantial commercial loan then they might not be able to meet your needs for the loan. Matching the lender to your specific request can take some time but the effort will pay dividends in the speed of processing and the overall quality of the customer service experience.

Understand the Risk a Commercial Loan Represents

There are many reason that a commercial loan is more risky for the lender. Understanding those risks and how it will impact your loan terms is important. First, commercial property values can fluctuate more and more rapidly than residential property values. For that reason, the lender will insist that the buyer make a larger down payment. This creates instant equity and ensures that the property, the collateral on the loan, will always have a value greater than the loan balance. Second, businesses are more susceptible to economic trends than consumers so lenders want to know that commercial borrowers are fully vested in the property due to the large down payment. And because the loan is a greater risk, the lender is going to charge a commercial borrower a higher interest rate. So even with very good credit, you will pay higher interest on a commercial mortgage than you would on a residential mortgage.

Complete Your Due Diligence

Before you decide to purchase a commercial property it is important that you learn about the commercial lending process, the criteria for loan qualification and the terms specific to commercial mortgages. In addition you will need to research the commercial real estate in your area to learn about what is available and the current market trends. All of this information will help you to make a good financial decision.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Benefits of Preparing a Solid Business Plan Before Applying for Commercial Real Estate Loans Texas

Don’t get discourage if you think it’s too difficult to get approval for commercial real estate loans Texas. One solid way to obtain approval is to have a good business plan that will help convince lenders to approve your loan.

There are many important criteria that banks and lenders look for when reviewing commercial real estate loans Texas. However, even without 700 + credit scores, you can be eligible for a loan if you have a very solid business plan. Discover some ways to build a strong business plan.

A good business plan starts with a summary. A summary consists of a solid statement for the outline of the plan. Within the summary, you should give the reader an idea of exactly what you want to do with your company, what you need to make that happen (i.e. the loan you are requesting) and how you will use the loan to make your company succeed. The summary should be the first thing after the title page of the business plan.

The second thing to include is an outline about your company and the industry in which you work. Banks and lenders may not understand the market or the direction of your company. So it’s best to assume they don’t know about your specific niche and give them the information they need to make a good decision (such as approving your loan!). Give some market specific information (such as why the products/service you intend to provide are in demand or in a growing market).

Thirdly, a market analysis is another important aspect of your business plan to obtain commercial real estate loans Texas. Banks are all about numbers — so you should be prepared to show them the hard numbers and the elements of how your company is positioned in the market for success. Include a detailed market strategy of your own, an analysis of other successful (or not so successful) businesses in your industry. You can leverage your company, and how you would do things differently, in this way.

Does a business plan really determine if you are able to get a loan or not?

Having a solid business plan is certainly one aspect that banks and lenders look at when reviewing a loan. However, it’s not the only thing. There are other factors such as your credit history, financial statements, and other items. But if you are able to provide proof and information about how you can manage your finances, develop business strategies to grow your business, this is a good way to get lenders and banks on your side.

Your business plan should be a presentation about your company, and serve as a strategy to convince banks or lenders to approve your loan.

Having a unique and solid business plan is very important when it comes to getting commercial real estate loans Texas approved. Spend some time on your business plan so that is expressly details exactly what your company plan is and how you will ensure that it is successful.

Using the proper tools to present your business plan is crucial. Presenting in a clean and easy way with real numbers, facts, and any hard data you have to “prove your case” can be beneficial to your commercial real estate loan approval.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, September 28, 2017

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

After experiencing the devastation of Hurricane Harvey, some good news comes to the area. The city of Houston is eager to see the changes that will be made to one of their most popular and well-known office buildings in downtown Houston thanks to Holliday Fenoglio Fowler approving a commercial real estate loan in Texas
Located in the heart of downtown’s Houston Theatre District, one of the most recognizable buildings in the Houston skyline and even across the globe is going to be getting a new look, all financed by a commercial real estate loan in Texas funded by Holliday Fenoglio Fowler. The architectural icon is at 700 Louisiana in Houston’s central business district.
The 1.2 million square-foot office is 56 stories and was designed by Phillip Johnson and John Burgee. The building currently homes many law and financial services firms that benefit the Houston community greatly. Luckily, Hurricane Harvey had little impact on the business operations of the building, with all of the businesses in the building is back to their daily activities.
The borrower of the commercial real estate loan in Texas, M-M Properties worked closely with Holliday Fenoglio Fowler in a very detailed process to get the refinancing rolling. The impact of refinancing the well-known building is going to give it a higher property value by sprucing up the lobby and more.
Privately held real estate investment firm gets help with commercial real estate loan in Texas
With M-M Property having their headquarters based in Houston, they know how hard the area was hit by Hurricane Harvey. The property management company is hoping that this is a positive event happening after such a devastating time. M-M Property is an experienced, privately held real estate firm that is located in the heart of Houston.
The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.
After Houston was hit hard by Hurricane Harvey, Holliday Fenoglio Fowler is excited to see the changes that will be made during the renovations to bring the area back to the way it was before the storm rocked the area, causing 18 counties in the state to be declared disaster areas. Holliday Fenoglio Fowlers has 24 offices across the country and is a leader in commercial real estate loans in Texas and throughout the United States along with offering many other financial and marketing services.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Real Estate Loans in Texas Expected to Rise Due to Hurricane Harvey

Many across the Lone Star State are looking for a helping hand, especially with commercial real estate Loans in Texas, after Hurricane Harvey hit. The hurricane brought record-breaking rain and floods causing 18 counties in the state to be declared disaster areas.
Relief efforts are already underway to rebuild southeastern Texas back up. Many have been impacted ranging from families to businesses to residential areas to commercial areas. A large number of people and businesses are in need of commercial real estate loans in Texas to get back on track after Hurricane Harvey ripped through their area causing not just property damage, but income loss due to being closed during the storm and during the recovery efforts.
Since so many are in need of commercial real estate loans in Texas to be able to start cleaning up the damage that Hurricane Harvey left behind, F.N.B Corporation announced last week that they donated more than $100,000 to relief efforts by the American Red Cross for those not just in Texas, but also those impacted in Florida by Hurricane Irma.
F.N.B. Corporation help not only fundraisers, but also earned donations from a combination of donations from employees and those from the actual corporation. The company went above and beyond to raise funds to help those impacted by recent hurricanes by matching $3 dollars for every dollar raised by their employees.
The need of commercial real estate loans in Texas to get back on feet may grow even more
It is still unclear just how much damage Hurricane Harvey caused, but as Business Insider reported, those at F.N.B Corporation has heard first hand from local banks and lenders just how devastating the damage is. It is going to take more time to fully understand how much damage was brought on by the category 4 storm. Because of this, F.N.B. Corporation’s president and chief executive officer, Vincent J. Delie Jr., is hoping that his company’s generous donation will inspire other to show their kindness and willingness to help those who have been impacted.
F.N.B Corporation doesn’t even offer commercial real estate loans in Texas, but want to help the area in any way that they can.
Even though F.N.B. Corporation doesn’t do commercial real estate loans in Texas, they do offer a full range of commercial banking to the eastern part of the country. They have 400 banking offices across the eastern part of the United States with assets totally $31billion dollars.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Leader in Commercial Real Estate Loans in Texas Lends Helping Hand to Refinance Two Properties in the State

Reported by PR Newswire, Hunt Mortgage Group, top leaders in commercial real estate loans in Texas and across the United States, is helping refinance two properties in Texas. The Freddie Mac affordable multifamily loans total an investment of $205 million dollars.
Both of the commercial real estate loans in Texas are a 7-year loan term that comes with 24 months of interest-only payments, along with a 30-year amortization that start during the third year of the loan.
The first property, Red Hills Villas Apartments, is a garden style multifamily complex that has six building on their property that houses 168 units. The complex is occupied one hundred percent by low income residents located in Round Rock. The total commercial real estate loan in Texas is worth $13.8 million dollars. Red Hills Villas Apartments is hoping to use the money to make changes to the units and add more accommodations to better the living experience of the residents.
Champion Crossing Apartments also received a commercial real estate loan in Texas from Hunt Mortgage Group. The apartment complex is located in San Marcos, Texas and has 156 unites throughout a total of 13 buildings on the property. The loan totals $6.7 millions dollars and is being used to refinance Champion Crossing Apartments along with upgrading many features to deliver a better experience to their residents.
Both borrowers of the commercial real estate loans in Texas are experienced and Hunt Mortgage is eager to see the outcome
Hunt Mortgage Group is excited to lend a helping hand to two borrowers that have plenty of experience in the industry. Hunt Mortgage Group has plenty of experience working with customers like these two, totally $21 billion dollars of assets across the country. The group has 24 locations across the United States with their headquarters based in New York.
Commercial real estate loans in Texas continue to grow in Austin and the city is already seeing the benefits
Both of the locations that received commercial real estate loans in Texas from Hunt Mortgage Group are located near the excelling city of Austin. Red Hills Villas Apartments is only 20 miles north of the city! This gives plenty of shopping access to the residents along with being close by to the top schools in the area and large employment centers. It is a great location for residents, especially those looking to work for companies that deliver high technology services.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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Sunday, May 27, 2018

Understanding Loan to Value Ratio for Hard Money Loans Arizona

Understanding the loan to value ratio for hard money loans Arizona is critical to knowing how much money you can request. Without knowing the LTV you have no idea what lenders would be willing to fund.

Hard Money is Always Secured

More Risk=More Cost

Sunday, October 15, 2017

What You Need to Know About Working Capital Commercial Real Estate Financing

If your business represents a niche market, you may find that working capital commercial real estate financing is the right loan for your company.

When you are in need of working capital, find a lender that specializes in this type of loan.

Sunday, October 1, 2017

Tips for Success in Commercial Real Estate Loans Texas

There is more to the gravity of commercial real estate loans Texas than just the dollar amount. Using a few tips can help you to be more prepared and more successful when submitting a loan application.

Understand the Risk a Commercial Loan Represents

Complete Your Due Diligence

The Benefits of Preparing a Solid Business Plan Before Applying for Commercial Real Estate Loans Texas

Don’t get discourage if you think it’s too difficult to get approval for commercial real estate loans Texas. One solid way to obtain approval is to have a good business plan that will help convince lenders to approve your loan.

Does a business plan really determine if you are able to get a loan or not?

Your business plan should be a presentation about your company, and serve as a strategy to convince banks or lenders to approve your loan.

Thursday, September 28, 2017

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

Privately held real estate investment firm gets help with commercial real estate loan in Texas

The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.

Commercial Real Estate Loans in Texas Expected to Rise Due to Hurricane Harvey

Many across the Lone Star State are looking for a helping hand, especially with commercial real estate Loans in Texas, after Hurricane Harvey hit. The hurricane brought record-breaking rain and floods causing 18 counties in the state to be declared disaster areas.

The need of commercial real estate loans in Texas to get back on feet may grow even more

F.N.B Corporation doesn’t even offer commercial real estate loans in Texas, but want to help the area in any way that they can.

Leader in Commercial Real Estate Loans in Texas Lends Helping Hand to Refinance Two Properties in the State

Reported by PR Newswire, Hunt Mortgage Group, top leaders in commercial real estate loans in Texas and across the United States, is helping refinance two properties in Texas. The Freddie Mac affordable multifamily loans total an investment of $205 million dollars.

Both borrowers of the commercial real estate loans in Texas are experienced and Hunt Mortgage is eager to see the outcome

Commercial real estate loans in Texas continue to grow in Austin and the city is already seeing the benefits

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