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

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Tuesday, May 15, 2018

Why You Should Review Hard Money Loans Options

Applying for and committing to the strict repayment schedule of hard money loans can be a big and complex process. This is why Level 4 Funding suggests reviewing your options carefully to ensure you find the right loan for your needs.

If you are starting a new business, expanding your business or simply wanting to make some improvements to your company without having the stress of being tight on cash, a hard money loans could be just the thing you need. However, there are many things to consider. One of your first options is going to be your lender.

Choosing the right lender will make all the difference when it comes to having a good or bad experience. When you’re starting a business or growing your current one, times can get very stressful — the last thing you want is to add more stress by not having a good loan experience. That starts with an experienced and professional lender that can help you get the best loan that suits your specific needs. Trusting your lender is essential for a smooth process.

Once you’ve selected the right lender for your hard money loans, it’s also important to review the loan agreement, including any “small print” that you may be tempted to skim past. Remember that once you sign the dotted line, you will be responsible for upholding your end of the bargain — including paying the loan back as scheduled and paying any “hidden fees.” Always read through the entire contact, and even be prepared to have your legal advisor review the document as well.

There is one more thing you should consider when reviewing your options.

Finally, you should review what you are prepared to put up as collateral. In the case of hard money loans, that is really the most important factor that will ultimately determine your approval… or not. While conventional lending institutions like banks will look at a number of factors when reviewing your application — such as your credit score and history, personal and business financial statements and more — that is not the case with alternative lenders, especially in the case of short-term loans. Alternative lenders are mostly looking solely at collateral, which can either be your personal home or vehicle or even the value of the property.

Having a successful loan will happen as long as you take the proper steps to review your loan.

It’s also important to remember that there are multiple options — not just when you are reviewing your loan, but with all the options that it takes to build, grow and improve a business. Having a loan can be very helpful, but if your application gets rejected at first, that is no reason to give up. In addition to being open to “alternative” options when it comes to loans and lenders, it's important to keep an open mind and be optimism about seeking alternative ideas when it comes to other areas of your business, from grassroots marketing to out-of-the box locations.

Thursday, November 2, 2017

The Dark Side Of Commercial Real Estate Loans In Texas – What are the Drawbacks Investing?

If investing in commercial real estate properties were easy and a sure thing, then everyone would be able to do it successfully. However, there is a tremendous amount of risk inherent in pursuing commercial real estate loans in Texas, considering the number of factors that are outside of the control of the investor.

There are most definitely opportunities present for anyone to get involved in commercial real estate. So why doesn’t everyone do it? Because for every reward, there is also a great deal of risk. Only those who are able to manage the risks, while capitalizing on the rewards are going to be successful in putting a commercial real estate loan to work for them with an investment property.

One of the biggest drawbacks of pursuing and following through with a commercial real estate loan and the property that will be acquired with it is the time that the owner is going to have to commit. With a commercial property, you are going to be dealing with many different leases of different time frames and terms, shared areas that are the responsibility of the owner, and an image to uphold. All of this takes a tremendous amount of time and energy. If a borrower has never owner commercial property before, the amount of time it takes for even the simplest of maintenance tasks is most likely to surprise.

Another hurdle that investors and owners will need to overcome with commercial property is the realization that it is impossible to do it all yourself. With the amount of maintenance, as well as their complexity, an owner is going to need commercially certified professionals. This often comes as a surprise to many owners who like to take care of things themselves. Not only does this establish a further layer of liability protection, but it will also save time. Just because you have the commercial real estate loan on the property does not mean that you should try to save on costs by lowering maintenance standards.

Commercial properties are also different than residential properties and this can be a drawback for investors that are not properly prepared for what that means as far as foot traffic is concerned. The reality is that the volume of people coming in and out of a commercial property is much greater than in a residential property. While this might seem like a no brainer, the implication is that the potential for damage to the property or to those who frequent it go up significantly. Everything from a minor accident in the parking lot to a significant injury to a patron has the potential to happen. This additional risk is often not realized by potential owners until it is too late.

Are there ways to mitigate the risks associated with my commercial real estate loan and commercial property in Texas?

Each state handles the issue of insurance differently, so it is critical to understand what the local laws are in regard to liability, maintenance fees and licensing. The last thing you want to have happen is to lose your livelihood and open yourself up to a lawsuit over something that you did not know was an issue. The best way to lower the risk and overcome these draw backs is to seek the advice and help of someone who has dealt in commercial real estate and commercial real estate loans before.

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

What to Look Out for When Signing Commercial Real Estate Loans Texas

Signing commercial real estate loans Texas documents is an important step for your business. You need to be well prepared and be certain that you understand the document completely.

Borrowers are always told to read a document completely prior to signing it. But when signing documents for commercial real estate loans Texas, you might not have the time to read the entire document at the signing. And even if you had the time, you might not understand all of the technical and legal jargon. So you will want to be sure to request a copy of the document to review with your lawyer prior to the closing appointment to check out a few key pieces of information.

The first important information on the agreement is the loan payment agreement. This defines what is expected of you and includes provisions that protect both the lender and the borrower. This is where you will find the clauses about your payment schedule and if there is going to be a balloon payment due at the end of the loan term. These are basically all of the repayment terms that you are agreeing to for the money that you are borrowing.

Some commercial real estate loans Texas will also specify that you need to continue to provide the lender with financial information about the property and your business. This is to monitor the financial health of the borrower and ensure that payments will continue. There are also some commercial real estate loans Texas which will specify that you must maintain a certain debt to cash-flow ratio throughout the term of the loan. Additional covenants can stipulate asset sales, cash payouts and changes in the ownership of the business. These are all ways that the lender can ensure that the company remains solvent and that the business does not get too far in debt prior to paying off the loan.

Negotiate for Non- Recourse

One of the key stipulations in protecting your personal finances is negotiating a non-recourse covenant. This clause protects you in the event that your business fails and cannot repay the loan. If you have a non-recourse loan then the lender cannot force you to personally repay the loan. But if it is a recourse loan then you have personally guaranteed the loan and will need to find a way to repay it even if you close your business.

Check for Penalties

In the perfect world, your business will thrive and you will be able to accelerate your loan payments. This will allow you to pay the loan off early and save some of the interest that you would have paid the lender. But if your loan has an early pay off penalty, then you might be faced with paying extra fees. Some lenders will have a flat prepayment fee and others will charge a percentage of the interest that you would have paid. In most cases, you will still be saving some money, but you will want to be sure that you understand this potential penalty as well as all of the terms of the loan prior to attending the loan closing.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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

How Commercial Real Estate Loans Texas Benefit Your Company

Obtaining commercial real estate loans Texas bring businesses new opportunities that they might not otherwise have been able to afford. Read on to learn how your company can realize the benefits of this type of loan to take your business to the next level.

Bottom line: starting out in business or growing your business takes capital. Capital that you as a small business owner might not just have lying around. So seeking commercial real estate loans Texas can get you the cash you need to grow your business. Loans can help your company in many ways, and with a little “cushion” money, you can make a lot more money for your business!

When seeking a loan, it’s important to present your business and your financial situation in the best light possible. After all, in business, as in many things, first impressions make or break any situation. The exterior of a building, marketing materials, the interior of an office, etc., all contribute to the impression that client and customers make about a company — even in the first few minutes, regardless of the quality of their goods and/or services. So making a good first impression is crucial. If you are able to obtain commercial real estate loans Texas, this can go a long way toward creating a great first impression for your company.

Beyond making modifications to your business, a loan can benefit your company by serving as a cushion in unexpected times of tight cash flow. It can be extremely stressful for a company to be continually “cash strapped” and a loan can be a great source of financial security in uncertain times for your business. Having the extra cash to ensure your payroll stays on target, you are able to pay vendors and suppliers on time and that you even have a little extra to invest back into the company in the way of improvements or additional products can be a business “life saver.”

Commercial real estate loans Texas can benefit your company in countless ways by helping your reach new markets, expand into a new region or build additional locations, or have the capital to market your business via advertising and other opportunities

When you decide to apply for a loan, you can feel confident that you will have the financial stability to make company growth decisions. Sometimes growth requires a lot of extra capital to make it happen, but the return in investment is usually worth it. This is one of the greatest benefits of a loan – knowing you can use it to help your company reach limitless potential.

Make sure you research the loan that is right for you.

Whether you need a short-term loan for “fast cash now” or you are in need of an equipment loan to buy machinery or equipment to grow your business, seek the right option for your needs. Talk to a professional lender or broker about your needs. They have the experience and expertise to help you determine what type of loan would best benefit your business.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, September 30, 2017

What it Means to Get Commercial Real Estate Loans Texas

Getting commercial real estate loans in Texas allows you to borrow money for your business use, whether it’s property, equipment, or improvements. You need to know how the process works before applying for this type of loan.

When you are seeking commercial real estate loans in Texas for your company’s business expenses or growth needs, it’s important to understand that it’s much different than trying to obtain a home mortgage loan. Typically, its much bigger, and truthfully, much more complex than a residential home loan.

When you need to purchase property for your business, commercial real estate loans are very beneficial, and can take your company to the next level by getting you the property you need to build on or expand. But before applying for this type of loan to purchase property, you need to be prepared. Having your business plan, your financial statements, current credit status and other important documents in order will help you get a head start on preparation.

Pre-planning is essential for the success of getting approved for commercial real estate loans Texas. You will need to know that these loans are secured via a lien on the property you want to purchase. That means the lender has the legal right to take ownership of the property if you are not able to keep up with the schedule of the repayment terms or any other terms of the loan agreement. Pay close attention to all the clauses in the lenders’ agreement, and it’s a good idea to have all documents reviewed by a lawyer that is well versed in commercial real estate loans in Texas to help you understand what you are signing.

It’s important to know the consequences for not being able to meet the financial responsibilities agreed upon in the documents.

If you fail to meet the terms of the agreement, or are in breach of contract for any reason, you are putting your business at risk. If you can’t make the payments, you could face foreclosure of your property.

You are responsible for a down payment for your commercial real estate loans Texas, and other costs and fees, too.

To obtain this loan, you are going to be required to make an initial down payment of about 20 to 30 percent (depending on the current state of the economy) of the property’s costs, which is beneficial since you will begin to earn instant equity. As you approach getting this type of loan, understand your commitment to your lender including interested, feeds and other costs associated with the loan, so you can repay it wisely.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Learn To Be A Fix & Flip Investor

Featured Post

The Big Show is Coming to Town.

Tuesday, May 15, 2018

Why You Should Review Hard Money Loans Options

Thursday, November 2, 2017

The Dark Side Of Commercial Real Estate Loans In Texas – What are the Drawbacks Investing?

Are there ways to mitigate the risks associated with my commercial real estate loan and commercial property in Texas?

Sunday, October 1, 2017

What to Look Out for When Signing Commercial Real Estate Loans Texas

Signing commercial real estate loans Texas documents is an important step for your business. You need to be well prepared and be certain that you understand the document completely.

Negotiate for Non- Recourse

Check for Penalties

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.

How Commercial Real Estate Loans Texas Benefit Your Company

Obtaining commercial real estate loans Texas bring businesses new opportunities that they might not otherwise have been able to afford. Read on to learn how your company can realize the benefits of this type of loan to take your business to the next level.

Commercial real estate loans Texas can benefit your company in countless ways by helping your reach new markets, expand into a new region or build additional locations, or have the capital to market your business via advertising and other opportunities

Make sure you research the loan that is right for you.

Saturday, September 30, 2017

What it Means to Get Commercial Real Estate Loans Texas

Getting commercial real estate loans in Texas allows you to borrow money for your business use, whether it’s property, equipment, or improvements. You need to know how the process works before applying for this type of loan.

It’s important to know the consequences for not being able to meet the financial responsibilities agreed upon in the documents.

If you fail to meet the terms of the agreement, or are in breach of contract for any reason, you are putting your business at risk. If you can’t make the payments, you could face foreclosure of your property.

You are responsible for a down payment for your commercial real estate loans Texas, and other costs and fees, too.

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