Learn To Be A Fix & Flip Investor

Sunday, October 1, 2017

What Lenders Look for When Granting Commercial Loans Texas

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

When you are applying for commercial loans Texas, you will find that there are many documents that are being requested and many forms that you will need to complete. But all of that general information is only the beginning. Lenders each have their own set of criteria that they uses to make their final decision about writing commercial loans Texas or declining an applicant. Understanding this criteria can help you to craft a more effective application.

One important factor that lenders are looking for is that you and the business have the needed assets and financial reserves to survive any temporary downturn in your business. This can mean making it through a slow season or even through a period when clients are not paying bills on time. But what a lender needs to see is that you have the means to keep your business operating when there is a lull in your cash flow that is beyond your control. If the business has very limited assets then the lender will want to know that the owners are in a position to personally fund the company to bridge the short term issue.

Your ability to repay commercial loans Texas is what the lender is really trying to determine. They are accessing the risk that you represent and how confident that they are that you can make the payments on a regular and long term basis. This means that your cash flow needs to be strong and consistent. Demonstrating that you will easily be able to make your loan payments is critical to getting approved.

Proven Track Record

If your business is new and has no cash flow history or proven track record in the industry then you will need to demonstrate your personal ability. This is best achieved by showing your successes in the industry and in a management position at another company. Showing that you have experience managing and running a successful business will build confidence in your ability to launch and maintain a new company of your own.

Overall Credit Worthiness

All lenders have an image of the perfect client, but that might not exist in the real world. So lenders begin to compromise when they feel that a potential borrower is a solid individual. Showing that you have personally maintained good credit, that you have the means to offer financial support to the business if it is needed and that you understand the industry trends are all critical. This lets the lender know that you are prepared for changes in cash flow and that you have a plan in place to make it through those difficult times. It also shows that you are diligent in protecting your personal financial future and that will carry over to your business finances as well. Taking the time to understand what the lender is looking for from a borrower will help you to supply all of the needed information and will offer you a better chance at getting the loan that you have requested.

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

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

Learn the Differences Between Short Term and Long Term Commercial Loans Texas

When it comes to short and long term commercial loans Texas, there is a lot of terminology and “fine print” to understand. With these tips, you can understand the differences and determine which loan type would work best for you.

As a new business owner, you may not be versed in the jargon of loans, and that’s understandable. Which is why it’s helpful to work with a professional broker or lender who can help you learn about the nuances of each type of loan and which would be best for your company’s needs. When you understand the differences between short and long term loans, you can make an educated decision about the right type of loan for you.

Short-term commercial loans Texas can get you cash – fast. Sometimes you will get the cash “in hand” in as little as 24 hours after the loan is approved. If you are in a bind and need cash fast, this is typically the way to go. The application process can be complex and repayment terms are often required monthly or even multiple times a month. These loans might be available for a smaller amount of money than a long-term loan. However, it’s usually pretty easy for businesses to get approved and get the money they need fairly quickly. These loans can be obtained from alternative lending options versus conventional banks or lenders as this type of loan can be perceived as “high risk” for conventional banks and lenders.

Long-term loans are typically larger amounts and therefore a little more difficult to obtain. The good part about this type of loan is that repayment structure occurs in multi-year terms, over the course a long period of time, such as 10 years or longer. Interest builds up over time in the case of this type of loan so you may end up paying more in interest than with a short-term loan. However, you are more likely to get approval for a long-term loan with a conventional bank or lender.

How do I determine if a short term or long-term commercial loans Texas is better for my business?

Short term and long-term loans each have their own set of pros and cons. It’s really about deciding what is going to work best for your company based on your needs. If you need money quickly, a short term may be your solution. If you can go a more traditional route with a long term, you may be able to get a larger loan amount. Figure out your business needs and go from there.

What are the first steps I should take to obtain these types of loans?

When you are considering obtaining a commercial loans Texas, it’s important to be prepared with documentation needed to apply for the loan. It’s also a good idea to figure out how you intend to pay back the loan – in no uncertain terms. The bank or lender will need to ensure you have the ability to pay back the money you borrow. Short and long term loans are the two largest loan categories in commercial mortgage, and they can be very different. Talk to a lending expert, as they can help figure out the best strategy for your business’s needs.

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

How a Private Lender Can Help You Get Your Commercial Loans Texas

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

Working with a private lender can ensure you are working with a trustworthy person and that your source of financing is a solid way to experience growth for your business. Whether you are purchasing a building, need new equipment to expand or improve your company’s services or simply need a bigger supply or cash as a “cushion,” you can count on the expertise of a private lender. Sometimes the fact that a small business’s cash supply isn’t always as consistent as needed when they first start out or are expanding is enough to seek out a private lender for commercial loans Texas.

Unlike conventional lenders and conservative banks, private lenders are more likely to negotiate better terms for you, even it you have a somewhat unsteady cash flow or less than perfect credit. Traditional banks don’t and can’t afford to take “risks” on new or edgy business concepts for example, which is why a lender can be beneficial in this circumstance as well. They might not offer generous mortgage terms that private lenders would be willing to offer. Private lenders are more willing to take the “gamble” on a new or different business concept.

Another example of a good time to seek a private lender is if your company is new and you have yet to establish any business credit, or if you are rebuilding your credit score based on past “dings.” Banks are not very forgiving with no or low credit. But private lenders are typically willing to work with new businesses, especially if the credit history is mostly clean. Private lenders also specialize in short-term loans, which can be very helpful for new and growing businesses.

You can still be eligible for commercial loans Texas if you go through a private lender.

Private lenders won’t make you go through all the red tape that traditional banks require. Lenders are there to help you from start to finish and usually make the process of getting a loan much simpler and stress free.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

Take some time to research private lenders that specialize in the loans you are in need of and who are willing to work with your to negotiate the deal that works best for your business needs. A lender can fast track your loan and get your business in a position for growth and development in no time!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What Are Your Options When Seeking Commercial Mortgage in Texas

Commercial mortgage Texas brokers can help you discover what options are available to your business when trying to find the right loan. Even if you have less than perfect credit or are just starting to establish credit, a broker can help you navigate the unchartered waters of getting a loan.

There are always unforeseen situations in business that may leave you in need of hard cash – and fast. That’s where a loan comes in handy. However, trying to get one on your own, as a new business owner, can sometimes prove difficult. Working with a trusted broker for your commercial mortgage Texas is a great way to go, because they can help guide you through the process and make sure you have what you need to be eligible for a loan.

You have several options when it comes to getting a loan – and it all depends on your needs. You can seek an equipment loan, specific to the purchase of large machinery or equipment needed to start or expand your business, property loan, short and long term loans. There are even loans specific to green building. Do some research to find out what type of loan you need before meeting with a broker or a lender.

You can also do some research as to the commercial mortgage Texas loan amount you might need or be eligible, then find out what your approximate monthly repayment amount might look like. There are variables that may affect this such as fees, interest rates, and down payment amount that you are able to initially invest.

A hard money commercial mortgage Texas might be the way to go if you have less than desirable credit or are just starting out in business and traditional banks don’t want to take the “risk” of approving your loan.

A broker can advise you on a hard money lender that can get your loan approved without all the bureaucracy that conventional lenders and banks have to go through. As long as you can prove that you can pay your loan back, and on time, that is all that a hard money lender really cares about.

Take some time to research what this type of loan can do for you and your business. Whether you need some cash fast to get up to speed on what you owe vendors, getting your payroll going smoothly, or purchasing new equipment to better your business services for your customers, getting a hard money loan can catapult your business to a whole new level. Talking to a broker, getting advice on the type of loan that is best for your needs and getting all your documentation in order prior to the loan approval will increase your chances for eligibility. So what are you waiting for? Talk to a broker, you won’t be sorry!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Alternative Ways to Obtain Commercial Loans Texas Through a Broker

In a down economy or if your credit is poor, there are still opportunities to get approval for commercial loans Texas. Sometimes working with an alternative lender or going through a broker is your best bet in these circumstances.

There are many alternative options to obtaining commercial loans Texas, so even if you have dings on your credit history or the economy is making banks extra tight with their funding, doesn’t mean you are out of luck. Seeking a hard money loan would be the way to go. Talking to a broker about this route will help you get the best loan regardless of the circumstances.

Sometimes hard money loans have higher interest rates associated with them, however; there are benefits, too. These loans don’t require going through all the red tape and jumping through hoops (aka having a 700+ credit score or perfect credit history) that is sometimes required to obtain a loan through a traditional bank or other conventional lender.

Typically, when trying to obtain a hard money commercial loans Texas, the most important thing alternative lenders look at is if you are going to be able to pay the terms of the loan back. While the interest rate may be higher, you will typically be able to get the money you need for your business — and get it fast. Even though you may have higher interest rates, getting this loan can make all the difference for the growth of your company and taking your company to the next level.

Talk to a broker to figure out is a hard money loan is right for your needs.

Being honest about your situation and upfront about your needs will help your broker understand how they can best help you obtain your hard money commercial loans Texas. They can also advise you on how you need to be prepared to obtain this loan via having the proper documentation available for review. You will likely need to have documents such as credit report, business and personal finances, bank statements and other documents to show.

Getting the loan you need should not be a stressful scenario.

Getting the hard money you need to take your business to the next level can be a daunting task. But it shouldn’t bee too difficult or cause you too much stress. Remember that there are many options — so it you take one road and it doesn’t work out, don’t be afraid to try another avenue. There are a number of alternative choices when it comes to getting the funding you need to make your business a success! So call a broker today and get started!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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Sunday, October 1, 2017

What Lenders Look for When Granting Commercial Loans Texas

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

Proven Track Record

Overall Credit Worthiness

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.

Learn the Differences Between Short Term and Long Term Commercial Loans Texas

When it comes to short and long term commercial loans Texas, there is a lot of terminology and “fine print” to understand. With these tips, you can understand the differences and determine which loan type would work best for you.

How do I determine if a short term or long-term commercial loans Texas is better for my business?

What are the first steps I should take to obtain these types of loans?

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.

How a Private Lender Can Help You Get Your Commercial Loans Texas

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

You can still be eligible for commercial loans Texas if you go through a private lender.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

What Are Your Options When Seeking Commercial Mortgage in Texas

Commercial mortgage Texas brokers can help you discover what options are available to your business when trying to find the right loan. Even if you have less than perfect credit or are just starting to establish credit, a broker can help you navigate the unchartered waters of getting a loan.

A hard money commercial mortgage Texas might be the way to go if you have less than desirable credit or are just starting out in business and traditional banks don’t want to take the “risk” of approving your loan.

Alternative Ways to Obtain Commercial Loans Texas Through a Broker

In a down economy or if your credit is poor, there are still opportunities to get approval for commercial loans Texas. Sometimes working with an alternative lender or going through a broker is your best bet in these circumstances.

Talk to a broker to figure out is a hard money loan is right for your needs.

Getting the loan you need should not be a stressful scenario.

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