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Sunday, October 1, 2017

Tips on Getting Commercial Loans Texas

Getting commercial loans Texas is not as simple as many business owners might think. There are many tips out there but the best all center on being prepared.

Commercial loans Texas are a necessary evil just as any debt is. Due to the overwhelming cost of a commercial property, it is unlikely that just about any business could afford to purchase property without some type of loan. It is a big step to take and one that you should carefully prepare for to ensure that you have the most success possible.

The biggest factor in your approval for commercial loans Texas is your creditworthiness. The lender is going to ask for many different documents to evaluate the financial health of your company and possibly even the personal financial condition of the owners. You will need to prepare a copy of your business plan, financial records including tax forms, bank statements and P & L statements as well as cash flow documentation. It is also important that all of the information be as current as possible. Having this packet of information prepared lets the lenders know that you have invested time and effort into the process and that you are serious about purchasing property.

You also need to be prepared from a financial standpoint. You will need to be in a position to pay certain fees associated with the loan and the down payment for the property. In most cases, a lender will only finance about 75% of the cost of the property so having that remaining balance available in cash is critical. You will also need to pay some fees such as a loan application fee, a loan processing fee or appraisal fees. You might also want to investigate getting your own independent appraisal done to have an unbiased estimate on the property value. Also be prepared to pay for environmental reports on the property. Most lenders now require these reports to ensure that the property is not contaminated.

Manage Your Time

A great deal on a commercial property usually means that the property will sell quickly. For that reason you will want to be sure to begin your application for commercial loans Texas as quickly as possible. It is well known that commercial lenders will greatly overestimate the speed at which they can process your application. They will quote you 45 days but in most cases it will drag out to over three months. Don’t let a great property get away while you are still completing application documents.

More Knowledge is Always Good

Understanding the process for applying and getting approved for a loan is critical to your success. Having a plan in place to meet the criteria and requests of the lender will make the process less stressful and can even decrease the time it takes to get approved. As with most things in the business world, you will get as much back as you invest in a project. So the time it takes to prepare documents, complete research and make a professional presentation is a good investment in your company’s future.

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

Tips for Building a Relationship for Commercial Loans Texas

When you begin to think about applying for commercial loans Texas you should immediately begin to work on building some important relationships. Commercial lenders can provide you with more than just the loan that you are looking for.

There is a lot more to getting commercial loans Texas than simply completing the application for the loan. Commercial loans are much more complex and require more documentation and information than a residential mortgage. It is important to fully understand the process and the criteria for loan approval as well as having an understanding of your different options for lenders and their areas of expertise.

Start with some basic research of the banks in your area. The local and regional connection can often be a little bit of an advantage for commercial loans Texas as the lenders are more familiar with the area and have a vested interest in the local economy. Use the list of lenders that you have complied to make some brief phone calls to discuss what types of commercial loans Texas that the lender specializes in. You might also want to inquire about the industries that the lender works with on a regular basis and what special criteria that they require to qualify for a loan. All of this information will help you to know which lender will best meet your needs once you have selected a property and know the size of the loan that you will need.

As you begin to understand the process more and have refined your selections for a property, engage the lenders with questions. This is a good way to gauge who is interested in your business and will be eager and willing to work with you during the application process. You might find that only one or two lenders are willing to meet with you prior to being ready to submit your application. This is a good indication of who will be there to assist you during the application process and even before when you are working to make your property selection. The lender who wants to grow a relationship with you will offer advice and tips and become a very valuable free resource.

Be Honest From the Beginning

It is important that you are honest and tell the lenders that you are just in the planning stage. This will verify that they are really interested in a long term relationship and that they are willing to help you along the way. It also helps to prevent misunderstandings that could cause them to be less willing to work with you when you are ready to apply for the loan.

Commit to Full Disclosure

The more information that you are willing to provide to the lenders the more they can assist you. If you have had credit challenges then tell them so that they can offer helpful information and suggestions. Let them get to know you, your business and your industry so that they can provide you with the most accurate information available.

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

Guide to a Commercial Mortgage Texas

When you are considering a commercial property purchase, you also need to consider your options for a commercial mortgage Texas. Knowing the requirements and the process can be a great help in selecting the best lender to work with.

As you begin to explore the world of the commercial mortgage Texas, you might be overwhelmed with the sheer volume of information and the options. You can do the research and educate yourself or seek the assistance of a broker. But even when relying on a professional, you need to have a basic grasp of the requirements to qualify and the process that you will need to follow.

Most lenders are going to require a lot of the same information when you apply for a commercial mortgage Texas. It is wise to begin early and have your information packet completed prior to starting the application process. You will need to provide audited accounts for the past two years, a profit and loss projection for the upcoming two years, a list of the owners of the business for credit verification purposes, asset and liability statements for the owners, a copy of the business plan, credit status for the business and growth projections for the company. Having this information current and in a presentation format will make the application process for a commercial mortgage Texas much less daunting.

The term of a commercial mortgage loan is normally shorter than a residential mortgage term. In most cases they will not extend beyond 20 years. In addition, the interest rates will be higher due to the increased risk to the lender. You can control the interest rate a bit by making a larger down payment to increase the instant equity in the property. This reduces the risk that the lender is facing in the event that you default on the loan. The property is much more likely to have a value in excess of the mortgage balance and the lender would be able to more easily sell the property to recover their invested funds.

Understanding the Fee Structure

It is critical that you understand the fee structure on any mortgage that you are considering. This is the most important information that you will use to compare the mortgages and select the one that best suits your needs. You can expect to pay between .5% and 1.5% in administrative fees for the loan. These can be called out as flat cost application fees, processing fees or simply added in as an administrative percentage. In addition there will be legal fees for document creation and review, insurance and surveys for the property. And finally there might be fees for early pay off on the mortgage. Commercial lenders are making money from the interest that they charge and are not willing to forego that money if the borrower pays the loan off early.

Complete Your Due Diligence

As with any large commitment, you need to invest your time in learning the process and learning about your options before commencing. This will include learning about lenders, brokers and the commercial real estate market in your area. With a strong foundation of knowledge you will be able to make wise financial decisions about purchasing a commercial property.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Facts to Know Before Applying for a Commercial Mortgage Texas

Purchasing a commercial property is a more lengthy process than making a residential property purchase. Understanding a few facts about a commercial mortgage Texas will help you to be more successful when submitting your applications.

When you are applying for a commercial mortgage Texas from a conventional bank, you will likely be working with the commercial branch of the lender. This means that you will be working with higher interest rates and more restrictive conditions and qualifications than the residential side offers. This is due to the increase risk that a commercial mortgage Texas represents for the lender. This risk is due in part to the volatility of commercial property values and also in part to the connection between economic conditions and a business’s potential for success.

You will also learn very quickly that a commercial mortgage Texas offers a lower loan to value ratio. This means that you are only able to borrow around 70% of the actual value of the property. So you will need to have the cash available to make the more substantial down payment. The reason for this large down payment circles back to the volatility of the commercial property values. Because the loan is secured by the property that you are purchasing, it is the collateral, the lender wants to be sure that there is instant equity in the property. This is the final safety net for the lender in the event that you default on the loan the lender is forced to sell the property to recover their money.

You will also discover that commercial loan terms are much shorter than residential mortgage loan terms. A typical home can be financed for 30 years but most commercial property loans are written for a term or 15 to 20 years. With these shorter terms it is very critical that your business be able to demonstrate steady cash flow and the continued ability to make the payments on the loan.

There Are Many Costs to Pay

As a residential borrower, you are familiar with the cost of the interest on the loan and the points that you might have paid at closing. But a commercial property mortgage can have a lot more fees. And some of those fees might be due upfront or hidden deep within the loan document. Be ready to pay a loan application fee, a loan processing fee, survey costs, appraisal fees and even environmental testing to ensure that the property is not contaminated. Because the process is much more intricate than a residential loan processing, there are many more administrative and legal fees that are involved. And as you might expect, the lender is going to pass all of those costs on to you, the borrower.

Knowledge is Critical

Undertaking your first commercial property loan application can be intimidating. But taking the time to learn the terminology, the process and the qualifications for a commercial loan will help you to understand why the long process is necessary. It can also help you to tailor your application to meet the specific interests and needs of each lender that you might choose to work with.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

4 Tips for Securing SBA Commercial Loans Texas

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

It can take a lot of time and patience to be approved for SBA commercial loans Texas. But the low interest and down payment requirements as well as the very favorable repayment terms make it worth the extra effort. But to be more certain that you are going to get approved, you need to follow a few tips to make your application stand out from the crowd.

Having your credit and finances in order before you apply is critical. You want to do all that you can to improve your credit score prior to beginning the application. Be sure that you have not maxed out your credit and that any debt that you owe is being paid off ahead of schedule. Your goal should be to get your credit utilization under 30% to get the most favorable review from the SBA lenders.

Having all of your documentation in order prior to starting your commercial loans Texas application will make the process less stressful and more rapid. SBA lenders are notorious for requesting very detailed financial information about your company and about the owners. Having that packet prepared and ready to submit will show all lenders that you have invested time and effort into the process already and are prepared to answer any additional questions that they might have for you.

Be Ready to Relate Your Story

Seeking commercial loans Texas is much like trying to land a client. The lender will have many of the same questions that a potential client might have. They want to know about your business, your industry and why you are the expert that they should put their faith in. A customer wants to know that you will do a good job because they are going to pay you for your product or service. A lender wants to know that you will do a good job because they want your customers to continue to pay you so that you can repay your loan. Also be ready to answer any questions that the lender might have about your business plan or business model. Explaining this information will demonstrate your knowledge and skill in working within your industry and in business in general.

Don’t Be Afraid to Shop Around

Not all SBA lenders are the same. So you will want to be sure that you explore all of your options and the lenders who are working with the SBA. This will ensure that you select the best lender to meet your current and future needs. Being comfortable with the lender is important and so are the terms that they are offering you. Take some time to get to know the lenders and determine who might be the best fit for you. A smaller regional lender might be a better fit for a new company or a smaller loan amount. Following these few tips can make the process a little faster and much more successful.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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

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Sunday, October 1, 2017

Tips on Getting Commercial Loans Texas

Getting commercial loans Texas is not as simple as many business owners might think. There are many tips out there but the best all center on being prepared.

Manage Your Time

More Knowledge is Always Good

Tips for Building a Relationship for Commercial Loans Texas

When you begin to think about applying for commercial loans Texas you should immediately begin to work on building some important relationships. Commercial lenders can provide you with more than just the loan that you are looking for.

Be Honest From the Beginning

Commit to Full Disclosure

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

Guide to a Commercial Mortgage Texas

When you are considering a commercial property purchase, you also need to consider your options for a commercial mortgage Texas. Knowing the requirements and the process can be a great help in selecting the best lender to work with.

Understanding the Fee Structure

Complete Your Due Diligence

Facts to Know Before Applying for a Commercial Mortgage Texas

Purchasing a commercial property is a more lengthy process than making a residential property purchase. Understanding a few facts about a commercial mortgage Texas will help you to be more successful when submitting your applications.

There Are Many Costs to Pay

Knowledge is Critical

4 Tips for Securing SBA Commercial Loans Texas

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

Be Ready to Relate Your Story

Don’t Be Afraid to Shop Around

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.

Have Supporting Documents

Tell Your Story

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