Learn To Be A Fix & Flip Investor

Tuesday, October 17, 2017

The Best Ways on How to Evaluate Commercial Real Estate Financing Options

Before taking a dive into a big investment, it is a good idea to understand all of the difference between all of the different types of commercial real estate financing. Some of these types include office space, retail space and plenty of more properties.

Believe it or not, office spaces happen to be one of the most popular options to invest in. These buildings are broken up into three different classes and include single tenant offices and skyscrapers. If you're thinking of looking into commercial real estate financing for an office space, make sure to do plenty of research so that you know you are making the right decision. You will be able to find plenty of information on the property you are interested in so that you can get a better idea if it is going to be a smart investment.

Retail buildings and industrial buildings are also popular types of commercial real estate properties. Since retail buildings can range anywhere between a tiny 5000 square-foot space to a larger 350,000 square-foot space, commercial real estate financing options can definitely range. Warehouses and other industrial buildings are more commonly involved with investment opportunities.

Another popular commercial property you can invest in our multifamily units like apartments and condominiums. These buildings compared to office buildings or even retail buildings are a little different when it comes to the lease terms. The terms for these units are usually much shorter, so always keep that in mind. Also, keep in mind that usually the best properties are going to be in high demand, so it is best to focus on factors like location and property value.

Commercial Real Estate Financing can come with many benefits if executed right

When it comes to commercial real estate financing, you need to first decide if you want to go at it as an individual or with entities. Entities like corporations, partnerships and developers are often where the majority of investments stem from. But with the right documents and providing impressive numbers, you will be able to complete the application process easily as an individual as well. With the right numbers and documentation, individuals can still receive approval.

When done successfully, commercial real estate financing can be a win-win solution for all involved

Before taking a leap into your next investment, you must remember to take a lot of things into consideration. You need to first decide if you want to go about it as an individual or with entities. Next, you also have to consider if you are going to use the finances for an office space, for multiple units or for another type of property. There are many different options you can choose from and it is best to just evaluate the entire agreement to make sure it is in line with your plans and long-term business goals.

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

Many Are Eager to See if Commercial Real Estate Financing Will Finally Bounce Back Towards the End of the Year

With the third quarter coming to a close quickly, many are hoping that the start of the fourth quarter will bring a boost to commercial real estate financing. Due to a slow start at the beginning of the year, the market has not quite recovered and there are a number of reasons that the industry is seeking improvements.

The numbers for the third quarter will be reported soon, but if we take a look back at the second quarter numbers, the commercial real estate financing in New York actually saw a decline, but it was extremely masked by massive size loans that were for just a few number of commercial real estate properties in the Big Apple. And because of the large size of these loans, many people didn’t even really notice the decline.

For example, one of the largest commercial real estate financing deals in New York happened to be the renovation of the well-known General Motors Building. The building is located on famous Fifth Avenue and is now home to an Apple store, which makes it the technology company’s flagship Fifth Avenue location. The deal was completed over the summer in June with a $2.3 billion-dollar price tag for the loan.

In May, the property located at 245 Park Avenue received $1.2 million dollars in commercial real estate financing. These two loans, along with a couple of other also larger loans happen to be significantly larger than any of the other loans approved in the New York City area during that quarter. Meaning that the top five loans in the city in the second quarter went on to total 20% (that is 1/5^th!) of the total loan amount for the entire quarter.

Commercial real estate financing didn’t see successful numbers in the second-quarter, but it also didn’t see a drastic decline

The numbers for the second quarter in New York City technically fell flat according to Forbes. But some of the good news is that after seeing a 12% dip from the second quarter in 2015 to the second quarter in 2016, the market has actually stayed stable, not really seen a declining shift. But considering that the top five loans made up 20 percent of the total loans, the numbers actually do show a slight decline, but nothing too extreme.

High expectations are still set for commercial real estate financing for the rest of 2017

But these numbers shouldn’t get you too worried or discouraged! They don’t necessarily mean that a slump is on the way and will be a common trend. It just means that the market experienced a bad quarter, but can hopefully it can bounce back quickly. The market just need to continue to focus on moving forward, but with caution, and keeping in mind the large amount of loans that are being approved.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips on How to Effectively Find the Right Commercial Lenders for Your Business

Commercial lenders are there to lend a helping hand when companies need extra assistance with financing. But not every borrower is experienced enough to know what to expect when looking for the right lender for their business goals.

Sometimes your company needs some extra financing to restructure or even expand your business. Working with commercial lenders can be different in every scenario, but there are some basics to always remember when looking for extra finance help for your business.

After you have done some brainstorming and plenty of research, it is time to design a detailed plan for how you want to finance your project. It is wise to start this process by looking for commercial lenders in your area. Location is important and looking for local help is extremely beneficial because they will know the area well and understand all of the local regulations when it comes to financing. Dealing with a skillful and knowledgeable professional will help this daunting process go a lot smoother.

At the beginning of the process, after you find someone local to work with, be prepared when you go to meet with them by giving a complete outline of your project plans. The outline should include things like that estimated cost of the project and a summary of all of the future projections along with as much background information as possible of all the properties and people involved in the process. You may think that all of that time making a plan could go to waste since It may not always go beyond the preliminary review. But keep in mind that it is a good way to organize your thoughts and ideas on paper and a denial early on may cause you to reflect on your project to see if any changes should be made. You might be getting denied for a reason!

Commercial lenders should offer their best advice to borrowers

After the review process is complete and the lender is ready to move forward with the rest of the process, they should be available to offer any support and advice that is needed. Every borrower needs to fully understand all of the terms in the agreement. So, it is crucial to look for help from someone you can trust, that is dependable and is able to answer all of your questions.

There are plenty of things to consider when looking for commercial lenders

It can often be a time-consuming and stressful task to look for commercial lenders. Then after you find the right one, you have to go through the whole process of the application and working out the terms. It may seem impossible for this whole process to go smoother, but if you spend some time really thinking about your financial plan and design an outline that will be easy to move past the preliminary review, then you are half way there! Finding the right person to work with your business and your finances is going to be important for a pain free loan process from application to closing.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

A Few Things Borrowers’ Should Consider When Selecting Successful Commercial Lenders

A handful of borrowers are looking for more than just a trusting relationship when it comes to choosing commercial lenders. The whole lending process, from the start of the application to the very last day of closing, has become more of an interview process, with a lot of competition!

Since there are a number of commercial lenders that borrowers can choose from, this is leading to borrowers becoming more and more picky when choosing the right lender to help them with their finances. Borrowers have always wanted to get the best deal or at least a fair price along with reasonable terms, but they are looking at a lot of other variables besides just the best deal.

Being able to have a variety of customizable options plays a big role when it comes to borrowers picking the right lender for them. A one-size fits all plan obviously doesn’t work for every company, and they know this! This then leads to them wanting to see more specific options that will help them reach their business goals. This is where the top lenders come in and will be able to sit and listen to the needs of their borrowers. They are there to give them the best advice and options that suit their business goals.

When it comes to dealing with commercial lenders, the response time is always crucial. We live in a very fast-paced business environment, where technology is at the top of our fingers and constantly changing. Of course, there is going to be various response times, like when it comes to proposal delivery time to the time it takes to deliver all of the closing documents. If a lender can accomplish these steps in a timely and quick manner, then they will stand out from the other lenders.

The trust and dependability of commercial lenders are always benefits that every borrower looks for

Whenever you are dealing with someone and your finances, you want to make sure you establish plenty of trust early on along with dependability. This makes for a strong relationship and even the possibility of a lasting relationship with commercial lenders. Even when the news isn’t always the best, lenders need to be up front and honest with their customers, which in return will earn their respect. It is valuable to find someone you can communicate openly with about your financial decisions.

Commercial lenders need to be the real deal to stand out from all of the other lending competition

Borrowers are looking for relaxed credit terms and low prices, but they take many other factors into consideration when choosing the right lender to deal with. Variables like having options, a fast response time and building a trusting relationship are just as important to borrowers as finding a good deal.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Prepare for When You Need to Work with a Commercial Lender

At some point in your life you may need to think about working with a commercial lender. You want to make sure that you have clear expectations and know what you are doing when it comes to all of your financial decisions. That is why it is best to be prepared and keep an open line of communication at all times.

A commercial lender offers a variety of loans, but they all pretty much have the same factors that all lenders look at when evaluating companies for approval. It usually comes down to the 3 C’s: Character, Cash flow and Collateral. The 3 C’s are an effective and useful way to understand the lending process.

Often times the character of the borrower plays a large role when it comes to being accepted for loans. Lenders want to make sure that the borrower they are lending to is trustworthy and will be able to pay back the loan without much hassle. This is where credit score and bankruptcy history play a big factor in the decision of the approval. If the loan is for a larger amount, your business credit score could also play a role in getting accepted. But, the overall character of the borrower is what will really comes into play during the decision process.

The next C of the 3 C’s of lending is cash flow. A commercial lender never wants to have to be forced to foreclose on a loan, so they need to thoroughly research the borrower’s cash flow. Looking at a borrower’s cash flow is something that every lender will most likely do and will always put into high consideration when deciding on approval. Also, the predictions of future cash flow are going to be evaluated, so be sure to keep your long-term financial goals in mind and always have a plan.

Collateral also plays a large part when it comes to get getting approved for a loan from a successful commercial lender

Luckily, for most inexperienced borrowers, collateral doesn’t really play a significant role in getting a loan approved, even though a commercial lender does take collateral into some consideration. However, all lenders are all different, so some will be more likely to accept deals that come with a stronger collateral. But collateral is very rarely a deal breaker. s long as you can provide the right documents with proof of substantial cash flow and a good credit score, you have a high chance of being approved.

But if a loan is on the verge of denial, a commercial lender might then take collateral into even a higher consideration

Sometimes a financial deal may lack strong cash flow along with a less than impressive character, leaving some loan decisions to rely heavily on collateral. This will of course lead to more expensive financing in the end because of the higher risk. It is a good idea to offer high collateral if for some reason, you think your cash flow and credit score is going to play a role in denial, but make sure to take into consideration all of the terms so that you know that the deal is worth the collateral.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, October 15, 2017

The ABCs of Working with a Commercial Lender

As you navigate the budget and necessary finances for keeping up with your business expenses, you may decide you need a loan. Working with a commercial lender can help ensure you get the best loan, and terms, for your business.

There is no reason to be hesitant to work with a commercial lender because there are many reasons they can benefit your loan process, versus hinder it. Quite frankly, they can save you time and money. While yes, you do have to pay a fee to a broker for their professional services, there expertise is well worth the minor expense, and using a lender will save you the hassle and frustration of trying to obtain a loan on your own if you are not familiar with the process.

Working with a lender has many benefits. Using a commercial lender allows you to refocus your time, energy and efforts back where they belong — on your business. If you are too busy trying to figure out how to get a commercial business loan on your own, you may be distracted from the important tasks of managing your business, getting out and meeting new clients, and branching out into new markets. Using a lender allows you to be where you are supposed to be – building your business.

Along with saving you time and hassle working with a lender can save you money – most small business owners would agree that money is something they have little of to waste, so why would you want to waste money trying to obtain a loan on your own, when it’s a lender’s area of expertise to find you the lowest interest rates, fees and other costs that are associated with a loan. They can also serve as a trusted advisor if you have questions about finding an appraiser, a lawyer to look over your loan documents and the like. Having a lender you trust is an invaluable asset to getting the best loan for your business.

Finding the right commercial lender is easier than you think.

Asking other business owners, doing some research online and actually meeting with lenders to see if you get a good feeling about their services are all good ways to find the right lender for you and your business needs. Don't sell yourself short when meeting with lenders. Ultimately, this is your choice and you will be working on a complex transaction with this lender so you should form a good working relationship.

Don’t waste time with a lender who is not willing to work in your best interest.

Working with a lender should result in a win-win situation. You should feel confident that the lender you are working with is going to get you the best loan. They should have expertise in your specific loan type, as well as your business’s industry. They should also be able to give you references if you request them. Customer service is another indicator if you’ve found the right lender – answering your calls and emails, in a timely, professional and courteous manner is important too.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Cons of Having Commercial Mortgages and How to Avoid Them

Even in today’s technological world of internet-based companies, there is still a vast need for brick and mortar businesses. When it comes time to obtain commercial mortgages on building for your company, it’s important to be aware of some of the risks and downsides, so you can try to avoid these pitfalls.

Finding a “home” for your business is a thrilling part of any new or growing business. The location, the building itself and many other factors go into how you will select the property you decide upon. And when you finally move from being a renter to an owner… that is a very unique feeling. However, even if you have a popular product or successful business, there are some things you need to consider when it comes to purchasing property and taking on commercial mortgages for your company.

First of all you will be responsible for more than just your monthly mortgage on your new property. You will likely be responsible for a sum of the property upon initial purchase. For many small businesses, coming up with the cash to front this initial down payment can really put a crimp in their budgets. Typically, about a fifth of the value of the property will be required of you as the business owner.

In addition to your usual business costs, there will also be plenty of other additional expenses associated with your new commercial mortgages. These expenditures can come in to the form of marketing your new brick and mortar store or new location. You also may need to hire more people, which means your payroll just went up.

Sometimes just renting is the way to go as opposed to owning and having commercial mortgages.

As a renter, you are typically not responsible for much more of a down payment beyond the first and last month’s rent. As a renter you may also have the benefit of having a property manager to fix and repair building issues that as a building owner, you would be financially responsible for. There is some additional risk associated with ownership in the case of a natural disaster that could potentially put you out of business for some time as you fix the issues and eat the cost of any inventory lost as a result.

A final “downside” to owning a property versus renting is the commitment that you might not be able to get out of.

Once you purchase a property via a loan, it’s yours and you have to commit to repaying that loan for as long as the terms specify. Even if your company hits a slow patch or even goes out of business, you are responsible for paying the mortgage on that property. While you can try to sell the property, that can take time and you may not be able to get the value of the property that you need to be able to repay the loan. While there are some “cons” to consider, there are also many benefits of owning your own property, such as earning equity. Weigh your options before deciding to take on a mortgage for your business, or just rent.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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Tuesday, October 17, 2017

The Best Ways on How to Evaluate Commercial Real Estate Financing Options

Before taking a dive into a big investment, it is a good idea to understand all of the difference between all of the different types of commercial real estate financing. Some of these types include office space, retail space and plenty of more properties.

Commercial Real Estate Financing can come with many benefits if executed right

When done successfully, commercial real estate financing can be a win-win solution for all involved

Many Are Eager to See if Commercial Real Estate Financing Will Finally Bounce Back Towards the End of the Year

Commercial real estate financing didn’t see successful numbers in the second-quarter, but it also didn’t see a drastic decline

High expectations are still set for commercial real estate financing for the rest of 2017

Tips on How to Effectively Find the Right Commercial Lenders for Your Business

Commercial lenders are there to lend a helping hand when companies need extra assistance with financing. But not every borrower is experienced enough to know what to expect when looking for the right lender for their business goals.

Commercial lenders should offer their best advice to borrowers

There are plenty of things to consider when looking for commercial lenders

A Few Things Borrowers’ Should Consider When Selecting Successful Commercial Lenders

A handful of borrowers are looking for more than just a trusting relationship when it comes to choosing commercial lenders. The whole lending process, from the start of the application to the very last day of closing, has become more of an interview process, with a lot of competition!

The trust and dependability of commercial lenders are always benefits that every borrower looks for

Commercial lenders need to be the real deal to stand out from all of the other lending competition

How to Prepare for When You Need to Work with a Commercial Lender

Collateral also plays a large part when it comes to get getting approved for a loan from a successful commercial lender

But if a loan is on the verge of denial, a commercial lender might then take collateral into even a higher consideration

Sunday, October 15, 2017

The ABCs of Working with a Commercial Lender

As you navigate the budget and necessary finances for keeping up with your business expenses, you may decide you need a loan. Working with a commercial lender can help ensure you get the best loan, and terms, for your business.

Finding the right commercial lender is easier than you think.

Don’t waste time with a lender who is not willing to work in your best interest.

The Cons of Having Commercial Mortgages and How to Avoid Them

Sometimes just renting is the way to go as opposed to owning and having commercial mortgages.

A final “downside” to owning a property versus renting is the commitment that you might not be able to get out of.

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