Learn To Be A Fix & Flip Investor

Sunday, September 24, 2017

Commercial Lending from the SBA

Commercial lending through the Small Business Administration has many advantages for your business. But you will want to be sure that you understand the guarantee fee and other loan fees.
Any time you are researching commercial lending options, you need to be fully aware of the entire fee structure of each lender to be certain that you are selection the best option to meet your needs and your budget. In most cases the SBA is not the lender, but they do offer the lender a guarantee on certain types of loans. The cost of the guarantee is then passed on to the borrower. But the benefits to this type of loan are the lower interest rate and the longer repayment term.
Normally the SBA will guarantee between 75% and 85% of your loan and that is the amount that they use to calculate the guarantee fee. A very short term loan of less than a year will have a rate of .25% for the guarantee while longer term loans can be calculated at a rate up to 3.75%. This process is in place for all SBA 7a loans. There are also some additional fees that can apply to a 7a loan as well as other loans offered through the SBA.
There is an origination fee that can range from .5% up to 3.5%. The percentage that you will pay is determined by the lender that you are using as well as the size of the loan that you have requested. You will also be paying a loan packaging fee. This is a service that is provided to you to help improve your chances for approval during the commercial lending application process. In most cases borrowers are not familiar with the process or the amount of documentation that is required for approval. The application package represents your first impression to the lender and is critical in a successful loan. The broker fees and service fees are fairly self-explanatory. These are similar to any loan that you would ever apply for and it covers mostly the administrative side of the process.
Understanding Closing Costs
Commercial lending closing cost tend to cover a more broad scope than you might think. These are the fees that pay for any appraisal that might be needed, determining the valuation of your business, an environmental report for any property that might be included in the deal, the title fee for the property and any legal fees. It is very important that an attorney review all of the loan documents prior to you signing them. This ensures that you are protected and that the documents are all legally binding to all parties involved.
When the Fees Are Paid
As you read through the list of fess that can be included in an SBA loan, you might begin to worry about the total cost and how you might be able to afford to pay the amount up front. But another benefit of working with the SBA for a loan is the fact that the guarantee fees and origination fees are rolled into your loan and paid over the term of the loan. The only fees that you must prepay are the appraisal fee, the business valuation fee and the environmental fee. The title fee, loan packaging fee and the attorney fees are normally paid at the closing of the loan.

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

Saturday, September 23, 2017

States are suing federal regulators: What is the future for Fin-tech?

The Office of the Comptroller of Currency is being sued by state regulatory agencies for its efforts to provide special charters to non-bank alternative lenders. The future of non-bank commercial lending remains uncertain. As competing regulatory interests squabble, consumers are still left without basic protections.
States regulators, under the banner of the Conference of State Bank Supervisors, are suing the Office of the Comptroller of Currency (OCC) over the agencies proposal to issue special bank charters to non-bank alternative lenders. Opponents of the OCC’s efforts claim that under the National Banking Act, the OCC can only charter traditional depository institutions. John Ryan head of the CSBS claims, “ If the OCC is allowed to proceed with the creation of a special purpose nonbank charter, it will set a dangerous precedent that any federal agency can act beyond the legal limits of its authority.” Applicants for the OCC charter would need to meet the similar standards as traditional banks in terms of capital, liquidity, governance and regulatory compliance. The charter would label alternative lenders who qualify as special purpose banks, putting them under the same regulatory purview as traditional banks. States see the OCC’s proposal as a direct threat to their authority to regulate alternative lenders.
The issue comes down to the apparent need for a uniform regulatory frame-work for non-bank lenders. The OCC claims offering the charter is just the first step in efforts to encourage responsible innovation and to protect consumers in the growing alternative lending industry. The special charter would be optional and a way for alternative lenders to distinguish themselves from the competition. Securing a charter could allow qualified lenders to skip the state-by-state licensing process currently in place. State regulators argue that existing frame-work has worked thus far and that states are in a better position to regulate the growing industry. According to Ryan, "State regulators already supervise a vibrant financial services marketplace that includes non-banks and banks. That regulatory structure has produced a robust platform for innovation.”
This debate illustrates just how far behind US regulators
are when it comes to the Fin-Tech industry.
The OCC’s proposal is merely first step to provide a uniform set of regulations for the alternative lending industry. Similar frameworks already exist in places like Hong Kong and the UK. These countries were able to take preemptive steps to protect consumers. In the US creating a consistent set of regulations is far more difficult because there are so many overlapping interests. But the lawsuit and the debate over state vs federal authority, should be settled in order to protect consumers and the industry as a whole. Going forward a uniform, but adaptive regulatory frame work is needed. The OCC should lauded for taking tentative steps in this direction.
While regulators squabble over who can regulate alternative lenders, consumers lack basic protections.
Basic consumer protections are needed in the Fin-Tech industry. State and federal regulators should stop sparring with one another and take concrete steps to establish a sensible set of rules under which alternative lenders can operate. The OCC efforts to give consistency through a standardized charter is an encouraging first step in this direction. Good regulation in the future would recognize the diversity within the industry as a whole, adapt as the market changes and not place an overwhelming burden on start-up lenders. The federal government and states need to work with one another, to protect consumers rather than engaging in pointless turf-wars.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Using Seller Financing to Purchase Texas Commercial Real Estate

Seller-financing can save both buyers and sellers the hassle of applying for a traditional mortgage. But both parties should be comfortable throughout the process.
Seller financing is just what it sounds like, the seller takes out a loan to enabling the buyer to purchase the property. The process involves the buyer and the seller executing a promissory note, which specifies the interest rates, payment schedule and the consequences of default. Essentially the buyer pays the mortgage directly to the seller. This process takes banks out of the equation and can help potential buyers who wouldn't otherwise qualify for a traditional mortgage.
Sellers potentially could sell the property faster by offering financing up front. This can save them the time of waiting for the right buyer to come along and purchase the property. Because the terms of the mortgage are arranged directly between the buyer and seller, there is no need to wait for bank approval. The removal of banks from the equation reduces closing costs as there is no need to pay bank fees or wait for an appraisal. The terms of the down payment are arranged between the buyer and the seller, potentially meaning less money is needed up-front. Seller financing therefore could be an ideal arrangement for new real estate investors without a good credit profile or an established track record.
Seller financing is rare and if you want buy
Texas Commercial Real Estate this way ensure
that the seller is comfortable.
Seller financing is uncommon because so many people are unfamiliar with it. Sellers themselves are often uncomfortable with this arrangement. Because of this, seller financing is usually only offered in markets where traditional mortgages are hard to come by. In strong markets buyers seeking seller financing may seem untrustworthy. But if you are a buyer and if seller financing isn't offered directly, you can always ask for it. Ensure the seller understands the financial benefits in clear terms and ensure they are comfortable with the process. Sellers may see a drawback because they don't get the full asking price up front. If this is the case you can explain that they can sell the promissory note to other investors, which means they will get the full asking price immediately.
Even with banks removed from the process you will still have to prove your worth as a borrower
Both parties may have a shared interest in avoiding the traditional mortgage process. But you will still want to convince the seller that you are trustworthy. If you want to initiate seller-financing, you may need to explain why you couldn't qualify for a traditional mortgage. However essentially the terms of seller-financing will largely depend on your ability to establish a good relationship with the seller. Of course always consult with qualified experts throughout the process. Don't use templates found online in order to make any agreement. Have a lawyer draft the arrangement in clear terms so that both you and the seller are protected.
The advantage of having a potentially lower down payment makes seller financing an ideal arrangement for those seeking to purchase commercial property for the first time. Seller-financing also saves you the expense and hassle of applying for a mortgage from a traditional bank. However if a seller isn't offering financing up-front, it is vital that you to a good relationship with them before pursuing this arrangement.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Impact of Dodd-Frank Regulations on Texas Commercial Mortgage Backed Securities

Issuers of Texas Commercial Mortgage Backed Securities (CMBS) this year have faced Dodd-Frank risk-retention standards for the first time. What has the impact been so far this year and what might these regulations mean for the Texas Commercial Mortgage market in the future?
Regulations came into effect at the end of 2016 requiring the issuers of CMBS bonds to retain a five percent stake in every deal, sell off their stake to a third party or both. The regulations create an additional cost for CMBS lenders. Some feared these regulations would make CMBS backed mortgages more expensive for borrowers, but so far this hasn't been the case. Instead the CMBS market has apparently become more concentrated, with only the largest financial institutions seemingly able to adapt to the new regulations.
The risk-retention regulations are clearly a boon to larger banks. Smaller CMBS issuers are apparently being pushed out of the market. In 2015 the top five CMBS issuers were responsible for 43 percent of the 93 billion dollars in CMBS loans issued. In 2017 these big players are responsible for 61 percent of all CMBS financing. The total number of players in the industry is down as well. In 2015 38 lenders were active in the CMBS market. This year only 21 institutions are issuing these types of mortgages. These numbers indicate a less competitive industry. It is possible that less competition will help improve underwriting standards, as CMBS issuers won't be competing to take advantage of lending opportunities. But securitized commercial mortgages could also become more expensive.
The CMBS market seems to have adjusted to the new requirements, but
in the long run the expense of the new regulations could have change the lending landscape.
CMBS issuances are up 22 percent compared to last year. Even though it seems the industry has adjusted to the risk retention requirements, in the end the regulations make CMBS lending more expensive. Simply put, banks might want to keep more mortgages on their balance sheets rather than selling them off as securities. This makes commercial mortgages less lucrative and potentially riskier for banks. The blanket requirement of a 5 percent stake means that no matter the size of the loan, banks will still have to hold onto or sell-off five percent of it. In effect the smaller the mortgage issued, the less expensive it is for CMBS lenders. This could translate into smaller mortgages being issued by CMBS originators or the need for greater recourse on the part of borrowers.
While the CMBS market has adjusted to the new risk retention requirements. The regulations likely will compel borrowers to look elsewhere for financing.
Alternative lenders, private equity firms and Real estate Investment Trusts (REIT’s) are not subject to the new risk retention requirements . In the future these sources of financing will undoubtedly become strong competitors to CMBS issuers. These groups will inevitably be able to offer more favorable terms and more money to potential borrowers. Considering these trends it seems the risk-retention requirements have only shifted the risk into more unregulated areas of the Texas Commercial Mortgage market.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Buyers could get a break under revised appraisal regulations

Regulators recently proposed raising the threshold on real estate transactions needing an appraisal. The new requirements could save borrowers both time and money.
Federal regulatory agencies, such as the OCC and the FDIC, are proposing raising the value threshold at which commercial properties be must appraised. Currently any commercial property valued above 250,000 must get a detailed appraisal before any mortgage can be approved. The new threshold would require commercial properties valued above 400,000 dollars to get an appraisal. The revision was spurred by EGPRA (Economic Growth and Paperwork Reduction Act), an act that requires financial regulators to reconsider existing regulations every decade..The American Bankers Association in particular advocated for this change. The new appraisal standard is meant to reflect both inflation and the increased price of Texas Commercial Real Estate since the threshold was last revised over two decades ago.
According to the FDIC the new guidelines will ensure that roughly 28 percent of Texas Commercial Real Estate transactions won't require an appraisal. Under the new guidelines properties like farms, warehouses and small storefronts valued under 400,000 dollars would only be required to get an evaluation. This process is less detailed and doesn't require a certified appraiser. The change will certainly make things easier for buyers and banks in rural areas where certified appraisers are hard to come by. According to FDIC Chairman Martin Gruenburg, “(This) will be a meaningful reduction in regulatory burden, particularly for rural banks who would be expected to originate many of these smaller transactions.”
The revised appraisal threshold could benefit both banks and
borrowers involved in Texas Commercial Real Estate
An appraisal on a commercial property is both expensive and time consuming. A thorough appraisal can cost upwards of 25,000 dollars depending on the property. Appraisers are certainly against the proposed change claiming it could undermine the soundness of the market. Jim Amorin head of the Appraisal Institute claims “The agencies’ proposal contradicts federal bank regulators’ concerns regarding the state of the Texas Commercial Real Estate market and the quality of evaluation reports.” However raising the threshold will likely only smooth out Texas Commercial Real Estate transactions in the future. Potentially making the Texas Commercial Mortgage process faster and less expensive. Considering how the market has changed since the threshold was last raised, It is unlikely the change will threaten the soundness of the real estate market.
It is important that regulations adapt to the market, revising the appraisal threshold does just that.
Whether or not the proposed change goes into effect it seems necessary that regulations reflect the dynamic and continuously changing Texas Commercial Real Estate market. In spite of the firm objections of appraisers who claim a thorough appraisal is necessary to establish the value of a property, the soundness of the real estate market will likely only be minimally impacted by the proposed change. Factors like inflation have raised the value of Texas Commercial Real Estate transactions since the guidelines were last revised. Eliminating the need for an appraisal in transactions of less than 400,000 dollars may be a small step but it will undoubtedly save banks and borrowers both time and money.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, September 21, 2017

Using a Self-Directed IRA to purchase Texas Commercial Real Estate

Did you know you can invest in real estate as a means to fund your retirement? A self-directed IRA enables you to invest in real estate, gaining potentially greater returns than traditional investments.
Establishing a Self-Directed IRA allows you to use retirement funds in order to purchase real estate. The IRA account holds the investment and the property is managed by a custodian. Even though an outside party is directly responsible for maintaining the property, a self-directed IRA gives greater control over your retirement. Using a self-directed IRA to invest in Texas Commercial Real Estate can offer significant returns over traditional investments.
The first step is to establish a Self-Directed IRA LLC. This entity acts like a corporation or ta rust which will own the property you want to purchase. If you have enough money in your IRA account on hand, you can purchase the property for the full asking price. If you don't have enough money in your IRA, you can seek out other investors. The IRA can purchase an interest in the property. Owning a specific percentage of the property alongside other investors. . You can even borrow against a self-directed IRA .However any mortgage taken out in the name of the IRA must be non-recourse, meaning the property itself must stand as collateral.
This method of investing in Texas Commercial Real Estate comes with very specific restrictions. Above all, income and expenses related to the property, must go to and originate from the self-directed IRA account. A custodian approved by the IRS must manage the account. The custodian approves the release of funds from the account and tracks all income related to the property. You can have no involvement in maintaining the property. Even replacing a light bulb could put you at risk of breaching the terms set by the IRS. Obviously you cannot gain a direct benefit from the property. This means you can't use the property as a vacation home. Borrowing against a Self-directed IRA means you will have to pay unrelated business income tax on any income earned from the property. Before pursuing a self-directed IRA, educate yourself so you can get a better understanding of these restrictions involved and always consult with experts
These restrictions create some drawbacks, potentially leaving limiting your control over your investment
.
The fact that the custodian must approve the release of funds from the self-directed IRA account is a potential limitation on your ability to invest in the property. Because you can't be directly involved with maintaining the property you will likely have to hire a property manager .This potentially creates an additional expense. If you borrow against a Self-Directed IRA you will have to pay taxes on any income from the property. Thus negating the main benefit of a Self-Directed IRA
The main benefits of a Self-Directed IRA are tax related
Using a self-directed IRA to invest in Texas Commercial Real Estate could enable you to establish a steady stream of tax deferred income to fund your retirement. The fact that the IRA is the holder of the property, protects your assets from bankruptcy. Above all a self-directed IRA gives you greater control over your retirement. Investing in Texas Commercial Real Estate with a self-directed IRA could enable greater returns above and beyond traditional investments. But with the potential for greater rewards, there is also greater risk. It is important you have detailed knowledge about Texas Commercial Real Estate before pursing this investment method.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Master Lease Agreements: The right way to purchase Texas Commercial Real Estate?

A Master Lease Agreement allows real estate investors to earn money from a property without needing to purchase the property outright.
A Master Lease agreement is a unique way to invest in Texas Commercial Real Estate with potential benefits for both buyers and sellers. The arrangement involves the buyer leasing the building with an option to buy it in the future. The buyer gets the benefits of ownership, without having to purchase the property outright from the seller. This is a great way to test the profitability of an investment property without having to make a significant financial commitment.
First of all Master Lease Agreements allow you to avoid the lengthy approval process involved in bank financing. You won't need a down payment, so the closing costs are significantly lower. Additionally the terms of the Master Lease Agreement are arranged directly between the buyer and the seller. So potentially, the terms of a Master Lease Agreement could be more favorable than other, more traditional financing options. However the seller could potentially foreclose if you violate the terms of the agreement. If you haven't performed your due diligence, the sellers mortgage provider could trigger a due on sale clause and the property could go into foreclosure. Have detailed knowledge about the property and be sure to address any outstanding issues with the seller before pursing a Master Lease Agreement.
How does getting a Master Lease Agreement work when purchasing Texas Commercial Real Estate?
The seller of course must be willing to agree to this arrangement. When looking for a property to purchase by Master Lease Agreement look for terms like : “owner-motivated, creative offers welcome, seller-financing,” in the properties description. Consult with a realtor or seek out properties that have absentee owners. An absentee owner will likely find a Master Lease Agreement a favorable arrangement as they will get the benefits of your monthly lease payments and will no longer have to manage the property. Perform your due diligence throughout the process. Get an appraisal and do a title search to ensure there are no outstanding liens against the property. If the seller agrees to enter into a Master Lease Agreement with you, it is vital that you consult with an attorney to draw up the appropriate forms. Don't use templates or legal documents found online.
The main advantage of a Master Lease Agreement is the ability to test the feasibility of investing in a property without needing to purchase it outright
A significant down payment is often required to mortgage commercial property. The Master Lease Agreement lets you avoid making that significant investment up-front. Although you aren't purchasing the property outright you get any equity and cash flow the property produces above the terms of the lease agreement. In everything but name, you own the property. Any improvements you make are not added into the sale price if you choose to buy the property in the future. These make the Master-Lease Agreement an excellent option for new investors in Texas Commercial Real Estate.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips for Getting the best terms on your Commercial Mortgage

Before getting a Texas Commercial Mortgage know your credit score, have a large down payment on hand and have specific knowledge about the property you want to finance.
Knowing your credit score and taking steps to improve it is a vital to secure the best terms on your commercial mortgage. Ensure your score is as high as possible before beginning the application process. Once you know your credit score take concrete steps to improve it. Dispute errors and pay off outstanding debts. Your credit score will have a major impact on the terms of any mortgage you receive. Todd Huetner ,President of Huetner Capital claims “( A score) below 740, (and) it can start to cost you additional money for the same interest rate.” Fees could potentially range from a quarter of a percent to two percent of the total loan amount. If you cant raise your credit score to 740 you may have need to accept a higher interest rate on your mortgage. Another strategy is to seek out other investors in order to boost your credit profile.
You will likely have to make a substantial down payment on any commercial mortgage. Mortgage insurance doesn't cover investment properties. Therefore having a down payment, usually ranging from 20-25 percent of the properties total value is often necessary. A second mortgage is a possible way to raise the money needed for a down payment, but this is not an ideal strategy. You may need to get creative, cashing out old life insurance policies, using equity lines of credit or taking out private personal loans in order to secure the necessary down payment
Having a good credit profile and having a large down payment on hand
is vital to secure the best terms on any commercial mortgage.
But it is also vital that you know the property you want to finance.
The specific property, it’s location and it’s history will likely have an impact on the terms of your mortgage. Lenders prefer centrally located properties in urban or suburban areas. The lender will want to know if the property has existing tenants and what the terms of their leases are. The longer the term of these leases, the better your situation will be. Having long term tenants ensures consistent revenue and may help you negotiate better terms on any mortgage you apply for. Have knowledge about the historic occupancy rates of the property and a detailed understanding of the previous owners income. If you can establish that the property you want to finance is historically profitable, then your mortgage is considered less risky potentially and this could lead to lower interest rates
Factor in the need to make a large down payment and consider how this will affect you in the long run.
If the location doesn't have existing tenants it is important ask yourself if you can you pay the mortgage until you find businesses to occupy the space. In addition to having a substantial down payment lenders will often want potential borrowers to have six months of savings in reserve. To get the best terms on a traditional mortgage you will need an excellent score, have a large down payment and have substantial savings. Depending on your situation you may not meet these requirements and may want to consider other financing options. Nevertheless having an understanding of these facts, will likely help you leverage better terms on any Texas Commercial Mortgage you apply for.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, September 20, 2017

Is there a gap in commercial lending to small businesses?

Data indicates a decline in the smaller loans many small businesses need. Even with the economy in recovery after the Great Recession barriers to credit still persist for many small businesses.
There is a persistent gap in small business lending, particularly when it comes to traditional banks and to smaller loans. According the 2016 Federal Reserves Small Business Credit Survey, the top challenge small businesses faced was a lack of access to financing. Fifty five percent of these businesses sought less than 50,000 dollars in funds with 60 percent getting less money than they requested. All too often small businesses seek financing from traditional banks, the least likely institutions to approve small dollar loans. Traditional banks only meet 52 of the 80 billion dollar demand for small business financing and that number seems to be declining. Clearly smaller businesses requiring smaller loans are finding it difficult to get the money they need.
Small businesses, defined as any business making less than a million dollars in annual revenue, seek financing most often to fund new growth opportunities. 64 percent of small business owners sought loans to expand their businesses in 2016. Additionally many small businesses need financing to smooth out uneven cash flow. The median small business owner keeps just 27 days worth of cash in reserve. The gap in lending to small businesses not only hinders their ability to grow it also makes their day to day financial situation more uncertain.
This persistent decline in small business lending could be down to the impact of regulations on smaller community banks. These community banks are the preferred source of small business financing. The Federal Reserve in Minneapolis estimated that regulations made lending 30 basis points (one hundredth of one percent) more expensive for smaller banks holding less than 50 million dollars in assets. Whatever the impact of new regulations may be, community banks are being consistently consolidated by larger ones. There were just 5,170 banks in the US last year. This number is in stark contrast to the 11,463 banks that existed in 1992. Regulations and the resulting consolidation of community banks may be having an impact on the ability of small businesses to access credit.
The main problem is big banks are less likely to make the small dollar loans and consider small business lending risky.
Small business Texas Commercial Loans are inherently risky and considerably less profitable for big banks. Small business often don't have the detailed financial information traditional lenders require. Big banks often use a slew of statistics to determine whether or not a borrower is qualified. Many small businesses simply don't have the time or resources to gather this information. Without this information traditional banks consider small businesses risker to lend to than their larger counterparts. A million dollar Texas Commercial Loans takes an equal amount of resources to process as a small one. No matter the size of the loan the expense of underwriting is the same. Therefore big banks consistently issue larger loans because these loans are inherently more profitable.
The impact of regulations following the great recession and the consolidation of community banks means small business are finding it increasingly difficult to access financing.
The pressures of the recession may have abated in the banking industry, but the number of small dollar loans issued continues to decline. Community banks, which in the past, served the financial needs of small businesses are disappearing. In place of smaller banks, larger ones are emerging, which see small business lending as risky and expensive. Regulation, consolidation, a lack of information on the part of small business owners and the costs of underwriting are all likely factors to explain the decline in small business lending.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Featured Post

Sunday, September 24, 2017

Commercial lending through the Small Business Administration has many advantages for your business. But you will want to be sure that you understand the guarantee fee and other loan fees.

Understanding Closing Costs

When the Fees Are Paid

Saturday, September 23, 2017

This debate illustrates just how far behind US regulators

are when it comes to the Fin-Tech industry.

While regulators squabble over who can regulate alternative lenders, consumers lack basic protections.

Seller-financing can save both buyers and sellers the hassle of applying for a traditional mortgage. But both parties should be comfortable throughout the process.

Seller financing is rare and if you want buy

Texas Commercial Real Estate this way ensure

that the seller is comfortable.

Even with banks removed from the process you will still have to prove your worth as a borrower

Issuers of Texas Commercial Mortgage Backed Securities (CMBS) this year have faced Dodd-Frank risk-retention standards for the first time. What has the impact been so far this year and what might these regulations mean for the Texas Commercial Mortgage market in the future?

The CMBS market seems to have adjusted to the new requirements, but

in the long run the expense of the new regulations could have change the lending landscape.

While the CMBS market has adjusted to the new risk retention requirements. The regulations likely will compel borrowers to look elsewhere for financing.

Regulators recently proposed raising the threshold on real estate transactions needing an appraisal. The new requirements could save borrowers both time and money.

The revised appraisal threshold could benefit both banks and

borrowers involved in Texas Commercial Real Estate

It is important that regulations adapt to the market, revising the appraisal threshold does just that.

Thursday, September 21, 2017

Did you know you can invest in real estate as a means to fund your retirement? A self-directed IRA enables you to invest in real estate, gaining potentially greater returns than traditional investments.

These restrictions create some drawbacks, potentially leaving limiting your control over your investment

The main benefits of a Self-Directed IRA are tax related

A Master Lease Agreement allows real estate investors to earn money from a property without needing to purchase the property outright.

How does getting a Master Lease Agreement work when purchasing Texas Commercial Real Estate?

The main advantage of a Master Lease Agreement is the ability to test the feasibility of investing in a property without needing to purchase it outright

Before getting a Texas Commercial Mortgage know your credit score, have a large down payment on hand and have specific knowledge about the property you want to finance.

Having a good credit profile and having a large down payment on hand

is vital to secure the best terms on any commercial mortgage.

But it is also vital that you know the property you want to finance.

Factor in the need to make a large down payment and consider how this will affect you in the long run.

Wednesday, September 20, 2017

Data indicates a decline in the smaller loans many small businesses need. Even with the economy in recovery after the Great Recession barriers to credit still persist for many small businesses.

The main problem is big banks are less likely to make the small dollar loans and consider small business lending risky.

The impact of regulations following the great recession and the consolidation of community banks means small business are finding it increasingly difficult to access financing.