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

Showing posts with label commercial real estate loans. Show all posts

Sunday, October 1, 2017

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.

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

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

Thursday, September 28, 2017

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

After experiencing the devastation of Hurricane Harvey, some good news comes to the area. The city of Houston is eager to see the changes that will be made to one of their most popular and well-known office buildings in downtown Houston thanks to Holliday Fenoglio Fowler approving a commercial real estate loan in Texas
Located in the heart of downtown’s Houston Theatre District, one of the most recognizable buildings in the Houston skyline and even across the globe is going to be getting a new look, all financed by a commercial real estate loan in Texas funded by Holliday Fenoglio Fowler. The architectural icon is at 700 Louisiana in Houston’s central business district.
The 1.2 million square-foot office is 56 stories and was designed by Phillip Johnson and John Burgee. The building currently homes many law and financial services firms that benefit the Houston community greatly. Luckily, Hurricane Harvey had little impact on the business operations of the building, with all of the businesses in the building is back to their daily activities.
The borrower of the commercial real estate loan in Texas, M-M Properties worked closely with Holliday Fenoglio Fowler in a very detailed process to get the refinancing rolling. The impact of refinancing the well-known building is going to give it a higher property value by sprucing up the lobby and more.
Privately held real estate investment firm gets help with commercial real estate loan in Texas
With M-M Property having their headquarters based in Houston, they know how hard the area was hit by Hurricane Harvey. The property management company is hoping that this is a positive event happening after such a devastating time. M-M Property is an experienced, privately held real estate firm that is located in the heart of Houston.
The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.
After Houston was hit hard by Hurricane Harvey, Holliday Fenoglio Fowler is excited to see the changes that will be made during the renovations to bring the area back to the way it was before the storm rocked the area, causing 18 counties in the state to be declared disaster areas. Holliday Fenoglio Fowlers has 24 offices across the country and is a leader in commercial real estate loans in Texas and throughout the United States along with offering many other financial and marketing services.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, September 24, 2017

Tips for Getting Commercial Real Estate Loans

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.
You would think that lenders would be eager to grant commercial real estate loans due to the large dollar amount and the potential to make a great deal on interest. But in most cases, it is tougher than you would expect to complete the application process and qualify for the loan. But using a few proven tips can help to eliminate much of the pain associated with the process.
The first step that you need to take even before you have found the property that you are buying is getting your application packet in order. You will want to have this task done before you really begin to shop for a property because the preparation can take some time and you don’t want to lose out on a great property while you are digging through paperwork. You will need current financials as well as a few years of historical financials, tax returns for the past 3-5 years, rental schedules, leases, copies of sales contracts and AR statements, bank statements and asset and liability statements. Having these documents in order will help to expedite the application process for any commercial real estate loans.
Once you have found the property that you want, be sure that you do the research and know what the actual market value of the property is. This could be different than the asking price but understand that the lender is only interested in the market value. That is the value that the property will hold as collateral on the loan that you are asking for and that is what the lender is really interested in. Also understand that you will be required to make a down payment of around 30% of the market value. If you are willing to pay more than market value for the property then you will also need to pay the seller the delta between the market value and the asking price.
Prepare a Structure Diagram and Asset and Liability Statement
Having a complete structure diagram will help to save valuable time when the lender is evaluating your business. It gives them a clear picture of your business, what you do and how you accomplish it. This can save many weeks of questions when they are trying to evaluate your creditworthiness and the overall stability of your business. The asset and liability statement will be the document which will explain your financial stability in a nut shell. These two documents can greatly simplify the lenders discovery process prior to approving your loan.
Hire a Professional
Most business owners have no idea how much documentation is required to apply for commercial real estate loans. And once they begin the process they quickly become overwhelmed. You hire a lawyer to handle legal matters and an IT professional to design your network so it only makes sense to hire a professional broker to assist you with purchasing a property. It will not only eliminate much of the stress but it can also eliminate a lot of time that would be wasted resubmitting your application packet if there are errors or missing documents.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Advice about Getting Commercial Real Estate Loans

Most business owners are not very familiar with the process of getting commercial real estate loans. But these pieces of advice can help you to manage your expectations and succeed when you are ready to apply for a loan.
When you find a great commercial property that you want to buy time becomes a huge factor in everything that you do. Your first question to most lenders is about how quickly they can get your application processed and get you the money that you are requesting. Tip number one is that the standard answer in the commercial real estate loans industry is 30-45 days to complete the process. But the truth is that in most cases it takes more like 60-90 days to get through the process. Some of that could be due to ill prepared borrowers who are missing documents and information on the application but part of it is also going to fall back on the lender and their processes. So be prepared to spend several months ironing out the processed of completing commercial real estate loans.
Rule number two is to keep your options open. You never want to rely on just a single resource for anything in your business and commercial real estate loans are no different. You need to have a backup plan for several reasons. In some cases the lender might have very strict qualifications that you might not meet. Another issue could be the time that it takes for a lender to process your application. And even after you have applied and been approved, you might find that you are not in favor of some of the terms that the lender has in their contract. Having several options allows you to carefully evaluate your options and make a selection that is best for you and not just for the lender.
Tip three is one that can save you some money. Don’t get talked into requesting an appraisal on a property yourself. If you think that it is going to save you time and money, you are wrong. You can’t submit an appraisal to multiple lenders and save money. By law the bank must request their own appraisal and they must also have an environmental study completed on the property.
Start Small but Don’t Be Afraid to Go Big
Starting with local banks and your local Small Business Administration office is smart. Local banks and smaller lenders are often willing to work very hard to beat out the competition for your business. But don’t forget to check out your options with some of the big lenders. Different lenders have different criteria for loan qualification as do lenders of different sizes.
Think Outside the Box
If your first application or two gets turned down, don’t give up. There are many different types of lenders out there. You might need to look into alternative lending options to start with and move to a more conventional lender in a few years. But take the knowledge and experience you have gained on the first few applications and keep looking for your perfect lender.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Basics of Commercial Real Estate Loans

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.
Owning a successful business is a rewarding accomplishment and one that might be leading you to consider purchasing a commercial property for your business. But you need to know more about the process and the requirements before you begin to invest your valuable time in searching for a property. The application process is not as simple or fast as a personal mortgage process and the documentation required can be much more in depth. But once you understand the eligibility and requirements you will be better able to make your decision about purchasing a commercial property.
Commercial real estate loans are secured by liens on the property that you are purchasing. The lien gives the lender the right to take the property from you if you do not make the payments that are outlined in your loan documents. This protects the lenders investment in the event that your business fails, the economy disrupts your business or any other issue that could cause you to default on the loan. But because commercial property value can fluctuate more than residential property, the lender requires that you make a large down payment on the property. This is a way of creating instant equity which is good for both you and the lender. It reduces the amount that you are borrowing and therefore reduces the amount of interest that you are going to pay. And it also helps the lender to know that if you default on your loan, then they have a better chance of recovering all of their investment even if the property value has dropped since you purchased it.
Commercial real estate loan terms are also a bit different. They are normally in two terms. The first is intermediate and is for three years or less and the long term is from 5 years to 20 years. There is also a balloon loan that is an option. In this case the loan payments are mostly just covering the interest and at the end of the term you owe a final payment that covers the balance of the loan. In most cases the payment is very large and the borrower is forced to refinance the loan to cover the final payment.
Know Your Interest Rate
Because a business’s financial stability is more tied to the economy than that of an individual, lending money to a business is, in general, considered to be more of a risk. For that reason, commercial loans tend to have a higher interest rate and additional fees that must be paid. Be sure that you are carefully examining all of the fees and interest that you are agreeing to pay before you sign the loan agreement.
Research Your Options for Lenders
Knowing about the commercial real estate loans process is only half of the research that you need to complete. You will also want to learn about all of your options for lenders. Commercial banks, credit unions, mortgage lenders and the Small Business Administration are all good options to explore when you are ready to apply for a commercial real estate loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Differences between Residential Loans and Commercial Real Estate Loans

Most people assume that all mortgages are basically the same. But there are some very key differences between residential loans and commercial real estate loans.
Many business owners assume that when they are ready to buy a commercial property, the process will be much like when they applied for a personal home loan. The fact that it is a loan used to purchase property is the same but there are a few important differences that you need to fully understand before you begin to search for and apply for commercial real estate loans. The process is more in-depth and requires more documentation than a standard home loan. Knowing the process will help you to manage your expectations and be successful when seeking your loan.
The first difference is that your business entity might not have a financial history that is long enough to secure a loan. If that is the case then the lender is going to require the owners of the business to guarantee the loan. This is the lenders way of ensuring that there will be someone to repay the loan if the business fails or is unable to make the loan payments. If this is the case that your business is facing then you should be prepared to submit all of your personal financial records along with your business financials to the lender. If there are multiple business owners then each one should submit their personal documents. This can include historical tax documents, bank statements and an over view of any investment portfolios that the principals own personally.
The repayment schedule for commercial real estate loans can also be very different from personal mortgage payment schedules. A home loan is amortized, meaning that the debt is repaid over regular installment payments. The longer the loan is the lower the monthly payment but the higher the interest and the loan can range from 15 years to 30. A commercial loan is normally from 5 years to 20 years and the amortization period can be longer than the loan term. This means that the borrower is often faced with a final payment due at the end of the loan term. This is called a balloon payment and can often be quite substantial. Borrows most often must refinance the loan to pay the balloon payment on the initial commercial loan.
The Cost of Commercial Loans Can Be Very Different
Commercial loans represent a greater risk to the lender than a standard personal mortgage loan. Businesses are more at the mercy of the economy than consumers so there is a greater risk of defaulting on the loan. For this reason, lenders charge a higher interest rate on commercial loans. In addition there can be many additional fees that the borrower must pay. There can be an origination fee, legal fees, appraisal fees and even some annual fees that are paid for the life of the loan.
Do Your Homework and Be Prepared
Understanding the differences between your home mortgage and a loan for a commercial property is very important. It allows you to create realistic expectations for the process, it helps you in grasping the time frame that is required for the approval process and helps in understanding your full commitment to the loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, September 11, 2017

Commercial Real Estate Loans and the Best Housing Markets for Real Estate Investing

The housing market has definitely made a recovery as seen from these top twenty markets. Consider these tips before delving into this lucrative investment strategy and obtaining a commercial real estate loan.

Business Insider recently came out with a list of the 20 best US housing markets for real estate investing. These areas reported the highest return on investment and an average school rating in the 70^th percentile or higher. The average annual returns range from 5.4 percent to 8.1 percent. Here are the top five markets: Hamptons at Boca Raton, Florida; Gladwyne, Pennsylvania; West Bloomfield Township, Michigan; Palmetto Bay, Florida; and Weston, Florida. Don’t feel left out if your west of the Mississippi. North Scottsdale made the list in Arizona and Clear Lake City and Flower Mound made the top twenty in Texas. California’s claim to fame is North Hollywood. Surprisingly, no community in Colorado made the top twenty list.

Colorado did, however, make the 10 hottest real estate markets to watch in 2017 according to Trulia. This list was compiled based upon affordability, low vacancy rates, and strong job growth. Colorado Springs brought them into the fold due to its affordability and job growth. You may be wondering, is now the time to start your real estate portfolio or jump into the fix and flip business? There are a few considerations before you plunge into this lucrative investment strategy and get your first commercial real estate loan.

Real estate can secure multiple streams of income and often outperforms stocks as an investment strategy. It’s also tangible—something you can see and touch. It keeps you in the driver’s seat as compared to stocks that leave you at the mercy of a company you are hardly involved with and the whims of the Big Boys on Wall Street. Now, before you jump in with both feet, consider the following. Watching a full series of Flipping Vegas or Flip or Flop does not make one ready to become a real estate investor. The glamour, high profits and quick turn-arounds are the stuff of Hollywood. Not that it’s not possible, but most real estate investors have spent several years getting their feet wet, so to speak. The best ones are extremely knowledgeable, professional Realtors or contractors, and know their markets.

Where did the Money Come From?

That’s a good question. Oh, wait, it probably came from the network or cash on the barrelhead! That’s a big difference from the many real estate investors that get their start with a commercial real estate hard money loan. No interest payments lead to a lot more profit. In addition, contractors are all too willing to get some free advertisement by lowering their cost in order to get on TV. Unless you have a camera crew following you, make sure you get bids before you try to obtain a loan.

Many fix and flippers get their start with private hard money loans. These are asset-based commercial real estate loans that fund quickly and do not require credit scores in the 700 range.

We don’t want to deter you from your calling, just put a little reality into reality TV. If you’ve done your homework, know the market including comps, understand budgets and construction costs, many in this segment of real estate investing do very well for themselves. Consider getting your real estate or general contractor’s license. If not, you will need to team up with a good real estate agent in order to sell your home. A house sitting on the market will cost you interest payments as well as insurance and taxes, leading to more costs and less profit. Real estate investor clubs can help you find a needed mentor.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

Wednesday, March 29, 2017

Three Things to Take Into Consideration While Looking For a Commercial Lending Option

Starting your own business venture is a crucial decision that requires a lot of resilience, hard work, and capital. However, many times businessmen need to take a step back due to the loan applications that deck up without any fruitful outcomes.

If you can get the money you require to move on and take your next big step, everything can change. However, to make it happen, you need to find the right commercial lending company. At the time when I was looking to make things happen for myself, the financial situation was extremely vulnerable and it was rather difficult for me to manage on my own. However, I met a few people who advised me a couple of things to take into consideration while looking for an option. The tips mentioned in this article will help you choose the best commercial loan options.

Credit Score

Your credit (card) score matters a lot if you are in search of commercial real estate loans. If you are new to the business fraternity, the commercial lending companies would rather be interested in having a look at your credit score to get an overview of how well you can manage finances.

Business Timeframe

The commercial loan service will also be looking for the time you are in for business. Any traditional company would want the business to be operational for a year or two before approving a loan. The main reason is because that is how they will know that you can pay them back once the loan is approved. However, there a few lending options that would be okay if the business is operational for a couple of months only.

Possible Revenue

One of the most important factor is revenue. Yes, the lending companies do not only want the company to be up and running for either a few months or years. It wants to see how much money your business is bringing to the table. This way they can feel positive about the possibility of returning the loan.

Technorati Tags: commercial lending,commercial real estate loans,commercial real estate loan

Featured Post

Sunday, October 1, 2017

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.

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.

Thursday, September 28, 2017

Privately held real estate investment firm gets help with commercial real estate loan in Texas

The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.

Sunday, September 24, 2017

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.

Prepare a Structure Diagram and Asset and Liability Statement

Hire a Professional

Most business owners are not very familiar with the process of getting commercial real estate loans. But these pieces of advice can help you to manage your expectations and succeed when you are ready to apply for a loan.

Start Small but Don’t Be Afraid to Go Big

Think Outside the Box

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.

Know Your Interest Rate

Research Your Options for Lenders

Most people assume that all mortgages are basically the same. But there are some very key differences between residential loans and commercial real estate loans.

The Cost of Commercial Loans Can Be Very Different

Do Your Homework and Be Prepared

Monday, September 11, 2017

The housing market has definitely made a recovery as seen from these top twenty markets. Consider these tips before delving into this lucrative investment strategy and obtaining a commercial real estate loan.

Where did the Money Come From?

Many fix and flippers get their start with private hard money loans. These are asset-based commercial real estate loans that fund quickly and do not require credit scores in the 700 range.

Wednesday, March 29, 2017