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Corporate bankers and commercial lenders, learn how Commercial Lending Training can help you make you valuable to your company. Learn more at: www.ethanhathaway.com
www.lendinguniverse.com Commercial Lending Loans in Nevada Our economy depends on hard money and commercial mortgage financing, money loans, combine with hard money commercial loans, commercial mortgage calculator, private mortgage, bank loans. Fix and flip loans www.youtube.com fix and flip also known as national fix and flip can be done with the help of flipping propertiesProperty under Construction or Residential property. In case you need a fix and flip funding Contact private Investors for best results on flipping properti Hard money commercial loans www.lendinguniverse.com The information that follows will assist you in considering the seven essential elements of a loan transaction which you should understand before funding a loan or purchasing a promissory note. Just read on! Knowledge, experience, and integrity of the MLB through whom the transaction may be made or ar¬ranged. Before placing your trust and money with an MLB, you would be wise to call: (1) the Department of Real Estate: (DRE) to determine: if the: MLB and his or her loan representatives are properly licensed, how long each has been licensed, and whether any of the licenses have been disciplined; and (2) the lo-cal Better Business Bureau to ask if any complaints have been lodged. Ask the MLB to provide a professional profile for your review and information as to the approximate number and percentage of loans, if any, negotiated by the MLB which resulted in foreclosure (commenced and/or concluded …
Know what you have.
Commercial real estate in some respects is not too different from residential real estate when speaking with owners of properties. In their hearts and minds their property is far better and far more valuable than that of their competition. Once you detach yourself from the emotional aspect, you can objectively look at the property.
You can list property types into two general groupings. Group A-standard commerical or general property types and Group B – Special purpose or use property types.
Standard or general use refers to any property that has a multi-use capability associated with it. The property can be used for nearly all commercial purposes and can easily accommodate a multitude of business types with little or no modifications. This type of property has a higher resale demand and has a shorter marketing time.
Special use refers to property types that have very limit use capability and have a very limited market to which reduces the demand and greatly increases the marketing time. Additionally, conversion costs can often times be greater than the value of the property in its current use.
Examples of each type:
Standard or General:
Warehouse
Office/Office Condo/Office – warehouse
Mixed use w/office or residential
Light manufacturing, Light Industrial
Medical and Dental offices
Retail/strip malls
Multi – Family (5+ units)
Mini-Mart
Single Tenant Properties
Special Use/Special Purpose:
Automotive Service/Repair
Assisted Living Facilities
Hospitals
Grocery/Markets
Single Tenant Properties
Mini-storage / Self-storage
Car Wash (Self -serve/Coin Op or Full Serve)
Funeral Homes
Restaurants
Hospitality (motel/hotel)
Bowling Alleys
Sport Arenas
Properties w/excess land
Churches
Educational Centers/Day Care
Board and Care Facilities
RV Parks
Mobil Home Parks
Heavy Industrial/Heavy Manufacturing
Golf Courses
Underwriting and risk pricing differences
The more common (general) the type of property and use, the better the financing and the more lenient the underwriting is to make these properties more attractive for investors and owners.
On the the other hand, the more off beat and further from the ‘bulls eye’ the tougher the underwriting and the more expensive the financing will be.
IMPROVING YOUR ODDS–KEY POINTS
Borrowers with strong credit and healthy balance sheets that include high net worth are easiest to close.–Helping yourself or your client to look better on paper is first and foremost (must be verifiable).
Having more than the minimum downpayment or equity postion in the property
Having liquid reserves equal to or greater than the loan amount
Strong long term tenants with long term leases
Having regionally or nationally credit rated tenants
If tenant is not credit rated, be ready to have tenant supply their financials to prove to lender tenant is financially healthy and can afford to rent your property.
If seeking cash out–keep amount reasonable and be prepared to identify in detail how the cash is going to be utilized and improve the borrower’s position
Seek financing within your means
At CFR Mortgage Group, Inc. we have extensive knowledge in dealing with getting loans closed on all property types. You can call us at 714-731-5282, email us at: cfrgroup@att.net or visit our web site: www.mycommerciallendingpro.com for more on lending programs and products.
Gregg Cochran is the SVP Wholesale Commercial Lending Unit of CFR Mortgage Group, Inc. in Southern California. CFR Lends in 44 states and has been in business since 1979. Mr. Cochran has been with the company since 1992. Mr. Cochran can be reached at 714-731-5282 or via email at cfrgroup@att.net
We usually do not pay for the typical commercial mortgage broker business to work in commercial construction loans or residential subdivision construction loans. Here’s why:
With the possible exception of the apartments, the U.S. is awash with additional buildings. Homebuilders are sitting on hundreds of thousands of houses unsold. The vacancy rate nationally for office buildings is close to 20%. Retailers are getting clobbered in the current recession, so that the vacancy rate for retail space is skyrocketing. Occupancy rates of hotels are plummeting. The simple fact is that the U.S. does not really need a lot of new buildings.
Even when the economy was strong, the typical mortgage broker business rarely went to work at any decent construction business loans.
The reason is because banks make a ton of money if you do a good construction loan. It has always been easy for skilled developers simply go to a local bank and obtain a construction loan.
As a result, only the developers never unconditional called commercial mortgage brokers to find a construction loan.
A developer can be unconditional because it had very little experience in construction.
Most of the time a developer would be unconditional because it could not contribute 20% of the total project cost in cash or equity in their land.
As a commercial mortgage broker, is that 95% of its lack of commercial construction loan applicants is required for 20% of the equity.
As a result of the subprime and banking crisis, banks are now often requires that developers contribute 30% to 35% of the total project cost in cash.
Very few brokers mortgage business is a promoter who can contribute 30% to 35% of the total project cost.
And if a developer was rich enough to contribute 30% to 35% of the total project cost in cash, you can bet it has tons of contacts directly with banks. He does not need you.
Therefore, if you want to feed your family, do not waste time working on commercial or residential construction loans subdivision construction loans now (if ever).
Does this mean that there is absolutely no construction of commercial mortgage loans that make sense? It does not address that still makes sense today in the market are small business loans for the construction, the owner of users of SBA lenders, usually under the 504 Program. Can be applied to dozens of SBA 504 lenders by building http://www.pro-bargainhunter.com
Wade and IMM Commercial mortgage financing Group provide business opportunity commercial mortgage loan – business loan advice and publish IMM Commercial Real Estate Investment Property Financing Reports by Bargain Trader.
www.lendinguniverse.com Commercial Lending Loans in Missouri Our economy depends on short sale and commercial mortgage lenders, cash out, combine with commercial mortgage loan lender, commercial hard money lenders, hard for the money, commercial real estate lender. Fix and flip loans www.youtube.com flip houses also known as house flipping tips can be done with the help of flipping propertiesCommercial property or Vacant land. In case you need a fix and flip financing Contact private lender for best results on flipping properties. Hard money commercial loans www.lendinguniverse.com Depending upon the method of foreclosure, the nature of the loan, the circumstances of origi¬nation, and the value of the Property, you may or may not be able to recover your entire investment. For example, if a third party bids at a non judicial foreclosure sale an amount equal to or greater than the amount you are owed (including fees, costs, and expenses of the foreclosure) , your investment would be fully paid. On the other hand, if you bid the full amount that is owed to you, including all fore do sure fees, costs, and expenses (full credit bid) and there are no third-party bids\ you will generally be limited to the Property and its value as the source of re payment of your investment.
www.CommercialMortgageTips.com Do not make these mistakes with your Commercial Mortgage Financing. Get your Commercial Mortgage closed – hassle free! Call 561-208-6469 today!
Commercial lending to small businesses is already on life support based on a number of business financing statistics. Commercial banking companies in many instances would have failed some time ago without government bailouts. As bad as that perspective might sound, this report will provide an even more negative outlook for the future of working capital financing and small business finance programs. Overall it currently appears that commercial loans represent the next big problem for banks and other lenders.
During the past year or so, several banking problems have received significant publicity. These difficulties were largely related to the rising number of home foreclosures which in turn caused a ripple effect involving various investments tied to home loans. Such investments lost value so rapidly that they became known as toxic assets. When banks stopped making many loans (including small business financing), the federal government provided bailout funding to many banks to enable them to keep operating. While most observers would argue that the bailouts were made with the implicit understanding that bank lending would resume in some normal fashion, the banks seem to be hoarding these taxpayer-provided funds for a rainy day. By almost any objective standard, commercial lending activities have all but abandoned small business finance needs.
Based on recent commercial banking statistics, it seems that small business financing is already the next big problem for many banks. In part this is due to the general decline in commercial real estate values during the past several years. This has resulted in some significant bankruptcies when many large commercial property owners have been unable to either make their commercial mortgage payments or refinance debt (or both). While these difficulties were predominantly happening with large real estate companies and did not regularly involve small businesses, the resulting bank losses are clearly having an impact now on commercial lending to small business owners.
Much like the residential mortgage toxic assets caused banks to stop normal lending because of a shortage of capital, commercial banking losses on large commercial real estate loans are already causing many banks to stop or reduce their small business finance activities. The bank losses from large commercial property investors are producing a ripple effect that has caused small business financing to effectively disappear until further notice. While small business owners did not cause this problem, they are suffering the immediate consequences when banks are unable or unwilling to provide normal levels of commercial financing to them.
As with many complex situations, one problem will lead to another. The failure to obtain normal business financing will most likely lead to an increasing number of commercial loan defaults by small businesses. Prudent business owners should begin to take action now in a timely manner to avoid such negative consequences. With proper actions, the biggest small business finance problems can be anticipated and avoided.
Stephen Bush and AEX Commercial Financing Group provide small business finance options for working capital financing, merchant cash advances and commercial loans throughout the United States.
Many businesses at one time or another will need to access a commercial loan. This could range from a company just starting up but having a solid business plan backed up with some realistic sales projections, to a company needing money for plant & machinery, looking to expand overseas or requiring larger premises. For the former the lender would certainly expect proven experience in their chosen field, signs of a gap in the market the new company could exploit or a brand new idea or project that would appear to be a viable proposition. They would probably want a stable employment record allied to possible personal guarantees and, if possible, an initial injection of cash. Regarding the latter the decision is much more straightforward as they should have audited accounts, preferably over at least 2 years with a projection for the third year showing an increase in profits. For obvious reasons Lenders are very reluctant to lend when companies start showing a decline in profits.
So what’s the difference between a residential mortgage and borrowing for commercial reasons? Generally speaking a residential mortgage is secured against property so if the borrower defaults on the loan the lender has the right to repossess the property as they have control of the deeds. Commercial lending is a much more complicated process as it may not be secured against property. This is because many businesses will rent their property as they may not have the resources or desire to purchase the building or buildings they operate from. This of course leaves the lender vulnerable because if the borrower defaults there is no guarantee they will recover the loan.
To compensate for the extra risk involved the lender will certainly charge a higher rate of interest than if lending in the residential market. Over a period of time this of course means a greater profit for the lenders, especially if it’s a bank as there are other charges they will levy on the borrower. There will usually be an overdraft facility in place for which there will be monthly or quarterly charges. On top of this there is what is generally termed account charges so each time you pay by cheque, cash a cheque in or make a payment by transferring money to settle an invoice or purchase goods this will be charged to your account at the end of each month.
A typical charge for processing cheques is fifty five pence so if on average you cash 100 cheques per month the overall cost for that year is £660. To a successful business this is not the end of the world even though there are other charges and of course the payment of the interest charges on the loan at the end of each month to be taken in to account. However for a start up business the way they manage their account is crucial to building a successful company over a long period of time. Many firms fall by the wayside, not because of poor sales but because creditors pull the plug due to cash-flow problems so it is important to make sure you take out your commercial loan with a flexible and understanding company as you may regret it further down the line if you don’t.
Written by E-Commerce Manager of Armchair Mortgages, Chris Roche. For more information on income protection,
www.lendinguniverse.com Commercial Lending Loans in Nebraska All industries need equity loan combine with commercial mortgage loans, loan company, together with commercial hard money, commercial real estate mortgage, hard lenders, business financing. Fix and flip loans www.youtube.com flip a house also known as flipping a home can be done with the help of how to flip housesCommercial property or Property under Construction . In case you need a fix and flip lenders Contact hard money for best results on how to flip houses. Hard money commercial loans www.lendinguniverse.com SEVEN ESSENTIAL ELELMENTS OF TRUST DEED INVESTMENTS Seven Essential Elements 1 Knowledge, experience, and integrity of the MLB through whom the trans¬action may be made or arranged. 2 Market value and equity in the Prop¬erty and the security for your loan. 3 Borrower’s financial standing and creditworthiness. 4 Escrow process involving the fund¬ing of the loan or the purchase of the promissory note. 5 Documents and instruments de¬scribing, evidencing, and securing the loan or purchase of the promis¬sory note. 6 Loan servicing provisions, authority and compensation. 7 Recovering your investment when the borrower fails to pay.
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