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Today, traditional commercial loans are a great alternative to stated income commercial loans for those looking to buy or rent commercial properties. In general, a commercial stated income loan is fixated on the real estate rather than enquiring about the credit history of the buyer. The stated income commercial lenders enquire and checks if the borrower can provide mortgage, insurance, and taxes against the loans. However, as the approval process of a stated income commercial loan is a lot easier and quicker with very few documentations involved, it is better than a traditional commercial loan.
So, let's look at the benefits one can gain from stated income commercial loans- • Debt consolidation A commercial stated income loan can save you a huge amount of money. A person, by paying off the IRS, business credit card debt, consolidating equipment leases, and other monthly expenses, can save up to thousands of dollars every month. • Property Renovations In case you are hoping to expand your parking, lot or want to replace the old roof of your building, you can use a commercial stated income loan in your favor and get the property renovations done. • Refinances In case you have got a balloon or high rate mortgage, you can pay it off by getting in touch with a stated income commercial lender to get your loan approved. Using the loan for paying off your debts can save you good amount on the interest. • Working capital No matter you are an urgent need of money in your bank or if you want to pay off your bills while you are waiting for your payments to be cleared, or maybe you need some cash to take benefit of some great deals on inventory, a commercial stated income loan can be very beneficial in such cases. • Buying a property Using a commercial stated income loan, you can pay off the rent of the building you are going to buy for your business. Get your Loan Approved by the Best Lenders In case you want to know more about the benefits of commercial stated income loans or want to get a loan for your needs, you can get in touch with Private Capital Investors. They are the top stated income commercial lenders who can help you secure your financial future by lending money to you now.
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Don't qualify for a prime loan, or are you looking for an alternative to the traditional bank loan application process? If you are looking for a quick financing option with tax benefits, applying for a hard money loan is ideal in every way. Hard money loans differ from preferred loans in that the property itself secures them.
Commercial hard money loans offer these key advantages:
Is a commercial hard money loan right for you? Should you be looking for Commercial real estate hard money lenders with no credit check? Borrowers in the following situations could benefit from a hard money loan:
Advantage of commercial hard money lender – Hard money is money that is provided by private creditors, as opposed to banks. It is called hard money because it is usually guaranteed by a real asset, such as a property. Loans with hard cash are generally easier to obtain than bank loans. A hard money lender can be a person or an organization that has money to borrow. The real advantage of a hard money loan is that hard money lenders will work with companies that have little collateral or income. Loans are generally easy to apply and are given very quickly - usually within just a few days of application. It is a quick and easy way to gain access to capital. Another advantage is that you do not need to provide any income history before making the loan. It can be beneficial for you.
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Private or hard money commercial lenders are different from banks and other conventional lenders. They provide short-term loans to short-term fix and long-term borrowers who want money for quick funding. Funded by private investors, private commercial lenders have loans for terms as short as 12 months that can be extended to a period of five years. If you are borrowing from such a lender, you are required to pay interest amount monthly and a huge sum at the end of your tenure. The amount may depend on the property’s value you provide as a collateral for the loan. It can be the one you already own or something that you are in the process of acquiring.
Private lenders usually take into consideration the value of a property before providing a loan. So,you need not worry if you have a low credit score, you can still get financing if you have a valuable property. Here are some things one must know before taking money from private lenders. Interest Rates As compared to conventional institutions, private commercial real estate lenders charge higher interest rates. This is because risks involved with hard money loans are higher than in traditional banks. Depending on the lender, interest rates may range anywhere between 10 to 15 percent. Another factor why the interest rates differ is the loan to value ratio. Type of Property Since people own different property types, there are specific regulations when borrowing from a conventional lender. However, that is not the case when applying for a hard money loan with a private commercial lender. You can use any property –land, multi-family residential property, family residential apartment, and even your business – as a collateral. Though most of the lenders specialize in all kinds of property, there are a few who might consider only a specific property. It is always better to ask upfront about what property they work with, to avoid future complications. Deals Hard money loans are ideal when borrowing money from banks is not an option, you do not have an ideal credit score, or in need of quick financing. You can approach private investment firms for land loans, construction loans, fix and flips, and even in times of bad credit scores. Choose from the deals that is best suited for your requirement. Always remember, before you borrow take a look at the quality of the private commercial lender and how the loan will fit into your financial strategy. Once these things are clear, you can apply and enjoy the benefit of receiving the money quickly.
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Choosing between conventional lenders like banks or credit unions and private commercial real estate lenders is a decision every investor will need to make. Understanding how each one of these two work is very important to make an informed decision. Here's an overview on how private commercial property loan lenders work.
#1 - Private commercial real estate lenders can work with average credit scores too If you are a borrower who has a bad credit score and cannot find any traditional mortgage lender to finance your commercial real estate property, private commercial real estate lenders might be your solution. With private commercial real estate lenders, the most important factor is the repaying ability of a borrower and if you have solid bank statements that can back up your loan repaying ability, your credit score is of less importance for your lender. #2 - Private commercial real estate lenders work much more flexibly as compared to conventional mortgage lenders As a matter of general rule, private commercial real estate lenders work much more flexibly and offer funding in lesser time window. They do not take long periods to go through your loan request and process it. They decide whether they want to find your loan or not rather quickly and go ahead with processing of your loan instead of keeping you on hold for a long time. #3 - A strong relationship with private commercial real estate lenders can go a long way in determining your long term real estate investment success The best part about working with private commercial real estate lenders is that they build a good rapport with their borrowers and act as constant source of guidance to their borrowers. Since they are in the industry of commercial real estate lending from many years, their expertise and experience is something you will hugely benefit by. Besides, having a good relationship with them will assure you that you can have your funds sources at the need of the hour without much questioning or time. #4 - Private commercial real estate lenders generally charge higher rates but make your funds available in much lesser time As compared to conventional mortgages, private commercial real estate mortgages carry higher rates but that's the trade off an investor will need to make in order to get a loan at much lesser time and without stringent loan qualification requirements.
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A debt-based funding agreement supported by hard collateral is what is known as a commercial loan. This loan is usually processed between financial institutes and businesses, which is only undertaken for processing short-term goals or covering necessary operational costs. For someone who is seeking quick funding, commercial real estate loans are one of the best options. Today, there are commercial officers as well who either are backed by or work for financial institutions but are often looked at as the ‘mediator’ when opting for commercial loans.
Commercial Loan: Individuals and entities When it comes to residential mortgages, there are only individual borrowers involved. However, for commercial loans, there are business entities involved. These entities are formed for various reasons, one of them is owning a commercial real estate property. These entities will usually not have a credit score or financial tracking record, where it becomes mandatory for the lender to take a guarantee from the property owner to extend the loan. This will give the lender some credit score and a person from whom they can recover the loan with things go downhill. Lending money is not difficult, you will find numerous people or institutions offering the funding you need. Here are the best commercial real estate loan lenders in Dallas: 1. Jeremiah L. Graza, Longhorn III Investments, LLC 2. Rob Kleifgen, Inceptus Capital Partners 3. Carlos Flores, Commercial Real Estate & Multifamily Mortgage Financing | CRE Investments 4. Victor Olabintan, Primary Residential Mortgage 5. Bob Lazenby, Commercial Real Estate Negotiator 6. Jon Baker, NextHome Integrity Group 7. Ricky Nila, Commercial Lending 8. Oscar Barbadillo Jr., Commercial Lending 9. Meera Singh, Fannie Mae 10. Kieth Thomas, Private Capital Investors These commercial lenders are well known in the Dallas, Texas region. So, if you looking for someone, reach out to them.
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Commercial stated income loans are loans that are provided on the basis of the 'stated income', shown according to the bank statements submitted and has numerous benefits attached to it. These loans were traditionally provided based on the income that was "stated" (hence the name) without any proper scrutiny or documentation, which was one of the reasons responsible for the 2008 housing market crash in the United States. So, for sometime, these loans were not available but now, they are back and that's a big good news to the savvy commercial real estate investors.
However, it needs to be noted that these loans do not require too much of documentation as opposed to other traditional forms of financing or refinancing. The borrowers are not asked to submit their W-2 forms or their stubs to the lenders but are only asked to submit few documents including the bank statements of past 12 to 24 months. Thus, these loans are also best suited for borrowers and investors who are self employed and who do not have a consistent income flow every month. What are the things that are paramount in availing stated income commercial real estate loan? • Stated income commercial lenders look for a Loan To Value Ratio of 70%. This may vary from one lender to another or from one lending institution to another, but that's an average LTV ratio you need to have in place in order for you to qualify for commercial stated income loan. • The stated income commercial lenders will require a credit score of above 600 to consider and qualify your loan request. • These loans are available for W-2 employees or self employed professionals. • These loans generally require a time period of 15 to 20 working days to process, again varying from one lender to another. • The rates of interest charged by banks or private money lenders when it comes to stated income commercial real estate loans dallas tx is higher. This is justified as they are trusting you with the loan amount without having any collateral or without being sure of the income flow you have and its regularity. Those being the main features of the stated income loans, remember that stated income loans take quite a long period of time to process, and banks or private money lenders will assess your loan application carefully before they decide to lend you the needed money. |