Tag Archives: commercial loans texas

Qualification for Hard Money Commercial Loans Texas

October 2, 2017Uncategorizedcommercial loans, commercial loans for bad credit, commercial loans texas, texas commercial loansbigdaddydennis

Conventional commercial loans Texas can be hard to qualify for. But a hard money lender offers a much more stream lined and speedy loan process.

Hard money commercial loans Texas require much less paperwork and third party reports than a convention loan. This is a great benefit to a borrower who needs funding quickly or does not have the credit history needed to qualify for a bank loan. Knowing what it takes to get a hard money loan will help you to decide if this is a solution that you should explore more in depth.

Some hard money commercial loans Texas lenders have an application process that is similar to a conventional lender but others focus on asset based lending. In the case of the asset based lenders, the primary concern is not the value of the commercial property that you are buying but the value of the assets that you are planning to use as collateral. The value of the assets will even be more important than your level of credit or your credit history. In some cases the assets can be inventory or equipment. In other cases, it could be accounts receivables or other property that the business owns.

Regardless of the type of collateral that you will provide, you will need to submit a certain amount of information to the lender. This is just the process for any loan request. But what you will not need to submit is the prior financial history of your business. You will also need to provide information about the reason for your request. In most cases, commercial loans Texas lenders will want to know a little bit about the property and also see photos of the interior and exterior of the property.

What Makes Hard Money Lending Different

Because you are requesting a hard money loan, you need to expect that the interest rate is going to be higher than a conventional commercial real estate loan. The lender is evaluating the risk associated with your business and its ability to repay the loan. They are also evaluating their ability to recover their investment should you fail to keep up with the payments. This could include an evaluation of how quickly and effortlessly they could liquidate your collateral assets. Selling property could be much faster than trying to find a person who is interested in buying old equipment or merchandise which was a part of your inventory.

It is a Viable Option

Even though the interest rate will be higher than a conventional lender, a hard money commercial loan could be a good solution for your business. If you have no credit history or cannot verify cash flow then securing a conventional loan could be impossible. But be sure that you fully understand the terms of the loan agreement before you sign the document. Just because the lender is not a loan company or bank does not mean that the contract will not be legally binding.

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.

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What You Need to Know About Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loans texas, texas commercial lender, texas commercial lending, texas commercial loans, texas commercial mortgage, texas commercial real estate loansbigdaddydennis

If you are not familiar with commercial loans Texas then you might believe that they are similar to any personal loan that you applied for. But the short answer is that they are not.

The first and largest difference between commercial loans Texas and a residential mortgage loan is that it is not backed by a guarantor such as Fannie Mae. This means that commercial loans Texas represent a much greater risk for the lender. For that reason, commercial lenders are much more selective about who they are willing to lend money to. Interest rates are higher and down payments are also much larger and that is just the beginning of the differences.

Balloon payments used to be common in residential mortgages but they are not any more. However, they are quite common in commercial loans Texas. So you will make payments that would pay off a loan in 30 years but the term of the loan will only be 3, 5 or 10 years. The result is a large balloon payment that is due at the end of the term. Most businesses are not in a position to pay the balloon payment and must refinance the final amount and keep paying on the property. Another option is to select a higher interest rate in return for a longer payment term.

Down payments are also quite different in the commercial property world. Unlike the 10% required to secure a home loan, commercial mortgages often require 25% or more down. A big reason for the larger down payment is the greater risk involved in a commercial property loan. Values on commercial property tend to fluctuate more frequently than residential values. For that reason the lender want to be certain that there is instant equity in the commercial property which is the collateral for the loan.

Understand the Cost of Borrowing

Commercial lenders are in business to make money and they do that in many creative ways. You know that you will be paying interest on the loan amount but that is not all you will be paying. Some lenders will charge points to cover their administrative costs while others will break the fees down and charge you per line item. Some fees can include an application, fee which is normally nonrefundable even if you are not approved for the loan, a loan processing fee, appraisal fees and survey fees.

There can also be Penalties

As a borrower, we are trained to think in terms of saving money. This means that paying off a loan early is always a good thing. It is a way to save on the interest or finance costs of a loan. But commercial lenders are counting on a specific amount of interest, or earnings, from your loan. And they are not willing to let you avoid any of those costs. Many lenders will include a prepayment penalty in the terms of your loan. This can mean that you will pay a flat fee for the right to pay off the loan early or it could be a percentage of the interest that you avoided paying. In some cases the savings on the interest is greater than the fees but in other cases the fees will cost you more than the continued interest. Be sure that you understand all of the terms of any loan before you sign or you will be forced to adhere to them.

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Tips on Getting Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loans, commercial loans in texas, commercial loans texas, texas commercial loan, texas commercial loansbigdaddydennis

Getting commercial loans Texas is not as simple as many business owners might think. There are many tips out there but the best all center on being prepared.

Commercial loans Texas are a necessary evil just as any debt is. Due to the overwhelming cost of a commercial property, it is unlikely that just about any business could afford to purchase property without some type of loan. It is a big step to take and one that you should carefully prepare for to ensure that you have the most success possible.

The biggest factor in your approval for commercial loans Texas is your creditworthiness. The lender is going to ask for many different documents to evaluate the financial health of your company and possibly even the personal financial condition of the owners. You will need to prepare a copy of your business plan, financial records including tax forms, bank statements and P & L statements as well as cash flow documentation. It is also important that all of the information be as current as possible. Having this packet of information prepared lets the lenders know that you have invested time and effort into the process and that you are serious about purchasing property.

You also need to be prepared from a financial standpoint. You will need to be in a position to pay certain fees associated with the loan and the down payment for the property. In most cases, a lender will only finance about 75% of the cost of the property so having that remaining balance available in cash is critical. You will also need to pay some fees such as a loan application fee, a loan processing fee or appraisal fees. You might also want to investigate getting your own independent appraisal done to have an unbiased estimate on the property value. Also be prepared to pay for environmental reports on the property. Most lenders now require these reports to ensure that the property is not contaminated.

Manage Your Time

A great deal on a commercial property usually means that the property will sell quickly. For that reason you will want to be sure to begin your application for commercial loans Texas as quickly as possible. It is well known that commercial lenders will greatly overestimate the speed at which they can process your application. They will quote you 45 days but in most cases it will drag out to over three months. Don’t let a great property get away while you are still completing application documents.

More Knowledge is Always Good

Understanding the process for applying and getting approved for a loan is critical to your success. Having a plan in place to meet the criteria and requests of the lender will make the process less stressful and can even decrease the time it takes to get approved. As with most things in the business world, you will get as much back as you invest in a project. So the time it takes to prepare documents, complete research and make a professional presentation is a good investment in your company’s future.

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Tips for Building a Relationship for Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loans, commercial loans in texas, commercial loans texas, texas commercial loansbigdaddydennis

When you begin to think about applying for commercial loans Texas you should immediately begin to work on building some important relationships. Commercial lenders can provide you with more than just the loan that you are looking for.

There is a lot more to getting commercial loans Texas than simply completing the application for the loan. Commercial loans are much more complex and require more documentation and information than a residential mortgage. It is important to fully understand the process and the criteria for loan approval as well as having an understanding of your different options for lenders and their areas of expertise.

Start with some basic research of the banks in your area. The local and regional connection can often be a little bit of an advantage for commercial loans Texas as the lenders are more familiar with the area and have a vested interest in the local economy. Use the list of lenders that you have complied to make some brief phone calls to discuss what types of commercial loans Texas that the lender specializes in. You might also want to inquire about the industries that the lender works with on a regular basis and what special criteria that they require to qualify for a loan. All of this information will help you to know which lender will best meet your needs once you have selected a property and know the size of the loan that you will need.

As you begin to understand the process more and have refined your selections for a property, engage the lenders with questions. This is a good way to gauge who is interested in your business and will be eager and willing to work with you during the application process. You might find that only one or two lenders are willing to meet with you prior to being ready to submit your application. This is a good indication of who will be there to assist you during the application process and even before when you are working to make your property selection. The lender who wants to grow a relationship with you will offer advice and tips and become a very valuable free resource.

Be Honest From the Beginning

It is important that you are honest and tell the lenders that you are just in the planning stage. This will verify that they are really interested in a long term relationship and that they are willing to help you along the way. It also helps to prevent misunderstandings that could cause them to be less willing to work with you when you are ready to apply for the loan.

Commit to Full Disclosure

The more information that you are willing to provide to the lenders the more they can assist you. If you have had credit challenges then tell them so that they can offer helpful information and suggestions. Let them get to know you, your business and your industry so that they can provide you with the most accurate information available.

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4 Tips for Securing SBA Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loans, commercial loans for bad credit, commercial loans in texas, commercial loans texas, texas commercial loansbigdaddydennis

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

It can take a lot of time and patience to be approved for SBA commercial loans Texas. But the low interest and down payment requirements as well as the very favorable repayment terms make it worth the extra effort. But to be more certain that you are going to get approved, you need to follow a few tips to make your application stand out from the crowd.

Having your credit and finances in order before you apply is critical. You want to do all that you can to improve your credit score prior to beginning the application. Be sure that you have not maxed out your credit and that any debt that you owe is being paid off ahead of schedule. Your goal should be to get your credit utilization under 30% to get the most favorable review from the SBA lenders.

Having all of your documentation in order prior to starting your commercial loans Texas application will make the process less stressful and more rapid. SBA lenders are notorious for requesting very detailed financial information about your company and about the owners. Having that packet prepared and ready to submit will show all lenders that you have invested time and effort into the process already and are prepared to answer any additional questions that they might have for you.

Be Ready to Relate Your Story

Seeking commercial loans Texas is much like trying to land a client. The lender will have many of the same questions that a potential client might have. They want to know about your business, your industry and why you are the expert that they should put their faith in. A customer wants to know that you will do a good job because they are going to pay you for your product or service. A lender wants to know that you will do a good job because they want your customers to continue to pay you so that you can repay your loan. Also be ready to answer any questions that the lender might have about your business plan or business model. Explaining this information will demonstrate your knowledge and skill in working within your industry and in business in general.

Don’t Be Afraid to Shop Around

Not all SBA lenders are the same. So you will want to be sure that you explore all of your options and the lenders who are working with the SBA. This will ensure that you select the best lender to meet your current and future needs. Being comfortable with the lender is important and so are the terms that they are offering you. Take some time to get to know the lenders and determine who might be the best fit for you. A smaller regional lender might be a better fit for a new company or a smaller loan amount. Following these few tips can make the process a little faster and much more successful.

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What Lenders Look for When Granting Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loan Texas, commercial loans for bad credit, commercial loans texas, texas commercial loan, texas commercial loansbigdaddydennis

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

When you are applying for commercial loans Texas, you will find that there are many documents that are being requested and many forms that you will need to complete. But all of that general information is only the beginning. Lenders each have their own set of criteria that they uses to make their final decision about writing commercial loans Texas or declining an applicant. Understanding this criteria can help you to craft a more effective application.

One important factor that lenders are looking for is that you and the business have the needed assets and financial reserves to survive any temporary downturn in your business. This can mean making it through a slow season or even through a period when clients are not paying bills on time. But what a lender needs to see is that you have the means to keep your business operating when there is a lull in your cash flow that is beyond your control. If the business has very limited assets then the lender will want to know that the owners are in a position to personally fund the company to bridge the short term issue.

Your ability to repay commercial loans Texas is what the lender is really trying to determine. They are accessing the risk that you represent and how confident that they are that you can make the payments on a regular and long term basis. This means that your cash flow needs to be strong and consistent. Demonstrating that you will easily be able to make your loan payments is critical to getting approved.

Proven Track Record

If your business is new and has no cash flow history or proven track record in the industry then you will need to demonstrate your personal ability. This is best achieved by showing your successes in the industry and in a management position at another company. Showing that you have experience managing and running a successful business will build confidence in your ability to launch and maintain a new company of your own.

Overall Credit Worthiness

All lenders have an image of the perfect client, but that might not exist in the real world. So lenders begin to compromise when they feel that a potential borrower is a solid individual. Showing that you have personally maintained good credit, that you have the means to offer financial support to the business if it is needed and that you understand the industry trends are all critical. This lets the lender know that you are prepared for changes in cash flow and that you have a plan in place to make it through those difficult times. It also shows that you are diligent in protecting your personal financial future and that will carry over to your business finances as well. Taking the time to understand what the lender is looking for from a borrower will help you to supply all of the needed information and will offer you a better chance at getting the loan that you have requested.

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Learn the Differences Between Short Term and Long Term Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loan Texas, commercial loans, commercial loans in texas, commercial loans texasbigdaddydennis

When it comes to short and long term commercial loans Texas, there is a lot of terminology and “fine print” to understand. With these tips, you can understand the differences and determine which loan type would work best for you.

As a new business owner, you may not be versed in the jargon of loans, and that’s understandable. Which is why it’s helpful to work with a professional broker or lender who can help you learn about the nuances of each type of loan and which would be best for your company’s needs. When you understand the differences between short and long term loans, you can make an educated decision about the right type of loan for you.

Short-term commercial loans Texas can get you cash – fast. Sometimes you will get the cash “in hand” in as little as 24 hours after the loan is approved. If you are in a bind and need cash fast, this is typically the way to go. The application process can be complex and repayment terms are often required monthly or even multiple times a month. These loans might be available for a smaller amount of money than a long-term loan. However, it’s usually pretty easy for businesses to get approved and get the money they need fairly quickly. These loans can be obtained from alternative lending options versus conventional banks or lenders as this type of loan can be perceived as “high risk” for conventional banks and lenders.

Long-term loans are typically larger amounts and therefore a little more difficult to obtain. The good part about this type of loan is that repayment structure occurs in multi-year terms, over the course a long period of time, such as 10 years or longer. Interest builds up over time in the case of this type of loan so you may end up paying more in interest than with a short-term loan. However, you are more likely to get approval for a long-term loan with a conventional bank or lender.

How do I determine if a short term or long-term commercial loans Texas is better for my business?

Short term and long-term loans each have their own set of pros and cons. It’s really about deciding what is going to work best for your company based on your needs. If you need money quickly, a short term may be your solution. If you can go a more traditional route with a long term, you may be able to get a larger loan amount. Figure out your business needs and go from there.

What are the first steps I should take to obtain these types of loans?

When you are considering obtaining a commercial loans Texas, it’s important to be prepared with documentation needed to apply for the loan. It’s also a good idea to figure out how you intend to pay back the loan – in no uncertain terms. The bank or lender will need to ensure you have the ability to pay back the money you borrow. Short and long term loans are the two largest loan categories in commercial mortgage, and they can be very different. Talk to a lending expert, as they can help figure out the best strategy for your business’s needs.

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How a Private Lender Can Help You Get Your Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loan in texas, commercial loans, commercial loans for bad credit, commercial loans texas, texas commercial loansbigdaddydennis

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

Working with a private lender can ensure you are working with a trustworthy person and that your source of financing is a solid way to experience growth for your business. Whether you are purchasing a building, need new equipment to expand or improve your company’s services or simply need a bigger supply or cash as a “cushion,” you can count on the expertise of a private lender. Sometimes the fact that a small business’s cash supply isn’t always as consistent as needed when they first start out or are expanding is enough to seek out a private lender for commercial loans Texas.

Unlike conventional lenders and conservative banks, private lenders are more likely to negotiate better terms for you, even it you have a somewhat unsteady cash flow or less than perfect credit. Traditional banks don’t and can’t afford to take “risks” on new or edgy business concepts for example, which is why a lender can be beneficial in this circumstance as well. They might not offer generous mortgage terms that private lenders would be willing to offer. Private lenders are more willing to take the “gamble” on a new or different business concept.

Another example of a good time to seek a private lender is if your company is new and you have yet to establish any business credit, or if you are rebuilding your credit score based on past “dings.” Banks are not very forgiving with no or low credit. But private lenders are typically willing to work with new businesses, especially if the credit history is mostly clean. Private lenders also specialize in short-term loans, which can be very helpful for new and growing businesses.

You can still be eligible for commercial loans Texas if you go through a private lender.

Private lenders won’t make you go through all the red tape that traditional banks require. Lenders are there to help you from start to finish and usually make the process of getting a loan much simpler and stress free.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

Take some time to research private lenders that specialize in the loans you are in need of and who are willing to work with your to negotiate the deal that works best for your business needs. A lender can fast track your loan and get your business in a position for growth and development in no time!

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What You Need to Know about Repayment Terms of Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loans texas, texas commercial lender, texas commercial loan, texas commercial loans, texas commercial mortgage brokers, texas commercial real estatebigdaddydennis

There are many details and “fine print” to understand how to pay back your commercial loans in Texas. Here we break down what you need to make sure you can repay your lender.

First, it’s important to have realistic expectations about obtaining and repaying a loan. Terms are much different than they are with say a home mortgage, so it’s important not to compare the two — they are totally unique to one another. Residential loans can often have a repayment schedule of up to 30 years, while commercial loans Texas are broken down into tow major categories depending on the length of the repayment terms and schedule.

An intermediate term loan is a shorter-term loan that is three years or less. These loans can be more difficult to repay a large loan amount because the repayment requirements and interest may be quite high. Longer-term loans vary from between five and 20 years. Repayment loans are also amortized loans, meaning the loan will need to be repaid in fixed installments until the entire loan has been repaid. This is similar to what homeowners pay for their home mortgage – making a payment monthly at a “fixed” amount, including principle and interest.

However, amortization of commercial loans Texas are rare, and typically you are required to pay a balloon payment at the end of the terms. This means you will be required to pay the remaining portion of the loan in one large lump sum. This can prove difficult for many small or start up businesses. During the loan repayment, interest is paid, but not principle, so at the end the business owner is responsible for nearly the entire principle amount. The alternative to paying all at once is refinancing the amount of the balloon payment into a new loan

It’s important to know that you are responsible for prepayment terms, too, and can actually be penalized for early payment.

While you may be tempted to “prepay” your loan amount and save on interest, you may be in for a surprise. Unlike a home mortgage, commercial loans Texas often include clauses to the contract that outline a prepayment penalty fee, calculated by multiplying the present outstanding balance by a prepayment penalty amount stated in the contract. This protects the lender or bank from any loss that might be associated with early payoff. An interest guarantee also protects the lender – stating that they are entitled to receive a specific amount of interest when the loan is paid off prior to the terms of the agreement. This is sometimes refereed to as a “lock out,” meaning the business owner has to wait until this time has passed (five year, for example) to them pay off the full loan amount without penalty.

Before signing your loan agreement, make sure you understand what is required of you

Once you sign the documents, you are responsible for the repayment terms stated in the commercial loans Texas agreement, so it’s important that you go through all the paperwork with a fine-tooth comb and seek legal counsel to review it as well. Understanding exactly what is required of you will make it easier to budget and plan for your repayment schedule.

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Tag Archives: commercial loans texas

Qualification for Hard Money Commercial Loans Texas

Conventional commercial loans Texas can be hard to qualify for. But a hard money lender offers a much more stream lined and speedy loan process.

What Makes Hard Money Lending Different

It is a Viable Option

What You Need to Know About Commercial Loans Texas

If you are not familiar with commercial loans Texas then you might believe that they are similar to any personal loan that you applied for. But the short answer is that they are not.

Understand the Cost of Borrowing

There can also be Penalties

Tips on Getting Commercial Loans Texas

Getting commercial loans Texas is not as simple as many business owners might think. There are many tips out there but the best all center on being prepared.

Manage Your Time

More Knowledge is Always Good

Tips for Building a Relationship for Commercial Loans Texas

When you begin to think about applying for commercial loans Texas you should immediately begin to work on building some important relationships. Commercial lenders can provide you with more than just the loan that you are looking for.

Be Honest From the Beginning

Commit to Full Disclosure

4 Tips for Securing SBA Commercial Loans Texas

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

Be Ready to Relate Your Story

Don’t Be Afraid to Shop Around

What Lenders Look for When Granting Commercial Loans Texas

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

Proven Track Record

Overall Credit Worthiness

Learn the Differences Between Short Term and Long Term Commercial Loans Texas

When it comes to short and long term commercial loans Texas, there is a lot of terminology and “fine print” to understand. With these tips, you can understand the differences and determine which loan type would work best for you.

How do I determine if a short term or long-term commercial loans Texas is better for my business?

What are the first steps I should take to obtain these types of loans?

How a Private Lender Can Help You Get Your Commercial Loans Texas

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

You can still be eligible for commercial loans Texas if you go through a private lender.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

What You Need to Know about Repayment Terms of Commercial Loans Texas

There are many details and “fine print” to understand how to pay back your commercial loans in Texas. Here we break down what you need to make sure you can repay your lender.

It’s important to know that you are responsible for prepayment terms, too, and can actually be penalized for early payment.

Before signing your loan agreement, make sure you understand what is required of you