Tag Archives: commercial mortgages in texas

Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 3 – Hard Money Mortgage Application

November 3, 2017Uncategorizedcommercial hard money mortgage, commercial mortgage, commercial mortgages in texas, texas commercial mortgagebigdaddydennis

Perhaps a traditional mortgage is not what you are looking for with your commercial investment, or maybe through the pre-qualification process, your lender has helped you determine that your needs are better served by a hard money loan. In either case, the process for a commercial mortgage in Texas is slightly different with this type of loan.

Typically, a hard money loan is a very short-term loan that will enable to borrower to quickly turn a profit and pay back the loan. If you are developing a property or are looking for a long-term building extension or business development of a commercial area, then this is not the type of loan that you are looking for. Many real estate developers use this type of commercial mortgage to quickly turn around a property and immediately put it back up for sale to turn a quick profit on the improvements made.

This is often referred to as a “fix and flip” loan and has been made famous by shows like “Property Brothers” and “Flip This House.” Often times, from a commercial standpoint, these properties are in depressed areas and often include multi-family housing units. With the recent devastation of Hurricane Harvey, this is actually going to be a growing area of need in Texas markets.

The tricky part of a hard money commercial loan is that it is based on the property appraisal that will be realized after the completion of the project. This is commonly termed as the After Repair Value or ARV.

Because of this unique factor, the application process of a commercial mortgage of this type begins with the assessment of what the property will be worth after the repairs are implemented. This means that the borrower will have to do a good deal of leg work before even knowing if the loan will be approved. Detailed specifications and an excellent business plan are necessary components for a hard money loan, as the entire value of the loan is going to be based on what the borrower intends to do with the property.

Once the plan has been approved and the ARV has been provided to a potential lender, the application process truly begins. Another element that a borrower can expect to encounter in this process is having to provide a detailed budget of how the repairs are going to be completed and their associated costs. This can usually be done by getting quotes from contractors who have worked on such projects before. In any case, this is critical step to help outline exactly how the loan is going to be used and to ensure that it is for the proper amount.

With the recent crisis in Texas, how can I use a commercial mortgage to my advantage?

Multi-family housing units in depressed and affected areas, especially in Houston, are going to be in high demand and investors are going to be needed to quickly turn those properties into buildings that are livable. Having the access to quick funds and experience developing properties with hard money will most certainly help you to make a commercial mortgage work in your favor.

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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Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 2 – Traditional Mortgage Application

November 3, 2017Uncategorizedcommercial mortgage, commercial mortgage Texas, commercial mortgages, commercial mortgages in texas, texas commercial mortgagebigdaddydennis

With pre-qualification out of the way and a lender working with you to secure a commercial mortgage for income generating property in Texas, you are well on your way to making your dreams come true. However, the hard work is just beginning.

If your pre-qualification process was rigorous, then you are well on your way to completing the actual application for your loan. While it might have been frustrating at the time, you will no doubt be grateful for it as the process goes along. However, if you did not have to provide much documentation for your pre-qualification, then you are definitely going to have your work cut out for you. The application process for a commercial mortgage in Texas can be quite long and can confuse even the smartest of business people, so do not hesitate to ask plenty of questions of your loan officer.

If you did not have to provide documentation for your pre-qualification, you will have to gather financial documents to show not only your ability to pay back the mortgage, but also your history of how you have handled debt. This usually includes proof of income, tax documentation, other assets and business information. It also might include balance sheets, income statements and business plans, especially if the property is going to be used to house other businesses as rentals. Lenders are looking for security when they grant commercial mortgages and all of these things become factors not only in their decision to grant the loan, but also in the rate and terms that they are willing to offer.

With a traditional mortgage, there are a couple of things that need to be taken care of before the underwriting of the loan can actually begin. Before any movement can be made toward obtaining a loan, the title of the property and the title company that will be representing it must be chosen. It is up to the borrower to select the company that will be closing the loan (once it is underwritten) and will be providing title insurance. This helps to secure the commercial mortgage against title fraud and is absolutely necessary for lenders to be able to approve a loan. At this time, it is also decided whether the borrower will be covering title and insurance costs separately or as part of the mortgage, all rolled into one. Unless you have a very good reason to divide them, it is most likely in your best interest to lump them together.

What happens with a commercial mortgage in Texas after all of the paperwork has been processed and the underwriting process begins?

Once the underwriting process has begun (this could take up to 2 months), there will be a lot of waiting. But there are still things that will need to be done in order for the transaction to go smoothly. One such thing is for the borrower to get the property appraised by a third-party appraiser. This process is also very time consuming and can take up to 3 weeks to complete so it is best to start this early. In addition to this, you must be prepared to provide additional documentation, as needed, to the lender. It is very possible that they will need nothing else to secure your commercial mortgage, but if they do, it would be best to provide it quickly to not interrupt the process.

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Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 1 – Pre-qualification

November 3, 2017Uncategorizedcommercial mortgage, commercial mortgages in texas, texas commercial mortgage, texas commercial mortgage brokersbigdaddydennis

Venturing into the commercial real estate market is not something to be taken lightly. The process can be long and stressful, especially if you are not properly prepared. When you are seeking a commercial mortgage in Texas, there are a number of steps to take before you are going to be able to secure funds.

Before the official paperwork even begins, most lenders prefer to have potential borrowers go through a pre-qualification process. Not only does this ensure that the borrower is both serious about pursuing a mortgage, but it also helps lending institutions determine the direction that they want to go with the commercial mortgage, especially in competitive markets like Texas.

In many cases, the pre-qualification process consists of some basic questions about your goals and your basic finances. Many lenders actually have this process online, so it can be completed at your convenience. It is important to answer the questions on this pre-qualification application as honestly as possible, even if you do not have to back it up with financial statements right away. Again, this is process is not only to determine whether or not you can handle a loan, but also to justify which type of funding would work best for you and your commercial property.

There is also the instance of a lender reaching out to you, saying that they have already prequalified you. While this is more common with basic commercial loans for small businesses (remember, many lenders make money off of fees and interest rates, so it is in their best interest to have as many customers as possible), it does happen with commercial mortgages, especially if you have already received one or applied for one. If you have already been pre-qualified, you will still have to go through the application process to definitively determine if you qualify for the loan.

For some lenders, just the application and some basic questions are enough to begin the process of a formal application. For others, further documentation will be required. This can be anything from the previous two months bank statements to tax documentation going back two to three years. You might also have to prove additional income by disclosing investment properties or other assets. The larger the commercial loan you are attempting to acquire, the more documentation you should expect to provide up front.

What happens after I submit my pre-qualification application and documentation for my commercial mortgage?

Once all of the documentation is gathered and submitted to the lender, you will usually have an answer as to whether or not you are qualified pretty quickly. Often times it is even the same day. If you do this online, you can expect to know the answer, and hear from a representative, within 24 hours. In person, this process might go even more quickly as your documentation will be reviewed by a live person while you are present. After you are pre-qualified, the lending agency will then begin to move you through the formal application process of a commercial mortgage.

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Reason to Get a Hard Money Commercial Mortgage Texas

October 1, 2017Uncategorizedcommercial mortgage, commercial mortgage Texas, commercial mortgages in texas, texas commercial mortgage, texas commercial mortgage brokersbigdaddydennis

You might be ready to give up on purchasing a commercial property if you have been turned down for a conventional loan. But the solution for many issues can be a hard money commercial mortgage Texas.

You could be feeling that you have no options left if you have been rejected for a conventional commercial mortgage Texas. But the truth is that there are a lot of good reason to look into a commercial hard money loan. It is true that you will be paying a higher interest rate than you would on a traditional commercial mortgage Texas, but it could be well worth it to solve a problem or avoid one altogether.

The most common reason that borrowers seek a hard money commercial mortgage Texas is because they have financial issues that won’t allow them to qualify for a traditional mortgage. You might not have enough income or assets to prove to a bank or lender that you will be able to make the payments. Or your business might be too new and not have a long enough credit history to qualify for a loan. If you already have commercial mortgages that are outstanding, then you could also be considered a high risk and a conventional lender will not offer a loan.

Or the property itself could be the issue. In the case of a more unique property it could be very hard to secure a loan which uses that property as collateral. The property could meet all of your needs but still might not convince a lender that it is a good risk as collateral. Another issue regarding the property could be that it has outstanding liens, judgements or other unpaid bills. If this is the case then most lenders are not going to want to carry that increased risk. If you are not able to pay the debt in cash then you will most likely not get a conventional mortgage for the property.

Avoiding a Huge Issue

If you already have a conventional commercial mortgage but are behind on the payments, then a hard money mortgage could be your only hope of avoiding foreclosure. If this is the case then paying a higher interest rate for the hard money loan to pay off the conventional loan is very wise. Not only will it help you to avoid losing the property but it will also help you to avoid ruining your credit. And even if the hard money loan is a short time frame, it allows you time to regroup and try to find a long term solution.

Know What You Are Getting Into

Not every problem has an easy solution. Paying a higher interest rate is never your first choice but it can be a way to avoid further issues and even the loss of your property and credit. Understanding the terms of a hard money loan and being willing to accept them can be a good idea. Just be sure that you have evaluated all of your options and that the hard money loan is the best short and long term solution that you have at your disposal.

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Guide to a Commercial Mortgage Texas

October 1, 2017Uncategorizedcommercial mortgage, commercial mortgage broker, commercial mortgage lender, commercial mortgage Texas, commercial mortgages in texasbigdaddydennis

When you are considering a commercial property purchase, you also need to consider your options for a commercial mortgage Texas. Knowing the requirements and the process can be a great help in selecting the best lender to work with.

As you begin to explore the world of the commercial mortgage Texas, you might be overwhelmed with the sheer volume of information and the options. You can do the research and educate yourself or seek the assistance of a broker. But even when relying on a professional, you need to have a basic grasp of the requirements to qualify and the process that you will need to follow.

Most lenders are going to require a lot of the same information when you apply for a commercial mortgage Texas. It is wise to begin early and have your information packet completed prior to starting the application process. You will need to provide audited accounts for the past two years, a profit and loss projection for the upcoming two years, a list of the owners of the business for credit verification purposes, asset and liability statements for the owners, a copy of the business plan, credit status for the business and growth projections for the company. Having this information current and in a presentation format will make the application process for a commercial mortgage Texas much less daunting.

The term of a commercial mortgage loan is normally shorter than a residential mortgage term. In most cases they will not extend beyond 20 years. In addition, the interest rates will be higher due to the increased risk to the lender. You can control the interest rate a bit by making a larger down payment to increase the instant equity in the property. This reduces the risk that the lender is facing in the event that you default on the loan. The property is much more likely to have a value in excess of the mortgage balance and the lender would be able to more easily sell the property to recover their invested funds.

Understanding the Fee Structure

It is critical that you understand the fee structure on any mortgage that you are considering. This is the most important information that you will use to compare the mortgages and select the one that best suits your needs. You can expect to pay between .5% and 1.5% in administrative fees for the loan. These can be called out as flat cost application fees, processing fees or simply added in as an administrative percentage. In addition there will be legal fees for document creation and review, insurance and surveys for the property. And finally there might be fees for early pay off on the mortgage. Commercial lenders are making money from the interest that they charge and are not willing to forego that money if the borrower pays the loan off early.

Complete Your Due Diligence

As with any large commitment, you need to invest your time in learning the process and learning about your options before commencing. This will include learning about lenders, brokers and the commercial real estate market in your area. With a strong foundation of knowledge you will be able to make wise financial decisions about purchasing a commercial property.

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How to Plan For an Easy Commercial Mortgage Texas Loan Process

October 1, 2017Uncategorizedcommercial mortgage, commercial mortgage Texas, commercial mortgages in texas, texas commercial mortgagebigdaddydennis

Following these “ABC’s of commercial mortgage Texas loan application, you can make sure you are eligible for the best loan for your company’s needs and get it in a timely manner.

Before you get too far into the process on your own, finding the right lender for you and your business needs is “step number one.” Meet with several banks and lenders, considering it an “interview” for who you want to have your loan go through. You should have good communication with the lender you choose and feel that they are the best person to get you the right commercial mortgage Texas for your business.

Take some time to research lending institutions online and collect all the information you need to make an education decision. Look at which lenders provide the loans you are looking for, and in a price range that is similar to the loan amount you need and budget you are working within. A lender that has experience with your type of business is another thing to look for. You can even talk to a broker to see if they have a recommendation on the right lender for you.

When you have chosen a lender, it’s time to start the application process for your commercial mortgage Texas loan! This can be an exciting but sometimes frustrating part of the process. You may have to pay an application fee, and that often depends on which lender you have chosen to work with. Most require that you submit proper financial statements to help with the loan application including business and personal records, business operating statements, tax returns, bank statements and more. Your lender can supply you with a complete list of documentation you will be required to produce.

When you submit your documentation, the evaluation begins.

The lender will evaluate your financial information, and calculate your ability to repay the commercial mortgage Texas loan you are applying for. You will also undergo a background check and credit report check at this time. Finally, the lender will arrange a property evaluation or appraisal for the property you are looking to obtain the loan for. This includes determining the condition of the property (even down to an environmental inspection to ensure the soil is not contaminated and there is no health risk or danger associated with the property). When all the required inspections have been completed and approved, further evaluation will take place to determine loan approval.

You’ve been approved for the loan! Congratulations… but there’s more.

After your loan approval, you will need to complete more paperwork, and now is the time to consult a lawyer who specializes in loon documentation to ensure all the documentation is fair and legal. They can help ensure you understand all the terms, and they can request any changes be made prior to your final signature. Once terms have been finalized and agreed upon, signing the contacts at the closing and making the down payment will complete the process, upon which funding is typically available within a few days.

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The Ins and Outs of Getting a Commercial Mortgage Texas

October 1, 2017Uncategorizedcommercial mortgage, commercial mortgage broker, commercial mortgage lender, commercial mortgage Texas, commercial mortgages in texas, texas commercial mortgagebigdaddydennis

Figuring out the process for obtaining a commercial mortgage Texas is not as difficult as it sounds. With a few tips and some research along the way, you can be successful in getting the loan you need for your business.

A commercial mortgage Texas can be sought be businesses for many reasons and purposes. Thought these types of loans are the most complex, so proper research and due diligence will take to you a long way to ensure you understand what you need to do to be successful in obtaining the loan. There are also some things you can avoid doing so you don’t fall into the pitfall of getting your loan application rejected.

First, it’s important to find the right lender to work with. Look for one with professional experience with the loan you are looking to obtain and the type of business you conduct It’s also important to find a lender who will offer terms that work with your specific budget. Being familiar with the terms of the loan and with commercial mortgage Texas in general, with help you as you seek the right lender. Even if you have worked with a bank or lender in the past, make sure that entity or individual is rightly suited for this specific situation.

It’s also important once you’ve chosen a lender to seek the counsel of a lawyer to review documents before you sign anything. If you work with a lawyer that has experience in commercial mortgage Texas, all the better. They can make sure the paperwork is in order, that you are getting what you are under the impression you are getting, and that all the terms are legal — and reasonable.

Making sure you can afford the terms of commercial mortgage Texas loan is very important.

It’s important to understand that you will be responsible for a monthly (or otherwise agreed upon) repayment schedule with you obtain a commercial mortgage Texas, so you need to make sure you have the ability to repay under the terms. Prior to making any agreements, review your business plan and your budget to ensure the terms of the loan won’t put your finances in a crunch. You may benefit for reducing some of your costs in other areas, increasing your product line or offering services in a new, bigger market to regain more capital.

As with anything in business, it’s important to be as prepared as possible.

While you can’t predict the future, as a business owner, it’s important to make sure you are financially prepared to handle the “unexpected” pitfalls that are certain to happen in business along the way. Having cash via loan can sometimes make the difference in being able to handle these pitfalls with ease or having an unexpected bump in the road put your business in a bind. Responsible planning is a good for any business, and having your financial documentation in order can help ensure you continue to be successful in business.

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The Damage Hurricane Harvey Causes on Commercial Mortgages in Texas is Still Unclear

September 28, 2017Uncategorizedcommercial hard money lenders, commercial hard money loans, commercial mortgages in texas, texas commercial lending, texas commercial loans, Texas hard money lendersbigdaddydennis

Hurricane Harvey brought record-rainfall that led to some of the worst flooding that the country has ever seen. Those in the area are eager to see the damage that Hurricane Harvey left on commercial mortgages in Texas.

Local banks are a little on edge because it is still unclear just how much work is needed to build the area back up after being hit hard by the category 4 hurricane. As of now, it is estimated that tens of millions of properties backed by commercial mortgages in Texas could be at risk and face a long road of recovery.

The Small Business Association has already received a good number of disaster loan requests, leading many to think that more are on their way and that the industry of commercial mortgages in Texas could have been heavily impacted. Not only do businesses have to worry about repairing the property damage caused by Hurricane Harvey, they also are dealing with the loss of income after having to close for so many days during the storm and now during the recovery efforts.

Unfortunately, the area had already been facing issues because Hurricane Harvey tore through southeastern Texas. The state saw a very high vacancy rate at the end of the 2^nd quarter, the worst vacancy rate percentage the state had seen in over 20 years. Because of these struggles before the storm, it could take the area even longer to recover.

Commercial Mortgages in Texas could have been heavily impacted by Hurricane Harvey

The long-term impact of the storm and struggles before Hurricane Harvey could take a lot of time and effort to rebuild. With the flood damage and missing income for a good amount of time, many are in fear of having issues with making a profit. These need for commercial mortgages in Texas could increase due to those needing extra help to get back on their feet.

Some are hoping that commercial mortgages in Texas are the most of the issues when it comes to that industry

The aftermath of Hurricane Harvey may still remain unclear, but some are hopeful that the banking industry will not suffer too much, since they were already seeing issues. The storm lasted for several days in some areas and broke plenty of records. Lenders are fearing late payments will be more common and that this trend will only continue as the area rebuilds from a bad 2^nd financial quarter and now the damages caused by Hurricane Harvey.

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Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 3 – Hard Money Mortgage Application

With the recent crisis in Texas, how can I use a commercial mortgage to my advantage?

Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 2 – Traditional Mortgage Application

With pre-qualification out of the way and a lender working with you to secure a commercial mortgage for income generating property in Texas, you are well on your way to making your dreams come true. However, the hard work is just beginning.

What happens with a commercial mortgage in Texas after all of the paperwork has been processed and the underwriting process begins?

Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 1 – Pre-qualification

What happens after I submit my pre-qualification application and documentation for my commercial mortgage?

Reason to Get a Hard Money Commercial Mortgage Texas

You might be ready to give up on purchasing a commercial property if you have been turned down for a conventional loan. But the solution for many issues can be a hard money commercial mortgage Texas.

Avoiding a Huge Issue

Know What You Are Getting Into

Guide to a Commercial Mortgage Texas

When you are considering a commercial property purchase, you also need to consider your options for a commercial mortgage Texas. Knowing the requirements and the process can be a great help in selecting the best lender to work with.

Understanding the Fee Structure

Complete Your Due Diligence

How to Plan For an Easy Commercial Mortgage Texas Loan Process

Following these “ABC’s of commercial mortgage Texas loan application, you can make sure you are eligible for the best loan for your company’s needs and get it in a timely manner.

When you submit your documentation, the evaluation begins.

You’ve been approved for the loan! Congratulations… but there’s more.

The Ins and Outs of Getting a Commercial Mortgage Texas

Figuring out the process for obtaining a commercial mortgage Texas is not as difficult as it sounds. With a few tips and some research along the way, you can be successful in getting the loan you need for your business.

Making sure you can afford the terms of commercial mortgage Texas loan is very important.

As with anything in business, it’s important to be as prepared as possible.

The Damage Hurricane Harvey Causes on Commercial Mortgages in Texas is Still Unclear

Hurricane Harvey brought record-rainfall that led to some of the worst flooding that the country has ever seen. Those in the area are eager to see the damage that Hurricane Harvey left on commercial mortgages in Texas.

Commercial Mortgages in Texas could have been heavily impacted by Hurricane Harvey

Some are hoping that commercial mortgages in Texas are the most of the issues when it comes to that industry