Options For Commercial Rehabilitation Loans

September 10th, 2011 by admin

There are essentially two options for borrowers seeking commercial rehab loans for commercial construction projects – traditional construction loans or commercial hard money (aka private money). Both options have their pros and cons though.

The main benefits with commercial hard money include speed of decision and speed of execution. The disadvantages are obvious; they are expensive and often carry harsh terms. Currently, April 2008, the appetite for private construction loans is waning as hard money lenders continue to be bombarded with loan request as bank financing and cmbs financing continue to feel the pinch of the credit “crisis”; and continue to turn deals down that were financeable just 3 -6 months ago. Hard money lenders are cherry picking and often will choose loans that do not have the complexity and inherent risk that goes along with rehab financing – like good old refinances.

But for solid project, in good markets with good borrower experience, they can expect this to still be a viable option, assuming they’ll swallow the 3 -4 points that are normally required. » Read more: Options For Commercial Rehabilitation Loans

Posted in Commercial Properties

Commercial Vehicle Loans – Some Tips Before You Avail Funds

September 5th, 2011 by admin

You must have lots of funds in your pocket for owning a commercial vehicle. Of course it is not possible for each and everyone to buy these hugely priced vehicles from own resources. And even if you have the funds, better save it for other business uses and instead opt for commercial vehicle loans, which are available for buying new or used trucks, heavy or light transportation vehicle etc. However, ensure that you have gone through various aspects of the loan before you rush to a lender.

First of all you must know that the loan terms and conditions will depend a lot on your past record of making payments. If your credit history is good then the lender is most likely to relax conditions of the loan. It could be that you have a good credit record but your credit report does not mention it correctly. So first take your credit report from reputed agencies. Check it for any errors in it. Secondly, in case your credit rating is lower, better pay off some debts. Then you should apply for the loan after sometime with improved credit rating. » Read more: Commercial Vehicle Loans – Some Tips Before You Avail Funds

Posted in Commercial Properties

Getting a Commercial Building Loan During Times of Recession

September 1st, 2011 by admin

People take out commercial mortgage loans every day. After all, all of the real estate you see when you look around you has been paid for by someone, be it a contractor, a landlord, a developer, or someone who purchased the building for personal use. Most of these people don’t have the money to just buy properties outright, especially with ventures running into the millions of dollars, so there are thousands of real estate loans open on the books at any given time. Unfortunately, the recession that caused so many homeowners to default on their mortgages has also hit the commercial sector hard. After all, people who are losing their homes aren’t buying anything they don’t have to, either. Experts are estimating that the default rate may reach as high as 4.2% by the end of 2009.

Small businesses have been hit especially hard, just because of the nature of their businesses. While the total outstanding balance on commercial mortgage loans has actually fallen in recent months, the number of loans with delinquent payments has risen substantially. What this means is that the loans that are now in default are those held by smaller businesses with lower mortgages. Instead of the market being filled with a number of large businesses defaulting on huge mortgages, this trend demonstrates that thousands of little businesses are defaulting on smaller loans. » Read more: Getting a Commercial Building Loan During Times of Recession

Posted in Commercial Properties, Real Estate