Financing is necessary for every business to grow. Your company can fund its expansion by taking out loans from either banks or private hard money lenders. Although taking a loan can give you the extra funding you need to kickstart your business, but there are times when it may not work out. If your business doesn’t do well, it can be challenging for you to repay the loan. Studies show that the estimated total mortgage debt outstanding in the third quarter of 2020 was 16.5 trillion dollars.

In these circumstances, you wouldn’t want to repay a loan to the bank as they are not flexible enough to change the terms. However, if you have taken a loan from a private hard money lender, they can provide you with workout loans to get out of any foreclosure situation. Here’s everything that you need to know about it.

The Basics of a Loan Workout

A loan workout is an agreement between the borrower and the lender as the borrower is incapable of returning the loan with the existing terms. When a borrower faces foreclosure, a loan workout is a way to restructure the agreement to make the repayment successful.

What Terms Can You Change in a Workout Loan?

A loan agreement can have many associated terms. As the lender entrusts you with their money, they would keep these terms to ensure you repay them in a suitable period with interest payments. However, things don’t go your way every time, and you may need to alter the loan terms to ensure loan repayment. A private money lender may offer changes in the following terms:

 

1. Loan Amount: A private money lendercan decrease the payments to be made in the short run and increase them for later when the borrower’s condition is better and more stable
2. Repayment Deadline:The maturity date of the loan can also be changed to provide some flexibility to the borrower.
3. Interest Rates:A private money lender may even cut down interest rates to ensure that repayments are completed.
4. Property Acquisition: Private money lenderscan accept properties as a form of repayment if you are unable to pay even after the terms are changed.

Get Workout Loans Now!

If you’re looking to get out of a foreclosure situation, visit Commercial Private Equity now. We provide effective workout loans, where we try to make the new loan terms easy for you to repay. We have been in this industry as a private money lender for over 75 years and offer four other specialized loans, including commercial hard money, bridge loans, construction loans, and raw land loans. We also provide a loan program with three levels of loan terms.

Contact us now for more information.

Ensuring constant business growth is the mantra of every firm. The acquisition of raw land or the construction of new offices and warehouses is considered significant growth for a company. However, new projects require business capital to be conducted efficiently. These funds can be obtained through acquisition and development loans.

Here’s all that you need to know about them.

What Is an Acquisition and Development Loan?

An acquisition and development loan (AD) is a loan that is used to purchase land and construct a commercial property. A hard money acquisition and development loan is provided by private money lenders who use the value of your commercial property to deliver the loan. The loan is generally divided into two parts. One portion of the loan is used to buy raw lands, and the other part to construct the property. An AD loan offers a shortcut to grow your firm by providing quick financing. Moreover, the acquisition and development of new property can increase your firm’s revenue immediately.

Private money lenders can use several factors to determine the provision of the loan:

1. The availability of additional collateral from the borrower.
2. The value of the raw land being bought.
3. Borrowers’ construction plans.

Types Of Loans

An AD loan can fuel your firm’s growth prospects. The AD loan has mainly two types:

Hard Money Raw Land Loans

If you’re looking to purchase raw land to start your growth project from scratch, a hard money raw land loan from a private money lender is an excellent option. You can’t rely on banks for providing loans for raw lands as they’re skeptical about the prospects of an unconstructed land.

Hard Money Construction Loans

Construction is a major part of any growth plan. If you want your newly constructed property to create an impression, you should hire the best contractors in town. However, hiring the best doesn’t come cheap. If you want to finance a reputed contractor, it’s better to opt for hard money construction loans to ensure you don’t run out of money midway through the project.

Get Construction and Raw Land Loans in Atlanta, GA Today

If you’re looking to acquire new land or develop an office, visit Commercial Private Equity now. We provide construction and raw land loans for our clients at competitive rates. We have been working in the private money lending industry for over seventy-five years and have gathered millions of profits for our clients. We strive to make the loan application process simple and streamlined to make loan acquisition easy. We provide loan programs and specialized hard money loans, including commercial hard money, bridge loans, and workout loans.

Contact us now for more details.

It’s crazy how quickly the real estate market rates are increasing in the US. In these circumstances, it’s tough for any firm to buy commercial properties. Companies are looking to buy cheap raw land to expand. However, it’s not easy to buy raw land with the lack of capital. Private money lenders can help boost your business by offering land loans.

Here’s everything you need to know about it.

The Basics Of A Hard Money Land Loan

If you’re trying to buy a piece of land to grow your business, getting a loan from a bank might be challenging. Banks are skeptical in giving loans for lands as generating money from raw land is tough. However, even if banks are unwilling to provide loans, that shouldn’t stop you; you can reach out to private money lenders who offer land loans. Private money lenders use your commercial property as collateral to deliver land loans.

Types Of Hard Money Land Loans

You can only benefit from land loans if you opt for the correct type. Here are some of the common types of land loans:

1. Raw Land Loan: As the name suggests, a raw land is a piece of land without any infrastructure. You’d buy this land for mainly two reasons: if you want to start everything from scratch or if you think the value of this land will skyrocket soon. Getting a raw land loanis a risky move, but if it pays off, it can give you massive returns.
2. Enhanced Land Loan: An enhanced land is more developed than raw land. You’d opt for this loan if you want to skip the hassle of starting from scratch. Since an enhanced land can be easily refinanced, loans are readily available.

Benefits Of Hard Money Land Loans

The biggest benefit of getting raw land using these loans is the freedom you get. You can shape the property however you like and use it to its maximum potential. Moreover, buying land is cheaper than buying a developed commercial property. The funds you save by buying raw land can be used to develop other sectors of your firm.

Get Hard Money Land Loans In Atlanta, GA Today

If you’re looking to acquire hard money land loans or construction loans, visit Commercial Private Equity today. We offer hard money loans at competitive interest rates and provide financial consultation. Our specialized loans include commercial hard money loans, bridge loans, and workout loans.

Get in touch with us now for more information.

The economic repercussions of the pandemic have pushed many American firms into debt. Repaying the debt in these circumstances can be challenging.  It’s estimated that one in ten US firms may default on their debt. These alarming numbers aren’t good signs. However, there’s a way out of a default debt situation known as a workout loan.

Here’s everything you need to know about it.

The Three Stages Of Loan Repayment

The interaction between a money lender and a borrower generally occurs in three stages:

Stage 1: Are Things Alright?

As the debt repayment deadline approaches, a lender would naturally inquire about the repayment status. You’ll have to provide your financial details, and the private money lender may assess your firm’s situation with it.

Stage2: The Negotiation

If you think you won’t be able to repay the loan on time, you should call for negotiations. The negotiation can lead to the restructuring of the repayment details. You can ask for interest rate reduction by providing additional collateral, or if you think that a foreclosure is inevitable, you can opt for a workout loan.

Stage3: Financial Default

Neglecting a workout loan can lead to a default situation. When your company can’t repay the loan, the lender is legally liable to own the commercial property you submitted as financial security. The lender will sell the property and use the funds to balance the loan.

Basics Of A Workout Loan

A workout loan is a way to restructure your debt and get out of a foreclosure situation by changing the debt repayment requirements. A private money lender can assist you in modifying the loan agreement to make the repayment smoother. In a loan workout, you can modify many terms, including total repayment amount, interest rate, loan maturity date. It’s sensible to hire a reputed private money lender who can advise on your loan workout. The moneylender would assess your situation and gain insight into why you couldn’t repay the loan in the first place.

Workout Loans Available In Atlanta, GA

If you’re looking for a way out from a foreclosure situation, head over to Commercial Private Equity today. We provide workout loans that can help you restructure your debt and effectively help you get out of default loan situations. We’ve been working in the private money lending industry for over seventy-five years. We’ve introduced several levels of loan programs and offer specialized hard money loans, including commercial hard money loans, bridge loans, construction loans, and raw land loans.

You can reach out to us here for more information.

The cutthroat competition that has developed due to the pandemic has forced many firms to expand their business. In 2019, the construction industry in the US generated two trillion dollars in revenue, which speaks volumes about the scale on which this industry works. Although the construction industry is booming in the US, it’s a complex job and requires you to take care of many aspects. Poorly constructed offices and warehouses can waste your money and also decrease productivity.

Here are three things you need to keep in mind before starting a construction project.

Always Make A Budget

It’s crucial to control your emotions when making the budget for your construction project. Excitement to kickstart a new project can make you go overboard, which can cause problems during the construction project. It’s sensible to use a construction calculator to estimate a realistic cost. You’ll need to estimate the costs of the contractor, raw materials, and insurance. You must also understand that during a construction project, the budget can be overused. It’s better to get some extra capital in advance through hard money loans to prepare beforehand.

Hire A Reputed Contractor

Construction is something you won’t get done frequently, and that’s why you’ll want to do it right the first time around. A constructed office or a warehouse from a reputed contractor can last a long time and save your money on maintenance. You must hire a licensed contractor to ensure accountability. Moreover, hiring reputed contractors is beneficial for you as they are insured, so if there’s any damage to the property during the construction plan, you won’t have to pay it out of your pocket.

Acquire Hard Money Construction Loans

Delays in construction work are a norm now. Many factors can cause these delays. One of these is the lack of funds which can lead your construction contractor to stop the work. If you want to avoid this problem, it’s better if you get hard money construction loans from a private money lender.

Since you’d want to restart work quickly, it’s better to avoid banks for financing as bank loan applications can take an eternity to complete. Private money lenders only use your commercial property as collateral and deliver hard money loans based on that.

If you’re looking for a private money lender to obtain hard money construction loans, head over to Commercial Private Equity today. We’ve been providing hard money loans for over seventy-five years now. We offer three-level loan programs with different requirements, making loan acquisition flexible for our clients. We tackle most of our client’s financial issues through our specialized loans, including commercial hard money loans, bridge loans, raw land loans, and workout loans.

Reach out to us now for more details.