Loan Types Which One Is Best For You – Infographic
It’s important for you to first decide the purpose of obtaining capital.
Once that’s decided, you can opt for a suitable loan.
Benefits of Getting Construction Loans – Infographic
Short-Term
Construction loans provide you with the financing you need to complete your project and then allow you to repay it.
Why Private Lending Is The Most Cost-Effective Source Of Gathering Short-Term Capital
Do you wish to invest in real estate but lack the financial means to do so? There are numerous financing options available on the market. Private money lenders are the ideal way to fund your real estate endeavors. Do you want to learn how?
Here’s why private lending is the most cost-effective source of gathering short-term capital.
Possibilities for Creditworthiness Improvements
Borrowing money from a private lender can help you improve your credit score and it can have an impact on your credit score in the future.
When you borrow money and repay it on time, you gain the confidence of other lenders while also enhancing your credit score.
A good credit score improves your chances of getting a loan down the road. Just make sure you don’t miss any payments to improve your credit score.
Quick Approval and Funding Of Loans
Private lending offers a quick loan application process. In some situations, loan approval might take as little as two weeks, and you can get cash in as little as a few hours.
Offers a Variety of Flexible Loan Options
Before applying for a hard money loan, you must consider various factors such as interest rates, application procedures, and lending costs.
When you engage with a private lender, you have complete control over all parts of the loan and have the option to choose the terms that best suit your needs.
You can go to other lenders until you discover the best deal. Private lenders are the most versatile and popular way of money lending of all the options because of their adaptability.
Have Fewer Requirements
The restrictions and paperwork involved in applying for loans are factors that dissuade people from getting loans. In this regard, private lenders have significantly fewer requirements than traditional lenders.
You just need to prove to the lender that you have enough money to make monthly payments if you’re borrowing money from them. If there are fewer requirements to meet, you’ll have a better chance of getting your loan approved.
If you’re looking for reliable commercial hard money loans, Commercial Private Equity can help you out. We’re leading hard money lenders and specialize in bridge, construction, development, raw land, asset-based, and other specialized loans for commercial properties.
Contact us for more information.
What type of Loan is Best for You – Infographic
It’s always important for you to first decide the purpose of obtaining capital. Once that’s decided, you can opt for a suitable loan.
Advantages of Choosing a Private Lender – Infographic
Want to invest in property, but lack money?
Many lenders will grant you money if you satisfy their conditions.
Everything You Need To Know About LTV
Money is essential for every successful business. However, having so much capital on hand isn’t practically possible. As a result, firms resort to money lending.
Hard money lending has gained popularity among many Americans as they switch from the lengthy approvals and high standards of traditional financing solutions. However, when hard money lenders make their final decision, LTV is a critical factor to consider.
Hence, it’s crucial to know about LTV ratios to get your hard money loans approved. Let’s look at what an LTV ratio is and what it can accomplish for you in more detail.
Fundamentals of LTV Ratio
The loan-to-value ratio is critical in deciding the loan amount in most hard money loan applications. It’s a ratio that compares the amount of debt you owe to the value of your assets.
It’s one of the best ways for private money lenders to assess risk before giving a loan. LTV ratios of 50% to 80% are feasible and ideal for completing a loan contract. Any percentage larger than 80% is risky for the private lender, and anything less than 50% is impossible to achieve.
The Importance of LTV Ratios
Because it specifies the level of lending risk, the LTV ratio is one of the most significant determinants of the loan application outcome. Calculating the LTV ratio is part of any private money lender’s underwriting procedure.
Because hard money lenders don’t do credit checks or other comprehensive checks like banks, they rely on the LTV ratio to make decisions. The LTV ratio also helps private money lenders determine how much money they can collect if a borrower defaults on the loan.
How to Calculate the LTV Ratio
Dividing the total amount borrowed by the total cost price and multiplying it by 100 will get you a loan-to-value ratio in percentage form.
LTV = (Loan Amount / Total Cost Price) × 100
Assume you’re purchasing a $400,000 home with a 20% down payment. This implies you’ll put down $80,000 and take out a $320,000 loan to cover the rest of the cost. This indicates that the LTV ratio is 80% ($320,000/$400,000 * 100 = 80%) and suggests that lending money in this situation is feasible for the lender.
Understanding the LTV ratio can help you get the best hard money loan deal possible. If you’re looking for a reliable private money lender to obtain hard money loans, stop by Commercial Private Equity today.
For over 75 years, we’ve been serving our clients and have developed a three-tiered financing strategy with varying loan-to-value ratios. We provide several specialized loans to our clients, including construction, bridge, commercial, raw land, and workout loans, to give flexibility in their loan transactions.
Contact us today to get started.
Everything You Need To Know About Non-Recourse Loans
A non-recourse loan is better than recourse loans for several reasons. They are backed with assets as collateral, reassuring the lender their money is safe even if the borrower defaults while also protecting the borrower’s rights.
This blog will guide you about non-recourse loans and why they are a better financing choice for borrowers.
Difference between Non-Recourse Loans and Recourse Loans
It’s significant to understand how non-recourse loans are different from recourse loans before moving ahead. With recourse loans, the ender has the right to use the collateral to recoup their investments. If they still can’t make up for their losses, they can continue to seize additional assets to cover their losses.
Borrowers who sign up for a non-recourse loan can protect their assets upon default. Lenders can’t confiscate or sell your additional assets, and they have limited options for recouping the outstanding debt in non-recourse loans.
They Are Safe For Borrowers
Non-recourse loans keep the borrowers and their assets safe in the event of default. You don’t have to worry about your retirement accounts, vehicles, personal property, or other possessions being confiscated and auctioned.
They Have a Much Easier Approval Process
The underwriting process for non-recourse loans is substantially easier because they require only one high-value asset as collateral, and you’re good to go. You don’t have to worry about other details that would have been significant in the case of bank loans. As a result, the underwriting process is quick by excluding other requirements.
They Are Very Convenient For Borrowers
As non-recourse loans restrict lenders from seizing other assets to recoup their amount, they might agree upon alternatives to recover their amount. Borrowers can take advantage of the situation and negotiate new loan conditions with lenders, thus making them a more comfortable and convenient option for you.
They Have Fewer Contingent Liabilities
Recourse loans are contingent liabilities for most private lenders and institutions. If you default, the loan is written off as a liability.
As a result, you might struggle to acquire a loan in the future as you’ll have a lot of contingent liabilities on your record. If you take up a non-recourse loan, you won’t be subject to any contingent obligations and can secure quick loan approvals in the future.
At Commercial Private Equity, we offer a variety of business loans. We provide commercial loans and other specialized loans, such as bridge, construction, raw land, and workout loans, at affordable rates to make money lending easy for our clients.
Contact us today to discover more about our non-recourse lending solutions.
How To Deal With Impending Foreclosures
Over a million property owners in the United States face foreclosure every year. Rising inflation can cause financial hardship for businesses, so it’s no surprise that commercial bankruptcies soared by 26% during the pandemic.
However, you can secure your commercial property and repossess it if you deal with it the right way. This blog will guide you in dealing with the threat of foreclosure.
Know Your Rights
Knowing your corporate rights is the most crucial aspect of every commercial transaction. Business property owners are subject to various commercial lending laws.
Determine first whether your property is even eligible for foreclosure. Consult a reputable private money lender to learn more about your business loan privileges.
Attempt to Stop It
You can request special forbearance, a repayment plan, or a loan modification to avoid foreclosure with commercial hard money lenders. They can modify plans as much as possible to help you repay the amount.
The success of any of these unusual exceptions is contingent on your ability to persuade your lender. You should be able to show that you defaulted on the loan owing to a temporary problem and that you will soon be able to get back on your feet financially.
Consider Your Options
You can still dispute the foreclosure in court if you can’t halt it. You can also consider filing for bankruptcy, selling the business property in a pre-foreclosure sale, or filing a lawsuit to stop the foreclosure.
Exploring your choices with the support of a business hard money lender or lawyer can be more successful. Other less desirable options, such as a deed-in-lieu-of-foreclosure and a commercial short sale, are also worth considering.
Get Workout Loans from Commercial Private Equity
Workout Loans might help you restructure your debt payments. We recommend working with a seasoned private asset-based lender who can assess your financial condition and offer you a realistic workout loan alternative.
A workout loan at Commercial Private Equity will allow you to begin repaying your debt under new terms customized to your financial situation. For the past seventy-five years, we’ve been assisting businesses in financial distress. Clients can use our asset-based workout loans to modify their debt payments.
We offer a variety of hard money loans, including bridge, construction, commercial hard money, raw land, and workout loans. Our professional underwriting staff can pre-approve your loan in as little as 24 hours.
Contact us today to avoid foreclosure and better manage your finances.
Investing In Real Estate: Is It Worth It?
Investing In Real Estate: Is It Worth It?
Whether you’re looking to start your entrepreneurial journey or feel enthusiastic about building generational wealth, investing in real estate may have crossed your mind. But for various reasons, you might feel skeptical about investing in commercial real estate and have questions regarding its prospects.
For starters, real estate investment may seem tricky and a complicated process. This is why many people hesitate to invest in real estate. But with some research, a little guidance from the experts, and a competent broker on your side, you can make real estate investment your side hustle (or a full-time career).
So begin your research from this blog and read four compelling reasons that make real estate investment well worth it.
Tax Benefits
The secret to most people’s ever-growing generational wealth is maintaining a low taxable income. Real estate investment allows you to manage the loss of taxes with real estate. Based on the commercial property type, there are numerous tax incentives for you to benefit from.
And if nothing else works for you, you can count on a 1031 Exchange to gain tax benefits on your real estate profits.
Leveraging Funds
If you have $10,000, you can only buy goods worth $10,000. But with real estate, you have a wide range of commercial property loans that allow you to leverage your funds. This means that if you have $10,000 and you want to buy a property worth $100,000, you can do so with just ten percent of your own money.
The rest you can easily acquire through commercial property loan lenders who’re keen to take the real estate property as collateral against the loan.
Appreciation
In 2022 alone, real estate prices in the U.S. have increased by 55 percent. This increase in property value is referred to as appreciation, reflecting an increase in rents and reselling prices.
Steady Cash Flow
Cash flow refers to the money an investor is left with after paying his taxes, mortgages, and maintenance expenses. As real estate prices continue to increase in accordance with inflation, your cash flow will always remain steady. Further, the tax benefits and mortgage payments will help build your equity and wealth alongside.
Secure Commercial Property Loans Now
If money is the only thing stopping you from venturing into real estate investment, reach out to us at Commercial Private Equity. We’re a hard money lender offering asset-based business loans and hard money loans for commercial properties. Connect with us to learn more.
How Does A Good Credit Score Benefit You?
Credit scores are a numerical representation of your creditworthiness and financial position. It’s a significant part of your financial reputation.
A strong credit score gives you an advantage over your competitors in several aspects of life, be it loan approvals or credit card benefits. However, a low credit score can drive up the cost of your major financial transactions. Here’s a quick rundown of some lesser-known benefits of good credit ratings.
Will Give Your Preference for A Few Jobs
Some occupations, such as those dealing with money or requiring a security clearance, require a personal credit check.
This verifies that you are financially stable and will not accept bribery due to financial issues.
You may fail to secure certain jobs if you have a poor credit rating, such as customs or banking sector, as the authorities might fear you to take up corrupt practices due to financial issues.
Interest Rates Are Lower
One of the primary benefits of having good credit is lower interest rates on your loans. A higher score indicates that lending institutions or private lenders will charge lower interest rates when giving out a loan or even issuing a credit card.
Candidates with good credit scores get the best rates, while those with bad credit frequently pay higher interest rates.
Increases Your Chances of Getting a Credit Loan
Have you ever been denied a credit card or a loan? If yes, you understand how aggravating it can be. You may find yourself in a difficult situation if you are denied funding for something you want, such as a hot property to set up your new office or expand your business.
A strong credit score enhances the likelihood of your loan getting accepted. Your credit score isn’t the only factor lenders consider, but it is one of the most significant.
Higher Loan and Credit Card Limits and Benefits
You’ll be able to receive larger sums if you have a good credit score. A better credit rating can also help you secure a credit card with higher limits.
A higher credit score also allows you to get a wider variety of credit cards with better perks since many of the best rewards cards require excellent credit.
It covers both cash-back rewards cards and travel rewards cards, which give you an upper hand over those who don’t get to utilize these perks.
Don’t have favorable credit ratings? Commercial Private Equity can help you out.
We’re reliable commercial hard money lenders and offer a wide variety of loans, including bridge, construction, asset-based, raw land, blanket, and other specialized loans for commercial properties.
Contact us for more information.