two investors shaking hands while the third is using a tablet

A Beginners Guide To Bridge Loans

November 15, 2021/in Blog /by Bruce Kent

Want to invest in new properties and diversify your portfolio? Bridge loans are the ideal financing options to go for. However, you might find them a bit confusing as these include a fast-paced transaction.

To help make things a little smoother for yourself, go over this beginner’s guide to learn what bridge loans are and how you can use them as a tool to invest in more properties.

What Is A Bridge Loan?

Bridge loans, also known as hard money loans, are a type of short-term loan (STL) used for remortgaging, renovating, or buying a property. They usually have higher closing fees and interest rates than regular loans.

Traditional lenders such as mortgage brokers, credit unions, and banks don’t issue hard money loans, but private lenders such as Commercial Private Equity offer these short-term hard money loans.

How Long Is A Bridge Loan Granted For?

Bridge loans need to be paid back in 12 months or less. It’s a temporary but quick source of cash to fund your investment activities when you’re short on finances.

How Many Types Of Bridge Loans Are There?

There are two types of bridge loans: loan-to-cost 0 and after-repair-value bridge loans.

In loan-to-cost (LTC) bridge loans, the loan value is a percentage of your total required amount. It’s usually between 70-85% of the total costs.

For example, you want to acquire a property costing $500,000 and need an additional $50,000 for its renovation, making a total cost of $550,000. The lender will offer you 75% of $550,000, which means a loan of $412,500, the remaining $137,500 is the amount you’ll have to fund yourself.

In after-repair-value (ARV) bridge loans, the hard money loan amount is usually 70-80% of the selling price of the property you want to invest in.

For example, if you buy a property at $500,000 and need $50,000 for refurbishment so that it sells for $750,000, then you’ll get 70% of the selling price ($750,000) as a loan. This means you’ll get a loan of $525,000, and you’ll only have to add $25,000 of your own money for the project.

Hard money loansare an integral part of your investments. If you’re interested in getting a hard money loan, reach out to Commercial Private Equity to finance your real estate investments.

With more than 75 years of experience, we’ve rightfully owned the title of the leading commercial hard money lender in the market. We assist you in meeting your financial objectives by offering commercial hard money loan consultation.

Contact us now to get started.

Why Should You Go For Blanket Loans?

November 10, 2021/in Blog /by Bruce Kent

Juggling multiple mortgages at different conditions and interest rates can be a hassle if you’re a commercial real estate investor who does it daily; blanket loans are a smarter choice to help you stay on top of the game.

You can buy as many properties as you want under a bank loan, and it’ll not be considered due on your sale agreement.

If you’re considering getting a blanket loan, this blog will increase your knowledge on why blanket loans are an ideal option for you.

Less Hassle

As blanket loans require only one credit approval for multiple mortgages, it requires less paperwork and reduces the hassle of keeping track of it.

You don’t need to spend a lot of time collecting and submitting documents like your credit reports, asset verification documentation, and employment details.

Access to More Cash

Pooling your properties under a single loan will help expand your business. It’ll help you maximize the amount you receive in cash from the lender.

Increase Your Cash Flow

Refinancing and coming to just one blanket mortgage rather than multiple loans can help you save on monthly payments as well.

This will help increase your cash flow as you save more. However, these savings are dependent on the new interest rates available to you and the ones you’re currently paying.

It Becomes Easier To Expand Your Portfolio

The biggest challenge that numerous real estate investors face is the restrictions on the number of mortgages they can have at a particular time. This caps your expansion and hinders your proceedings.

A blanket loan, on the other hand, has no such barriers that cap your expansion. You can invest in unlimited properties under a blanket loan without showing it as due on your sale clause.

Work With Potentially Better Loan Terms

Imagine if you have ten traditional mortgages with an average loan amount of $100,000. For every lender, you’re a contributor with a $100,000 loan. You’ll hardly stand out from the crowd in their lending business of millions of dollars.

However, if you combine these loans under a blanket approval and lend it from a single place, you’ll be someone with a loan of $1,000,000.

The amount for you remains the same, but you become a significant contributor to the lender’s business. Thus you may receive V.I.P. treatment.

You can use this high-roller status for your benefit to negotiate a deal with them or even leverage a preferential loan term.

If you’re looking for options to finance your real estate business, get in touch with Commercial Private Equity. Apart from loans, we also provide commercial hard money loan consultation to guide you on the best practices for borrowing and repaying loans. We’re one of the leading private money lenders in Atlanta, GA.

Contact us to get your hard money loans sorted.

How Can You Prevent Foreclosure?

September 22, 2021/in Blog /by Bruce Kent

Foreclosure is never an easy situation for any firm. Imagine all the hard work you’ve put into building your firm just to lose all of it because you couldn’t pay back the loan.

It’s estimated that foreclosure rates in Atlanta will be low in the coming months, but you need to be always prepared for the worst possible financial situation. Here’s how you can effectively prevent foreclosure.

Remove Additional Expenses And Costs

If you’re having difficulty paying back your loans, It’s time to cut back on the additional expenses and costs your firm incurs. You must sit with your financial advisors and analyze where you can save costs. Even the smallest savings in every department can accumulate and help you manage your repayment to avoid foreclosure.

Communicate With Your Lender

If you’ve taken a loan from a private lender and you’re facing a foreclosure situation, then we’ve some good news for you. The biggest benefit of taking a loan from a private lender is you can always renegotiate your loan terms if you’re having difficulty in repayment. With banks, you don’t have this facility, and you need to be on time for every payment; otherwise, the bank is liable to seize your collateral.

Get A Workout Loan

A workout loan can help you restructure your debt. Experienced private money lenders can spread your loan payments to a larger period to make repayment easier. In a loan workout, lenders can decrease interest rates to assist you in paying back the loan amount. The lender will want to work out the loan agreement to ensure you don’t get bankrupted and they get some part of the loan back. The changes in the loan agreement can vary from lender to lender; you must hire a reputed private hard money lender to ensure they offer maximum assistance.

Receive Workout Loans In Atlanta

A workout loan can save you from a foreclosure situation. If you’re looking for an outstanding workout loan deal, don’t forget to visit Commercial Private Equity today. Our team of experts can analyze your situation and offer the best loan deal to ensure you’re out of your financial turmoil.

We’ve been in the private money lending industry for over seventy-five years, and we’ve ensured our clients make profits. Our three-level loan program can help you choose loan requirements according to your liking. We also provide four other specialized hard money loans, including bridge loans, commercial loans, construction loans, and raw land loans.

Contact us today for more information.

Do You Need a Hard Money Loan to Succeed in Business?

September 20, 2021/in Blog /by Bruce Kent

It’s no secret that without money, your business can’t succeed. From startups to well-established firms, every business needs capital to maintain its position in the market. Capital can be acquired through many ways; you can get funding from venture capitalists (VCs) or acquire hard money loans from private lenders. The latter is an excellent option as obtaining capital from VCs is challenging and time-consuming.

If you’ve decided to go for hard money loans, find out about its different types, which can help your firm succeed.

Commercial Hard Money Loan

Companies need capital 24/7. Whether it’s for buying raw materials or getting new machines, money is the key to success for every firm. However, acquiring additional capital isn’t always easy. You must be well aware of how challenging it is to get traditional financing from banks. The lengthy loan applications make the whole process time-consuming and doesn’t even guarantee that you’ll get the loan. In these dire circumstances, you can opt for commercial hard money loans from private lenders. This way of quick financing can help your firm get back on track and beat your competitors.

Bridge Loans

Success in the market majorly depends on how you outperform your competition. If you’ve got an excellent commercial property in your sight, you must close the deal quickly before your competitor gets to know about it. Even though you’d want to buy commercial property as soon as possible, striking a deal can be challenging due to a lack of funds. You can opt for a bridge loan to buy the commercial property and help your firm succeed in the market.

Construction Loans

Commercial construction is the pathway to expanding your business. Constructing new offices and factories can help you diversify your firm and minimize the risks. Constructing offices in new areas can help you access untapped markets and boost company profits. If you’re looking for your firm to succeed in other areas, it’s time for commercial construction using construction loans.

Hard Money Loans Available in Atlanta

Every business owner dreams about making their firm grow and reach new heights every day. However, running a successful business without a massive budget is close to impossible. You can get hard money loans from Commercial Private Equity to skyrocket business growth.

We offer a wide variety of hard money loans to cater to all your financial problems. Our specialized loans include commercial loans, bridge loans, construction loans, workout loans, and raw land loans. We’ve developed a three-level loan program that makes it easier for you to strike a deal with us.

You can reach out to us here for more details.

A private money lender conducting the underwriting process in Atlanta.

A Beginner’s Guide To Underwriting

September 18, 2021/in Blog /by Bruce Kent

Banks have always been the first stop for every firm when looking for financing options. However, in recent times banks have made it challenging to acquire loans, which is why many firms reach out to private lenders for money.

The private money lending process is different from conventional banking procedures. However, before reaching out to hard money loans from private lenders, you must be aware of its processes.

Continue reading to find out everything about the hard money loan underwriting process.

What Does the Underwriting Process Involve?

Unlike in the banks, the underwriting process in the private money lending industry is straightforward. While banks ask for your business credit scores, firm’s income, and a zillion other things, private lenders only need to check a few financial factors; these include:

Loan-To-Value Ratio: The LTV ratio is the ratio between the loan amount and the value of the asset. It’s used by lenders to determine the risk in the loan deal. Private lenders prefer the LTV ratio to be between 50-80%.
FICO Score:The FICO score is a three-digit number that signifies how likely is the borrower of repaying the loan on time. FICO scores are generally known as a summary of your firm’s credit report and can help private lenders make a quick decision. Private hard money lenders usually prefer a FICO score between 650-700, while some lenders have loan programs that do not need a FICO score at all.
PITI Reserve:The PITI reserve is the amount of cash you need to fulfill the down payment. Private lenders usually require 6–12-month PITI reserve, and if you’ve got excellent collateral, they won’t even require PITI reserve.

How Long Does The Underwriting Process Take?

If you’re searching for quick financing options, you can’t waste your time on time-consuming bank applications. Understandably, you’ll opt for hard money loans from private money lenders to finance your commercial projects.

Reputed private lenders usually take up to 48 hours to pre-approve your loan application and can take a few days to complete the underwriting process.

Get Hard Money Loans In Atlanta Today

Commercial Private Equity is a private money lender that offers hard money loans in Atlanta. Our simple and streamlined underwriting process helps our clients strike excellent loan deals.

Contact us today for more details.

3 Reasons Why Bank Would Reject Your Loan Application

September 15, 2021/in Blog /by Bruce Kent

It’s no secret that the pandemic has had grave repercussions for businesses globally. In these circumstances, loans have become the lifeline for companies who’re looking to get back on track or for people who want to start their firm due to the recent rise in unemployment. If you’re either of the two, you’ll likely go to reach out to a bank for a loan.

But always remember, all that glitters is not gold. Banks are known for their shiny buildings and their office’s calm vibe but seldom help out those in need. Continue reading to find out the three reasons why a bank would reject your loan application.

Low Credit Score

The credit score can make or break your loan application. Credit scores help the banks know which companies to trust for commercial loans. If your firm has a low credit score, there’s a high chance your loan will be rejected.

Improving your credit score can take a lot of time, and if you require quick financing, it’s better to look for alternatives like hard money loans from private lenders.

Debt

If your company is in immense debt, banks are likely to reject your loan application. Before applying for a bank loan application, you must clear out previous debts.

Early Days For Your Business

Firms in their infancy stages need the capital to expand. However, it’s common for banks to reject firms in their early stages due to a lack of credibility and financial data. Moreover, new firms will also have an insufficient cash flow due to unnecessary expenses and improper invoicing. It takes time for firms to settle and make their financial departments efficient. Until your finances are top-notch, it’s better not to think of applying for a bank loan to save time.

Get Hard Money Loans In Atlanta Today

Are you tired of spending weeks preparing for the bank loan application only for it to be rejected in the blink of an eye? It’s time to switch to hard money loans.

At Commercial Private Equity, we strive to provide you with quick financing options with our specialized hard money loans. We don’t use the conventional methods banks use to determine the outcome of a loan application. We use your commercial property as collateral to deliver excellent hard money loan deals. We’ve developed a three-level loan program to ensure you get the most out of the loan deal. We are known for offering different types of hard money loans, including commercial hard money, bridge loans, construction loans, raw land loans, and workout loans.

Contact us today for more information.

What Type Of Loan Is Best For You?

September 14, 2021/in Blog /by Bruce Kent

Capital is the driving force behind the success of every firm. Without sufficient capital, your firm can’t reach new heights. However, acquiring capital can be challenging. You won’t always have an angel investor by your side who’ll be your lifeline. Sometimes you’ll have to apply for a loan application to get capital.

It’s important for you to first decide the purpose of obtaining capital. Once that’s decided, you can opt for a suitable loan. Here are some of the hard money loans we think are best for your firm.

Bridge Loans

Competition is good for the market, but you need to always stay ahead of the competition to ensure your survival. You don’t want to miss out on getting ahead of your competitor by not getting your hands on a hot commercial property due to a lack of funds. If you’re looking to buy a property but are short on funds, you can opt for a hard money bridge loan.

A commercial bridge loan allows you to buy a new property without selling your existing one. You can use your property as collateral to buy the new one and then pay off the loan once you sell off the old property.

Raw Land Loans

If you’re looking to expand your business to a new area or even a new city, congratulations. You can start building your firm from scratch at the new place, but first, you’ll need to buy raw land. Banks are wary of giving out loans for raw lands as they’re difficult to get rid of, so you must opt for private lenders who offer raw land loans.

Construction Loans

Construction is inevitable if you want your firm to develop. However, constructing a new office space or a new factory doesn’t come cheap. To finance your next construction project, you must take a hard money construction loan to ensure your project continues smoothly.

Acquire Hard Money Loans From Private Lender In Atlanta

Private lenders have become the focal point for acquiring loans. If you’re looking to get hard money loans without any hassle, visit Commercial Private Equity today. They want to help their clients meet financial objectives through their specialized hard money loans. They’re known to offer excellent deals for different types of loans, including construction loans, bridge loans, raw land loans, and workout loans.

Get in touch with them today for more information.