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a person holding dollar bills

A Brief Guide To Expanding Your Business

August 12, 2022/in Blog /by Bruce Kent

Although the pandemic has impacted several businesses, you shouldn’t let that stop you from expanding your business. No matter how big a firm is, sustainability always requires expansion.

It’s time to put creative practices into action to stay ahead of the curve now that the global economy is slowly stabilizing.

However, before growing your company, you must consider a few factors. Here are a few factors to consider before expanding your business.

1. Planning

The decision to expand your firm is not one of the many hasty decisions you must make as a business owner. The decision to expand your business is always a major one that might make or kill it.

You can either increase your profits by dominating the new market or sink into debt if you lose considerable income. However, you can avoid losses if you have a solid plan. Plan your expansion in an organized manner rather than hurriedly.

Consider each step carefully, and don’t rush your planning. Once you’re satisfied with the plan, move forward with the build-out.

2. Market Analysis

Never go right into a new endeavor. Many new business owners lack patience, which causes them to expand too quickly. There is a chance that this will injure people more than help them. An effective research strategy may enable you to grow your business more profitably.

Consider the new market and select the product to expand using data-driven judgments. Every business depends on timing for success. It may be pretty advantageous to seize an opportunity when it presents itself.

3. Logistical Challenges

Expansion of your business is thrilling, but it can also be stressful. Building a new office and moving while minimizing downtime can rapidly become a nightmare if you haven’t considered the logistical issues.

Keep up with the events to avoid making a mistake at the last minute. To build your business successfully, you must keep track of every operation, from negotiating financing terms with private hard money lenders to engaging expert movers to transfer your office supplies.

4. Funding

Do you possess the required funds? Whether you want to purchase the most in-demand commercial property in another city or construct a brand-new office from the bottom up, you’ll need money. Expanding your business is merely a pipe dream if you lack the cash.

Hold on though—we might have the perfect answer for you. If you don’t have the cash, you can always resort to private hard money lenders for quick loans.

It’s no secret that banks have made it challenging for aspiring business owners by consistently rejecting loan applications. Private money lenders provide great hard money loan solutions by using your commercial buildings as collateral in these challenging circumstances.

An individual signing a commercial hard money loan contract

Get Reliable Hard Money Loans to Expand Your Business

Are you having trouble raising funds to expand your company? Commercial Private Equity may be able to assist you. We provide a three-tiered lending scheme that offers loan acquisition flexibility.

We offer a variety of specialized hard money loans to satisfy our broad clientele, including bridge, construction, commercial hard money, raw land, and workout loans.

Contact us today to secure quick funding.

https://commercialprivateequity.com/wp-content/uploads/a-person-holding-dollar-bills.png 750 1125 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-08-12 06:17:012022-08-13 03:16:30A Brief Guide To Expanding Your Business
Closeup of hundred-dollar notes

A Detailed Guide To Commercial Private Lending

August 10, 2022/in Blog /by Bruce Kent

Completing projects on time can be a pain if your business is on a limited budget. Hence, it’s crucial to locate suitable finance sources to launch new projects and outpace your rivals.

Banks offer finance, but the lengthy loan application process makes them unsuitable for most enterprises. Additionally, banks’ reduced lending makes it difficult to obtain the money you require.

Private lenders have become the best choice to finance your business ideas in light of the challenging financial climate. Private lenders provide hard money loans for a range of business needs.

This blog will guide you on private commercial lending in detail and how you can use the loans to outstand your competitors.

Different Types of Private Hard Money Loans

1. Raw Land Loans

You would need to buy undeveloped land if you wanted to construct an office from the ground up. Consider obtaining a raw land loan from a private money lender if you are unable to handle the finances.

2. Workout Loans

Can’t stop your business from going into foreclosure? You can get a workout loan from a private lender to help you limit your debt payments and manage this financial nightmare. They’ll help you manage your payments to prevent foreclosure.

3. Bridge Loans

Consider a bridge loan if you wish to purchase a business property before your rival does. A hard money bridge loan prevents you from selling off your current commercial premises, which benefits you and your business.

4. Construction Loans

Due to a shortage of funding, businesses frequently postpone their construction projects. However, you won’t need to do that if you obtain a construction loan from a private lender. They offer fantastic finance deals and use your business property as collateral to start your development project.

Close-up of dollar bills

Benefits of Commercial Private Lending

1. Provide a Wide Range of Loans

Private money lenders, as opposed to conventional banks, offer the independence and flexibility to tailor loans to your needs. Private hard money lenders can provide you with various loans such as asset-based loans, raw land loans, commercial hard money loans, construction loans, blanket loans, bridge loans, etc., to support your business’s expansion.

2. Quick Solution

Banks might undoubtedly take a very long time to process your loan application. Avoid banks if you’re looking for speedy funding in today’s competitive market. If the pandemic has restricted your company’s budget, you can choose private money lenders who can streamline the loan application procedure and assist you in obtaining funding quickly.

Reputable private lenders have outstanding underwriting departments that can pre-approve your loan application in as little as twenty-four to forty-eight hours after quickly evaluating your financial situation.

3. Minimal Requirements

There is no doubt that banks have strict lending criteria, which has made it difficult for US businesses to obtain loans. You should be prepared to provide a plethora of paperwork and satisfy many conditions if you’re seeking a bank loan. A bank will ask for the following:

  • Credit score
  • Debt-to-income ratio
  • Documents proving income
  • Personal data and bank statements

However, there is no assurance that you will be approved for the bank loan even if you complete all the required paperwork. Working with a reputable private commercial lender who offers low-interest hard money loan options using commercial property as collateral is preferable if you want to bypass the drawn-out application process for a traditional bank.

private money lenders offer short term loans to borrowers

How Can Commercial Private Lending Help You?

1. Obtain Raw Land

You can accelerate the growth of your business by buying a ready-made property, but the options for customizing your space are limited. Consider purchasing undeveloped land if you wish to engage in the real estate market and construct an office.

Finding financing options for raw land can be a hassle. We recommend you contact a reputable private lender to get hard money raw land loans. You can use the loan to buy raw land at a prime location to take your company to new heights.

2. Purchase Several Commercial Properties

Trying to establish your dominance in the market? Think of getting several commercial properties. However, the financing and acquisition of every property can take a lifetime. To expedite the real estate transaction, you should obtain a hard money blanket loan.

You can receive a single loan for several properties with asset-based blanket loans. It’ll allow you to purchase multiple properties at once with a blanket loan rather than paying for each one separately.

3. Deal With Foreclosure

Is your business having trouble making debt payments? If the answer is yes, you ought to use loans for hard money workouts. Private lenders can help you restructure debt payments through flexible workout loan programs.

a man signing a hard money loan application

4. Completing Your Construction Project

You may be a business owner considering building a new office to grow your company. However, building a new building from the ground up is more complicated. You’ll need substantial financing to finish your project because the cost of building materials is rising daily.

Unfortunately, banks rarely lend money for construction projects as they are risky. We advise you to contact private lenders who can offer low-interest hard money construction loans to assist you in financing your next project.

You can use the construction loan to purchase top-quality materials and hire qualified construction workers to create an eye-catching office.

5. Quick Real Estate Acquisition

Did you know that in 2021, real estate prices rose by 18.8% and that in 2022, they are predicted to rise by 10%? Waiting to purchase a property is not an option in such situations. As soon as you can, it would be best if you acquired a piece of commercial real estate.

We are aware that the process of buying a new property and selling the one you already own might take a very long time. But what if you could get a brand-new property without selling your current one? You can buy new commercial properties with a hard money bridge loan before you sell your current property.

a private hard money lender holding cash and writing calculations

Get Reliable Hard Money Loans from Private Money Lenders Near You

To get an exceptional hard money loan deal, look no further than Commercial Private Equity. We’ve served clients in the private lending industry for over seventy-five years. Our team has developed a three-level loan program to help clients get a hard money loan deal per their specifications.

Our underwriting team works round the clock to evaluate your financial condition and pre-approve your loan application within twenty-four hours. We provide multiple asset-based loans, including workout, blanket, construction, raw land, and bridge loans.

Apply for the specialized hard money loans at Commercial Private Equity today to start your commercial projects.

https://commercialprivateequity.com/wp-content/uploads/Closeup-of-hundred-dollar-notes.png 480 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-08-10 06:05:242022-08-10 06:05:24A Detailed Guide To Commercial Private Lending
a person evaluating the financial position of a company for expansion

4 Different Types Of Asset-Based Loans You Must Know About

August 8, 2022/in Blog /by Bruce Kent

Conventional lending isn’t a viable alternative for investment in 2022 due to low credit ratings and the declining financial health of US corporations. What then do you do to increase the wealth of your business?

You can acquire top-notch commercial real estate using asset-based loans from private lenders. In contrast to conventional loans, asset-based financing secures the loan agreement using your company’s current commercial properties as collateral.

Discover different asset-based loans in this blog that will assist you in investing in commercial real estate.

1. Raw Land Loan

While buying a ready-made commercial property will save you time, you are limited in how you can design and build your workplace. Consider purchasing raw land if you want to create your workplace how you want it. However, with rising real estate costs, purchasing undeveloped land without sufficient cash can be challenging. To quickly complete your real estate transaction, we advise you to obtain asset-based raw land loans.

2. Construction Loan

You want to establish a business construction project but lack the necessary funds. Your business may benefit from asset-based development financing from a private lender. Gets top-notch asset construction financing deals to build a massive office or warehouse or other types of buildings to expand your business if you want it to grow.

3. Blanket Loan

Unquestionably, real estate is one of the hottest markets for investments in 2022. It’s time for you to invest in the rising US commercial real estate market if you want your company to gain an advantage over rivals.

But hardly every business has the resources to buy several homes at once. Commercial real estate investment might be a nightmare if your company is on a limited budget.

For this reason, we advise getting asset-based blanket loans to buy several commercial buildings.

If you wish to finance the acquisition of multiple properties with a single loan, a blanket loan is a great option. These are ideal for businesses looking to expand their services in several locations simultaneously.

A blanket loan is preferable to having a separate loan agreement for each commercial property because it can be less time-consuming.

4. Bridge Loans 

Competition is good for the market, but if you want to establish a strong reputation in the field, you must constantly stay one step ahead of the competition. You don’t want to fall behind your rivals by being unable to acquire a suitable commercial property owing to a lack of resources.

A hard money bridge loan is ideal if you don’t have enough cash to purchase a trendy commercial property. A bridge loan can let you acquire a new one without selling your current property.

You can borrow money using your current property as security to buy a new one and then pay it back after the old one is sold.

A private money lender holding a loan agreement

Asset-Based Loans Available With Low Interest Rates in the US

Private lenders have become the go-to source for obtaining loans for many business owners. However, finding asset-based loans with excellent lending terms can be a challenge. Visit Commercial Private Equity today if you’re looking for a hassle-free way to receive hard money loans.

We can help you achieve your financial goals by offering specialized hard money loans. We have great rates on several loan categories, including construction, raw land, asset-based, bridge, and workout loans.

Get in touch with us today for more information.

https://commercialprivateequity.com/wp-content/uploads/a-person-evaluating-the-financial-position-of-a-company-for-expansion.png 340 510 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-08-08 06:08:442022-08-10 06:14:364 Different Types Of Asset-Based Loans You Must Know About
Close-up of a hundred-dollar bill

The Difference Between Conventional Lending And Hard Money Loans

August 5, 2022/in Blog /by Bruce Kent

Your commercial efforts are doomed if you lack efficient financing. Experts predict that, because of external factors like the Russia-Ukraine crisis, financial trends will change in 2022. You should therefore carefully examine your company’s financial plan and be ready for any financial obstacles.

You need the money to increase your company’s growth in 2022. You can choose traditional funding from banks or hard money loans from private lenders. If you’re having trouble choosing between the two, read this blog to learn how hard money loans and conventional lending differ.

1. Loan Requirements

It can take a while to meet the bank’s requirements for a conventional loan. To begin your bank application, you will need to submit the following documents:

  • Bank documents and other pertinent financial statements
  • Business credit score
  • Cash flow in the company
  • Extra debt
  • Business details

Hard money loans don’t have an extensive list of requirements, in contrast to traditional lending. Your commercial properties, including office buildings, retail stores, warehouses, dining establishments, and hotels, are used as loan collateral by private lenders.

2. Time for Approval

Even a slight delay in one of your business projects could allow your rivals enough time to overtake you. I assume you wouldn’t want that. You should look for prompt finance if you want to seize the first-mover edge in your sector.

Banks have a drawn-out loan application process, and your cash may be delayed if you neglect to provide the required paperwork. Fortunately, reputable hard money lenders can expedite and pre-approve the loan application process in as little as one day.

3. Flexible Lending

Since banks have a set procedure for loan applications, your loan application may be denied if you don’t meet the conditions. However, if you’re in a tight spot financially, private lenders can help.

They provide flexible lending agreements that you can modify to meet your needs. To assist you in launching your business ventures, some well-known private lenders have developed lending programs that meet each individual’s needs.

4. Adaptability

Banks have a uniform loan policy that applies to all borrowers. The same criteria are applied to everyone. On the other hand, private lenders base their lending standards on the LTV ratio (loan to value).

When you employ LTV insurance, the value of the collateral you provide determines how much you can borrow. Following the borrower’s demands and conditions, private lenders may alter the guidelines.

In contrast to banks, they are not subject to strict terms and restrictions. They’re also open to negotiating and reaching a compromise.

5. Approval Rate

Only 27.9% of small businesses were successful in getting their loan requests accepted by large banks the year before. This figure illustrates how difficult it is to obtain bank loans because banks require lengthy lending terms and strict screening procedures.

On the other hand, private hard money lenders are not subject to any regulations. They merely care about and are interested in the worth of the property you are prepared to use as collateral and will lend to you under that value.

A private hard money lender shaking hands with a client

Get Reliable Hard money loans To Fund Your Commercial Projects

To get your loans resolved, visit Commercial Private Equity today. We excel in providing financial hard money consultancy and several specialized loans, including commercial hard money, bridge, construction, asset-based, and raw land loans, thanks to our 75 years of experience in the area. We also offer a variety of loan packages with varying loan terms to serve as many clients as possible.

Contact us today to learn more about our affordable and convenient loan plans.

https://commercialprivateequity.com/wp-content/uploads/Close-up-of-a-hundred-dollar-bill.png 427 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-08-05 02:37:282022-08-05 02:37:28The Difference Between Conventional Lending And Hard Money Loans
Closeup of hundred-dollar notes

All You Need To Know About Commercial Private Lending

July 11, 2022/in Blog /by Bruce Kent

Investing in the real estate market can be an excellent way to amplify your financial portfolio. But many individuals are skeptical of entering this market because of the increasing prices.

If you’re looking to finance a real estate project, you may be considering commercial private lending. And that’s a great option as it can provide flexible loan terms and quick approvals not typically available from traditional lenders. But what exactly is private lending, and how does it work?

Continue reading this blog to learn everything about this financial alternative.

The Basics Of Commercial Private Lending

Commercial private lending allows you to borrow money for a real estate project. You can get asset-based loans from private lenders that only require your existing property as collateral.

Different Types Of Loans

Wondering why private lending is rising in the US? It’s because private loans help you complete your projects in no time. Private lenders offer bridge loans that can assist you in purchasing a brand-new property without trading your existing one and deliver raw land loan deals to help you get your hands on your favorite commercial land.

You can also finance your construction projects by acquiring hard money construction loans. Private lenders also assist individuals in managing foreclosure with workout loans.

Benefits Of Commercial Private Lending

Commercial private lending can offer several advantages over traditional financing options. Perhaps most importantly, private lenders are often more willing to work with borrowers who may not qualify for a loan from a bank.

Commercial private lenders also typically offer more flexible loan terms to make loan acquisition easier. Additionally, lenders can provide quick approvals, which can be helpful when time is of the essence.

Private lenders typically have a lower credit score requirement than banks. This means that even if you have a less-than-perfect credit rating, you may still be able to qualify for financing.

a person signing a loan agreement

Private Hard Money Loans Available With Flexible Loan Terms

Want to finance your commercial projects but don’t know where to start? Consider visiting Commercial Private Equity. We provide asset-based loans to help you achieve your financial goals. Our expert underwriting team can examine your finances and provide an exceptional hard money loan deal.

We provide asset-based financing options, including bridge, raw land, commercial hard money, blanket, and workout loans. We’ve got a three-level loan program to help clients get a loan deal according to their specifications.

Apply for the specialized hard money loans at Commercial Private Equity.

https://commercialprivateequity.com/wp-content/uploads/Closeup-of-hundred-dollar-notes.png 480 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-07-11 05:58:502022-07-13 06:04:38All You Need To Know About Commercial Private Lending
Closeup of multiple dollar bills

Are Commercial Fix And Flip Loans Worth It?

July 8, 2022/in Blog /by Bruce Kent

Investing in the booming commercial property market is an excellent idea, but not many individuals can be successful at it. Why is that? We’re glad you asked! Pouncing on the right opportunity at the right time is crucial for success in the real estate industry. Fixing the property quickly and selling it when the prices are high is the perfect strategy for a real estate investor.

Thinking about getting into the fix and flip business? You’re probably wondering if commercial loans are worth it. Here’s a rundown of the pros of fix and flip loans to help you decide.

Swift Approvals

One of the benefits of commercial fix and flip loans is that they’re often much easier to get approved for than traditional loans. Private lenders know that you’re using the loan for business purposes and are more willing to take a chance on you.

Another advantage of commercial fix and flip loans is that they often have much shorter approval times. You can get started on your project much sooner than you would if you were waiting for a traditional loan to come through.

No Pre-Payment Fines

It’s no secret that fix and flip loans are available without pre-payment penalties. If you can sell the property quickly, you can pay off the loan without worrying about extra fees. This can be a massive benefit if you’re trying to maximize your profits on a flip.

Adaptable Loan Terms

Flexibility in loan terms is an exceptional advantage in fix-and-flip loans. With a commercial loan, you can customize the loan to fit your specific needs and the timeline for the project. You can also get the financing without worrying about strict repayment terms.

We suggest you find a private hard money lender that offers flexible lending requirements. It’s no surprise that reputable lenders like Commercial Private Equity have developed a three-level loan program to make loan acquisition smoother than before.

A private lending team evaluating a client's paperwork

Get Commercial Hard Money Loans With Quick Approvals

Want to kickstart your commercial fix and flip project? You’ve come to the right place! At Commercial Private Equity, we offer asset-based loans for our clients in the US. We’ve been assisting clients in putting their finances back on track for over seventy-five years.

We offer several financing alternatives, including commercial hard money loans, bridge financing, raw land lending, blanket loans, workout financing, and construction lending.

You can apply for our specialized hard money loans to kickstart your commercial fix and flip business.

https://commercialprivateequity.com/wp-content/uploads/Closeup-of-multiple-dollar-bills.png 426 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-07-08 08:18:032022-07-05 08:44:44Are Commercial Fix And Flip Loans Worth It?
A conventional bank loan team analyzing a client’s credit score

Boosting Your Credit Scores: 8 Things To Keep In Mind

July 6, 2022/in Blog /by Bruce Kent

Do you know what your credit rating is, and do you know how important it is? Your credit score is an accurate figure that shows your creditworthiness.

A high credit score shows that lenders don’t have to take a high risk by giving you the loan, which could lead to a lower interest rate. If you’ve got a low score, consider boosting it by following our strategies. Continue reading this blog to learn all about it.

Complete Your Credit Balances

One of the best ways to boost a credit score is to pay down your credit balances. Completing credit balances shows creditors that you’re using your credit responsibly and ensures you’re capable of effective debt management.

Consider paying down your balances on credit cards with the highest interest rates first to increase your score quickly. You may also want to consider transferring your balance to a card with a lower interest rate to save money on interest charges.

Make Timely Utility Payments

Undoubtedly, making timely utility payments can improve your credit history. We understand that as utility costs skyrocket, it can be challenging to pay all the bills before the deadline. We suggest you make a budget beforehand to ensure timely payments. It’ll show lenders that you’re responsible with your money and can help boost your score if you make these payments on time.

It’s no secret that some utility companies will report late payments to the credit bureaus. So if you’re ever late on a bill, you must contact the company and let them know beforehand. This can help you avoid any negative marks on your report.

Set Up Multiple Credit Accounts

You must set up multiple credit accounts to increase your credit score. It’ll show lenders that you’re a responsible borrower and can manage multiple debts. You can do this by opening up a few different lines of credit, such as a credit card, and a personal loan.

An individual setting up multiple credit accounts

Minimize Credit Utilization Ratio

The credit utilization ratio is one of the most significant factors of a credit score—it accounts for thirty percent of your score. The ratio evaluates the amount of debt you have to the amount of credit available.

In other words, it shows how much of your available credit you’re using. A high credit utilization ratio can hurt your credit rating because it signals to creditors that you’re more likely to get into financial trouble.

One of the best ways to lower your credit utilization ratio is to pay down your debt. You can also ask for a higher credit limit, which will decrease your ratio without increasing your debt. Just be sure to make all your payments on time, so you don’t deteriorate your credit history.

Get The Negative Paid Off Entries Removed From Your Credit Report

One of the best ways to improve your credit history is to request the credit bureaus to remove negative entries from your credit report. If you have any unpaid debts, make arrangements to pay them off as soon as possible. Once you’ve paid them, ask the creditor to remove the entry from your credit report. If they agree, your score will improve almost immediately.

You can also try disputing any inaccurate or outdated entries on your report. If the credit bureau agrees that the information is inaccurate, they’ll remove it from your credit report, and your score will go up.

Examine Credit Reports Thoroughly To Identify Errors

When you’re working on boosting your credit score, one of the most important things you can do is examine your credit reports thoroughly. It’ll help you identify potential errors that might be dragging down your score.

If you find any errors, you must dispute them with the credit bureau. We understand that thoroughly examining credit reports can be time-consuming, but it’s worth it if it increases your score.

In addition to looking for errors, you should also take this opportunity to familiarize yourself with your credit history. Analyzing your credit history will help you identify the factors which are impacting your score positively and negatively.

An individual analyzing credit report

Amplify Your Credit Limit

Increasing your credit limit can help you improve your credit rating. Higher credit limits mean you have more available credit, which can help lower your credit utilization ratio. Here are a few ways to enhance your credit limit:

  • Consider asking your credit card company for a higher limit
  • Transfer some of your balances to a new credit card with a higher limit
  • Open a new line of credit.

Using these innovative financial strategies might have an immediate, positive effect on your score, so it’s worth considering if you want to increase your score. Keep an eye on your spending to ensure you don’t end up in debt!

An individual holding multiple hundred-dollar notes

 

Do You Need A High Credit Score For Loans?

Increasing credit scores isn’t as easy as it sounds. You’ll have to maintain a flawless financial record to ensure your credit rating improves exponentially. Using the different credit rating strategies can become hectic. We suggest you opt for private asset-based loans if you don’t want to waste time trying to fix your score.

A private hard money lender in the US

 

Get Asset-Based Loan Deals To Purchase Commercial Properties

Looking for a reliable private lender? Consider visiting Commercial Private Equity!

Our experienced underwriting team can check your financial paperwork and guide you about our hard money loans. Our three-level loan program can help you find a flexible loan deal that matches your requirements.

Here’s a list of the different financing options we offer:

  • Commercial hard money financing
  • Raw land loans
  • Bridge lending
  • Blanket financing
  • Construction lending
  • Workout loans

Apply for the specialized hard money loans to get the financing you need.

https://commercialprivateequity.com/wp-content/uploads/A-conventional-bank-loan-team-analyzing-a-clients-credit-score.png 427 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-07-06 07:41:042022-07-13 05:57:52Boosting Your Credit Scores: 8 Things To Keep In Mind
LTV ratios written on paper

Understanding The Basics of Loan-To-Value Ratio

July 4, 2022/in Blog /by Bruce Kent

Capital is every firm’s driving force. No matter how much you try, without capital, you can’t run a company efficiently. Acquiring a loan from a bank can be challenging due to their extensive application procedure, which is why most Americans are switching to private hard money lenders. These lenders are known to use LTV as a major factor in making their final decision.

Understanding the LTV ratio is crucial for you to acquire a hard money loan. Let us dive deep into what an LTV ratio is and what its benefits are.

The Basics Of Loan-To-Value Ratio

Loan-to value ratio is usually used in hard money loan applications. It’s basically a ratio between your loan amount and the value of assets you possess. It’s an excellent metric for private money lenders to judge the risk when giving out loans. LTV ratios from 50-80% are realistic and excellent ratios where a loan deal can be closed. Any ratio above 80% is too risky for the private lender, and any ratio below 50% is unrealistic.

Why Is It Important?

Since the LTV ratio determines the level of lending risk, it’s one of the major determinants of the loan application outcome. The LTV ratio is a major part of the underwriting process for any private money lender. Since hard money lenders don’t consider credit scores and other lengthy checkups that banks carry out, they rely on the LTV ratio to make a decision. The LTV ratio also helps the private money lender determine how much money they’ll be able to gather if the borrower defaults on the loan payments.

A private hard money lender calculating the LTV ratio

Get Hard Money Loans In Atlanta Today

Understanding the LTV ratio can help you strike an excellent hard money loan deal. If you’re looking for a reputed private money lender to acquire hard money loans, visit Commercial Private Equity today. We’ve been serving our clients for over seventy-five years in the private money lending industry. We’ve developed a three-level loan program that offers loan deals at different LTV ratios. Our five different types of specialized loans, including construction loans, bridge loans, commercial loans, raw land loans, and workout loans, coupled with our loan programs, offer our clients maximum flexibility for their loan deals.

Get in touch with us today for more queries.

https://commercialprivateequity.com/wp-content/uploads/LTV-ratios-written-on-paper.png 377 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-07-04 06:41:052022-06-27 06:48:45Understanding The Basics of Loan-To-Value Ratio
A person counting dollar bills

FAQS About Commercial Lending

July 1, 2022/in Blog /by Bruce Kent

Commercial buildings are excellent investments, and many people take advantage of this opportunity. But, unfortunately, substantial sums of money are required to close such deals. However, commercial loans have proven to be a savior for people in such times to finance their ventures.

If you’re unfamiliar with commercial loans, we’ve got you covered. This blog will answer all your questions about commercial loans and hard money lending.

What Does A Commercial Loan Require?

Most traditional lenders consider the three Cs: cash flow, character, and collateral before issuing a loan.

Borrowers can repay the loan if their cash flow is constant and predictable. So, if you’re looking for a business loan, pay attention to these three Cs.

Furthermore, lenders require collateral for reassurance and security. If the borrower defaults on the loan, the lender can recover their losses by using the collateral.

Will My Credit Score Affect The Loan Rates?

One of the most frequently asked questions about business loans is whether the borrower’s credit history would affect loan rates. Credit ratings and reports are significant for some commercial loan lenders when determining terms.

However, they won’t lead you to loan rejections. A lender might offer lower interest rates on loans if you have a strong credit score or might charge you a higher interest if it’s weak.

Lending risks can be higher if you have a poor credit history. As a result, several lenders have raised interest rates. So it’s all up to the lender.

What Can I Use As Collateral To Secure A Loan?

The majority of people choose real estate properties as collateral. Other types of collateral, such as inventories, assets, vehicles, machinery, and more, are also frequently accepted by lenders.

Firms may use future cash flow contracts as collateral if they can’t furnish tangible assets. You should contact your lender to explore the best course of action for meeting your needs while also meeting their standards.

Is It Possible To Secure A Loan After A Bank Rejection?

A woman reviewing a hard money loan application

Due to weak credit scores or other factors, most traditional banks refuse applications. Private lenders may be able to assist you if banks are unwilling to lend to you.

When banks say no, private lenders like Commercial Private Equity say yes and grant loans despite denials.

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.

We also offer a three-tiered lending program with varying loan requirements to make hard money loan acquisition a possibility for our customers.

Contact us today for more details.

https://commercialprivateequity.com/wp-content/uploads/A-person-counting-dollar-bills.png 739 1109 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-07-01 06:30:072022-06-27 08:42:52FAQS About Commercial Lending

Loan Types Which One Is Best For You – Infographic

June 30, 2022/in Blog /by Bruce Kent

It’s important for you to first decide the purpose of obtaining capital.

Once that’s decided, you can opt for a suitable loan.

https://commercialprivateequity.com/wp-content/uploads/rsz_1commercialprivateequity_1info258235-scaled.jpg 2560 808 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2022-06-30 08:37:402022-06-27 08:40:43Loan Types Which One Is Best For You – Infographic
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