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SBA Loans in Austin

By | SBA Loans in Austin

SBA loans in Austin vary by rate, term, purpose, and other elements. Although the federal government sets the guidelines and standards for SBA loans, it does not process or administer said dead instruments to businesses. Rather, it relies on traditional banks, credit unions, specialty lenders, and others, to qualify and disperse commercial capital funding. Read on to learn more about SBA loans in Austin Texas and beyond.

SBA loans in Austin, like other parts of the lone Star State, and the country as well, are designed with small businesses in mind, be they established companies or start-up enterprises. Because of this, they are structured for different purposes and therefore carry different term amounts. However, interest rates are generally competitive and there are other factors that make them ideal for small businesses. Here are the three most common types used:

  1. SBA 7(a) loan. This is perhaps the most often accessed type of SBA loan program because it offers commercial capital funding for a variety of purposes. For instance, funds can be used for the acquisition of commercial equipment, to purchase commercial real estate, for working capital, and for other purposes. loan amounts range from $50,000 up to $5 million, and terms can run as long as 25 years.
  2.  SBA CDC/504 loan. This is a more specialized type of SBA loan, being limited to the acquisition of commercial real property, and/or buying commercial-grade equipment. It carries a term as long as 25 years, and loan amounts range from $125,000 up to you, and more than $20 million.
  3.  SBA microloan. This type of loan is reserved for new and start-up businesses, to provide working capital, that ranges up to $50,000.

SBA Loans in San Antonio

By | SBA Loans in San Antonio

SBA loans in San Antonio Texas, come in a number of different forms, offering competitive interest rates and loan maximums ranging to different amounts. These debt instruments, although backed by the federal government, and regulated by the same, are not loaned out directly through the agency. Rather the processing and funding are done through various private lenders, including traditional banks, specialty lenders, and credit unions. Read on to learn more about SBA loan programs in San Antonio Texas.

SBA loans in San Antonio, and beyond, offer a way for startups, fledgling companies, and established businesses, to secure commercial capital funding. Although there are numerous forms of SBA loans, three are the most common and popular. Here’s a quick breakdown of the top types of SBA loans in San Antonio Texas:

  1.  SBA 7(a) loan. This is perhaps the most often used because it is for general-purpose, rather than specifics. This type of loan allows for commercial real estate acquisition, equipment purchases, working capital, and other purposes. The minimum of this loan program is $50,000 but can go up to $5 million.
  2.  SBA CDC/504 loan. The 5:04 loan program is one that’s more specific, is intended for the purchase of commercial property, or commercial equipment acquisition. It has a minimum loan amount of $125,000, but can go up to, and exceed $20 million.
  3. SBA microloan. The microloan program is most appropriate for newly started businesses, or startups, and provides funds for a few different purposes, loan amounts for the microloan program can range from $25,000 up to $50,000.

What Is a No Doc Fix and Flip Loan

By | San Antonio Hard Money Loans

What is a no doc fix and flip loan? This is a question that’s most commonly asked by people who are interested in entering the world of real estate investment. They want to buy a property, rehab it, and sell it for a profit. And, a no doc fix and flip loan certainly sounds like the perfect fit. But, while these types of loans are indeed available, they have some requirements, which include documentation. Read on to learn more about no doc fix and flip loans.

What is a no doc fix and flip loan? The term “no-doc” is short for “no documentation,” also sometimes referred to in the past as a “stated income” loan or mortgage. These were some of the biggest culprits which ultimately caused the Great Recession. Today, they are not nearly as widely available but do exist in different forms.

In order to obtain a mortgage for a residential or commercial property, you as the borrower need to supply certain documentation — like tax returns, along with other financial records. But, a no doc fix and flip loan can be acquired with bank statements and asset documentation. Generally, you’ll need the following to obtain a no doc fix and flip loan:

  1. Collateral. You’ll need to put up a collateral asset, determined by the amount and structure of the loan.
  2. Down payment. The borrower will be required to commit as much as 30 to 40 percent.
  3. Good credit. A credit score of at least 650 to 670 is often necessary.

Lastly, you’ll also need between two and three recent years of experience with buying, remodeling, and selling investment properties.

Fix and Flip Loans with No Money Down

By | San Antonio Hard Money Loans

Fix and flip loans with no money down do exist and they are available. Although, these have different borrower requirements and may include the necessity of having to pay some expenses out of pocket. But, fix and flip loans with no money down can be an option, particularly for experienced individuals who have gone through the acquisition and rehab process at least a few times before. Read on to learn more about fix and flip loans with no money down.

Fix and flip loans with no money down aren’t a gimmick. Instead, these are legitimate debt instruments, a form of financing that’s usually based on what’s known as hard money loans. Rather than borrowing from a traditional lender, like a big name commercial bank, fix and flip loans can come from private investors.

How to Get a Fix and Flip Loan with No Money Down

Fix and flip loans with no money down might sound too good to be true. But, they have certain criteria buyers must meet in order to qualify. For instance, one requirement already mentioned is experience. Generally, you’ll need to demonstrate you’ve been through the process at least a few times in the recent past.

Also, you’ll usually be required to have an ARV or after retail value, of less than 70 percent. This most often includes the purchase price of the property in question, as well as the cost of rehabilitation and loan expenses, too.

Of course, you’ll also need a good credit score and be prepared for a short term product that can be as little as 5 to 6 months in length.

How Does a Fix and Flip Loan Work?

By | San Antonio Hard Money Loans

How does a fix and flip loan work? Well, it somewhat depends on the type of transaction — residential or commercial. However, whether it’s a residential or commercial deal, generally, fix and flip loans work mostly the same. If you’re new to fix and flip loans, you probably have a lot of questions. That’s okay because it’s a bit mysterious when you’re unfamiliar. Read on to learn more about how fix and flip loans work and what you should know.

How does a fix and flip loan work? Basically, regardless if it’s for a residential or a commercial property, these debt instruments function in much the same way. That is to say, that fix and flip loans are short term financing products, usually between 12 and 18 months (though some are much shorter, like 6 months, while some are a bit longer).

Fix and flip loans can come from a group of private investors who pool their money together, from a specialty lender, or even from a traditional bank. Of course, each has its pros and cons. The first type is also known as hard money loans and usually are for a term of 12 months, with competitive interest rates. These are also among the most common because they typically forgo red tape and bureaucracy.

Some fix and flip loan products will require collateral, as well as a personal guarantee. Others might or might not require one or both, as well as equity in the property already owned — generally about 30 to 40 percent.

Hotel Construction Financing

By | San Antonio Hard Money Loans

Hotel construction financing is tricky, but it’s certainly not impossible. That is to say, that although financing options are limited, they are indeed available, you just have to know where to look and to keep your options open. While government-backed SBA loans will largely not be a fit, there are alternatives for hotel construction financing. If you’re interested in building a new commercial hospitality property read on to learn more about hotel construction financing.

Hotel construction financing is something that requires a good amount of stick-to-itiveness and a bit of imagination. In other words, it might be necessary to get a little creative in order to finance the build. This is due to the fact that you might have to look into a few different sources and dig a bit deeper in order to find the right one. Now, here are the most common types of hotel construction financing:

  1. Traditional Bank loan. Because government-backed SBA loans are typically not an option, a commercial lender would be one alternative. These loans do require a good amount of pre-planning and documentation, but there are many lenders to choose from, hence a lot of different loan product options.
  2. Private lenders. Another financing alternative is private lenders, who generally pool money together in investment ventures and will usually look for a high return on investment opportunities.
  3. Real estate investment companies. These organizations AR the best fit in higher-risk situations when it comes to hotel construction financing.

As you can see, while hotel construction financing options are limited, there are ways to get it done.

Hotel Renovation Financing

By | San Antonio Hard Money Loans

Hotel renovation financing is something that can be done with either a government-backed loan or through private lending sources. Of course, each product has its pros and cons. So, it’s very important to understand what’s involved, the limitations, requirements, and advantages. Read on to learn more about hotel renovation financing and what you need to know.

Hotel renovation financing is a way to upgrade facilities without having to pay cash out of pocket. (Unless you have the capital to spend upfront, that is.) Now, here’s a quick breakdown of hotel renovation financing options currently available to hospitality establishment owners:

  1. SBA 7a loans. One of the most attractive debt instrument products is Small Business Administration loans. Although the government itself does not directly loan money to borrowers, it does set standards, requirements, and guidelines for various approved lenders. SBA 7a loans are for the purchase of the commercial real estate, running to a limit of $5 million, with terms that can last as many as 25 years.
  2. SBA 504 loans. Another government-backed loan is SBA 504 loans, which have larger lending limits — up to $20 million — but the term lengths are shorter, ranging from 10 years to 20 years.
  3. Traditional bank loans. Commercial lenders, including national and international banks, do offer loans for hospitality establishment owners for renovation purposes. These require a good amount of pre-planning and documentation but have more options than government-backed loan products. Interest rates and terms will vary but are generally competitive, and collateral, along with a personal guarantee, are usually required.

Hotel Financing Using an SBA 504 Hotel Loan

By | San Antonio Hard Money Loans

Hotel financing using an SBA 504 loan involves three principal parties: the borrower, an approved lender, and a CDC, or, a Certified Development Company. This type of commercial loan is backed by the federal government. However, as with all SBA loan products, the government itself does not directly lend money to borrowers. Rather, the actual lending is done through approved financial institutions, which must follow the government’s loan standards and requirements. Read on to learn more about hotel financing using an SBA 504 loan.

Hotel financing with an SBA 504 loan means it is structured in a specific way. For instance, this loan program requires various parties in order to make it possible. Here are the basic elements you need to know about hotel financing using an SBA 504 loan:

  1.  Loan term. The length of time for repayment ranges for this type of loan between 10 years and 25 years. Generally, commercial real estate purchases are set up with the longest terms, which can last up to 25 years in length.
  2.  Interest rates. The SBA 504 loan program offers low-interest rates. These are usually quite competitive, comparable to traditional commercial debt instrument rates, and may be fixed or variable in nature.
  3.  Down payment. For this type of commercial financing, the down payment can be as little as 10 percent or as much as 20 percent. Although, borrowers may opt to provide a larger down payment.
  4.  Amounts.  Additionally, this loan program offers up to $20 million for real property purchases.

Hotel Financing Using an SBA 7(a) Loan

By | San Antonio Hard Money Loans

Hotel financing through an SBA 7(a) loan is one method of getting into commercial real estate investment. It’s also an avenue for those who want to get into the hospitality business and own their own company. When it comes to hotel financing, there are really only a handful of viable choices, short of an outright cash purchase. Fortunately, there are some ways to obtain hotel financing, with good terms and conditions. Read on to learn more about hotel financing using an SBA 7(a) loan.

The SBA 7(a) loan-guarantee program is one that is backed by the federal government. However, it is important to note that the small business administration does not loan money directly by itself. Instead, these loan programs exist through various lenders, which adhere to Federal lending guideline standards. Hotel financing with an SBA 7(a) loan has the following parameters:

  1. Interest rate. The interest rate for these loans is capped at a maximum of between 4.75 percent and 6 percent, depending on the type of loan issued.
  2.  Term length. The amount of time to repay the loan also depends on its structure and for the type of purchase. For instance, business loans for things like expansion might last only a few years. But, for commercial real estate purchases, the loan term May extend up to as many as 25 years.
  3. Collateralization. For just about any type of loan, including an SBA 7(a) loan, collateral is usually involved, as is often a personal guarantee by the principal borrower.