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SBA Loans in Houston

SBA loans in Houston are a popular way to find commercial capital. And, are available through a number of vendors and come in different structures. The good news about SBA loans in Houston or elsewhere in the great state of Texas, is there are many options to choose from, meeting terms, amounts rates, and purposes. Read on to learn more about SBA loans in Houston Texas.

SBA loans in Houston are ideal for small existing businesses, and startups alike, these also can be used as a source of short-term capital infusion, in some instances. Here’s a quick look at the most common and popular types of SBA loans in Houston and beyond:

1. SBA 7(a) loan. This is perhaps the most well-known and most often used among established and newer companies. It allows for many different types of purposes, including real estate acquisition, equipment acquisition, expansion, inventory buys, and other general purposes. These loans range from $50,000 to $5 million and can run up to a term of 25 years.
2. SBA CDC/504 loan. For businesses seeking commercial real estate acquisition or commercial equipment acquisition, the 5:04 loan program is one of the best choices among the variety of SBA loans. The 5:04 loan program has a minimum capital funding of $125,000, up to $20 million dollars, and can carry a term of as much as 25 years.
3. SBA microloan. The SBA microloan program is usually accessible for small fledgling companies, or startups. Amounts vary from as little as $25,000 up to $50,000 and offer short-term financing solutions.

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 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? 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 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.