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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.

Real Estate Tips You Can’t Afford To Miss

By | San Antonio Hard Money Loans

If you want to enter the commercial real estate market, you need to know what kind of property you want to spend money on! You can lose a great deal of money if you make an ill-advised choice in commercial real estate. Read on for some great tips below to put yourself in a better position to invest wisely when it comes to commercial real estate.

Whether buying or selling, negotiate. You should make sure that they hear you and you get the fairest price for your property.

Whether you’re buying or selling commercial real estate, negotiate. Be heard and fight to get a fair price on the property you are dealing with.

Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.

Take some digital pictures of the unit. Make certain your photos highlight specific defects such as carpet spots, holes on the wall or discoloration on the sink or bathtub).

Pay attention to the location of a property. Consider how the neighborhood will affect business. Compare its growth to similar areas. If you make an investment in real estate, it is in your best interest to ensure that your property is in an area that will still be growing in five to ten years.

Commercial property dealings are exponentially more complex and longer transactions than buying a home. You should understand that although this is a huge undertaking, you have to be diligent in order to get a profit.

Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. You need to understand, you have to be diligent in order to get a profit.

Your investment may require a large amount of time consuming at first. It will take time to find a lucrative opportunity, and afterwards, it may need repairs or remodeling. Don’t throw in the towel because the process that gobbles up large portions of your time. The rewards you see will show themselves later.

At first, you may be required to spend a significant amount of time on a commercial investment. First, you will need to search for an opportunity and purchase the property, as well as perform any repairs that are required. Do not give up because this process takes too much of your time. You may need to spend some time researching before buying your commercial real estate purchase, but it will pay off in the end.

When choosing brokers with whom to work, ask about their experience specifically in the commercial real estate market. Make sure they are experts in the area of your curiosity or it could be an endeavor wasted. You should be sure to enter into a type of exclusive agreement with that broker.

If you have two commercial properties on your short list, you should buy the larger one, if at all possible. Obtaining adequate financing is a major undertaking, whether you opt for a ten-unit apartment complex or a twenty-unit apartment complex. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.

You should learn how to calculate the NOI metric.

If you rent or lease the commercial properties you own, keep them occupied as much as possible. If you have open spaces, then you are the person who will be paying for their upkeep and maintenance. If you have multiple properties available, you need to figure out what the reason is behind this, and address anything that is causing tenants to look elsewhere.

If you’d like to rent out the properties you purchase, look for buildings that are simple and solid in construction. These will attract potential tenants because they know that these properties are well-cared for.

When you’re writing letters of intent, try to keep it brief by agreeing with the bigger issues initially and let the lesser issues be resolved at a later time. This make negotiations less contentious, as coming to agreement on minor issues is naturally easier than agreeing on the big stuff.

Have your property before you list it for sale.

Put a high priority on emergency maintenance needs. One way to develop such a list is to ask current commercial investors who they use in the event of an emergency repair. Have the phone numbers on speed dial, and know how long it generally takes stuff to get fixed. Use the information provided by your landlord to help you prepare a plan for when normal business is disrupted by certain events.

Advertise your property to both locals and non-locals. Many sellers mistakenly assume that their property will appeal only to local buyers.There are many private investors who buy affordable priced property in any area.

Always go through the disclosures of an agent before hiring him or her. Remember that dual agency is also an option. Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. Or, for short, the agent is looking out for both parties’ interests. The fact that the agent is representing both parties must be disclosed to everyone involved and those parties must sign off on it.

As indicated by this article, commercial real estate investments can be lucrative. The qualities you need to do well in commercial real estate are skill, research and a good dose of luck. Not everyone will be a success, but using the tips above, you can improve your chances at being successful.

Blue widgets can sometimes be confusing, but you will learn more about them. Study everything written in this article until it all sticks. Then find out more online about texas construction loans.

Is Commercial Real Estate The Right Choice For You

By | San Antonio Hard Money Loans

This article gives details about how you some great advice to make your commercial property dealings proceed more smoothly.

Whether buying or selling, negotiate. You should make sure that they hear you and you get the fairest price for your property.

Whether buying or selling, don’t shy away from negotiation. Be sure that your voice is heard so that you can get a fair property price.

Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. Properties centrally located near universities and hospitals will have a consistently higher value, and it will sell more quickly.

Before you make a large investment in real estate, take a look at local income levels, unemployment rate and whether or not that area is growing. If the building is near certain specific buildings, employment centers, or a hospital, they’re likely to sell fast, you might be able to sell it faster and for more money.

Practice calm and patience when you are looking into the real estate market. Don’t invest in a hurry. Without due consideration, you might find that the real estate purchase does not meet your criteria for successful financial gain. It could be a year-long process before you begin to see investments in your market pay off.

Take photographs of pictures of the property. Be sure that you have any and all defects present on the pictures you take (things like holes, such as holes in the wall, and damaged or dirty carpets.

Engaging in a commercial transaction often takes more time, and is more difficult than simply buying a home. You should understand that although this is a huge undertaking, when all is said and done you will receive a big return on the investment.

Don’t jump into any investment opportunity without doing your research. You might regret it if you are not satisfied with your goals. It may take a year for your needed investment to come about in the deal that fits you perfectly.

Be certain the commercial property you are considering has good utilities access. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.

You can never learn too much about commercial real estate, so you should study real estate topics regularly.

Consider the surrounding area when you buy a piece of commercial real estate. Your business might do better in affluent communities, since your prospective foot traffic has more money. If the service you offer would appeal to less affluent people, you should not set up your business in an affluent neighborhood.

When choosing a broker, ask them to tell you about their experience level with the type of commercial investments you are interested in. Make sure that they are experts in the desired area that you’re selling or buying in. You and this broker should be sure to enter into an exclusive agreement that is exclusive.

Try to decrease potential events of defaults before negotiating a lease. So a tenant can’t default on a lease they sign with you in this type of situation. A default is frustrating and costly.

You should learn how to calculate the NOI metric.

If you are checking out more than one property, draw up a checklist to compare the features of the different properties. Take this list with you as a reference when visiting other properties, and use it when speaking with the property owners. Letting the property owners know that you are looking at other properties can help, too. You might walk away with more money in your pocket.

This can keep you from having bigger problems in the sale.

Before you move into your new space, it may need to be improved. This may be simple changes such as painting or rearranging furniture. Normally, however, it may be something a little more involved like walls being moved. Negotiate payment for these improvements ahead of time, and attempt to have the landlord pay at least part of the costs.

You should examine the surrounding neighborhood where a piece of commercial real estate you may be interested in. If the products and services you offer are more middle class or less affluent, look for commercial property in a more conservative neighborhood.

A borrower must be the one who orders an appraisal in a commercial real estate loan. If you don’t follow the rules, the bank will refuse to let you rely on it. Ensure it gets done, and gain peace of mind in the process, by ordering it yourself.

Looking for commercial real estate can be full of stress; it can be overwhelming for both novices and seasoned professionals. Apply the advice from this article to help make your search for that perfect piece of commercial property a little less stressful, and a lot more enjoyable.

You can find lots of material concerning texas land loans. Thankfully, you now have a basic idea of this topic. Continue looking for new information about the topic, especially up-to-date news and information, so that you can maintain your competitive advantage.