Archive: July 2012

Wraparound mortgage also known as an all inclusive trust deed, is a creative way to allow you to purchase property without having to qualify for a loan or to pay closing costs. This could be used when attempting to purchase commercial property without running the risk of being turned down for a large business loan. The process of obtaining the property is also expedited because the property does not have to go through a typical lender. It allows you to obtain property to conduct business in while […]

Second Mortgage

BusinessFinance Staff July 5, 2012 No Comments

Second mortgage is an important commercial real estate tool. Commercial second mortgages are normally used in conjunction with a new first loan. Typically the second mortgage will have a term of no less than five (5) years with interest only payments. While second mortgages can be critical in some situations, you must carefully consider your ability to service both loans. There are many clear advantages to this type of creative financing. The most frequent use is a second mortgage […]

Real estate purchase loan funds are typically business loans that are collateralized with commercial real estate. Loans to expand or improve your existing business and loans to refinance existing debt. Both conventional and government guaranteed loans are available. Financing can be secured for virtually any kind of business, including but not limited to: Motels Apartments Shopping centers Retail stores Office buildings Automobile dealerships Owner occupied buildings Manufacturing facilities Health […]

Real estate sale and leaseback is an excellent financing method increasing in popularity. Real estate sale and leaseback financing allows your business to get instant access to working capital while saving money on taxes at the same time. Your business would sell its commercial property for regular fair market value and then immediately leaseback the property. Your business gets the equity because you will get 100% of the full market value at the time of sale. That equity can be invested into […]

Participating mortgage is a creative business financing alternative. Participating mortgage financing is a unique alternative for obtaining the capital your business needs. It is a loan which contains clauses and conditions under which the lender participates, or shares in the revenues of the property. The level of participation may be calculated from the gross receipts, net operating income, net income or net cash flows of the property. A participating mortgage gives a lender more incentive […]

Joint Venture

BusinessFinance Staff July 5, 2012 No Comments

Joint venture financing for commercial property Joint venture financing is a means of structuring a mortgage in order to help you, the client, maximize cash flow potential. How? By "teaming" you with a lender as an investor. Definition of a joint venture: similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than […]

Interim Loan

BusinessFinance Staff July 5, 2012 No Comments

Interim loan is a short term financing option for your business. Interim loan financing is an excellent option for your business if you are seeking to purchase commercial real estate, or if you are in the construction phase of building new property. These loans allow you to remain in your current location while the new facility is being built. An interim loan is also great for businesses that want to sell their current property to upgrade, but they can’t afford to miss a good real estate price […]

Hard Money Loan

BusinessFinance Staff July 5, 2012 No Comments

Hard money loan is a non-traditional financing source for your business. A hard money loan is financed by a private lender, and is used for commercial real estate transactions most of the time. The money loaned is at a higher interest because companies that banks will not approve, can get approved for a hard money loan. The interest on the real estate transaction can be more than double the standard interest rate. This is because the hard money lender is taking on a serious risk. Instead of […]

Fixed rate commercial mortgage makes budgeting and planning easier for your business. Fixed rate commercial mortgage products are mortgages that have a fixed interest rate and payment for the full term of the loan. These loans make it easier to budget, especially over the long term, and offer stability across an ever-fluctuating market. It is vital for businesses to know their exact costs each year, and the mortgage rates can be fluctuating on a yearly basis, so a business could easily end […]

Construction loan with take-out refers to short-term financing of real estate construction followed by long term financing, called a "take out" loan. This "take out" loan is issued upon completion of improvements. Construction loans normally work together with take-out loans. For example:  The land developer gets a construction loan to build a cluster of homes. When all the homes are ready to sell, a buyer gets a take-out loan from a lender to purchase one of the […]