Posted by admin on Mar 24, 2011 in
Finance The early process of reviewing business financing alternatives is likely to be confusing for investors most familiar with residential financing requirements. The outcome should be less stressful and more successful by analyzing this article as well as related commercial mortgage and business opportunity financing articles.
There are many critical differences between residential real estate investing and commercial real estate investing. There are over 25 business financing differences, and they will not all be addressed in this business finance article.
With the increasingly chaotic investment climate for residential financing in the United States, more residential real estate investors are exploring commercial real estate and business finance opportunities. It is important for prospective commercial property owners, business owners and business investors to educate themselves about options for the business loan and commercial mortgage environment they will be facing.
Personal Guarantors for Business Opportunity Financing and Commercial Loan -
Even though a business is held under corporate ownership, a personal guarantee from the principal owners is routinely required for a commercial mortgage or business loan. This also means that credit scores of the individual business owners will be used as one of the factors to qualify for a commercial loan. Typically a personal guarantee for a commercial loan is required for owners with over a 20% ownership interest.
Down Payment Requirements for Business Financing -
To purchase a business will typically require a business loan down payment varying from 10% to 25% (more in some cases). The type of business, credit scores and business experience will have an impact on the amount required for a down payment.
Stated Income Business Finance Possibilities -
Read more...
Tags: Business, Essentials, Estate, Finance, Loan, Mortgage, Real
Posted by admin on Mar 19, 2011 in
Finance Even though longer-term business finance techniques might be appropriate for many circumstances, there are some important short-term business loan options that will be less costly in producing improved credit card processing and commercial mortgage results for business owners. Short-term business financing choices can be misunderstood because of a preference by many business owners for long-term commercial real estate loan and commercial loan programs.
Two Important Short-Term Business Finance Options
Two of the most overlooked short-term working capital business loan strategies are short-term commercial mortgage loan programs and business cash advance programs in conjunction with credit card processing. Both of these business finance options are relevant for most business owners but are frequently misunderstood.
Short-term Programs for Commercial Real Estate Investment Financing
A long-term business loan is appropriate for many businesses that own commercial real estate investment property. Business properties should normally be financed with a combination of short-term and long-term business finance funds. When a longer-term commercial mortgage is viable, it is preferable to secure long-term business financing, preferably for 30 years.
However there will be many commercial mortgage loan situations in which longer-term real estate business financing is not appropriate for the business owner. In such circumstances it is important for a business owner to realize that there are viable short-term working capital management options.
When a Short-Term Commercial Mortgage is Appropriate
If a business owner plans to sell or refinance their business within a few years, it is preferable to explore short-term business finance options. The best short-term business loan will have minimal prepayment penalties in comparison to terms commonly included with long-term commercial real estate investment property financing. Read more...
Tags: Business, Choices, Commercial, Estate, Finance, Loan, Mortgage, Real
Posted by admin on Jan 2, 2011 in
Finance Forte Properties is a full service real estate company that specializes in Owner Financed real estate in Austin, TX and surrounding areas. We have EXCLUSIVE access to over 250 Owner Financed homes in the greater Austin area. Homes other investors don’t want you to know about! We know how important the decision is when you have to choose professionals for various needs in your life; we take helping people like you who want to purchase a home very seriously.
We have teamed up with Exit Options Realty and work hand in hand with dozens of professionals in various facets of the real estate market dedicated to assisting you with whatever your real estate needs may be. We work with licensed RMLO’s and Real Estate Attorney’s to ensure all of our Owner Financed home sales are 100% legal and conform with the new Texas S.A.F.E. Mortgage Act. Why risk it with anyone else??
Our customers are at the heart of what we do, and we are committed to finding your perfect home, based on your preferences, in a timely manner, for the best price possible.
You want to purchase a home; unfortunately, the ongoing credit crunch makes being approved for a traditional real estate mortgage loan daunting at best. If you are self employed or on fixed income, or have had a bankruptcy or past foreclosure, you can qualify for our Owner Finance program. If you have at least 5% to 10% down and can afford monthly payments, you are approved!
So what are you waiting for? View our available homes at http://www.AustinOwnerFinancedHomes.com, and if you do not find what you are looking for, register for our new home email list and we will send you homes based on your search criteria!
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Tags: Austin, Estate, Financed, Financing, Owner, Real, Sale
Posted by admin on Oct 12, 2010 in
Finance The early process of reviewing business financing alternatives is likely to be confusing for investors most familiar with residential financing requirements. The outcome should be less stressful and more successful by analyzing this article as well as related commercial mortgage and business opportunity financing articles.
There are many critical differences between residential real estate investing and commercial real estate investing. There are over 25 business financing differences, and they will not all be addressed in this business finance article.
With the increasingly chaotic investment climate for residential financing in the United States, more residential real estate investors are exploring commercial real estate and business finance opportunities. It is important for prospective commercial property owners, business owners and business investors to educate themselves about options for the business loan and commercial mortgage environment they will be facing.
Personal Guarantors for Business Opportunity Financing and Commercial Loan -
Even though a business is held under corporate ownership, a personal guarantee from the principal owners is routinely required for a commercial mortgage or business loan. This also means that credit scores of the individual business owners will be used as one of the factors to qualify for a commercial loan. Typically a personal guarantee for a commercial loan is required for owners with over a 20% ownership interest.
Down Payment Requirements for Business Financing -
To purchase a business will typically require a business loan down payment varying from 10% to 25% (more in some cases). The type of business, credit scores and business experience will have an impact on the amount required for a down payment.
Stated Income Business Finance Possibilities -
Read more...
Tags: Business, Essentials, Estate, Finance, Loan, Mortgage, Real
Posted by admin on May 21, 2010 in
Finance Many homeowners make the mistake of thinking re-financing is always a viable choice. This is not always true and homeowners can actually make a significant financial mistake by re-financing at an inopportune time. There are a few classic examples of when re-financing is a mistake. This occurs when the homeowner does not stay in the property long enough to recoup the cost of re-financing and when the homeowner has had a credit score which dropped since the original mortgage loan. Other examples are when the interest rate has not fallen enough to offset the closing costs connected with re-financing.
Recouping the Closing Costs
To determine whether or not re-financing is worthwhile, the homeowner should think about how long they would have to retain the property to recoup the closing costs. This is important especially in the case where the homeowner intends to sell the property in the near future. There are re-financing calculators readily available that advise homeowners how long they will have to retain the property to make re-financing worthwhile. These calculators require input such as the balance of the existing mortgage, the existing interest rate and the new interest rate. The calculator returns results comparing the monthly payments on the old mortgage and the new mortgage and also presents information about the amount of time required for the homeowner to recoup the closing costs.
When Credit Scores Drop
Most homeowners think a drop in interest rates immediately signals that it is time to re-finance the home. However, when these interest rates are combined with a drop in the credit score for the homeowner, the resulting re-financed mortgage may not be favorable to the homeowner. Therefore homeowners should carefully consider their credit score at the present time in comparison to the credit score at the time of the original mortgage. Depending on the amount interest rates have dropped, the homeowner may still benefit from re-financing even with a lower credit score, but it is not likely. Homeowners can take advantage of free re-financing quotes to get a rough understanding of whether or not they will benefit from re-financing. Read more...
Tags: Estate, Mistake, Real, ReFinance
