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Sunday, June 3, 2018

Spotting a Business Loan Arizona That Is Too Good To Be True

(Looking for a great deal on a business loan Arizona is smart. But you need to be able to determine which offers are legitimate and which are actually a scam.)

When you are searching for a business loan Arizona, it can be difficult to tell which lenders are legitimate and which are actually running a scam just to collect fees from unsuspecting potential borrowers. But completing your due diligence will reveal some information that will give you a good indication of which firms are legitimate and which are scams. There are some legitimate lenders who do request a processing fee when you submit your request. So that is not always a sure sign of a scam but there are a few dead giveaways.

When researching lenders to submit loan applications to, it is wise to always eliminate any that are outside the United States. This will greatly help to reduce the number of shady or fake lenders that you will be speaking to. Any lender who is outside the country is not going to be forced to follow any U.S. laws and that greatly increases the potential for you to become a victim of a scam or to have your personal information and identity stolen. In addition, if you are working with a firm who claims to be in the United States and then in fact is not, stop all transactions. A business who is hiding their location is more than likely not legitimate.

If you are told that there are no qualifications to be met for business loan Arizona approval, you are likely dealing with a fake company. These “firms” are likely to say that they charge a somewhat substantial fee for the loan request to be processed but then the fees are applied to your loan points. And that it is just a formality because there are no criteria that you must meet to get approved. These are all lies to get you to pay the fee. Once you pay then the lender never calls you again and will not return your calls or emails.

Don’t Be Fooled By an Office

Even if the company has a nice office in a respectable neighborhood there is no guarantee that they are legitimate. In most cases the office is in another state or city and all that you are seeing are pictures on a website. Not only is the office likely to belong to someone else but the entire business could be nothing more than a person who is running a website and collecting application information to sell as well as bilking borrowers out of application fees.

There Is No Free Loan

You are never going to find a legitimate business loan Arizona that is offered without any fees or interest. Lenders are in business to make money just as you are. So always look very closely at the entire contract and all of the fee and payment structure of any loan that appears to be too good to be true.

Monday, May 28, 2018

3 Requirements to Succeed Using Hard Money Loans Arizona

Understanding these three basic requirements of hard money loans Arizona will help to ensure that you can secure your loan. In addition, these tips will greatly improve your potential of success.

Real estate investors who are not familiar with hard money loans Arizona often have many questions about the process and how to best use a hard money loan to its fullest potential. The first question is always about the collateral required to secure a hard money loan. Borrowers want to know how much they can borrow and how that number is determined. All of this financial information is a huge part of the first requirement of hard money loans Arizona. Having a sufficient down payment is critical to securing a hard money loan. Lenders are only going to offer between 65% and 75% of the purchase price of the property. The borrower is required to provide the remaining 25% to 35% in the form of a down payment. This assures the lender that the property will almost always remain more valuable than the outstanding balance of the loan.

In addition to the cash to purchase the property, the lender is going to want verification that the borrower has the cash reserves necessary to pay the costs associated with owning the property such as the monthly payments, the taxes and insurance. If the property is in need of repairs or renovations, the lender might also want to see that the borrower has the means to make the needed repairs to protect the property value.

Be Prepared with a Detailed Plan

Real estate experience is also an important consideration prior to funding hard money loans Arizona. The lender is going to need to understand the borrower’s previous experience in real estate investing to know that they are a good investment. This experience can be demonstrated through past successful investments as well as a clear and detailed plan for the current project. Items such as a detailed timeline, tasks to be completed, comparable property pricing in the area and a plan for marketing and selling the completed property will all show the lender that this project has a great potential for success due to the experience and professional management of the borrower.

Professionalism=Success

As with any business deal, professionalism is going to be critical to the final success of the project. Not having a clearly defined plan and the money to act on the plan is a sure sign that the project is doomed even before it gets started. But having a plan and a detailed process outlined to achieve the goals will show potential lenders that you are experienced and well prepared to start and successfully finish this project. Not only will this preparation go a long way in helping you secure the hard money loan but it will also help to make the project run more smoothly and remain on budget and on time. The effort you invest before the project begins is equally as critical to its success as any time and effort you invest during the project.

Sunday, April 1, 2018

How to Develop an Exit Strategy When Obtaining a Hard Money Loan

An exit strategy is, in essence, your plan for paying off your hard money loan. It is a plan that you will want to develop before you sit down with a lender.

Exit strategies are crucial for obtaining a hard money loan. Many of these lenders offer interest-only payments as you develop or renovate your project. They obtain the big payoff upon completion when you have succeeded in your “exit strategy” and can repay them in full. For those of you in the fix & flip model, your exit strategy is fairly easy to define. You rehab and then sell the property.

Selling the property, then, is your exit strategy. Because timelines can change in the world of construction and rehab as well as finding qualified buyers, it will be important that you look for a hard money lender that does not charge a prepayment penalty. You’ll also want to come to the table with improvement plans that include costs and potential market value as well as comps and average time on the market.

If your real estate segment falls into the buy-and-hold model, selling will, obviously, not be an appropriate exit strategy. A strategy that does work is refinancing. Many traditional lenders that offer lower interest rates with longer terms will not loan on properties in poor conditions. Once you have the property renovated and a suitable tenant, your chances of obtaining a traditional loan are greatly elevated. It could be that you needed a loan quickly to jump on a property that just hit the market. Many investors obtain funding from their hard money lender in order to accomplish a quick buy and then refinance at a later date.

The Sale of Assets

The sale of other assets such as real estate or accessing additional funds such as money from IRAs, the stock market, or business interests is another exit strategy. You may wonder why, in this case, the borrower wouldn’t just dip into their additional assets and bypass the loan process all together. For many investors, time is a crucial component in their investment strategies and waiting while other assets sell may cause them to miss a prime property or opportunity. In essence, you are obtaining a bridge hard money loan. These types of short-term loans simply “buy some time” and act as a “bridge” from either one loan to the next or one property to the next.

Don’t feel like you have to stick with one exit strategy. Blended strategies can often be the best solution depending on the situation.

And just what is a blended strategy? This type of exit strategy utilizes a combination of all of the above to create a strategy that works the best for your particular situation. For instance, if you cannot obtain the full loan amount upon completion of the project, you can sell an asset and reduce the LTV so that a traditional lender will consider financing. Whatever your exit strategy, be sure to check with Level 4 Funding before obtaining your hard money loan. We have years of experience and can help you develop an exit strategy that works well for your project.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, March 24, 2018

How to Prepare to Speak to Hard Money Lenders

Being prepared is the best way to ensure that you can get offers from hard money lenders. But the secret is in knowing how to prepare.

It can be very stressful seeking a loan. Many people hate to feel that they owe someone money even when it is for a legitimate loan or mortgage. But being well prepared can help to eliminate much of that unnecessary stress and also can help to ensure that you get the loan that you need. Approaching hard money lenders for a loan is not exactly like going to a bank or a mortgage company to ask for a loan. And in some ways this is very good because the process is less complicated but that can also make it more nerve wracking.

A conventional lender is going to present you with a huge packet of forms to complete and then send you on your way until you have all of the paperwork completed and submitted. But the process of a hard money loan is less dramatic. So you will want to be sure that you are prepared prior to your first meeting so that you can give the lender all of the information that they will request. Not only does this allow you to appear very professional but it will also speed up the process even more.

Hard money lenders are really only interested in the value of the property which is going to be used as collateral on the loan. They don’t want to hear your life story and why your credit score is lower than the average consumer. So don’t volunteer too much but be ready for all of the questions pertaining to the property and your plans for it. The first question is going to be the address of the property, which is easy enough to supply. You will also need to provide a few photos of the property to show its current condition. In addition, you should provide any appraisal that you have gotten or valuation that you have completed for the property. This is the main information that the lender is going to use to determine the current value of the property and what the collateral will be worth to them.

Explain Your Plan

The next information that the lender will want to gather is about your offer price and any proposed renovations that you will be doing. It is a good idea to have a basic business plan in place to show the renovation budget, the timeline and your projected increase in the property value as a result of the renovations. The final piece of the puzzle for the lender is to understand how you plan to repay the loan. Are you planning to keep the property and rent it out? Are you going to sell the property and use the proceeds to repay the loan? And finally they will ask for the exact amount of the loan that you are requesting.

Fast and Easy

Providing all of this information in a single quick meeting not only shows your respect for the hard money lenders time but also shows that you are a well prepared professional. Having a plan and demonstrating it will let the lender know that you are serious and will be getting this loan from him or her or from a competitor.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, March 23, 2018

Why potential commercial loan rate increases are making investors nervous

Inflation fears are stoking fears in the minds of investors about potential commercial loan rate increases in the immediate future.

Yields on short-term Treasuries have recently reached new heights, creating new fears that long-term borrowing costs could rise as well. As of February 2nd, short-term yields on US treasuries sat 2.825 percent, the highest since 2014.

So why are these rising bond yields causing so much panic among investors? Their primary concern is related to inflation and the potential for steep rate increases by the Fed.

Steady job growth may be a sign of rising inflation. The rising rate of employment indicated in the recent January jobs report has many concerned that the Fed will raise interest rates to reduce the risk of inflation.

The Fed usually raises interest rates when the economy overheats, increasing borrowing costs to keep up with inflation. The Fed also raises interest rates when it expects inflation in the near future, which has many investors worried.

Investors are wary the danger of steep increase in commercial loan rates

A fundamental question is why investors are so concerned about inflation? The perception that inflation will soon rise rapidly could entail immediate interest rate increases by the Fed. Drastic rate increases in response to potential inflation would obviously hamper any recent economic growth due to higher borrowing costs.

The historically low bond yields of recent years have made risky investments like stocks more attractive. Bond yields impact the cost of borrowing throughout the economy. If bond yields rise too sharply, companies will have the added burden of higher borrowing costs. Should the Fed rapidly raise interest rates, these riskier investments will become considerably more volatile, which could explain the recent stock sell-off.The anticipated steep rate increases by the Fed would have a clear negative impact on corporate performance. A mismatch between the "real" cost of borrowing and long-term bond yields is also raising concerns among investors.

Investors note the danger that attempts by the Fed to raise commercial loan rates and control inflation may not be enough

The fact that long-term borrowing costs have remained low has spawned the greater fear that perhaps is the Fed may not be able to raise rates sufficiently to control inflation. Some are noting the disparity between Fed rates and real long-term borrowing costs. In the past year yields on short-term Treasuries have risen in line with Fed interest rate increases. However, the yields on long-term Treasuries have remained low or unchanged.

Some fear that in the face of rising inflation the Fed could overreact and dramatically raise rates to regain control of the situation.

Still investors panic about the risk of inflation may be premature. The relationship between employment growth and inflation, known as the Phillips Curve, has not matched economic data. Inflation has been relatively moderate of late in spite of recent robust job growth. The Fed could still hold off on the rate increases many investors expect.

These concerns remain speculative the time being and rarely is sound investment strategy founded on speculation.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What you should know when you using a commercial loan to flip commercial real estate

If you took out a commercial loan to flip a commercial property you need to know how to value commercial real estate and plan your project around the duration of your loan.

Flipping a commercial property offers the potential for higher returns, as commercial real estate usually has a higher value per square foot. Compared to residential deals, commercial real estate negotiations are often more flexible, which gives each deal greater profit potential.

When it comes to flipping the commercial real estate the market is far less competitive. In most markets, Single-family homes that were once significantly undervalued have usually already been renovated and resold.In many areas, there is an abundant supply of distressed commercial properties in need of restoration.

However not every commercial property should be renovated and sold off immediately. Depending on market conditions a wise investor should consider whether leasing their property is a better strategy. If there a chance real estate prices in the area could appreciate substantially over an extended period, it may better to lease and hold onto the property.

The risk when it comes to flipping commercial real estate is that renovations can be costly and may not suit the needs of every potential buyer. Leasing avoids this risk as tenants can usually improve the property themselves to suit the needs of their businesses.

Before using a commercial loan to flip your property, you need to know how to value commercial real estate

Commercial property is almost never valued based on comparable sales. Commercial valuations can be specialized and require a great deal of expertise and are based on cap rates, gross rent multipliers and cash on cash returns .

The cap rate is the purchase price divided by the net operating income of a property and describes the potential return on an investment without accounting for any debt resulting from the initial purchase. To calculate the gross rent multiplier, divide the properties sale price by its rental income at full occupancy, this will indicate the earning potential of a property over time. To calculate cash on cash returns divide the total down payment on a property by its annual pre-tax cash flow, which will account for the debt involved in purchasing the property up front.

Knowing these factors will help any investor understand how to maximize the sale price of a commercial property, which is the primary goal of the flipping process.

Commercial loan terms are different, and your renovation project should match the duration of your loan

Commercial lenders have to abide by fewer regulations, which means financing may be easier to secure. Investors should be aware of the how terms of commercial mortgages can differ from residential ones.

Commercial mortgages are usually short-term loans structured around balloon payments. Before taking out a commercial mortgage have plans in place to either sell the property or refinance it before the final payment is due.

Every commercial flipper should consider the shorter lifespan of commercial mortgages in the context of the longer sales cycle involved with commercial real estate. Expect industrial properties to sell within six months, office properties to sell within 8 and retail space to sell within 12.These numbers could change depending on the demand for commercial real estate in the area.

Plan ahead before financing a renovation project. Ensure a projected completed and resold before any loan matures and expect any commercial property to remain on the market for a longer time.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, March 20, 2018

Process for Obtaining Commercial Loans

There is really no shortcut when you are seeking commercial loans. But following a tried and true process can help to expedite the response to your application.

Most borrowers fail to understand that a great deal of the success or failure of their commercial loan application rests on their amount of effort in preparation. There is a huge amount of research and due diligence that a borrower must invest in the process in order to be successful when applying for commercial loans. Understanding the loan application process, the desires of specific lenders and their loan approval criteria are all very important and should be researched long before you begin to search for a commercial property to purchase.

Many borrowers are in awe of commercial lenders and fail to see them as a business partner or vendor. They get too caught up in the “bank” aspect and feel as if they are being judged. The lender is making a judgement but only from the perspective that they want to verify that you can afford the loan. They are just making smart business decisions. In that vein, you should also be making smart decisions about who you are interested in borrowing from. There are many options for commercial loans which you should explore including large national banks, medium sized regional banks, a small local bank, a private lender or a mortgage company just to name a few. If you are not familiar with any major lenders or to gain information about your options, begin with a meeting at your current bank to learn about their commercial loan products.

Each lender is going to have a slightly different set of criteria for approving a loan. Learning these requirements can help you to determine which lenders you will actually apply to. Set up a few appointments to speak to loan officers to learn about the lenders and what they have to offer you. Be prepared to discuss your business, the reason you are requesting a loan and how you plan to meet the financial responsibility of repaying the loan. These conversations can glean some very helpful free advice for you from seasoned lending professionals.

Select Lenders Who Best Meet Your Needs

Not all lenders are going to be a great fit for you or even a fit at all. If you are looking for a small loan then a national bank might not be interested in your application. Likewise, if you are seeking a very large loan, then a small local bank might not be your best choice. Try to determine which lenders specialize in the type of commercial loans that you are seeking and then apply only to those lenders. There are costs involved in commercial loan applications as well as a commitment of time. Don’t waste either by applying to a lender who will not be interested in your business.

Make a Great First Impression

Other than a brief introductory meeting, your loan application will be your first contact with many lenders. This is your only opportunity to create a positive and professional first impression. Invest all of the time that you need to research your options and the criteria that each lender uses to evaluate loan applications. Only then should you begin to compile your documentation and complete the loan application. This dedication to completing a high quality loan application and documentation packet will pay great dividends when you learn that you have multiple loan offers at very competitive rates.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, March 17, 2018

Why There are Mixed Signals for Commercial Loans in 2018

Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, June 9, 2014

Making a custom foam cooler using Instapak foam Ship Frozen Using Dry Ice CO2

Make a custom foam cooler from custom foam packaging.

Welcome to Custom Foam Packaging

Phoenix Arizona Custom Foam Packaging Services Center

SINCE 1985

Custom Foam Packaging Instapak Foam-in Place Packaging

At Custom Foam Packaging we use Instapak Foam Packaging products to create custom packaging and custom foam boxes.

This foam-in-place system is fast, easy and versatile. Our foam-in-place foam packaging process allows on-line, on-site production of polyurethane foam packages.

Custom Foam Packaging and custom foam boxes provide protection against shock and vibration during shipping and handling, void fill, and bracing applications.