Capital Constraint Still Continues…..

Capital Constraint Still Continues…..

Had an interesting meeting last week with a consortium of credit unions in Seattle.  They were engaging us to help create a strategic plan for creating a Credit Union Service Organization (CUSO).  Credit unions have a lot of capital to deploy right now and you would think they are aggressively lending – but what we found out was that they are actually quite nervous about government audits, about defaults, about the marketplace in general.  They need to lend, but they are cautious about it.  Fear, is a bigger concern than profit.

Local banks have the exact same fears and it constrains them as well.  In fact, in my discussion with hundreds of local banks over the last few months, it appears as many as 60-70% of them are NOT REALLY LENDING!  Combine this with the fact that the big 5 banks deny 80-90% of the applications they take in and you see the true state of money availability to the local business owner or real estate investor.  You won't read that in the media – that is not what the powers-that-be want you to hear.  But that is what is going on behind the scenes and like any problem, it provides an opportunity for someone.  At Commercial Capital, we have resources around the country that ARE aggressively lending.  If a deal is a good deal, we have resources to fund it.  That includes life companies, hedge funds, conduit lending, private money AND local banks and credit unions that ARE lending.  We can bring the resources of the country to the local investor or business owner and keep the money flowing to the businesses and entities that are out there making it happen. Those are the heroes that are really growing the economy.  When we get a loan for that business owner, that opens up jobs and opportunities.  That is what these people need.

On Friday, we closed a $6.4 Million loan through our in-house lending facility for one of the largest re-modeling contractor companies in the country.  That loan will pay off a bank loan and will free up credit lines to help him handle the huge orders he just received that are going to add millions to his bottom line.  That leads to more jobs and more growth.  A broker brought the deal to us.  We split the one point fee and we locked the client in at 5.11% fixed for 5 years – WOW!  And we did almost all the work on the file! This guy is a multi-millionaire with a strong company and is a strong borrower with millions in the bank and he could not get funded locally and ended up with a broker.  Lucky for him, that broker found us.

We can get deals closed.  Our Company Mission Statement is this, "Commercial Capital brings funding sources from around the country to the local business owner and investor to help keep this economy moving!" WE ARE SERIOUS ABOUT IT.

WHAT WE DO IS IMPORTANT.  WHAT WE DO IS NEEDED.  THE OPPORTUNITY IS AWESOME. 

JOIN OUR TEAM! BECOME A BUSINESS LOAN PRO TODAY! OUR TIME IS NOW!!!!

Marcos Lopez

Commercial Lending Pros

Commercial Capital Limited

Florida Real Estate & Commercial Loans, Inc.

Tel: 863-298-8900

Fax: 863-877-4456

Email: marcos@commerciallendingpros.com

Website: http://www.commerciallendingpros.com/

Your #1 Source For Commercial & Business Financing

Mission: "Commercial Capital brings funding sources from around the country to the local business owner and investor to help keep this economy moving!"

Don't be Afraid of Tax Returns that show Low or No Profits!

Many clients and brokers shy away from loan programs that require tax returns to verify business income. The reality is that these days almost all commercial lenders require tax returns. The days of "stated income" loans are long gone. But not to worry. We do "Add-Backs" as they are commonly referred to in underwriting. What that means is we look for the TRUE CASH FLOW of a business. Not the income that's reported on the bottom line of a business tax return after your CPA gets done utilizing all the deductions that are legitimately available to reduce taxable income. We will routinely add back such expenses as depreciation, compensation to officers, amortization and interest expense on almost every return. And we'll also add back any expense that will be "going away" as a result of the new loan request. For example, if the loan is to buy a new location to replace an office the business has been renting - we'll add back all the rent expense that was deducted. If the loan is being used for "debt consolidation" then we'll add back all the additional income that went to pay those debts that will be going away. You'd be surprised at just how much real cash flow most businesses have to work with when you know where to look. So don't be afraid to show those tax returns, even if they don't look so pretty at first glance.

For more information contact Commercial Capital Lmiited by visiting http://www.commerciallendingpros.com/, emailing us at loans@commerciallendingpros.com or calling 863.298.8900.
Visit the link below to get a Quick response to your Commercial Loan Scenario. Simply provide us with some VERY BASIC information: Quick Loan Pre-Qual form

Obama Supports 150% Increase in Maximum 504 Loan -- to $ 5 Million

Oct. 21, 2009 -- President Obama today announced his support of legislation that will increase the cap on Small Business Administration (SBA) 504 loans to $5 million for standard small businesses and $5.5 million for small manufacturing businesses. 504 loan caps are currently set at $1.5 million ($2 million if a public policy is met) and $4 million, respectively.

The shift to $5 million for standard small business borrowers would support a total project of $12.5 million, and to $5.5 million for small manufacturers would support a total project of $13.75 million, according to the White House and the SBA.

While the legislation is pending Congressional approval, this is huge news for small business owners looking for financing who were unable to obtain a 504 loan due to $1.5 million cap. In many cases, these small businesses had already used a 504 loan, they were ready to expand, but were denied the chance to borrow again through the SBA due to the $1.5 million limit.

SBA data shows an increase in the demand for the larger loans currently available. In the 504 program, the percentage of loans for more than $1.5 million has grown, from 15% of total dollars approved in 2005 to 28% in 2009.

Obama made his announcement at the offices of Metropolitan Archives, a 504 loan recipient in Hyattsville, Maryland. With this kind of support from the president for the 504 industry, it is certainly hoped the legislation will be fast tracked and put into place by the SBA as soon as possible.

The 504 loan program is reserved exclusively for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets. It offers below market, fixed interest rates with long amortization terms (up to 20 years).

Over 115,000 savvy, small business owners have taken advantage of 504 loans to grow their businesses since the program began in 1986. In fact, the 504 loan program has funded over $45 billion in loans to growing small businesses over the past 23 years.

Click here for the White House release.

Click here for President Obama's speech transcript.

Commercial Capital Limited
SBA Financing Program

We here at Commercial Capital Limited are experts in Small Business Administration 504 loans and are able to assist all our clients in getting SBA loans closed faster, easier and at lower costs. Don’t hesitate to call or email Commercial Capital Limitied to see how we might be able to assist you and your business in receiving some of the additional Stimulus Bill money that has been made available thru the Small Business Administration.!

Give us a call at: 863-298-8900 or 813-833-3132
Or visit: http://commerciallendingpros.com/ and fill out a Quick Loan Pre-Qual form to get a fast response to your loan scenario!

Private Money Loans

Private money loans are loans for situations where traditional banks will not lend. With the credit squeeze going on and banks increasingly less focused on lending, these loans have really grown over the past year. These loans are not for bad borrowers, they are for people who need money quick. Maybe it is a purchase contract that needs to close in 3 weeks, or a tight situation that just needs a short term bridge…these loans are great loans for a quick close. Common sense underwriting is the norm for these loans. There are two basic types of commercial private money loans, often called “hardmoney” loans:

• Cash flowing properties: Apartment complexes, retail strip centers, etc. These are properties that kick off enough cash to support the debt at almost 1 to 1 coverage or better. When that is the case, we have PLENTY of sources available. You may think; why if it is cash flowing does someone need hard money? The reasons are endless. I have one deal where it is a developer who has a bunch of properties working but because of long delays, they are cash poor. He has one property that he owns free and clear that is cash-flowing; we are getting him short term hard money to get him $12 Million to keep things rolling while the other loans close. We have a small $400,000 hard money loan where the guy just needs to close quick because he shopped too long and now his closing date is in 3 weeks and no one can close him. On these types of properties, money is available all the way up to $25 Million. LTV’s up to 75% are possible if the property cash flows strong. These are GREAT loans and can close quickly!
  
• Non-cash flowing properties: Whether it is raw land, or a vacant building that needs to be gutted and rented out or an apartment complex that is mostly empty and losing money, if it doesn’t cash flow, the rates are higher and the availability of funding is greatly diminished.. Excellent credit on the part of the borrower and borrower financial strength is critical on these deals. The lenders will also want a lower LTV, generally 50%. But a good borrower at a low LTV can get the money quick, whether it will be for cash-out, purchase, whatever. Even though these are tougher, we DO have loans available on these products from $200,000 up to $25 Million. Again, closings are generally very quick, 2-3 weeks is the norm.

Remember with private/hard money loans the terms are short. 1 to 2 years is preferred. They often have NO pre-payment penalty because the lenders want to get the money back so they can re-deploy it again. The EXIT STRATEGY IS CRITICAL. How are you going to pay it off in 1-2 years? If the exit strategy is compelling, these deals can close. But if you need money fast, and the banks are saying NO, this is a great option! To run scenarios by us, just call 863-298-8900. Remember, WE HAVE COMMERCIAL HARD MONEY LOANS AVAILABLE FOR CASH FLOWING AND NON-CASH FLOWING COMMERCIAL PROPERTIES FROM $200,000 UP TO $25 MILLION. JUST CALL 863-298-8900 TO RUN THE SCENARIOS BY US – WE CAN GET THOSE DEALS CLOSED TODAY!

We Are Lending! Commercial Loans Available!

Commercial Loan Update:

Wall Street lenders are still on the sidelines and the scrutiny on them will keep them there for most of this year. Local banks are in a world of hurt with most local banks just trying to survive – 86 local banks are projected to fail this year in Georgia alone. These guys are on the sideline as well.

This leaves us! We are still lending. In fact, the big hedge fund money is coming back into the market. They are even looking at residential subdivisions again – incredible. Big projects that have stalled will begin to move again. How do I know? Of the 50 commercial loans in our pipeline fully half of them are the large projects, almost $3 Billion in total loan volume. Many of these large projects are approved or close to approved – and with little or NO due diligence! Not the rip-off scams that have become prevalent! We are real lenders…we are closing loans every week.

In fact, we are the number one commercial mortgage shop in the country.

For detailed information or a specific quote on a loan scenario, give us a call at: 863-298-8900 or 813-833-3132 To fill-out a quick loan scenario Pre-Qualification form visit: http://commerciallendingpros.com

Commercial Loans in Today's Lending Squeeze

Commercial Lending Squeeze

So how does this affect the average American?

The great majority of job creation in this country is being done by small businesses. If they can’t start or grow, then that takes a major driver of this economy off the table. For example, one of the largest lenders in franchise financing without real estate just stopped funding franchise startups. Hundreds of franchise businesses, from restaurants to hardware, which were slated to open in the next 90 days, are now stalled. This equates to tens of thousands of potential jobs lost. There is no other financing source for this niche available without collateral and few of the startups have the necessary collateral. Just like that, thousands of jobs gone and you won’t hear about this on CNBC. This is truly a unique time in the life of our economy.
But all is not lost. We KNOW that there ARE small businesses making money and there ARE good cash flowing properties that can be refinanced and/or purchased.

AND WE HAVE MONEY TO LEND!

As the largest commercial correspondent in the country, with over 500 local branches, we know the sources that are still funding. We know the transactions that can be funded and we know how to get them closed. NO ONE CLOSES MORE COMMERCIAL LOANS EACH MONTH THAN COMMERCIAL CAPITAL. NO ONE! Our size is your advantage allowing us to not only offer financing on properties and businesses that local banks might deny, but allowing us to provide the volume pricing incentives even local banks can’t match.

In short, if you need a commercial loan, there is just one number you need to call….Commercial Capital. Call us today:
863-298-8900 or 813-833-3132
Or visit: http://commerciallendingpros.com and fill out a Quick Loan Pre-Qual form to get a fast response to your loan scenario.