Commercial Loans Blog

 
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The Gap In Rates-a Chance to Refinance!
 
 
The Gap In Rates-a Chance to Refinance
 
The Federal Reserve has been steadily raising rates over the last year and a half moving the prime rate up 1.75% in that time. This has effected all prime based borrowing like SBA 7A loans and business lines of credit,etc. Small businesses have seen the brunt of the increase. For example, 2 years ago I would do a franchise start-up loan and the rate was 5.75-6%. That same deal now is 7.5-7.75%. That franchise, in an adjustable loan, has seen his payment on a $300,000 loan go up almost $270 a month. If that business runs 10% profit margins, that is the same hit to his business as a loss of $2700 a month in sales. For most businesses however, this increase in payment has been handled by increased sales as the economy has done very well over the last year and a half.  
But what if that floating SBA 7A borrower could refinance into a fixed rate loan? Where have fixed rates gone in the past year? They have gone up....but less than 1%. In addition, the spreads have tightened. SO a fixed rate loan on a 10 year fixed that is tied to the 10 year Libor Swap Rate has gone up less than 3/4%. A year ago, the 10 year Libor swap rate was 2.1%. On Friday it closed at 2.97%. An increase of less than 1%. But one year ago a typical 10 year fixed loan was quoting about 2.25% above the Swap Rate. So the rate quote one year ago was 4.35%.(2.1 index plus 2.25 spread equals 4.35% rate).  
 
On Friday, I quoted someone 1.99% over the Swap Rate. A 4.96% interest rate. Just .61% higher than a year ago. The rate has gone up less than the prime AND the spreads have come down. SO an SBA 7A loan is 1.75% higher but the corresponding fixed rate is only .61% higher. There are a lot of reasons for this gap and the pressure on pricing which is too much to discuss here (but feel free to call me at 770-908-1672 to understand this more). THE BIG TAKE AWAY IS THIS-IF YOU OWN A PROPERTY AND YOU ARE ON A FLOATING RATE NOW IS THE TIME TO FIX IT. The spreads can not go down much further, and barring a major recession, most experts believe we are in a rising rate environment. SO NOW IS YOUR CHANCE!
 
To get a FREE ANALYSIS of your situation just give me a call at 512-650-8630. I can crunch the numbers and make sure it makes sense for you. So, whether you are a business owner or buying a commercial investment property, give me a call today to see if refinancing makes sense for you. Call me at 512-650-8630 and let's start saving today!  
 

Karen Schimpf 
(512)-650-8630
karenschimpf at gmail.com 


Give me a call today to discuss your deal at 512-650-8630
Posted in:General
Posted by Karen Schimpf on June 29th, 2018 10:55 AM

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Commercial Stated Income Options Continue To Expand!

There is a lot of money available right now, and when there is more money available then good deals to fund, lenders move further out the risk spectrum. Such is the case now as stated income commercial loans have come back and are continuing to expand with new players entering the space.


For investors and business owners of commercial real estate (5+ units, warehouse, office building, daycare, mobile home park, etcetera), this can be a blessing and an opportunity to get property that you may not get otherwise. The latest expansion in stated income loans involves CREDIT SCORES AS LOW AS 550! That's right, no tax returns or bank statements, and a 550 credit score and you can purchase or refinance and even refinance with cash out up to 75% LTV (65% on Self storage and mobile home). WOW!


Now the rate on such a deal will be above 8% but it should end up less than 10% and with a 30 year amortization, the payment is not that bad. And the better the credit, the better the rate so a 650 credit score may get a rate as low as 7%. These are 5,7,and 10 year fixed loans with a 30 year amortization. Maybe you were thinking you would have to go private money and get rates above 10%, well maybe this program can save you thousands with a much lower rate and low points. This is just one of multiple stated income lending options we now have available....so if you are struggling because of the income you show on your taxes or because of derogatory credit that is hurting your ability to get a commercial loan, you should give us a call at 512-650-8630 or e-mail me at karenschimpf at gmail.com . It costs nothing to call me and let me pre-qualify you and see what is available for you. Whether you own property now and want to refinance or pull cash out or you are looking to buy new property for investment or to house your business, the time is right to get financing-rates have been heading up but they are still historically low and so time is of the essence. Give me a call today....Commercial Capital, we are the place to go when the banks say no!

--
Wishing You the Best,

Karen Schimpf
Commercial Capital, Ltd.
p: 512-650-8630
e: KarenSchimpf at gmail.com
www.linkedin.com/in/karenschimpf/
blog: http://bizloansconnections.com/
website: www.http://ApplyCommercialLoans.com

P.S. Who do you know needs a commercial loan? I specialize in Small Business Administration Loans (SBA), Private Money Loans, and Commercial Loans. I help entrepreneurs attain financing for their business or project. I BRING COMMERCIAL MONEY FROM AROUND THE COUNTRY TO LOCAL MARKETPLACES INSURING THE MOST LIKELIHOOD OF CLOSING. The key is placing the borrower with the lender that most suits that borrower's strengths. I do it better than anyone. Give me a call today at O:512-650-8630 to get your loan closed.

p.s. Conventional rates are still in the 5's on most products and can still get into the 4's for agency debt on multi-family, so rates are still low. With the prime rate going up and SBA 7A floating rates going up, now may be the time to lock down fixed rates before the rates go up any more. Give me a call today and I can crunch the numbers and see if it is worth it. It costs nothing to call and see, call me today at 512-650-8630 or e-mail me at

KarenSchimpf at gmail.com. Have a blessed week!

Posted in:General
Posted by Karen Schimpf on June 18th, 2018 2:59 PM

Deal of the Week-
Let the Past Be the Past!

 
One of the great things about the Christian Faith is 'forgiveness', if we repent of our sins, God will forgive us and even better, forget about the sin as far as the "east is from the west".  In other words, we can repent and move on and KEEP THE PAST IN THE PAST. It no longer holds any power over your present if you repent, accept the forgiveness and move on. Unfortunately, consequences can linger. Some people still are struggling today over things from their past. Borrowers are still hindered by fallout from 2008 EVEN today. In today's Deal of the Week, we see a person's criminal record from 20 years ago still haunting him today. Well, at Commercial Capital, we are a second chance lender. We won't hold your past against you and, we will search eagerly for a way to make it happen. We are the place to go when the banks say... no!
 
$2,000,000 Retail Center Purchase
Location: Englewood, CO
 
The borrower had been under contract for 30 days.  Despite the strong cash flow of both his business and property, and despite having good credit, every bank was denying him due to Felonies that were over 20 years old. It was a mistake, it was in the past, and he had moved on with his life, starting a successful business, rebuilding his credit, etc.  Multiple banks could not get the loan done. They all approved it initially, but the loan always got shot down in credit committee because of the felonies. Now, the borrower was desperate as his $20,000 earnest money had gone "hard" meaning if he did not close on the closing date, he would lose his $20,000 plus the property. And supposedly, they already had a back up offer and were refusing to budge at all. In desperation, they came to me.
 
After confirming that none of the felonies were for financial fraud, I jumped on it finding a lender with fixed rates and a 30 year amortization that was willing to do the deal. I got them approved and then we raced against time to close it in the 30 days we were given. We were still clearing conditions the night before the closing but the lender got the package out. We signed on the closing day, funding the following day. Now that borrower has a great property, a successful business and can continue building a future that is NOT tied to his past.
 
We have so many options for financing- we are correspondents for life companies, conduit lenders, banks, credit unions and all the stated and alternative lenders as well as private money bridge financing. We really are a one stop shop for all of your commercial and Business loans as we are one of the largest closers of SBA loans in the country. Most loans come to us after the banks have said no and yet we still get them done with bank rates-we just choose the right bank for the scenario from the 200 options we have nationwide. So when you need a commercial or business loan, think of Commercial Capital and Brian Peart. We are the place to go when the banks say 'no'. It costs NOTHING to run your deal by me, just give me a call at 512-650-8630 or e-mail me at karenschimpf at gmail.com .   Have a blessed week!
Posted in:General
Posted by Karen Schimpf on June 4th, 2018 10:46 AM

Introducing...Private Equity
"Marketplace 2.0"

 
  • Rates starting at 8.99%-Purchase or
    Refinance
     
  • Up to 70% Loan-to-Value
     
  • 24 to 36 month terms - Interest Only Payments
     
  • Multi-family, Office, Retail properties
     
  • Seller second financing allowed
     
  • Loan Amounts up to 5 Million!
     
  • Quick commitments and Closings
     
  • Only 6 month prepay penalty
     
  • Foreign Nationals ok
Commercial Capital Ltd., is proud to offer this "real" Private Equity oportunity EXCLUSIVELY to our clients.  "Marketplace 2.0" Private lending program allow quality borrowers and projects to have a workable alternative solution to hard money rates/terms.  If you loan request didn't  qualify for Conventional/SBA financing, let Commercial Capital Ltd., take a look and see if we can bring your loan to closing.
 

Karen Schimpf 
(512)-650-8630
karenschimpf at gmail.com    

Posted in:General
Posted by Karen Schimpf on May 22nd, 2018 3:27 PM
 
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Deal of the Week-Stated Income Mobile Home Park Purchase  
 
Type: $575,000 Mobile Home Park Purchase
Where? FL
 
About the deal.... Client came to us for the purchase of this Mobile Home Park. Mobile home parks can be very tough, especially the small ones because most lenders exclude park owned units. This usually leaves the income short for many local banks and lenders. But we have GREAT sources for these types of deals including stated income loans. This one had to close quickly as they had been down the road with another bank and were denied at the last minute. They were now in danger of losing the upfront if we did not close it quickly.
 
We were able to go stated income and close quickly and still get a rate in the 7's on a 5 year fixed with a 30 year amortization that kept the payment low enough for the client to make plenty of money. The client was happy with the speed and responsiveness and ANOTHER BANK DENIAL TURNED INTO A CLOSING. We can do these loans up to 75% STATED. Closings are less than 45 days start to finish. If you or someone you know has a smaller Mobile Home Park deal and needs help getting it closed, give us a call! Commercial Capital is the place to go when the banks say no! Give us a call today!
 
We have the fullest range of Commercial and business loans available. From Private money to non-recourse foreign national to stated income to SBA and of course, great conventional financing with some of the lowest rates around. We underwrite quickly, have terms in writing in 72 hours and do not collect an app fee to get you terms. You risk NOTHING by giving us a call. If you have a commercial or business loan need and the banks are just not doing it for you, give us a call. 

Karen Schimpf 
(512)-650-8630
karenschimpf at gmail.com      


Give me a call today to discuss your deal at 512-650-8630
Posted in:General
Posted by Karen Schimpf on May 7th, 2018 2:28 PM
 
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The Bank Denied Your Business Loan Application-Now What?    

Many people get denied on SBA loans and they believe that denial means they got shot down by the SBA. But the reality is that the bank turned you down. We can take that borrower, and because we have over 100 SBA lenders of all shapes and sizes, we can often get them approved for an SBA loan at the SAME RATES! In fact, over 90% of the SBA loans we close got denied by another SBA lender first! We have:

- Non-bank SBA lenders that do NOT require collateral for approval
- We can do second store financing less than a year after opening your first location
- We have conventional financing for businesses with multiple locations
- We can operate in ALL franchises even restaurants and, we can do most with only 10% down (except start-ups which always need 20% for a first location start-up)

You see, all lenders have tendencies. SO some lenders are all about the credit score and they will look past experience and other factors to do a deal for the borrower with great credit. Other banks key on experience and they are going to be more lenient on credit if the borrower has a proven track record. What I do is match the strength of the borrower with the lender most likely to approve them...the results? More approvals. We closed 3 SBA loans so far this month and all 3 got denied somewhere else first before coming to us. Check out our website www.ApplyCommercialLoans.com for many other examples of what we can do and if you are looking to start or expand your business-give me a call at (512)-650-8630

Karen Schimpf 
(512)-650-8630
karenschimpf at gmail.com      


Give me a call today to discuss your deal at 512-650-8630
Posted in:SBA
Posted by Karen Schimpf on April 23rd, 2018 4:01 PM
 
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High LTC Construction Loans  
  
 
Construction Lending is 
STILL READILY AVAILABLE!
 
A LOT of money is still available for construction projects. Although most banks and institutions are scaling back their LTC's, (Loan to Cost), because of how far along we are in the business cycle, private money lenders and bridge lenders are stepping up to fill in the gaps. We have some incredible niches including the following HOT products:
 
-Up to 100% Loan To Cost, (LTC), for ground lease purchase and construction deals

-Up to 95% LTC for single tenant net lease build to suit construction

-SUBDIVISION FINANCING based on As Finished Value, not loan to cost! This may get you financing, even for the horizontal, at close to 90-95% of cost! Super hot!

-First mortgage Bridge debt for Hotels and Assisted Living Facilities to 75% Loan To Cost! Loan amounts on the product range from $7 Million to $35 Million. Closings in under 45 days. Single digit rates! This product is perfect for deals that need quick execution and high LTV without going SBA or USDA. IN FACT, WE CAN GET 75% FINANCING ON MOST CONSTRUCTION PROJECTS!

-Green and SBA 504 Construction projects up to $25 Million! These loans will have blended rates below 6% and we can do HOTELS, self storage, Funeral Homes, Bowling alleys and many other special purpose properties. Very hot product-this will often take the Loan to Cost (LTC) up to 85-90%! With a green project, we can do SBA loans EVEN if you have maxed out your SBA eligibility. Call me to discuss ways to make your project "green" and hence, qualify for this special financing.

-LARGE PROJECT FUNDING! For construction deals $50 Million and up we can provide a combination of debt and preferred Equity/Mezzanine up to 85% loan to cost! We can get up to 65% on the first mortgage at aggressive rates and do a 20% preferred equity or mezzanine piece to round out the capital stack-super aggressive financing! In fact, we can do up to 90% LTC for Class A Multi-family in major metros on these larger projects!

And Much more. Of course, we can fund smaller projects as well. The key to using me is that I will review the loan for FREE and typically have terms in writing in 48 hours. There is no cost to get an expert second opinion and possibly, approval.

Give me a call today to discuss your deal at 512-650-8630
Posted in:General
Posted by Karen Schimpf on March 27th, 2018 10:08 AM

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3 Franchise START-UP Loan Closings in 1 WEEK!

Two weeks ago I closed three (3) franchise loans. Now three (3) commercial closings in one week is big. But three (3) franchise START-UP loan closings in one week is off the chart. This was three (3) loans for the same franchise...a newer franchise system to the marketplace called Burgerim.

They closed with three (3) DIFFERENT lenders. Why they closed with different lenders will teach you a lot about SBA loans and why we are so good with them. You see, many people feel like if they apply for an SBA loan with one lender and get denied, that they can not get an SBA loan. The truth is, it was the lender, not the SBA, that denied the loan. That is where we come in often closing that loan with the same SBA rates they were hoping to get from the lender that denied them, we just used a different lender. We have 100 SBA lenders in our database. My favorite lender approved one of the 3 loans that closed but passed on the other two. I then had to determine the most likely lender to close the other two. You see, all lenders have tendencies....some are all about the credit, some are all about the collateral. So I had to look at the loans and determine which lender would be most likely to do them, and the two clients had very different profiles-and so I had to take them to different lenders and that is how we got them approved and ultimately closed. What made these ESPECIALLY DIFFICULT was that it was a newer franchise company to the market-not an established brand.

When Burgerim first came to me they had two (2) locations open and wanted to expand nationally. I have now closed 20 loans for them and they are on there way to 100 stores, possibly by the end of this year. When I first took them on no one would fund them as they were an unknown. I have THE BEST knowledge and most EXPANSIVE lender sources in the country and can help ANY franchise expand their business. IF you are thinking of starting your own franchise business, or you have been denied by a bank for funding, give me a call TODAY at 512--650-8630. I close more franchise loans then any broker in the country and I remain THE PLACE TO GO WHEN THE BANKS SAY NO! Give me a call today at 512-650-8630.

Karen Schimpf Commercial Capital, Ltd. 
O: 512-650-8630
C: 512-354-5949
E: KarenSchimpf at gmail.com
www.linkedin.com/in/karenschimpf/
blog: http://bizloansconnections.com/

P.S. IF you or someone you know is looking to do an SBA loan we are the BEST place to go to first. We will have you pre-approved in 72 hours with terms in writing-and we do that for FREE. With the largest lender database and unmatched experience, we are the place to go BEFORE you hear that no. Give us a call FIRST and see if we can help you get that loan for your business-with or without collateral. One call is all you need at 512-650-8630 or e-mail me at karenschimpf at gmail.com. Talk to you soon!
Posted in:General
Posted by Karen Schimpf on March 6th, 2018 11:54 AM
 
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Deal of the Week!
 
 
What's Closing at Commercial Capital Limited?
 
Decided to change things up and focus on just one deal more in depth then listing a bunch of deals. This loan closed last month. By explaining this deal a little deeper, I think you can get some insights into just what we are able to do here at Commercial Capital.
 
$1,100,000 Apartment Complex Purchase!
 Location: Louisville, KY

This deal came to me from a mortgage broker in Kentucky. We are nationwide. The borrower wanted Freddie mac type rates(in the 4's) but was NOT STRONG ENOUGH TO GO FREDDIE MAC due to liquidity/net worth/experience issues. As I priced it with other conduit lenders, they were coming back in the 5's because of location and loan size and that rate was too high for this borrower. Local banks did not like that he lived in CO and was buying something in Kentucky. They all wanted him to come in with 35-40% down because he was out of state. But he needed 75% LTV. The small size created another problem as the loan amount was only $825,000 at 75%. SO I HAD TO GET A MID 4'S RATE FOR A SMALL APARTMENT DEAL WITH AN OUT OF STATE BORROWER WHO WAS NOT STRONG ENOUGH TO GO AGENCY. WE GOT IT DONE! We found a lender who did a first and a second combo pricing the first extremely low so that the blended rate came in at 4.45%! That is a 10 year fixed with a 30 year amortization. Borrower signed on and closed on time.
 
We have so many options for financing- we are correspondents for life companies, conduit lenders, banks, credit unions and all the stated and alternative lenders as well as private money bridge financing. We really are a one stop shop for all of your commercial and Business loans as we are one of the largest closers of SBA loans in the country. We have a particular knack for franchise start-up financing and half my pipeline are these types of loans. Most loans come to us after the banks have said no and yet we still get them done with bank rates-we just choose the right bank for the scenario from the 200 options we have nationwide. So when you need a commercial or business loan, think of Commercial Capital. We are the place to go when the banks say no. It costs NOTHING to run your deal by me, just give me a call or e-mail me.  Have a blessed week!


Sincerely.

Karen Schimpf 
Phone:512-650-8630
Email: karenschimpf at gmail.com


p.s. Although we have FHLMC and FNMA apartment loans available, we also have loans with less headaches and still fantastic rates. Along with direct bridge loans , mezzanine, and more-Commercial Capital is your one stop shop for all your commercial lending needs. We offer free pre-qualifying and can usually have you terms in writing in 72  hours or less! Give us a call today at 512-650-8630
Be blessed!  
 
 
 
 





Posted in:General
Posted by Karen Schimpf on February 13th, 2018 2:28 PM
Commercial Capital Limited (a division of Nexus Financial) has been providing business & commercial loans to business owners & investors since 2000. Every one of those borrowers were denied by a previous lender or bank. We have dozens of programs & structures we can approach depending on the strengths & weak of each client. Give me a call if you want us to see what type of terms we can provide to your client or to you directly! With the right documents, It only takes us 72 hours to underwrite & have terms in writing to you. 
 
Below are some programs we work with & property types we focus on:
  • SBA 504
  • SBA 7A
  • Conventional investor loans
  • Conduit loans
  • Private / hard money
  • Construction loans 
 
Properties:
  • Retail
  • Medical 
  • Multifamily (+5 units)
  • Strip Malls
  • Office & Office complex
  • Warehouse / Industrial
  • Hotel
  • Assisted Living
  • Gas Stations
 
We bring the financing sources from across the country to local businesses & investors. We can help overcome the small issues that help get your loan to the closing table! Here is an example on a previous closing of mine. 

A retail plaza located in Atlanta, Georgia had been denied by pretty much everyone despite the fact that the borrowers were VERY strong.  The reason?  Because the seller kept horrible financials.  On a deal of this size, if you are not sure of the financials, it is hard for institutions to step forward.  They had tried for 8 months to get this loan done at numerous places before bringing it to me.  I found a Credit Union out of Chicago that looked more at the buyer's strength then the property.  Although we had every imaginable hurdle including the seller trying to cancel the transaction the week prior to closing, we persevered and got the property closed.  When most lenders say no, we say yes.  Almost 100% of our closed loans were denied somewhere else BEFORE coming to me. Give me a call if you have a scenario to discuss!

Sincerely.

Karen Schimpf 
Phone:512-650-8630
Email: karenschimpf at gmail.com 
Posted in:General
Posted by Karen Schimpf on February 6th, 2018 9:24 AM

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