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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
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.
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: 512-650-8630C: 512-354-5949 E: KarenSchimpf at gmail.com www.linkedin.com/in/karenschimpf/ blog: http://bizloansconnections.com/
, SBA began to take applications for the new 504 Refinance
program. The program allows small businesses that own their properties
to refinance with low fixed rates in the 4's and 5's. The Cash out for eligible business expenses up to 85% of the appraised property value (business expenses are limited to 25% of appraised value), EVEN SBA debt can be refinanced! The true benefit will be in the
amortization that will amortize these loans over a 20-23 year blended
Let me give you an example. John bought the property his
business is in 10 years ago for $800,000. At the time, he put down 25%
and took out a $600,000 loan at 5.5% with a 20 year amortization from a
local bank. His current payment is $4127 a month. After 10 years he
still owes $450,000. His business has done well but even though his
sales have stayed up, he is netting less than before as inflation and
competition have eaten at his profits. Over the years, he had to
borrower on various loans and credit cards to purchase business assets
or meet cash flow needs. Let's say he owes $100,000 on various lines and
cards and his payments on these various lines are roughly $2000 a
month. John's debt looks like this
$450,000 mortgage loan
$100,000 business debt
$550,000 total debt. And his payments on that debt equal $6,127.
his building has appreciated and is worth $1,000,000. The 504 Refinance
allows cash out up to 25% of the value of the building for business
debt and even upcoming debts for the next 18 months like unpaid
payables, payroll, etc. We could refinance him and have it look like
$450,000 Mortgage payoff
+$100,000 business debt
+$150,000 working capital, cash for business use
$700,000 new mortgage.
debt would be a $400,000 first and a $300,000 second from the SBA. The
blended rate on the two loans would be roughly 5.1% and the blended
amortization would be 23 years.
HIS NEW PAYMENT FOR THE 504
REFINANCE OF BOTH THE FIRST AND THE SECOND WILL ONLY BE $4312! Not only
would he save almost $2000 a month-a huge savings for a small business,
he would get $150,000 in cash to use for his business-essentially free
of payments! WOW!
There is not enough space in this column to
share all the nuances of the program and refinances of just mortgage
debt and closing costs can go all the way up to 90%! EVEN ON HOTELS AND
SPECIAL USE PROPERTIES! A very hot program. IF YOU OR SOMEONE YOU KNOW
OWNS A BUSINESS AND THE BUILDING THE BUSINESS IS IN, GIVE US A CALL AT
(512)650-8630 TO SEE IF THIS FINANCING PROGRAM WORKS FOR YOU. Usually
within just a few minutes I can determine the savings and the potential
benefit. It costs nothing to have me pre-qualify so give me a call today
at (512)650-8630. Talk to you soon!
P.S. Business that owns the building it is in has an opportunity to refinance
that debt with LONG TERM FIXED RATES in the 4's or low 5's AND pull
CASH OUT at the LOWEST PAYMENTS POSSIBLE. It is a GREAT opportunity.
CALL ME TODAY TO SEE IF YOU QUALIFY AND TO ANSWER ANY QUESTIONS YOU MAY
HAVE at (512)650-8630 ! CALL TODAY!
If you need to use 100% of the appraised value, than typically
banks/lenders want you to own the property 24 months. If you have owned
the property less than 24 months, the lender will use the value from
either the purchase price or percentage of the appraised value.
For the longer fixed term loans, you typically need to have a loan amount above $1 Million.
conventional commercial loans have a prepayment penalty. You said you
wanted a 25/30 year fixed rate, are you planning on holding it for that
length of time? The reason I ask is if you get a fixed rate for 25/30
years, there is a yield maintenance prepayment on the loan which makes
paying off the loan early very expensive due to the type of prepayment
The typical term on a commercial loan is where the rate
is fixed for either 3 years, 5 years, 7 years or 10 years and amortized
over 20 years, 25 years or 30 years. The most common conventional commercial loan term is the 5 year fixed rate with a 20 year amortization.
If you go with one of these shorter fixed terms, the prepayment penalty
is typically a step down. A step down is if you get a 5 year fixed
rate, than there typically is a 5 year step down prepayment penalty.
So if you decide to pay off the loan the first year of having the note,
than you will pay 5%. If you pay off the loan the second year of having
the note, than you pay 4% etc.
You need to know your goals. Are your are going to hold the property for 3 years, 5 years up to 30 years? Once again, the most common conventional commercial loan term is the 5 year fixed rate with a 20 year amortization.
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What's Closing at Commercial Capital Limited?
is a look at some recent closings within the last 3 weeks. I like to
post these every month or two to just give you a feel for some of the
things that are happening in Commercial. The business and
commercial lending marketplace is particularly hot right now-we got
flooded with 35 loans the last 3 days of November. Most have been
denied by other banks but we are getting them done with bank type
financing in most cases! If you need a loan closed, if actually
getting the money is the most important thing to you...give me a call!
I will screen the deal and pre-underwrite it for FREE. We are the
only no-risk option in commercial. Give me a call today at
1: $452,000 Debt Consolidation/Foreclosure Rescue with Our Own Private Money in Alabama.
2: $784,500 Business Only Purchase of a Gas Station in California
3: $775,000 Purchase Single Tenant Property in New Hampshire
4: $350,000 Franchise Start Up of a Which Which brand in Virginia
5: $3,600,000 7a SBA refinance on equipment in San Antonio
First mortgage Bridge debt for Hotels and Assisted Living Facilities to 75% Loan To Cost!
you do not need your deal to close in 45 days or less, we have more Construction Loan Products that can go as high as 85% LTC.
Wishing You the Best,Karen Schimpf Commercial Capital, Ltd.p: 512-650-8630e: KarenSchimpf at gmail.comwww.linkedin.com/in/karenschimpf/blog: http://bizloansconnections.com/
When most lenders say no, we say yes. Almost 100% of our closed loans
were denied somewhere else BEFORE coming to me. When you call me, I
quickly pre-view the loan and if doable, kick out terms at no cost to
anyone. Once you move forward with us, we sink our teeth into the deal
and have the tenacity to get that deal done even in today's highly
regulatory environment that seems to still be hindering lenders even
with all the money available in commercial. It is really simple, if you
want to close the loan, give me a call at 512-650-8630 and let me make
it happen for you. Just one call can get it done! Call Me today-512-650-8630 or e-mail me your scenario at karenschimpf at gmail.com ! Talk to you soon!