Category Archives: Commercial Loans

Wondering how to sell your commercial real estate property quickly.

Category : Buying & Selling Tips , Commercial Loans

Below are selling tips when it comes to your commercial real estate!

1. Patience is key when selling your Commercial real estate.

Statistically, commercial properties take longer to sell than residential properties. The process for selling commercial property is different than residential property, is specialized, and requires a lot of legal work.

2. Understand your commercial real estate market.

Probably one of the most important aspects of selling your commercial real estate know your market, the neighborhood, and what similar properties in your area are going for before your listing goes up anywhere. Know what the commercial real estate market looks like, especially in the area where you’re selling your property.

3. Compare similar properties.

It’s good to know what similar buildings to your commercial property are selling for. This can help you better understand the current real estate market. Take some time for a tour of the property or the building to learn more about its attributes, see what your competitors are offering, and determine how your building measures up.

4. What value does your commercial property have to potential investors?

The most important thing that people are searching for when it comes to commercial real estate properties is the features that set it apart from other Properties. How many square feet does it have? Does it come with any special equipment? What is deferred maintenance? Are all units have a Certificate of occupancy?

 

5.Have the paperwork ready.

Paperwork isn’t the most glamorous thing in the world, but making sure it’s all in order is important when it comes to selling your commercial real estate. All of your documentation should be organized and up to date. You’ll want to include any previous appraisals, permits for any site alterations, copies of existing leases, utility bills, rent roll, and two years of profit & loss statements.

If you are looking to sell and close your Commercial property quickly and hassle-free contact Shawn Molem at Magna Enterprises for immediate evaluation.

Magna aggressively looking to purchase added value Commercial properties, such as Apartments, Industrial, Office & Retail properties. After receipt of your information, we can offer to buy your property all cash and close in 10 days!

If you have a Broker, we gladly will pay for the commission.

Email us your submittals at shawn@magnaenter.com for getting immediate offers on your property.

Top 10 Questions To Ask A Hard Money Lender When Applying For A Loan!

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Category : Commercial Loans , Hard Money Loans , private money lenders , Residential Loans

A hard money loan is one of the easiest and fastest financing options to fund your real estate deals, but it’s also more important to select the right kind of hard money lender for your needs. This will help you to avoid getting into a bad situation with a hard money lender who isn’t able to deliver what you need or adds extra junk fees to the loan at the last minute.

Here are top 10 questions you must ask when seeking out a hard money lender and submitting your hard money loan application:

1. Are you a certified lender?
Make sure that the hard money lender is licensed. If a lender is licensed and state approved, that individual is bound to follow state-mandated rules which provide customer protection. Their license ID should be displayed on their official website and any advertising material they produce. One example is the Magna Capital Group, Inc., you can see license IDs in the bottom of its website www.magnaloans.com.

2. How much experience do you have in hard money lending?
It is best to choose an experienced hard money lender for your project. An experienced hard money lender that has been in business for years, they can understand the cyclical nature of the industry and suggest you the best loan for your real estate investing business.

3.Do you have references from previous borrowers?
You can ask hard money lenders to show their reviews and testimonials by their previous satisfied clients. A reliable hard money lender should not hesitate to give references of their previous satisfied borrowers. The lender may have reviews or testimonials on their own website or third party websites.

4. How do you fix your Interest Rate?
The interest rate completely depends upon the Lender. They determine interest rates by the property type, risk analysis, and your credit rating. Generally, hard money loan interest rates are range from 8% to 18%, but there is greater flexibility in hard money loan rates for quality borrowers.

5. Are there any other charges that will be applied for obtaining the hard money loan?
Some hard money lenders quote interest rates and points and then conveniently wait to inform the borrower of other documents, origination or processing fees. So make sure to ask hard money lenders about all the charges which affect the total cost of the loan.

6. What loan to value(LTV) can you offer?
The LTV is the funding amount a lender provides on the basis of the existing value of the property. The LTV can vary from lender to lender and property type. Some hard money lenders lend on the after repair value (ARV) as opposed to the more conservative current value or purchase price.

7. What types of loans do you offer?
Some hard money lenders are specialized in a particular loan category, while others have a broad loan portfolio. So make sure you select a lender that is more accustomed to a broad loan offering and aligned to your project’s needs.

8. Is there a prepayment penalty?
It’s not uncommon for lenders to charge a small prepayment penalty which means a minimum amount of interest must be paid on the loan. In many situations, the prepayment penalty will not affect the borrower in any way. If there is a prepayment penalty, the borrower must make sure it works for their proposed timeline.

9. How long of a loan term is available?
Hard money loans are normally for short-term use only. Generally, hard money lenders offer 1 or 2-year terms but some lenders may also offer 1 to 5-year terms. Longer the term can lead to increased costs or interest rate. So you must make sure your timeline works with the lender’s loan terms.

10. How long will it take to fund the loan?
It’s important to know how fast your loan can be funded. Hard money lenders should be able to approve and fund a hard money loan within 2 weeks. Magna Capital Group, Inc. can fund hard money loans within 3-5 days in some cases if the funding is necessary to save a deal.

The Last Word:
Choosing an experienced and reliable hard money lender is a very important task in order to make your real estate investment project success. By asking these questions, you can get a good sense of the lender’s services and criteria, helping you to find just the right one for your investment property.

Magna Capital Group, Inc. is one of the most trusted hard money lenders in California, provide hassle-free equity-based private and hard money loans for residential and commercial properties. We understand the most complex hard money loan scenarios and provide asset-based hard money loans to real estate investors, builders, property owners. individuals, corporations, LLC’s, partnerships, trusts and other legal business entities. For more information about our Hard Money Loan Programs, Call Us Today at (310) 734 4044 or Email at info@magnaloans.com.

Commercial Hard Money Loans – Smart Solutions For Purchase Or Refinance Commercial Properties!

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Category : Commercial Loans , Hard Money Loans

Have you tried everything to get your commercial real estate financed and grown tired of getting your commercial mortgage loan request rejected? If so, there’s one more commercial real estate loan option that you should try as your absolute last resort to get your deal funded, and that’s a Commercial Hard Money Loan. These loans make a great deal of sense because not all commercial buyers qualify for financing through traditional lending institutions.

Hard money commercial lenders look primarily to the property as their source of repayment and that’s why the whole loan process gets fast & easy. These loans are specially designed to help acquire, construct or simplify payments for income producing properties, such as retail centers, office complexes, hotels, and apartments. Commercial hard money loans can also be used for various other purposes, such as advancing businesses, refinancing existing loans etc. The primary rationale for borrowers considering a commercial hard money loan is that traditional commercial financing options are not viable for them cause of their low credit scores or a need to obtain commercial financing quickly.

Why Commercial Hard Money Loans?

Fast Approval and Funding:
The most common advantage of commercial hard money loans is their speedy approval and funding. These loans can be processed within a day because the lender will only consider the property, your equity or down payment, the exit strategy for the specific property, your experience, and cash reserves to make the monthly payments.

Fewer Loan Requirements:
Commercial hard money loans have fewer requirements compared to bank loans. Some of them include having enough cash to make the monthly loan payments, adequate equity on the property, ample experience in some cases, and a reasonable exit strategy. Because these types of loans have fewer requirements, their chances of approval are high. On the other hand, banks have strict and lengthy requirements meaning that make it difficult to get a loan approval.

Available For Variety of Real Estate projects:
Commercial hard money loans can be used to fund projects that aren’t financed elsewhere. Most commercial hard money loan providers approve loans that banks cannot. For instance, fix and flip loans. This involves purchasing a property after applying for short term commercial hard money loans and making the necessary repairs before selling. Because the property is to be sold as quickly as possible, you will only need a 12-month loan which isn’t offered by conventional lenders.

No Prepayment Penalty:
There is no prepayment penalty with commercial hard money lenders. They do not impose restrictions on a borrower for paying back the money they borrowed. A Borrower can pay back some or all the money they borrowed, at any time during the loan term without incurring a prepayment penalty.

Flexible Loan Terms:
Commercial hard money lenders are flexible with their loan terms. Flexible loan terms offer more control over how you repay your borrowing. Hard money lenders are not restrained by regulatory requirements, shareholders, and red tape.

The Bottom Line:
Commercial hard money loans are smart solutions for purchase or refinance commercial Properties. If you have plans to purchase new or existing commercial properties, you can take out a commercial hard money loan to help finance the purchase and any development or construction after the fact. Commercial Hard money loans offer a short approval process, interest-only payments, flexible loan terms and can fund the purchase and renovation of an investment property quickly.

Magna Capital Group, Inc is a commercial hard money lender providing financing solutions & commercial loans for mortgages to real estate owners. We have the proven track record as a premier hard money commercial lender to help. We offer loans for purchase or refinance and help to make the typically complex commercial real estate purchasing process as simple as possible. We understand even the most complex commercial hard money loan scenarios and provide asset based hard money loans to real estate investors, builders and commercial property owners. We offer some of the most favorable commercial hard money terms in the industry.

If you looking for the right kind of commercial real estate loan, Call us today at (310) 734 4044 or email at info@magnaloans.com to find out the facts about commercial real estate loans and determine if they are appropriate for you at this time.

Private Hard Money Lenders – Choose the One, Which Suits You Best!

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Category : Commercial Loans , Hard Money Loans , Real Estate Loans , Residential Loans

I want to talk about the core difference between private and institutional lenders. An institution is basically a bank or a credit union, which provides funding for different stuff.

On the other hand, private is more about a bunch of people, who works under a private organization, which works towards helping people buying and selling good deals by providing financing. They are not held by government or any other regional organization but they work by themselves and use their own money.

Now, we come down to two basic types of lenders in the world of real estate:

1. Institutional lenders

These are the hard money lenders, who are a part of a bank or any other federal organization and they work with them. Although, it is quite difficult to get a loan from them because they look at lots of things including the borrower’s credit history, job, bank statements etc.

These are only stuffs that institutional hard money lenders are concerned about. They don’t have a real estate background, that’s why; they don’t care much about the worth of a property. Even, if you have a good deal, they won’t lend you unless your credit or job history is satisfactory.

There’s a huge gap between institutional lenders and real estate investors, which isn’t easy to fill.

2. Private hard money lenders

Private money lenders are usually real estate investors and therefore, they understand the needs and demands of a borrower. They aren’t regulated by any federal body and that’s why, they have their own lending criteria, which are based upon their own real estate understandings.

Their main concern is property and not the borrower’s credit history or bank statement. The motto of private hard money lenders is simple: If you have a good deal in hand, they will fund you, no matter what. But if you take a crap deal to them, then they won’t fund you, even if you have excellent credit history because they believe that if you’ll make money, then only they would be able to make profit.

If you have found a hard money lender but he or she hasn’t got any experience in real estate investment, then they won’t be able to understand your deal. They will always think like a banker.

A true private money lender is one, who can help you in evaluating the deal and giving you a proper direction and funding if you find a good deal. But if the deal is bad, they will tell you straight away. Before rehabbing a property, they know what would be its resale value, due to their extensive experience.

The basic difference between institutional hard money lenders and private hard money lenders is that the institutional lenders try to have everything in place and perfect order. They want to have all the figures and the amount of profit they would be making. They completely ignore the main asset, i.e. the property.

Whereas, private money lenders use their own fund and experience to realize what’s store for them. They don’t try to sell the paper or recapitalize. They just look at the property and see if it is worthy enough to rehab or not.

In the end, they just want to make good profits along with the borrower. If anyone goes to them with a good deal, they will fund them. Some of them only fund for the property, whereas, others gives funding for the repairs too as long as they can see a good ROI.

Three Business Scenarios Where Commercial Hard Money Loans Can Be Used!

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Category : Commercial Loans , Hard Money Loans

If you are an investor and need quick money to boost your real estate business, then you can use commercial hard money loans quickly and easily compared to conventional loans. Commercial hard money loans are secured by a variety of different commercial properties. Commercial hard money lenders use their own finances to invest in properties. Most of the real estate investors opt to apply for commercial hard money loans as a last alternative after failing to secure a conventional loan to boost their investment.

In case if you one of them who are unable to qualify for a traditional loan and aren’t sure whether a commercial hard money loan is an option for you, below are three business scenarios where commercial hard money loans can be utilized.

1. Quick Financing For Real Estate Investors:
If you have found a great commercial real estate deal that you want to purchase and secure it quickly, then you need to get financing quickly to speed up the closing process. Commercial hard money loans lenders can provide you with the funds you need quickly compared to conventional loans. Conventional loans usually require the submission of several documents. After you submit the required documents, they will go through several verification channels, and this process can take up to a month depending on some factors before the loan is approved. However, because a commercial hard money loans lender uses his or her money, there are fewer requirements for a loan to be approved. This also accelerates the decision-making process of the lender, and to quickly approve the commercial hard money loans application.

2. New And Small Business Owners:
Small businesses are often high risk because there is no way to know whether it will succeed or fail. This risk makes it difficult to get conventional funding for small business owners. Both new and already established small businesses face one common risk of not getting enough funding. Most conventional lenders choose to invest in businesses that have already proven to be successful or that have a high potential of becoming profitable. If you are in such a situation, a commercial hard money loan can provide you with enough finances to run your small business or boost your existing business.

3. Investors With A Low Credit Score:
If you are planning to purchase a property or to invest in a business, but you have a low credit score, consider applying for a commercial hard money loan. For conventional loans, credit score is a primary factor in the loan decision and that’s why most investors are denied conventional loans. On the other hand, commercial hard money loans have less stringent requirements, and you can easily qualify for such loans compared to traditional loans. Private Money Lenders will look more at the situation and the cause of the credit flaws and rely on the collateral and higher points and rate to mitigate risk.

The Bottom Line:
Commercial hard money loans are easiest and fastest financing option for those investors who have a low or bad credit score. If you have found a great commercial real estate deal but are unable to qualify for a traditional loan, you might want to consider a commercial hard money loan. Also, if you own a commercial property, but either your company is losing money or your credit is poor, you can still easily obtain a commercial hard money loan.

Magna Capital Group, Inc. is a commercial hard money lender providing financing solutions and commercial loans for mortgages to real estate owners. With over 35 years of experience, we are able to work with any loan scenario. To know more about commercial loan programs, please feel free to call us now at (310) 734 4044 or email at info@magnaloans.com.

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    8730 Wilshire Blvd., Suite 410
    Beverly Hills, CA 90211

    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.

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