Category Archives: Commercial Loans

The Top Most Situations To Utilize Hard Money Commercial Loans!

Category : Commercial Loans

Commercial hard money loans are primarily based upon the borrower’s real estate assets. Such loans are also called no-doc loans, private hard money loans, bridge loans etc. For a commercial hard money loan, the lending decision is based on the commercial asset as opposed to relying heavily on a borrower’s credit, financial etc. By relying on an asset, private money lenders are able to fund transactions that might not fit traditional lending guidelines.

A commercial hard money loan is a good alternative to traditional bank financing. This alternative financing can be very beneficial to the borrower in many circumstances. Below are just a few of the reasons when a commercial hard money loan might be appropriate:

  • You need a loan quickly and can’t wait the 4 to 6 months for a traditional bank loan approval
  • You need a Bridge Loan
  • You are not able to qualify for traditional financing for whatever reason (income, tax returns, unique property, etc..)
  • You don’t have enough credit score to opt a traditional loan
  • You or your property has liens, judgments, unpaid bills, etc. that cash is needed to resolve
  • You need business working capital
  • You are trying to avoid foreclosure and restructure your debt
  • You need a loan without documentations
  • You are a foreign national
  • You need a creative solution to a loan that doesn’t fit other lenders
  • You need a complex loan with multiple pieces of collateral
  • Your property is occupied by your business, and your financial don’t tell the full story

Why Magna Capital Group, Inc For Commercial Hard Money Loans?

Magna Capital Group, Inc is one the most trusted and premier source for hard money commercial loans. We provide custom loans to fit the needs of investors for all types of commercial properties, including office buildings, shopping centers, restaurants, industrial properties, apartments or any income producing properties. We underwrite in-house without any upfront fees for due diligence, etc and this allows us to provide honest answers quickly without the thousands in out of pocket expenses typically required for a commercial loan.

We can quickly provide the funding you need for a successful commercial real estate acquisition or refinance. We have some of the most favorable commercial hard money terms in the industry and understand how important it is to offer our clients fair terms. We understand all kinds of loan situations and work with all types of borrowers. We have the proven track record as a premier hard money commercial lender to help. Our rates vary depending on the type of property, term of loan and general situation.

Here are some of our hard money commercial loan features:

  • No documents requested
  • Loans Ranging from $250,000 and up.
  • Loan to Values(LTV) up to 65%
  • Fast Turn-Around Time
  • All Credit Accepted
  • 1-3 year Terms / Interest-Only
  • Flexible Underwriting
  • Competitive Interest Rates

If you need any assistance with a commercial hard money loan, please give us a call at (310) 734 4044 or email at info@magnaloans.com We will customize a loan to fit your exact situation.

Commercial Real Estate Loans – The Best Financing Option To Purchase Commercial Properties!

Tags :

Category : Commercial Loans

A commercial real estate loan is a mortgage loan secured by commercial property, such as apartments, hotels, an office building, shopping centers, motels, automobile dealerships, industrial warehouse, healthcare facilities and much more. Commercial real estate loans are structured to meet the needs of the real estate investor and the lender. Key terms include the loan amount, interest rate, term, amortization schedule, and prepayment flexibility.

Buying a commercial real estate is an expensive affair. Without a huge financial support, it is beyond imagination. Commercial real estate loans can be one of the best options for you if you lack money for purchasing real estate properties for commercial purposes. You can use commercial real estate loans to acquire, refinance, or redevelop all kinds of commercial properties.

Commercial real estate loans can be categorized into two types, long term, and short term loans. While long-term loans are useful for purchasing commercial real estate properties and are entailed to be paid over a very long time, short-term loans (also called bridge loans) usually acquired for smooth running of businesses without having to face any kind of financial issues.

Here are few things that you should keep in mind when you’re researching or looking out for commercial real estate loans:

  • Consult with an expert to find the right kind of commercial real estate loan, especially if you do not have enough knowledge of the various types of loans available, and their pros and cons.
  • Make a thorough research on the advantages and disadvantages of the various kinds of loans available in the market. You can acquire valid loan information from lender acquire ‘s website.
  • Before you choose a particular type of commercial real estate loan, you must assess your financial situation, your requirements, your long term and short term goals and the levels of risks you are ready to take. The best type of loan is always the one that suits most appropriately with your financial requirements and objectives.
  • Make a proper plan about the project is necessary. A proper plan plays a major role to convince the lenders, also it helps lenders understand the expected period of completing the construction.
  • Prepare your documents before opting for commercial real estate loans. There some documents are required while applying for commercial real estate loans. Ask your expert or lender to know required documents.
  • Choose a lender with a good reputation in the market. This can save you a lot of future regrets, harassments, and can assure you the peace of mind that you are working with someone reliable and efficient.

The Bottom Line

Commercial real estate loans are very useful for those who do not have a proper financial backup. Buying a commercial property to run your business is an important investment. if you are confident that your business needs a proper place to grow, then the commercial real estate loans might be a good option for you.

There are various commercial real estate loans providers in California, but Magna Capital Group, Inc. has a unique presence among all of them. Magna Capital Group, Inc. is a reputed finance company providing commercial real estate loans to their clients. We specialize in innovative real estate financing for borrowers who fall outside the box of traditional lending guidelines. One of the biggest advantages of our services is that we make the entire lending process fast and easy.

To know more information about commercial real estate loans, check out “Commercial Loans” section of our website. For any kind of financial assistance, Call Us today at (310) 734 4044 or Email at info@magnaloans.com.

Commercial Mortgage Loans – What Size Loan Can You Get?

Tags :

Category : Commercial Loans

From a commercial mortgage professional who deal extensively in private (hard money) loans. One of the most frequent questions asked is “What loan amount can I get”? That’s not an easy question to answer because privately funded loans are much less standardized than conventional, institutionally funded loans so there are no hard-and-fast rules.

 

Private lenders don’t usually like raw land and rural land. Hard money people tend to think in terms of quick sale value, incase they (God forbid) have to take back the property. Un-entitled, vacant land is among the most difficult to sell quickly. In the event you find a lender willing to make you a deal land, do not expect to be offered more than, the lesser of, 50% of the purchase price or 50% of the collateral’s quick-sale value. If the land can’t be financed conventionally and you are looking for hard money, be prepared to put down a huge down-payment or have the seller carry-back a 2nd.

 

Properly zoned, fully entitled land that has all permits in place is a valuable commodity, Land, however, doesn’t produce income and therefore can’t cover its own mortgage payment the way a hotel or an office building can. That’s why, most hard money sources will only lend up to about 60% against land. Further, if a property owner can’t demonstrate the means to make the payment, lenders will insist that interest payments are held by a third party as an “interest reserve”. In this way lenders are protected. Any interest payments not made, due to early pay-off, will be returned to the borrower

Home Loans: What Are the Steps to Do If Your Home Loan Application Is Rejected?

Tags :

Category : Commercial Loans , Home Loan , Real Estate Loans , Residential Loans

Before submitting the application, we know for a fact that there is a high percentage of being rejected. The truth hits us hard when it happens. People who have been rejected may give up to this point.

If you’re application was rejected what will you do next?

At this point we finally grasp what our lenders are trying to say to us which is the percentage of failing is indeed much larger than the approval. The next move here is to find out where we failed.

Right now you have to think whether you want the loan or not. You are at a crossroad.

You have to think things through this time. Gauge if you really want to move or just give up. Set things in to perspective and do not waste time.

If you decide to go on then you have to set a new plan this time. A plan that is formed to get better results. In order to do that you have to know where you failed. Asking your lender on this matter is a good start.

To help you further, below are good tips to get you going.

Cheaper properties can help your loan get approved:

When your application is for a property that’s too expensive then lenders will reject that application. You have to get a property that is much suitable for you. Shop for cheaper properties, that’s the key!

Your chances of getting approved is base on your ability to pay your dues. If the lender sees that you can’t afford the loan then obviously you will be denied. So weigh your plans and go for something that you can handle.

Think and see if things are better and then that’s the time you’ll decide.

If the banks says that the property is no good then find another affordable one.

If a house and lot is too much then try out the condominiums or town houses.

Ask the bank to evaluate your application again:

If you doubt the results then have someone inside the agency to re-evaluate your application. This can be done if you just ask nicely.

Re-evaluation starts with the applicant writing the agency a letter. This letter must be good and true since your application’s future relies on it. You have to set everything straight. Do not set excuses and just tell the whole story as it is. In the event that something bad happened make sure it’s real and a one time event.

Right now is the best time to know that your re-evaluation can go smoother when you have good credit scores.

Most of the time things do not go the way we want it in a loan application. The odds are against us. So when we get rejected we should remember that we shouldn’t give up. Push forward and set a better plan. Ask for another evaluation. Get things done.

Don’t Get Burned By Commercial Hard Money Lenders!

Tags :

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

There might come a time in your investing career that you will need to use commercial hard money lenders. Hard money is used when you need to get quick short-term financing. The rates are usually high and the LTV’s very low (to account for the risk involved in these types of loans). These loans are usually tied directly to the property value (however, lenders also look at the borrower’s credit history, personal financial statement, etc–they use this information on determine your rates and allowable LTV). Some people are scared to even think about getting a hard money loan because the rates are so high– but that shouldn’t stop you if the numbers make sense.

The commercial hard money industry is full of reputable lenders as well as sharks. And it would surprise you to find out who the sharks are! They are the ones with all of the slick advertising that promise you everything but never deliver (but they do manage to keep a nice chunk of your money!).

I have heard a lot of horror stories, from not closing on time to losing hundreds of thousands of dollars.

So how do you avoid being a casualty on this battlefield of commercial hard money lenders? Read on and I will share with you tips from past clients as well as my own personal experience.

PITFALL #1 – Not Using a Commercial Mortgage Broker

So you think you will save yourself some money by not using a commercial mortgage broker, but trust me, you will spend more in the long run. The broker is the expert you need to rely on. Not only will they know different sources of funding but they will also know which ones to avoid. Brokers also have a fiduciary responsibility to act in your best interest, so they should understand the process and know the lender. Typically, brokers will charge you 2 points to broker the loan.

PITFALL #2 – Not Having a Lawyer Review Your Documents

A Broker has a fiduciary responsibility to act in your best interest but they are not an attorney. Before you sign any contracts and pay any money to the lender, have your attorney review the documents. Most lawyers will review contracts for a small fee (depending on how large the contract is) and it will be worth your investment. Not only do you want your lawyer to review the documents, but also have them explain them to you in “plain english”.

PITFALL #3 – Paying Too Much Money Up Front

You can expect to pay some initial up front money (for appraisals or other inspections), but it shouldn’t be an exorbitant amount. Also, you need to know if the money is refundable or not and under what circumstances. Do you have to pay for site visits (other than appraisal)? Is any part of that refunded if the loan doesn’t close? This is usually where most of the heartache comes from…you have given them a large sum of money and it turns out that it isn’t refundable!

PITFALL #4 – Not Performing a Background Check On the Lender

Once you know who the commercial hard money lender is (if you’re using a broker, they won’t tell you that until you have signed a fee agreement) check the state that they are licensed in for any complaints or lawsuits. Most people do this step after they’ve lost their money and they are preparing a lawsuit! I suggest you do it before any money changes hands.

Using commercial hard money can be a beneficial solution to your investment strategy, but you want to make sure that you know what you’re getting yourself into, so that you don’t get burned.

« Previous Page — Next Page »

Recent Posts

Recent Comments

    Archives

    Categories

    Meta

    Website Pages:
    Contact Details:

    Tel: (310) 734 4044
    Fax: (310) 734 4055
    Email: info@magnaloans.com

     

     

    Address:

    Magna Capital Group, Inc
    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.

    Magna Capital Group, Inc™ 2020| California DRE License # 01866646 | Nevada DRE License # RE.1450801 | NMLS ID # 342925