What is a CMBS loan?

CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily properties office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral.
That said, a CMBS loan is different from a traditional commercial loan. With a traditional commercial loan, the lender gets paid back over time. However, a conduit loan will be sold and packaged along with other commercial mortgage loans into a trust called a Real Estate Mortgage Investment Conduit (REMIC), turned into bonds, and sold on the secondary mortgage market to bond investors. This process is known as securitization, and it’s where these loans get their name
The advantages of CMBS loans
The main advantage of choosing a conduit loan is that these loans typically offer a better interest rate than a traditional commercial loan. They also usually offer a fixed-rate option, which can give you the ability to plan for your payments more effectively.
Additionally, CMBS loans are nonrecourse loans, which means that the buyer is not held personally responsible for paying the loan. However, some of these loans do have a clause stating that if you intentionally cause harm to the property, your CMBS lender, or your investors, you could be held liable.
Lastly, these loans are assumable, so if you decide to sell the property in the future, the buyer can take over your CMBS financing and your interest rate. However, be aware that most lenders do charge a fee for this service.

Is A Commercial Bridge Loan Right For Your Business?

A commercial bridge loan is a right choice for every business. How do you determine if your business will benefit from a bridge loan? There are a few things to consider.

However, if you need funds for one of these reasons, consider speaking with a lender:
•Close A Deal Quickly: When the real estate market is hot, you have to strike quickly, or you’ll get left out in the cold. Lining up a mortgage or long-term loan can take weeks or even longer, and by that time, you may have lost out to another buyer. If you want to purchase a commercial property fast, you can get the funds you need with a commercial bridge loan, which buys you enough time to secure another source of funding.
•Work On Your Credit: Is your credit preventing you from getting a mortgage or a bank loan? If so, making a purchase using a bridge loan may be a wise choice. If you need to make a purchase now but also need to work on your credit (i.e., paying off debt or disputing erroneous items on your credit reports), bridge loans provide you with the capital you need until you’re able to clean up your credit and obtain another loan.
•Acquire A Business: If you plan to purchase another business, time is of the essence. Instead of waiting on funding, a bridge loan can help you push the deal forward quickly.
•Renovate Your Property: If you want to improve your business to draw in new customers, a bridge loan can help you get the ball rolling on renovations sooner rather than later

To receive a free consultation and confidential evaluation of your loan scenarios, please contact us at
info@magnaloans.com

Who Should Use a Hard Money Loan?

Real estate investors choose to use hard money for many different reasons. The main reason is the ability of the hard money lender to fund the loan quickly. In most situations, hard money loans can be funded within a week. Compare that to the 30 – 45 days it takes to get a bank loan funded. The application process for a hard money loan generally takes a day or two and in some cases, a loan can be approved the same day. Good luck hearing back about a loan approval from your bank within the same week!
The ability to obtain funding at a much faster rate than a bank loan is a significant advantage for a real estate investor. Especially when the real estate investor is trying to acquire a property with many competing bids, a quick close with a hard money loan will get a seller’s attention and set their offer apart from the rest of the buyers offering slow conventional financing.
Another reason a borrower may choose to use a hard money loan is that they have been rejected by the banks for a conventional loan. Life doesn’t always go as planned. Short sales, foreclosures, credit issues… they happen. Another important thing banks need to see is income history. If a potential borrower recently started a new job, the bank may deny the loan request due to insufficient income history, even if the borrower makes a healthy income. Hard money lenders are able to look past these issues as long the loan be repaid and the borrower has enough equity invested in the property.

Steps to take if you can’t make ends meet because of the COVID-19.

With the coronavirus pandemic causing many workers to lose hours, it’s more important than ever to know what financial options you have.

If you don’t have an emergency fund and are struggling to make ends meet during these uncertain times, here are steps to take.

Contact creditors right away

If you’re concerned it will be a struggle to pay your credit card balance, student loan debt or utilities in the coming months, the National Consumer Law Centre advises contacting your creditors as soon as possible and asking for hardship concessions.

Consider a personal loan

Personal loans can help out in times of income insecurity. Banks, credit unions and online lenders offer them.

Send temporary hardship letters

If you are having trouble paying your mortgage, your first step should be to seek out a legal advocate, according to the National Consumer Law Centre. From there, you can send hardship letters to lenders, like your mortgage company, to see what your options are.

Need Urgent Help?

Magna Capital Group, Inc. provides equity-based private and hard money loans for residential and Commercial properties for subprime money borrowers. For more info please visit our website www.magnaloans.com.

Magna Lending Service offers :

Private Money/ Hard Money Loans

Commercial Real Estate Loans

Residential Home loans-Purchase and Refinance

Bridge Financing

We can fund your loans in 5 Days !

Please Email your loan scenarios to Shawn Molem at Shawn@magnaloans.com for immediate response