Commercial Mortgages – Finding the Right Commercial Mortgage Lender

If you are considering the purchase or refinance of a commercial property, securing the best possible financing is an integral part of your long-term success. Getting your commercial mortgage isn’t rocket science; it’s a matter of strategy and execution.However, before you can prepare your loan proposal for success, you must understand the commercial mortgage process and how to find a lender. This article will discuss a variety of strategies that can give you insight about the commercial mortgage market and help you land the best lender and loan for your unique situation.Understanding the Commercial Mortgage Lending ClimateMany business owners and real estate investors have realized the extraordinary profit potential of owning commercial real estate. When I refer to commercial real estate, I’m talking about any property that is owned for investment purposes. These are properties that generate a cash flow for the owner. Or in the case of owner-occupied property, these are properties where the owner runs a business.Many business owners prefer to build equity in an owner-occupied property rather than continuing to pay an ever-increasing monthly rent to their “smart” landlord. These savvy property owners enjoy the relative safety and predictability of owning commercial real estate; they like the positive cash flow, tax benefits and appreciation their investment delivers.Keep in mind that financial institutions are in the business of turning companies and individuals into property owners. They’re eager to lend money to responsible borrowers. And even today, while mortgage success is more challenging than it has been in decades, funding is still abundantly available for qualified investors and projects.If your transaction makes sense, there are many lenders who will work creatively with you to get it funded. Never forget that lenders WANT to make loans. And as a qualified borrower with a sound loan requirement, you have more leverage than you might imagine.Target Your LenderThere are literally hundreds of lenders active in the commercial real estate marketplace. Each of these lenders has different criteria for the transactions that will interest them. Matching your specific transaction to the most appropriate lender is an important first step to getting your transaction funded.When choosing a lender, make sure you’re working with an institution that is willing and able to make the loan you need. If you’re working on your own, you might start out by phoning your local bank and asking to speak with a commercial mortgage officer. Explain to them the specifics of your loan transaction and ask if the transaction meets their lending profile.Key questions you might ask include:- Do you finance my type of property?
- Is my transaction and appropriate size for your institution?
- What types of loan programs are available?
- How quickly can you close a loan?
- How does your due diligence process work?If you have specific loan requirements, make them known at the start. For instance, some borrowers are not able or willing to provide tax returns. These borrowers require what is known as a stated-income commercial loan–but not every lender offers this type of program. Other borrowers may have low credit scores, require cash out from a transaction, need very short-term financing, have properties with negative cash flow or have other requirements that place them outside a given lenders loan parameters.Regardless of how strong you think your loan request is, never waste time trying to get a lender to fund a transaction that is outside of “their box.” Regardless of what your loan officer tells you, these loans rarely get done.Being referred to a lender from another industry professional is a big plus. The lender will know you’re probably qualified and serious, and they will not want negative feedback making its way back to the referral source. You should always ask your realtor, accountant, attorney, banker, or others professionals for a solid referral to a potential lender.If you learn that the institution you’ve contacted is not interested in working with you, don’t sweat it. Simply have the lender suggest another commercial mortgage broker or lender that may be more appropriate for your situation.

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A Small Business Advisor Makes Good Business Sense

Let’s face it. When you’re first starting up a business, you need help and advice. Even if you have an MBA from Harvard or are an experienced entrepreneur, you need someone to bounce ideas off of and check in with to make sure you’re on track for business success.Technically, there are only three times during the life of your business when you absolutely need a small business coach: when you’re first starting up, when you’re ready to grow and expand, and when you’re ready to move on.What do most people do? They hire one small business coach to help them start up. Then, they hire another specialty coach when they’re ready to expand and, finally, another business transition coach to help them close out their business.That’s three different coaches for three different stages. And, each time you hire a different business coach, you lose continuity. Is that really what you want?After all, your start-up coach has been with you from the very beginning, through thick and thin. She knows everything about you and your business. She’s walked with you through your fears, she’s pulled from you the heart of your business plan, and she knows what dreams you secretly hold for your business.Do you have any idea how valuable that kind of knowledge is?Well, let’s say you phase out your relationship with your start-up coach, and it takes you 40 hours to bring your next business coach up to speed. At approximately $200 per hour, that’s at least $8,000. And we haven’t even added a dollar amount for your valuable time spent “training” your new coach.At that price, wouldn’t it be more cost-effective to have one business coach who could start up your business, help it grow, and stay with it through its entire life cycle?Enter, the small business advisor.What to Look for in a Small Business AdvisorWhy do we treat hiring a business coach differently from hiring a financial advisor? You don’t hire three different financial advisors-one at the beginning of your investment years, one in the middle, and another when you retire-do you? No, you hire one financial advisor with the intent of maintaining a lifetime relationship with him, from beginning investments to retirement dividends.The same should be considered when hiring a business coach. Instead of thinking “business coach”, think “business advisor.” Instead of thinking “short-term coach”, think “long-term relationship” with a small business advisor who can be with you through the entire life of your business.Do you think that’s impossible? Think again!A small business advisor is the golden egg of small business know-how. She’s not only capable of helping you write your business plan, she can carefully analyze your business circumstances, assess the business market environment, and help you develop a long-term strategic plan that will take you from start-up to exit plan.Some small business coaches are actually small business advisors, whether or not the title “advisor” is on their business card. Don’t be afraid to ask questions to find out whether or not the coach you’re considering has the desire and the skills to work with your business from beginning to end.A skilled small-business advisor has the training and insight to:· Understand your goals, your dreams, and your reasons for starting up, growing, and transitioning your business.· Create a small business growth strategy that meets your short and long-term needs.· Understand the nature of business and offer wise counsel and continuous monitoring that will help ensure that your small business is positioned for success whether the market is booming or fraught with uncertainty.Best yet, she is someone you can trust who will be with you from start to finish.What You Can Expect from a Small Business AdvisorFirst and foremost: a comprehensive approach.The first thing she’ll do is sit down with you in order to obtain a thorough understanding of your current business situation and find out what you want to accomplish.Much like a financial advisor, your small business advisor will ask you questions about your current business, the future of your business, your growth timeline, the level of risk you’re comfortable with, and the return you expect to get when you sell your business.Periodically, your small-business advisor will meet with you to revisit your business strategy to make sure your business is on track. She’ll also work with you to make any necessary adjustments. That way, you can be sure to reach your business goals.Just as having a financial advisor manage your investment portfolio makes good financial sense, having a small business advisor who offers a comprehensive, long-term approach makes good business sense. A trusted small business advisor can add an enormous amount of value by guiding you through the many complicated business challenges you’ll face from start to finish.So, take advantage of all the expertise your small business advisor has to offer. Share your dreams and goals with her to build a valuable relationship that goes beyond traditional small business coaching to encompass the whole life of your business.

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Choosing a Contractor For Heating and Cooling Issues

Ask any homeowner to list the problems around the home that end up requiring the most time, expense, and upkeep to properly maintain, and chances are good that you’ll see heating and cooling issues on just about every single list. A home environment that is too cold in the winter months and too hot in the summer can be a convincing argument for spending less time at home, and can negatively impact the amount of enjoyment a homeowner gets out of the time spent in his personal castle. In addition, heating and cooling issues often lead to frustration, costly repairs, and do-it-yourself projects gone awry. Not every climate-control issue is one that should cost hundreds or even thousands of dollars, but left untreated or handled improperly, a relatively minor problem can easily spiral out of control.Fortunately, taking the simple step of hiring a heating and air contractor when these difficulties arise is likely to save the average homeowner time, money, and a bit of sanity. When it comes time to search for a reputable contractor, the process can seem like a daunting step, particularly if you’ve never needed to hire someone in the past, or know little about your home’s heating and cooling system. Before deciding to hire someone to investigate the problem, take the time to investigate your potential contractor.There are a number of websites out there that focus on reviews of home service professionals, and you should be able to find at least a few basic bits of feedback on the contractor or the company you’re considering. It’s also a good idea to ask the company for references, and actually take the time to follow up on those calls, since hearing what others have to say about their experience with a service professional can help you make an educated decision. Another great source of information is your local Better Business Bureau; a simple phone call is all it takes to find out if a contractor has had complaints against him in the past, or is currently involved in pending litigation.Once you find a heating and air contractor that seems reputable, comes with positive references, and has been willing to answer any questions you may have, make sure that all dealings are recorded in writing, not just via a verbal agreement or explanation. Everything from the initial estimate to the home evaluation to the itemized bill should be recorded in detail, and both you and the contractor should keep a copy on file. This helps protect both parties against any future disputes or misunderstandings, should the project go awry or not meet expectations.

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