Category Archives: Finance

All You Need to Know Commercial Property Financing

Being a business owner, you may need commercial properties for expanding your business. Having limited funds, there arises need to acquire commercial property loans. With number of providers available to offer commercial property financing option, it’s not difficult to obtain loans. However, you need to be well aware of some of the important considerations while making a decision.

Submission of business plan

During commercial financing, you had to submit your business plan. There is no problem in providing an overall view of your business to the lenders. However, there are some lenders who demand for minuscule business details. It’s not safe to offer such exhaustive information about your business. Always choose a lender who is satisfied with the information you give. It’s not desirable to work with the lender who monitors your tax returns.

Financing for special purpose property

Sometimes, there is difficulty in finding financing for special purpose properties. Obtaining loans for office building is quite easy, but it’s really difficult to get it for restaurants. You need to thoroughly search the internet for finding the lenders who offer lower interest rates for certain type of business properties.

Long term loans

While buying loans for commercial properties make sure to buy the one for longer period of time. A short term loan is avoided when you intend to buy commercial properties. You can manage a loan term loan with the lower monthly payments. If you still wish to buy short term loans, you must have high cash flow.

Avoid your personal property as collateral  

Always keep in mind that you should never use your personal property as collateral for commercial property financing. Lenders take the help of DCR i.e. debt coverage ratio which acts a deciding factor while offering you loan. This ratio also reflects upon your ability to pay the loan. DCR varying from 1 to 1.2 is preferred by the lenders.

Are you looking to buy a new commercial property? If yes, then we at 700 Fico Club are here assist to you with your Commercial Property Financing. Our team are also seasoned Real Estate Brokers and can help you to locate a property of your dreams. For more information you can call us or email us your queries.

Financing residential properties- benefits and things to know

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Investing in residential real estate is a great way to earn extra money. It can create buffer income. However, no matter the reason you are thinking of investing in a residential property, it is always best to secure financing for it.

Let’s have a look at the benefits of securing finance for residential properties:

  • These properties are entitled to tax breaks. The interest is taken away from your mortgage and local property taxes from your tax return. This sum up to a huge amount in savings.
  • You are required to make a small down payment and each monthly payment increases your ownership of the house.
  • The property becomes yours the moment you do down payment for it. You can rent it or further invest in it. By renting it, you can earn extra that provides you with a stable monthly income.
  • With residential properties, you can also borrow against your equity and subtract interest payments on the total credit amount.
  • The house value can appreciate over the time when you plan to sell it. So you may get huge profits.

Considerations before investing in a property

  • Check the property’s location. Opt for a home that is located near different amenities, like schools, freeways, shopping malls and playground.
  • Hire a real estate agent to help you get the best deal. He will be the best person to inform you about the best homes in the targeted area.
  • Thoroughly research to find the background of the property. Make sure it is not disputed and have no case pending in the court.
  • Make a budget. Find out the exact amount of money you can spend.
  • Before signing the deal, get it checked by an experienced and reputable attorney.

For finance, search well on the internet for various companies offering financing for residential properties. Shortlist the top five contenders of the region and call them one by one. Meet the representatives of the different firms and inquire about the different finance options they have. The company you choose must be reputable and trustworthy.  Read their reviews online or you can ask them for references. Call the references and inquire about their experience with the agency.

For residential property financing, get in touch with 700 FICO Club. We partner with some of the top mortgage companies in the US. We can help you get financing as per your terms. Call us for more information.