Commercial RE Sales

Eliminate Commercial Finance Pressures With An Asset Based Lender

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Single Family Financing vs. Commercial Financing

Find good financing in advance. Commercial loans are a different animal than residential loans, and in some ways better. The down payments needed are usually a higher percentage than loans on single-family houses, which means you’ll have to put more down (or get your partner to put more down).

Do commercial finance solutions seem out of reach?

Want a simple solution?

Consider a Canadian chartered bank and get all the business credit you need! Unrealistic… maybe, maybe not, but one sure-fire solution for your problems might be an asset-based lender.

For many years now the nonbank asset-based lenders have been working with firms such as yours on credit facilities that fit the real-world need of your company when it comes to inventory, receivables, equipment, and real estate.

Canadian business owners and financial managers are probably asking themselves why they haven’t heard of this before – we’ll hit you with another shocker, some of the Canadian banks even have internal divisions of asset-based lenders that compete with their regular commercial banking business!

Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.

For the uninformed asset-based lending is essentially a revolving line of credit that provides you with working capital, cash flow to cover your operating expenses, and growth needs. Why is it different from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset-based lender is a specialist in commercial finance and the value of your assets your ability to draw on those assets intensifies greatly – in many cases, you will obtain 50-100% more leverage on your current assets than you ever have before.

Again, why is this so different – It because the focus is on your personal credit, your company’s current or past challenges… it’s solely on, you guessed it ..’ the assets’!

In certain cases, even a purchase order financing type facility can be put in place, and more often than not the asset-based lender will accommodate what we term as ‘ bulges’ or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc.

As a business owner, we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That’s creative financing!

Clients always asked what the approval criteria are – the truth is that the criteria that an asset-based lender requires are significantly less demanding than those imposed by the bank, the latter focusing on rations, covenants, external collateral, the strength of persona guarantees, and on it goes.

Commercial finance made easy is a great byline for an asset-based line of credit. After a standard business financing application and submission of back update which would include aged receivable, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset-based line of credit or working capital facility.

Is a Sole Proprietorship the Best Structure for a Real Estate Investment Company?

There are many ways to structure your real estate investing business. A sole proprietorship is the most simple business structure in which you can operate a real estate investment business.

Commercial Real Estate Investing

Commercial real estate investing is probably not where most people will start out investing. But I do know a few who have purchased a commercial property as their first investment.

If you are a newbie in the business, you might get an overload of real estate investing strategies to choose from. Choices like flip, buy and hold, go commercial, go for REITs, partnership, and many other different options.

No one chooses to start investing in commercial real estate overnight. The savvy investor conducts a lot of research into commercial leasing and triple-net leasing before making any decisions, and it’s important to know with certainty that you will be able to give your investment your full commitment.

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The Right Real Estate Mentor Can Help You Succeed

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Investing in real estate can be extremely profitable. However, it is not as easy as it might at first seem. Making mistakes or missing crucial steps in the process can be costly and time-consuming to fix. The right real estate mentor can help you avoid all of that.

The right mentor will have years of experience and have many closed deals under his belt. He will know how to navigate through the confusing real estate market and understand how to find profitable deals. He will also know all the steps needed to work on a real estate deal from start to finish. This extensive insight can be a valuable tool for someone just starting out in the business.

Finding a good real estate mentor can help you achieve success. There are a select few who really know the ins and outs of this industry. Gaining access to their knowledge can put you on the right track to making a profitable income. You may want to learn from just one mentor, or you can learn from many. Learning different insights and styles can add up to you combining the best aspects into a successful style of your own. Whether you have one or multiple mentors, it is important to learn from a well-seasoned person.

When searching for a real estate mentor, it is essential to do your homework. Some will charge high fees and not teach you much. Local real estate clubs or associations are a good place to do some research. People will know who the most successful mentors are.

Choose someone who specializes in the field you are interested in getting into. Some of these include residential or commercial retailing, residential or commercial wholesaling, short sales, and foreclosures. When you approach the expert for mentoring it is important to establish a good relationship with them.

Try and work out a deal with the real estate mentor. Offer to do the legwork on their deals in exchange for some mentoring. This will enable you to see the steps to closing a deal first hand. This will be a mutually beneficial partnership, allowing you the opportunity to gain the knowledge you need to be a successful real estate investor.

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Private Financing For Your Real Estate Investments With Realestatevally

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Real estate investing is every time beneficial and occasionally it’s red hot. When it’s hot dozens of real estate seminars start rolling across the country and thousands of people spend thousands of dollars on investing education.

It’s startling to learn that of all those thousands of eager people who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.

Here’s a quick plan that will let anyone begin building financial sovereignty.

There are basically four formulas for investing in single-family homes:

1. Buy homes lower than the full market amount. Yes, people really do sell homes for less than the home’s full value. The key is to know that nearly all homeowners will only assume a purchase offer that is all cash and within 5% to 10% of their asking price.

The profitable investor learns to locate financially distressed homeowners who have no selection but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all-cash offer.

2. How do you find motivated sellers? You work at it! Like any business, it is essential to develop a modest marketing plan. One that is simple, yet very useful, is the one that was tested 75 years back by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. You are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting, you will gather extra and buy more homes more rapidly than any other method. However, most people just won’t walk door to door for three or four hours per week. OK, there are other ways.

You can see public notices for the announcement of property sales. Meeting with a homeowner right after they’ve got a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce, and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the slightest time consuming, send a postcard expressing your interest in buying their property. It will make buying opportunities, just not as many as personal contact.

3. After you’ve found a motivated seller you must know how to frame offers that provide benefits for both you and the homeowner. A skilled real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The homeowner is in a tense spot of some kind and you can save them from public embarrassment and, in most cases, give them at least minor cash money to get a new start.

No investor can afford to leave cash in each deal. No one but Bill Gates has that much available money. You must use creative solutions like, leases, options, and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book shops or on eBay or realestatevally.Com. The same education that seminars sell for thousands of dollars.

4. You make your profit once you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long-term investment will the monthly rental earnings more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more attractive property? Have a plan before you buy.

There you have four formulas that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be ok on your way to financial sovereignty.

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