Construction projects and creative financing

For a second time this month we provided some guidance for construction projects that are multi-phased and require creativity. Most lenders today do not want to provide construction financing for projects that are not completely pre-sold. Lenders want to know that the money they put out is covered off by sales that can repay theContinue reading “Construction projects and creative financing”

How do residential mortgage brokers get paid?

We get asked this question a lot so I thought it would be a good idea to share the answer with everyone. For residential mortgages typically brokers are paid by banks and lenders. The longer the term you choose the more money a broker earns. A one year mortgage might pay a broker up toContinue reading “How do residential mortgage brokers get paid?”

CASE STUDY: Business turns a corner and needs more cash

A business approached us that has just come out of two years of very difficult times but seems to have turned a corner for the better. Going into 2008 they had plenty of capital and then used that capital to pay expenses for 2008 and most of 2009. Near the end of 2009 business beganContinue reading “CASE STUDY: Business turns a corner and needs more cash”

CASE STUDY: A Church and a Vendor Mortgage

Recently we were approached by a church (not for profit organization) that purchased a small commercial property but at the time did not have the financial history to approve for a conventional commercial mortgage. As a result, they gave their down payment to the vendor and the vendor agreed to give them a mortgage atContinue reading “CASE STUDY: A Church and a Vendor Mortgage”

5 questions every bank asks

Whether you are looking to borrow money for a residential mortgage, a commercial mortgage or business loan you should be aware of the 5 most important points a bank or lender will look for in determining your approval. 1. Character – Do you make your payments on time? 2. Capacity – Do you have moneyContinue reading “5 questions every bank asks”

Why does my credit score matter?

There is a lot of advertising and information available about your personal credit score but most people are not aware of the impact their credit score can have on their borrowing. The lowest mortgage rates are available to individuals with high credit scores and if you do not have a high score you may endContinue reading “Why does my credit score matter?”

Owner Occupied vs. Investment Properties

Often times our clients will ask about the kinds of transactions that banks are interested in funding. For the past year banks and lenders have been very competitive to fund mortgages for owner occupied properties over investment properties. An Owner Occupied property refers to real estate that is purchased by the same individual or businessContinue reading “Owner Occupied vs. Investment Properties”

Two businesses, same challenge

We were approached recently by two businesses that were looking to restructure their existing financing to save interest and improve cash flow. In one case a business had used unsecured debt to finance renovations to his business properties resulting in double digit interest rates. In the other case, a business owner with substantial net incomeContinue reading “Two businesses, same challenge”

Too much information

It appears that more and more people are looking to have someone work for them to help them understand their options. Both residential and commercial borrowers are trying to learn more about the various banks and lenders available and the difference between each of them. Like most businesses, banks and lenders have a certain typeContinue reading “Too much information”

Small business saves $6,000 per year

We had the opportunity to work with a business owner that was looking to make better use of the money they spend on rent by purchasing a small industrial bay. The business was spending approximately $13.00 per sq. ft. on rent (not including operating costs) and was able to purchase a unit in a warehouseContinue reading “Small business saves $6,000 per year”