Hard Money Loans

A hard money loan is mainly based on the value of the property as collateral and typically you can get a loan up to 70 percent of the property value. If you are tight on schedule and looking for a quick loan process with minimum paperwork. Hard money loans are the way to go (almost same as you are purchasing with cash). They have relatively high interest rates and costly fees compared to conventional loans. Hard money loans do serve a purpose to those who need money fast.

Hard Money Loans range from $50,000 to millions of dollars. Terms vary but you can have very short terms up to three years with a variety of upfront costs and an interest rate that is typically higher than subprime rates.

Hard Money Lending Tips

• Look for the best possible interest rates

• Do you research on initial payment terms

If you have a commercial financing need, Our company has a program for you. Whether you desire to purchase, refinance, or construct a commercial building, we are your best source for financing.

Adjustable Rate Mortgage (ARM)

Adjustable Rate mortgage (ARM) also called as variable-rate mortgage is a mortgage loan where payments will fluctuate over time. The initial interest rate will be lower than that of a fixed rate mortgage; however, changes in the market could result in increased interest rates, which will ultimately effect the monthly payments.

For borrowers whose income may go up, an adjustable rate mortgage might be the best option because of early lower payments. Some loans are fixed for a certain period of time, and then they turn into adjustable-rate loans. For example, a 3/1 ARM loan offers a fixed-rate for the first three years, adjusting once a year thereafter. A 5/1 ARM loan offers a fixed-rate for the first five years, adjusting yearly thereafter.

In ARM, the interest rate on the note is periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. Among the most common indexes are:

• The 11th District Cost of Funds Index

• The Treasury Bill Index

• London Interbank Offered Rate (LIBOR) based indexes

• Constant Maturity Treasury (CMT)

For the borrower, adjustable rate mortgages may be less expensive, but at the price of bearing higher risk. Many ARMs have “teaser periods”, which are relatively short initial fixed-rate periods (typically one month to one year) when the ARM bears an interest rate that is substantially below the “fully indexed” rate. The teaser period may induce some borrowers to view an ARM as more of a bargain than it really represents. A low teaser rate predisposes an ARM to sustain above-average payment increases.

Balloon Mortgage

Balloon mortgage is most commonly used for commercial mortgage. Balloon mortgage payments do not fully amortize over the term of the note, the last payment includes all remaining interest and unpaid principal, and often comes to quite a large total. This introduces a certain amount of risk, but they can be quite beneficial if the borrower is anticipating immediate cash flow for his/her business venture. Balloon mortgage loans are a good product for people looking for a lower interest rate.

Adjustable rate mortgages are sometimes confused with balloon payment mortgages. The difference is that a balloon payment may require refinancing or repayment at the end of the period (if you are unable to repay the entire balance); some adjustable rate mortgages do not need to be refinanced, and the interest rate is automatically adjusted at the end of the applicable period. Balloon payments are often pre packaged into what are called “two-step mortgages.” In this type of mortgage, the balloon payment is rolled into a new or continuing amortized mortgage at the prevailing market rates.

Balloon mortgages are most popular with 2nd mortgage notes, such as a 30 year amortized note due in 15 years (30/15). The monthly payment with a 30-year amortization will be lower than if the property is financed with a 15-year mortgage. The interest rate for the five or seven-year period may be lower than the rate for a 30-year fixed rate mortgage. The goal with a balloon payment mortgage is to obtain a low, fixed monthly payment with the plan of selling the property at a profit before the balloon payment is due. You can also refinance your balloon mortgage prior to its maturity and obtain a new fully amortizing loan.

Interest Only Mortgage

An interest-only loan is a mortgage loan in which the borrower pays only the interest on the principal balance, for a set period of time. Principal balance remains unchanged during the set term. At the end of the interest-only term the borrower has many options, such as:

• may enter an interest-only mortgage

• pay the principal

• convert the loan to a principal and interest payment (or amortized) loan

Interest-only commercial mortgages can play an important role in helping a business trying to get off the ground. When finding cash flow for the investment is difficult, interest-only mortgages can be a very good option. On the other side interest-only loans represent a somewhat higher risk for lenders, so expect a slightly higher interest rate. Also considering today’s fluctuating real estate market, the borrower may end up paying more than the actual value of the property when the interest-only commercial mortgage loan is finally paid off.

Equipment Financing

Buying equipment becomes urgent as businesses strive to move forward. We understand the difficulty people run into when the need for additional equipment becomes urgent. Purchasing new and expensive equipment for your business can be a daunting task. No business can exist without proper equipment. If you prefer to own your equipment, our loan programs have flexible structures. Organizations can buy new equipment on lease terms after finding the required money for expanding their company. This financing solution helps entrepreneurs find the required equipment for their business or enterprise.

Cash flow is the blood line for any business. We are experts at delivering equipment finance solutions exceeding the needs of our customers through our industry knowledge, tailored products and services, and financial strength.

Our specialties include:

• All Types of Equipment Financing

• Non-Rated Credits

• Variety of End-of-Lease Options

• Simple Financing Application

We provide equipment financing for:

• Capital Markets

• Construction

• Diversified Industries

• Franchise Finance

• Healthcare

• Homecare

• Agriculture

• Manufacturing

• Specialty Markets

SBA Loans

The SBA offers numerous loan programs to assist small business owners to start, manage and grow their businesses. Here are some of the most popular SBA loan programs:

SBA Express Program

• Lower Interest Rates – Rates can be fixed or variable and are tied to the prime rate (as published in The Wall Street Journal), LIBOR, or the optional peg rate (published quarterly in the Federal Register), but they may not exceed SBA maximums

• Flexible repayment options and longer terms than traditional loans

• Borrow up to $350,000

• Maximum SBA Guaranty is 50%.

• Quick Turnaround – May receive a response to your application in less than 2 days.

• Use the funds for working capital, equipment, inventory, or real estate purchases, or to expand facilities

SBA Patriot Express Pilot Loan

• Loans for veterans and members of the military community wanting to establish or expand small businesses.

• Can be used for a variety of proceeds including: Start up costs, Equipment purchases, Business-occupied real-estate purchases, Inventory, Managing your existing business…

• Smaller credit requests, allowing expedited and streamlined application process

• Line of credit or term loan up to $500,000

7(a) General Small Business Loans

• Ideal for businesses that may not meet the conventional lending collateral or cash flow requirements

• Often provide longer terms than conventional lending

• Proceeds can be used to provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory or to purchase equipment, machinery, furniture, fixtures, supplies or materials or to construct a new building or refinance existing business debt or even to establish a new business.

• SBA guarantee limited to $1.5 million, $5 million maximum on the loan amount

Real Estate & Equipment Loans: CDC/504

• This program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.

• Applicant has a tangible net worth less than $15 million and an average net income less than $5.0 million after taxes for the preceding two years.

• Provides growing businesses with long-term financing for purchasing land, constructing new buildings, expanding facilities, or purchasing long-term machinery and equipment

• No working capital permitted

• Maximum 504 debentures sizes: $5 million for regular loans; $5 million for public policy loans; $5.5 million for small manufacturer loans

Business Loans

Every business needs capital to conduct its day to day activities and having access to funds when you need them is critical especially for small businesses. Business financing is the process of providing/arranging funds to small businesses for business activities, payroll, inventory, new equipment purchases, expansion or investing.

We provide mortgage solutions tailored for businesses in almost every industry – from small businesses looking for startup capital to existing companies looking to expand to the next level. Our loan products have a simple and speedy application process, clear pricing & terms and flexible payment options so that small businesses can obtain the capital they need at the earliest.

Types Of Financing

There are two main types of financing available for businesses: debt financing and equity financing. Debt financing is a business loan that comes from banks, government loan programs, or anyone you can convince to lend you money. Over time, you’ll repay the lender the money you have borrowed, plus the agreed interest. Debt financing is the most common type of financing for businesses, especially those who are just starting out. You may have to do some leg work but getting a loan is still easier than finding investors for your newly started business.

Equity financing is where a business offers a percentage of the company, known as shares, in exchange for money.

Whether you’re just starting out, looking to smoothly run your current business, or planning to expand, we work with you every step of the way, understanding your unique requirements to find financing solutions that suit your business’s individual circumstances.

Commercial Property Specialty

We have a long and reliable working relationship with a complete range of lenders nationwide. We have the ability to provide the borrower with a wide range of financing opportunities to help achieve their long term goal. Below is broad category list of the commercial property types we work with:

1. Apartment / Multifamily Loan

   • 5 – 20 Units

   • 21+ Units

2. Construction Loan

   • New

   • Renovation

3. Healthcare / Medical Loan

   • Assisted Living

   • Congregate Care

   • Hospital

   • Independent Living Facility

   • Medical Clinic

   • Rehabilitation Center

   • Skilled Nursing Facility

4. Hotel / Motel Loan

   • Full Service Hotel

   • Limited Service Hotel

   • Resort Hotel

   • Suite Hotel

   • Convention Hotel

   • Flagged Motel

   • Independent Motel

5. Industrial Building Loan

   • Manufacturing

   • Office-Warehouse

   • Research & Development

   • Warehouse / Multi-Tenant

   • Warehouse / Single-Tenant

6. Office Building Loan

   • Business Condos

   • High Rise Building

   • Medical

   • Suburban

   • Single-Tenant Building

   • Other

7. More Commercial Loans for

   • Auto Malls / Dealerships

   • Church

   • Condos / PUDs / Co-ops

   • Gas Stations

   • Golf Courses

   • Historic Rehabs

   • Marina / Dockominiums

   • Mini Storage

   • Mixed-Use Projects

   • Mobile Home Parks

   • Parking Garages

   • Restaurant (Real Estate based)