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Showing posts from April, 2022

Why is Direct Lending Getting So Popular?

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  The pandemic has forced most Americans to reconsider their borrowing habits. Lenders and borrowers were both forced to reevaluate the risks involved in commercial loan procedures. This is one of the reasons why private lending is growing in popularity  around Washington, Nashville, Memphis, and many other local financial markets. It serves as the perfect alternative for the conventional debt sources that often don’t fit borrowers’ specific needs . Here are some other reasons you should consider taking out a short-term bridge loan instead of a bank loan. 1. Guaranteed Services of Fund Managers You can avail the services of a private lender in Knoxville without getting involved in any financial risks. Fund managers keep the data of the lender and borrower secure, so there are no unexpected complications. They make the entire process of lending and borrowers feasible and remove all obstacles along the way. Take the help of Global Capital Partners Fund  and find out how fle...

Asset-Based Lending in New York: What are the Upsides and Downsides?

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  While exploring the commercial financing options for your business, you must've considered asset-based lending . Asset-based loans require you to pledge your assets, such as inventory, market securities, property, etc., as collateral for the loan. This helps secure large working capital in a shorter time, with competitive interest rates.   However, there are some downsides that you should know before applying for it. Here are the upsides and downsides to asset-based lending:   Advantages of Asset-Based Lending The most obvious upside of asset-based lending is the ease of obtaining it . Unlike traditional loans, asset-based loans are approved quicker with fewer hassles and offer a reliable working capital source Asset-based loans may charge lower interest rates  because they are less risky than traditional loans. These loans are secured by your assets, making them safer than unsecured loans. Also, if your assets have high liquidity, you may get an even lower interes...

The Benefits of Forming a Joint Business Venture

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Starting a business can be quite challenging for the inexperienced. It takes time, financial resources, and relentless dedication from all parties involved. But despite the persistent effort, you may still not achieve your corporate goals in the long run. This is why many smart investors choose to form a joint venture instead of a sole proprietorship. The responsibilities get divided when running a business venture with multiple owners , and revenue targets can be met more efficiently. Here are some more reasons you should consider starting a joint venture  with the help of private lenders in North Carolina. 1. A Multitude of Ideas People with many different talents and skills can come together to run a business more profitably. Each owner can provide unique personal insights and make the company ultimately successful. 2. Joint Resources Finding capital and human resources for your business becomes easier when you combine two or more entrepreneurs' networks. You can get connected w...

How to Secure a Permanent Financing Program in New York?

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  The New York real estate market is highly competitive. With the high demand for apartments and other properties, securing a great price requires more than just having good credit. One of the best ways to ensure that you get the funding you need at a reasonable rate is to work with a permanent financing program. How Do They Work? Permanent financing programs are designed to provide clients with fixed rates. Unlike traditional loans, which are adjusted every year based on market conditions, these programs offer stable rates throughout the life of the loan. For many borrowers, this stability is what makes all the difference in their ability to secure a property at a fair price and make monthly payments without worrying about unexpected costs down the road. What Are Some of Their Benefits? There are several benefits of using permanent financing programs in New York. First, because these loans offer fixed rates, borrowers do not have to worry about yearly adjustments. If interest rate...

The What, Why, and When of Hard Money Commercial Loans

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  A hard money loan refers to a soft loan secured by real estate collateral. These short-term loans are generally offered or funded by private capital  investors rather than banks, conventional credit unions, or other regular financial institutions. The length of repayment time often ranges from 12 months to 3-5 years as the loan terms rarely exceed five years. Like any regular loan, servicing involves regular monthly payments, including the gradually accumulating interest or the principal amount. It’s crucial to understand that the amount of capital secured by a borrower through a commercial hard money lending process is typically determined by the real estate property’s market value. Types of Property that can Qualify for Commercial Hard Money Loans A prospective borrower can secure a hard money loan through any variant of the real estate, whether it’s a single-family residential, multi-family residential, industrial or commercial building.   But commercial hard money ...

Asset-Based Loans to Fund Your Next Office Building Construction—Yay or Nay?

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  If you’re a property owner, asset-based loans can be a great way to fund your next office building construction. That said, it’s important to know how asset-based loans work before applying for one. The following are some of the ins and outs of asset-based loans that you should understand before making your decision. What Are Asset-Based Loans? Asset-based loans, such as an asset-based line of credit (ABL), are commonly used by businesses looking to finance projects where the collateral being put up for the loan is in the form of assets. In this case, those assets would be equipment, inventory, and receivables from clients who are involved in the construction process. Say your business has $1 million in collateral that qualifies for financing and a $500,000 debt against those assets. With an asset-based loan, the lender might be willing to provide up to 75% of the equity in the collateral—in this case, $750,000—to cover the outstanding debt plus additional funds for your project....

4 Phases of a Successful Multifamily Building Construction Project

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  Building a multifamily building is an expensive and complex process. So you need to ensure that the construction project goes smoothly without any complications. Since more people are involved in a multifamily home, each has a unique vision and expectations. This guide will discuss the different phases of a successful construction project. Here’s your ultimate checklist. Design and Planning Every construction project requires comprehensive planning, but constructing a multifamily building comes with unique considerations such as site selection, means of transportation, zoning issues, building orientation, and more. Evaluating these factors is just the beginning of the process. Moreover, you need to hire an entire team that works on the design and planning of your project. Materials and Ground Work Required Since construction sites for multifamily buildings are unique, you will likely experience particular challenges. For example, the site is larger and the materials used are stur...