Texas Commercial Loans

1031 Exchange Loan Rules 1031 Exchange loan rules unnecessary cause a lot of confusion. People who are unfamiliar with the process usually have misconceptions about what it is and what it isn’t. That’s a real shame, because this simple tax law is great for real estate property investors. If you’ve not heard of a 1031 exchange or have encountered the term, you probably have a few questions. So, let’s look at the basics of 1031 exchange rules. 1031 Exchange Loan Rules Okay, so a 1031 exchange gets its name from the United States tax code. Most of us are familiar with other provisions, like the 401(k) or 403(b) -- both of which relate to retirement investing. But, a 1031 exchange is all about real estate. And, it provides some great benefits to property owners. Also called a like-kind exchange, this procedure is used for its big time tax advantage and other benefits. However, there is often confusion about how it actually works. The purpose of a 1031 exchange is to “s...

What is a Hard Money Loan for Real Estate?  There are many types of financing options available for residential real estate transactions. But, the choices narrow considerably when it comes to multifamily and commercial properties. That’s simply because these parcels and improvements cost a lot more. And, the more money loaned, the bigger the risk. So, there are fewer financing options available to investors and business owners. However, there is one alternative which offers some key benefits -- they’re known as hard money loans. What is a Hard Money Loan for Real Estate? If you’re new to hard money loans or haven’t heard the term before, you might wonder exactly what these are and how they work. Well, put in a straightforward way, hard money loans provide financing from a group of individual investors or an enterprise entity. In other words, people put their cash in a fund to loan out. This gives investment property buyers and business owners access to funding without having to...

Benefits of Getting Multi Family Hard Money Loans,  Hard money loans are a great resource to finance a multifamily purchase. But, since commercial real estate investing isn’t as prevalently covered and explained by news media, they are not widely understood. Hard money loans remain somewhat a mystery to many people. And, even those who have experience in the traditional, residential real estate market, might not know much about hard money loans. Benefits of Getting Multi Family Hard Money Loans, Explained So, exactly what are hard money loans? And what advantages do hard money loans provide those seeking to finance for a multi-family property? Well, hard money loans differ from traditional mortgage debt instruments in various ways. You’re probably familiar with how traditional, conforming, fixed-rate mortgages work. You apply, get a pre-qualification, a cursory look at your finances. Then you receive a pre-approval, a more in-depth look, to provide you with a loan amount. F...

What’s Involved in Getting a Hard Money Loan Hard money loans are a way to finance a real estate deal. Trouble is, too many people don’t know what this financing is or what’s involved. It’s a strange sounding term but its effectiveness is something that makes it a great resource. Like all things in life, there are pros and cons to hard money loans. But, these can serve as a valuable tool, particularly when understood. What’s Involved in Getting a Hard Money Loan You already know what a mortgage is and probably know there’s also a commercial counterpart for buying different kinds of real estate. But, commercial real estate loans or even loans to purchase multi-family housing are difficult to obtain. The reason for this is because the property in the transaction isn’t a primary residence. And, it’s also occupied by renters or lessees. So, there is a lot more risk to lenders. Moreover, these properties are a lot more expensive and that also adds greatly to lenders’ exposu...

Retirement tips! Were your parents able to retire comfortably? How did they take care of all their planning? Have you learned from their experience? You need to make certain that you have developed a plan that will benefit you after retirement. Start a savings account while you're young, and contribute to it regularly throughout life. Even if you start small, you can save today. Save as much as you can throughout your working life. Saving money in an account that pays interest will result in your balance grows over time. Think about taking a partial retirement. If you would like to retire, but cannot afford to yet, partial retirement may be a consideration. This could take the form of keeping your current career, but only part-time. This allows you more leisure time while you continue earning money. You can always take full retirement later on. If your employer matches your contributions, put as much money into your investments as you can. You can put away money before tax ...

Commercial Real Estate Closing Tips Per Bruce Myles, owner and founder of Proactive Commercial Lending Group, LLC,"a Texas Commercial Lender,"Commercial real estate greatly differs from residential. First of all, it’s not just a transaction between a single buyer and seller, rather, between several parties. And, it also involves several parties, some of which don’t have any real legal interest in the deal. It’s best to be in the know to buy or sell commercial property and to be prepared for the closing. Commercial Real Estate Closing Tips When you are involved in a commercial real estate transaction, you won’t be the only party. Not only will there be a seller, but other people (for instance, tenants). Not to mention attorneys, a title company, and more actors. All of these and more parties will play a role in a commercial sale.   Therefore, you should have an actionable plan or it can quickly become a chaotic situation. Knowing zoning requirements, utilities...

How do Construction Loans Work? If you’re interested in building your own property, be it residential or commercial, you’ll no doubt wonder how to obtain financing for this real estate endeavor. The fact of the matter is, when you build, it means having to work with a variety of people to get from concept to completion. Even when financing a traditional single family home, that’s also the case, it just isn’t as complex as commercial construction loans. Either way, there’s often a lot of confusion surrounding both residential and commercial construction loans. So, let’s look into what’s actually involved. How do Construction Loans Work? Many people wonder how construction loans work. This is because the vast majority of those entering the market do so as buyers -- not developers. But, there is a niche in new construction as it provides many solutions resales cannot.  For instance, a resale might need significant repairs and improvements to be suitable for their future...