Lately, I have spent a lot of time with some of the Twin Cities MN community banks trying to help them either find a way to complete construction of unfinished projects they took back or help them find buyers for these new construction rehab projects. It has been tougher than I suspected.
The banks have the ability, even though construction is not the business of the bank, to finish these projects and sell whole homes. There are a lot of investors out there that do not realize this is actually an option for the bank.
There are also banks I have spoke with lately that do not want to complete the projects but do not want to sell low enough that investors can make a profit. There is a happy medium and I believe it can be met if both investor and bank apply logic to the situation.
It is amazing that in many cases both are to stubborn to do so.
I am glad to see some banks I would have bet on being closed by now heading into the New Year ready to lend again.
There are great opportunities for banks and rehab investors.
Now all we need to do is get the word out about the great rehab finance options and get more banks on board to do them.
Dax Dickson
612-578-9898
Friday, December 11, 2009
Tuesday, November 10, 2009
Favorite Quote!!! "On Creativity"
On Creativity
The man who follows the crowd
will usually get no further than the crowd;
The man who walks alone is likely to find himself
in places no one has ever been before.
Creativity in living is not without its attendant difficulties,
for peculiarity breeds contempt
and the unfortunate thing about being ahead of your time
is that when people finally realize you were right,
they'll say it was obvious all along.
You have two choices in life:
You can dissolve into the mainstream or you can be distinct.
To be distinct, you must be different.
To be different, you must strive to be
what no one else but you can be.
Anonymous
The man who follows the crowd
will usually get no further than the crowd;
The man who walks alone is likely to find himself
in places no one has ever been before.
Creativity in living is not without its attendant difficulties,
for peculiarity breeds contempt
and the unfortunate thing about being ahead of your time
is that when people finally realize you were right,
they'll say it was obvious all along.
You have two choices in life:
You can dissolve into the mainstream or you can be distinct.
To be distinct, you must be different.
To be different, you must strive to be
what no one else but you can be.
Anonymous
Sunday, October 4, 2009
Apartment Mortgage Loan Financing
Apartment Mortgage Loan Financing
Here in the Minneapolis and St Paul Metro area community and national banks love apartment buildings and they consider them a great asset. What you have been hearing on the news, "With the current credit crisis there is no money to lend" is not true. For those experienced investors there is an abundance of money to lend to qualified, experienced real estate investors.
If you need:
- Refinance loans on currently owned apartment buildings
- Construction financing to either build new or rehab existing apartment buildings
- Purchase mortgage to buy a cash flowing apartment building
In the Minneapolis or St Paul, MN metro area there are plenty of banks to work with.
We can help you or your client analyze the debt service coverage (DSCR) or cash flow of an existing or new apartment complex. Our team can also help direct you to the national or community lender that can fund this deal and make it reality.
If you need additional information about apartment consulting or loan financing feel free to contact our team!
Dax Dickson
The Commercial Finance Store
Located in St Paul, MN
Serving the Minneapolis and St Paul, MN Metro area!
612-578-9898
Here in the Minneapolis and St Paul Metro area community and national banks love apartment buildings and they consider them a great asset. What you have been hearing on the news, "With the current credit crisis there is no money to lend" is not true. For those experienced investors there is an abundance of money to lend to qualified, experienced real estate investors.
If you need:
- Refinance loans on currently owned apartment buildings
- Construction financing to either build new or rehab existing apartment buildings
- Purchase mortgage to buy a cash flowing apartment building
In the Minneapolis or St Paul, MN metro area there are plenty of banks to work with.
We can help you or your client analyze the debt service coverage (DSCR) or cash flow of an existing or new apartment complex. Our team can also help direct you to the national or community lender that can fund this deal and make it reality.
If you need additional information about apartment consulting or loan financing feel free to contact our team!
Dax Dickson
The Commercial Finance Store
Located in St Paul, MN
Serving the Minneapolis and St Paul, MN Metro area!
612-578-9898
There is money
So many people think that this credit crisis is making it impossible to get financing loans for rehab construction projects, business loans and aparment or income property mortgages.
This is not the case.
There is plenty of money for qualified borrowers in the Minneapolis or St Paul, MN metro area.
If you are buying or refinancing:
- Bank owned homes
- Apartments or other income properties
- Industrial or hospitality property
We can help! There is plenty of loans for qualified real estate and borrowers!
Dax Dickson
612-578-9898
This is not the case.
There is plenty of money for qualified borrowers in the Minneapolis or St Paul, MN metro area.
If you are buying or refinancing:
- Bank owned homes
- Apartments or other income properties
- Industrial or hospitality property
We can help! There is plenty of loans for qualified real estate and borrowers!
Dax Dickson
612-578-9898
Minneapolis Bank Owned Rehab Market
Minneapolis Bank Owned Rehab Market
Here is the Minneapolis metro area there are more deals than money. This is the absolute truth!
The biggest problem I have is finding qualified investors to work with. The rehab construction loans are available to those who qualify. These loans are easy to get for the investors that really intend on buying ten plus bank owned rehab properties in Minneapolis or St Paul, MN metro area.
If you are an agent or investor struggling to find the financing to buy, fix and either sell or rent these great bank owned rehab properties in the Twin Cities, MN metro we need to talk.
Looking forward to hearing from you!
Located in St Paul MN
Serving the Minneapolis and St Paul, MN Metro Area
612-578-9898
Sunday, September 27, 2009
New Team Member!!!
I am proud to Present Tim Jochim as the newest member of The Commercial Finance Store!
Tim comes to us with years of finance experience. He will be taking over the Rehab Construction Financing and Consulting.
Below is the program Tim is now in charge of.
LIST OF ITEMS REQUIRED TO UNDERWRITE A REHAB CONSTRUCTION LOAN
Required Documentation:
- A PERSONAL FINANCIAL STATEMENT (PFS) FOR EACH PARTNER with an interest of 20% or more.
- BANK STATEMENTS and ASSET STATEMENTS for any and all accounts listed on the PFS
- LAST 3 YEARS’ TAX RETURNS (business & personal) for each partner with an interest of 20% or more in the project.
- COPY OF FULLY EXECUTED PURCHASE CONTRACT.
- SWORN CONSTRUCTION STATEMENT including hard and soft costs.
- BACKGROUND/BIO ON EACH PARTNER emphasizing development/construction/renovation/real estate experience and past projects successfully completed.
- Copy of your credit report if available.
General Loan Requirements:
1.) Minimum 660 FICO score
2.)If rental, minimum 1.25 Debt Service Coverage Ratio (DSCR)
* If using DTI, maximum of 45%
* Can blend with global calculation
**If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank
3.) Six months reserves
4.) Purchase plus construction = X, Loan amount = 80% of X
*** The documents listed above are the documents we require to evaluate the borrower and issue a pre-approval. Every deal is different so the bank may require some additional documentation or clarification. ***
If you would like to learn more please contact:
Tim Jochim
The Commercial Finance Store
Rehab Construction Specialist
612-702-1111
timjochim@comcast.net
Tim comes to us with years of finance experience. He will be taking over the Rehab Construction Financing and Consulting.
Below is the program Tim is now in charge of.
LIST OF ITEMS REQUIRED TO UNDERWRITE A REHAB CONSTRUCTION LOAN
Required Documentation:
- A PERSONAL FINANCIAL STATEMENT (PFS) FOR EACH PARTNER with an interest of 20% or more.
- BANK STATEMENTS and ASSET STATEMENTS for any and all accounts listed on the PFS
- LAST 3 YEARS’ TAX RETURNS (business & personal) for each partner with an interest of 20% or more in the project.
- COPY OF FULLY EXECUTED PURCHASE CONTRACT.
- SWORN CONSTRUCTION STATEMENT including hard and soft costs.
- BACKGROUND/BIO ON EACH PARTNER emphasizing development/construction/renovation/real estate experience and past projects successfully completed.
- Copy of your credit report if available.
General Loan Requirements:
1.) Minimum 660 FICO score
2.)If rental, minimum 1.25 Debt Service Coverage Ratio (DSCR)
* If using DTI, maximum of 45%
* Can blend with global calculation
**If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank
3.) Six months reserves
4.) Purchase plus construction = X, Loan amount = 80% of X
*** The documents listed above are the documents we require to evaluate the borrower and issue a pre-approval. Every deal is different so the bank may require some additional documentation or clarification. ***
If you would like to learn more please contact:
Tim Jochim
The Commercial Finance Store
Rehab Construction Specialist
612-702-1111
timjochim@comcast.net
Small Business Loans
SBA
You can use an SBA loan to refinance business debt resulting in a longer term and lower payments!!! Interest rates are at an all time low, and the program fee is currently waived !!!
The SBA recently made refinancing of commercial debt much easier by lifting many of the old restrictions on taking out existing debt. SBA loans of up to $2,000,000 can be used to refinance equipment (10 years), leases (10 years), real estate (25 years), inventory (up to 10 years) and even working capital (up to 10 years).
Whether you want to free up more cash to fuel growth or just need a little more breathing room, an SBA refinancing may be your answer. We can refinance the following types of business loans:
•Long term debt structured with a demand note or balloon payment;
•Debt with an interest rate that exceeds the SBA maximum interest rate for the processing method being used
•Credit card debt – if it can be shown the card was for business use only
•Debt that is over-collateralized based on SBA’s collateral requirements
•Revolving lines of credit (short term or long term) where the original lender is unwilling to renew the line or the applicant is restructuring its financing in order to obtain a lower interest rate or longer term;
•Debt with maturity that was not appropriate for the purpose of the financing (e.g., a 3 year term loan to finance a piece of equipment with a useful life of 15 years); and
Call us for more info at 612-578-9898
You can use an SBA loan to refinance business debt resulting in a longer term and lower payments!!! Interest rates are at an all time low, and the program fee is currently waived !!!
The SBA recently made refinancing of commercial debt much easier by lifting many of the old restrictions on taking out existing debt. SBA loans of up to $2,000,000 can be used to refinance equipment (10 years), leases (10 years), real estate (25 years), inventory (up to 10 years) and even working capital (up to 10 years).
Whether you want to free up more cash to fuel growth or just need a little more breathing room, an SBA refinancing may be your answer. We can refinance the following types of business loans:
•Long term debt structured with a demand note or balloon payment;
•Debt with an interest rate that exceeds the SBA maximum interest rate for the processing method being used
•Credit card debt – if it can be shown the card was for business use only
•Debt that is over-collateralized based on SBA’s collateral requirements
•Revolving lines of credit (short term or long term) where the original lender is unwilling to renew the line or the applicant is restructuring its financing in order to obtain a lower interest rate or longer term;
•Debt with maturity that was not appropriate for the purpose of the financing (e.g., a 3 year term loan to finance a piece of equipment with a useful life of 15 years); and
Call us for more info at 612-578-9898
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