All Forum Posts by: Karen Schimpf

A HUGE Opportunity for Small Businesses!

Starting June 24th the SBA will begin to take applications for the new 504 Refinance Program. The program will allow small businesses that own their properties to refinance with low fixed rates in the 4's and pull cash out up to 75% for business purposes. The true benefit will be in the amortization that will amortize these loans over a 20-23 year blended term!

Give me a CALL TODAY to get your deals closed at 512-650-8630

Let me give you an example. John bought the property his business is in 10 years ago for $800,000. At the time, he put down 25% and took out a $600,000 loan at 5.5% with a 20 year amortization from a local bank. His current payment is $4127 a month. After 10 years he still owes $450,000. His business has done well but even though his sales have stayed up, he is netting less than before as inflation and competition have eaten at his profits. Over the years, he had to borrower on various loans and credit cards to purchase business assets or meet cash flow needs. Let's say he owes $100,000 on various lines and cards and his payments on these various lines are roughly $2000 a month. John's debt looks like this...

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$450,000 mortgage loan

$100,000 business debt

$550,000 total debt. And his payments on that debt equal $6,127.

Today, his building has appreciated and is worth $1,000,000. The 504 Refinance allows cash out up to 25% of the value of the building for business debt and even upcoming debts for the next 18 months like unpaid payables, payroll, etc. We could refinance him and have it look like this:

$450,000 Mortgage payoff

+$100,000 business debt

+$150,000 working capital, cash for business use

$700,000 new mortgage.

This debt would be a $400,000 first and a $300,000 second from the SBA. The blended rate on the two loans would be roughly 4.6% and the blended amortization would be 23 years.

Give me a CALL TODAY at 512-650-8630

HIS NEW PAYMENT FOR THE 504 REFINANCE OF BOTH THE FIRST AND THE SECOND WILL ONLY BE $4157! Not only would he save almost $2000 a month-a huge savings for a small business, he would get $150,000 in cash to use for his business-essentially free of payments! WOW!

There is not enough space in this column to share all the nuances of the program and refinances of just mortgage debt and closing costs can go all the way up to 90%! EVEN ON HOTELS AND SPECIAL USE PROPERTIES!

Please note SBA does not lend on investment properties.

Wishing you the Best,

Karen Schimpf

Commercial Capital, Ltd.
p: 512-650-8630
e: KarenSchimpf at gmail.com

www.linkedin.com/in/karenschimpf/
blog: http://bizloansconnections.com/
website: http://applycommercialloans.com

$2,190,500 Retail Shopping Center Purchase.....

Location: Fairburn, GA

Type - This purchase was shunned by most of the regional and national players because the population of this city is only 12,000. It was on the south side of Atlanta, south of the airport. This is typically considered less desirable than the north side. Local banks were shying away because the borrower was from another state, (more on that below). But this 100% leased shopping center was in a great area of town-the area with the most activity. It was well positioned and had a good tenant mix although mostly local. I found a credit union to take the time to drive the property and the area. They decided to do the loan at 75% LTV. The borrower got long term fixed rates in the 4's. They were very happy!

What is Closing Now: Investor Loans

Here is a look at some recent closings within the last 30 days. I like to post these every month or two to just give you a feel for some of the things that are happening in Commercial. The investor marketplace is particularly hot right now-it is a very active market for apartment, industrial and retail buildings. Three (3) of our closings in the last 30 days were investor deals. Often, these deals have some hair on them that causes other banks to struggle but, we have the resources to get it done for you. If you need a loan closed, if actually getting the money is the most important thing to you...give me a call! I will screen the deal and pre-underwrite it for FREE. We are the only no-risk option in commercial. Now on to a closing......

Give me a CALL TODAY at 512-650-8630

Location: Peachtree City, GA

Type - This deal posed a problem for the local banks because the borrowers were from another state. Most banks struggle with out of state borrowers regardless of how strong they are. We never have a problem with that. We have a plethora of resources who do not care about the location of the borrower as long as the property is sound and, the deal makes sense. This borrower got a 4.25% fixed rate with a 25 year amortization. They got 75% financing. The main borrower actually lived in Israel and flew in for the closing. We can do Foreign National financing as well!

Give me a CALL TODAY at 512-650-8630

We continue to close 80% of the term sheets we issue and in almost all cases, those loans were denied by other banks and institutions before coming to us. So we can get it done for you. If you need a loan closed, if actually getting the money is the most important thing to you...give me a call! I will screen the deal and pre-underwrite it for FREE. We are the only no-risk option in commercial. Give me a call today at 512-650-8630. Now on to some closings......

Give me a CALL TODAY to get your deals closed at 512-650-8630

$800,000 Purchase of Two Existing Firehouse Subs Locations
Location: Las Vegas

Type - This is the second deal in 2015 where we financed the purchase of two (2) Firehouse Subs at the same time. This one was done with JUST 10% down. One of the two locations had less than 2 years track record and that caused most all the lenders to require 20% down from the borrower. But we have some of the most expansive franchise financing options available and was able to place him with an aggressive lender out of Tennessee that was expanding nationwide and loved the Firehouse brand. We were able to get it closed with only 10% down. By having access to hundreds of lenders, and knowing them intimately, we can place the borrower with the bank that is most likely to say yes.

Give me a CALL TODAY at 512-650-8630

$560,000 Pizza/Gas Station Refinance of a Private Money Loan....
Location: Delaware

Type - This borrower bought the property 2 years ago with a private money loan because he could not qualify for SBA at the time. (I did that loan for him with our own in-house private money as well!). We then took him and refinanced him into an SBA loan with great rates in the 5's. His past credit history, the type of property and marginal cash flow caused no less than five (5) lenders to tell him... no! I played up the low LTV (property was worth $950,000 a 59% LTV which is VERY low for an SBA 7A loan) and I took the deal to a lender that loves collateral, was ok with the property type and got it closed. A true case of a borrower not giving up and, a broker who knows all the lenders from around the country and bringing all that knowledge to your local marketplace.

Give me a call today to discuss your deal at 512-650-8630

Wishing You the Best,
Karen Schimpf

Commercial Capital LTD
p: 512-650-8630
c: 512-354-5949
e: KarenSchimpf at gmail.com

P.S. Don't forget about our PRIVATE MONEY LOANS:

Sometimes loans can NOT get done conventionally or through SBA.  Whether it is because they have to close in 2 weeks, the credit is horrible or some other factor, sometimes no bank will touch a loan.  In those cases, private money may be an option.  We have our OWN private money and we have a lot of money to lend.  We accept bank ordered appraisals if they are recently done and in those cases we can close lightning quick, we actually closed a loan once in 5 days! Although 3 weeks is more the norm.  We will do loans as small as $100,000 and as large as $1.5 million. We have lender partners that can close loans up to $50,000,000! When speed is needed and certainty of funding matters, we are the BEST option available--so call today for a free prequalification or to discuss options that my be available to you at 512-650-8630.

@Account Closed  You are welcome.

@Account Closed I agree with @Mark Mosch, multi-family is not that simple. My question to you is...are you going to have a mortgage on this property? I lot of people forget that part of the equation when they are trying to determine if the property cash flow. If you are going to have a loan, the will property cash flow after you make your mortgage payment...ie debt service the mortgage loan? I can tell how a lender will look at it from a commercial perspective when it comes to debt servicing a 5+unit property. Use the annual NOI divided by the annual PITI payment and annual property expenses (don't forget to us 5% minimum of EGI Property Management Fee and 5% Vacancy as part of the expenses) = 1.25 or BETTER..... than the multifamily not only debt services but cash flows.

@DG H., I agree with @Fred Heller, you need a Commercial Realtor to represent you.  Commercial is very different from residential.  If you need a Commercial Realtor let me know and I will forward a couple of names to you.

When you have found a property, I also suggest you submit your deal for a pre-approval right away so that you can confirm the property will debt service a mortgage.  The pre-approval not only tell you if the property can cashflow with a mortgage but it will also give you an idea of the rate, term and your payment.  Commercial typically takes anywhere from 60 to 90 days to close and that is pushing hard since lenders are busy right now.

@Sareh Yegh  I know of an Real Estate Attorney and a note servicing company in Austin.  Either they can help you or they can refer an attorney in Houston.  I will connect with you so I can forward you the information.

@Joseph King there is one point bank fee.

@Dean Weltman  The property would have to be very close to Dallas and it would depend if loan committee likes the property.