One of our primary goals is to work with you as a business owner or real estate investor in the successful funding of your Commercial Business or Real Estate projects. We do this by working together to establish what would be the best overall programs that would best fit your goals and objectives.

Commercial Business Financing

The best business financing program is generally going to be the one that assists you in improving your overall business profit margins. And to increase your business profit margins you have several basic options. One decision could be to reduce your business overhead expenses. A second choice could involve speeding up the turnover of your account receivables, and then of course collecting them.

Along with this the efficient use of leverage from equity investors or borrowed funds could be part of a successful business strategy to improve your cash flow and the Return on Investment (ROI) on your business assets.

Commercial Real Estate Financing

Should you be relatively new to commercial real estate financing it may be appropriate to first have a good understanding of some of the differences between a residential and a commercial mortgage loan. Residential real estate financing uses a Debt-to-Income (DTI) formula while commercial real estate is all about the use a of Debt Service Coverage Ratio (DSCR) formula to qualify for a loan. What this means is that if you are going to be a commercial real estate borrower it will be of value to be able to calculate and know what your Return-on-Investment (ROI) will be when making a purchase or refinancing a piece of property.

The cash flow generated from a commercial real estate property will be one of the factor's that will assist you in determining both the value of the property a well as its future ROI which you could be receiving as a property owner or investor.

When purchasing or refinancing a commercial property one of the first things you may wish to do as an investor is to is make sure that you have a clear idea for the use of the property.

Some questions you may want to ask yourself could include: 

• What type of property do you have or plan to be acquiring?
• How will the property be used to help generate or improve your cash flow or to achieve other financial goals and objectives?
• How long do you plan to hold it?
• Have you set up or plan to use any tax-advantaged exit strategy?
• Do you plan on being a hand's on owner-tenant, and actively manage the property yourself or just be a passive owner/investor?

After you have established the market need and use for the property as a business asset, the next step would be to analyze both its current and future future cash flow from which the ROI will be generated. And we are available to work with you in calculating how much you may be able to improve it's ROI with the appropriate use of leverage such as borrowed capital to finance your acquisition or refinance.

The type and the amount of a commercial mortgage loan you should be able to qualify for will be based on a number factors. This can include such items as your business and personal credit history, your net worth or financial strength, the type of property and it's overall condition, it's cash flow, the geographical location of the property as well as the general economic outlook of the local market.

Would you believe that one of the first questions I often get from investor's is "what is the interest rate?" Now we understand that the interest rate can be an important component of the cost of borrowing money. But the interest rate on your mortgage loan is going to be based on such factors as the properties geographic location, it's condition and use, the proforma or projected future income, the loan-to-value (LTV) ratio, your credit history as well as any other risk components of the property. And before I can provide you with a valid quote we need to work together to put together a suitable package for the lender or investor to underwrite. What all of this means is that the final rate and terms you receive will be to a large extent be based on you and the cash flow from the property.

In addition to the interest rate there are other factors you probably should be considering if your goal is to obtain the best overall financial package and (ROI) return on your property as an investment. For example, the terms of a mortgage loan can be just as important as the interest rate. Pre-payment privileges (penalties) could also affect the overall cost of your mortgage should you later wish to sell or refinance the property. And it may be wise to carefully review all loan covenants that a lender may require as part of the mortgage.

Residential brokers can get you rate quotes and financing decisions based primarily on your personal credit score. But this will not be the normal case with commercial lending. Determining the best overall loan appropriate for the ROI that you want or need will require a broad set of data in order for you to make an informed investment decision.

Now with this understanding can we agree that commercial real estate lending is a little different from residential lending. This is one reason why we need to work together so that we can provide a package to the underwriter that will serve both you and the lender.

So go ahead and look around and get a feel for what we do. We are available to discuss your funding needs as well as work together to determine what programs may work best for you.

Should you have some thoughts, comments or questions feel free to contact me or you can go ahead and fill out the 'Got a Question' form at the bottom of the page.

George Zimmerman