Christopher Hills, Managing Dir. Commercial Lending

The practice of due diligence fees in the commercial lending has caused many problems in today’s landscape. Many Brokers/lenders will tell you that need to collect up front so make sure they get paid, others want to collect to make sure the client doesn’t go some where else.

In my opinion if you are taken a client’s money, you better be able to perform. There is no reason for you to collect any money before an LOI has been presented, and it should only before the hard cost that the lender will incur such has an Appraisal, environmental studies, or other items.

Most of these so-called lenders are putting the cart before the horse; they want their profit before they do their job. In how many business do they collect their pay be before they deliver. We are suppose to be professionals and to many people in our field act like they are used car salesmen.

We need to start acting like consultants, and start putting the clients interests ahead of our own. This is why we are in the economic mess that we are in. Don’t get me wrong I am all for making money, but would we not make more money in the long run if did things right.

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We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinancial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

Talking About Government Loans!

Regardless of political affiliation or how you feel about the government, there is one thing that is very helpful in commercial today, government-backed loans. Because the government is backing them, money is readily available on these types of deals all day. In past newsletters, we have explored SBA loans. But I want to talk today about a much lesser known loan, a USDA loan.

These loans can be used for owner-occupied businesses, like the SBA loan, but can also be used for INVESTOR PROPERTIES! They can go all the way up to $10 Million – much higher than SBA. And they require a lot less down, typically 10%-20%, much less than most banks will lend on – especially on investor deals. And these can be used for construction as well. The key is that they must be in rural areas which is defined by a population of less than 50,000 people in that city. Many lenders won’t lend in towns of less than 50,000 people so this loan program really fills a gap. And with so many banks no longer doing construction loans, this product is HOT. If what you are building will create jobs; it is even better.

For example, say you want to build a hotel in a city that is near a major metro area but only has a population of 30,000 people. This describes a tremendous amount of cities across America – including the city I live in. If that loan size is $7 Million or so you are going to be stuck. SBA only goes to $5 Million, and the big construction money only wants to look at hotels over $10 Million. But the USDA loan can fill the gap and you will not have to put down 35% either! Rates will usually be tied to prime on an adjustable but that puts you in the 5-6% range right now and fixed rates may be available on extremely strong deals. Because it is a government-backed loan, it does take longer to close but this loan WILL get you closed and with a lot less down than a conventional loan. Hey, you can do investor hotels on this deal! We have a loan that just got approved on this program for a saw mill refinance in Arkansas. That broker had been trying to place that loan for 6 months and we are getting it done! Had terms out in two days and initial approval in less than a week after getting docs! If you have a deal that you think might fit these parameters, give us a call today at 866-926-0576 x 704 .

With all of the deals that I have seen recently. I can tell people are starting to get desperate. They are starting to to take short cuts, instead of doing things the right way. We need to have good executive summaries. They need to have some thought put into them. Here is a look at how to write an executive summary.

I am also starting to see very hold financial statements. If you are going to submit a loan to be underwriting please don't try to pass off a year old financial statement. All it does is cause the process to slow down.

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We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinancial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

In-Vision Financial Holdings merchant cash advance program gives clients the opportunity to get the money they need to improve their business.

· We Provide Commercial Clients With An Alternative

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· Low Documentation

· Approval and Funding Within 7-10 days

· Over 90% of Applications Approved

____________________________________________________________________________

We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinacial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings