Secured Business Loans – How To Ensure Low Rate
Repayment of the borrowed amount ranges conveniently in 5 to 30 years. But you should not carry the loan repayment for larger duration as it will make you pay high overall interest payments.
Because of the wide range of commercial property types, you will need to find out if that broker has the experience and contacts to close your particular loan in a timely manner. Many good brokers specialize. Look for a broker that specializes in the type of investment property you prefer. If you like apartment complexes, find a broker that specializes in apartment complexes. Think of it like looking for a doctor. When you have a problem with your foot you don’t just look for any doctor. You look for a Podiatrist, not a Heart Surgeon. A good broker should have “been there done that”. You are paying for expertise. Make sure they have it.
Rentals are a haphazard way of making money as an Agent. You have to rent a large number of apartments, houses and condominiums to make a decent buck. Even after you do start to see leases signed, the properties that pay your Broker tend to hold back the commission for extended periods of time just in case the tenants bug out of their lease. Most Brokers add two to six weeks on to that hold before they release your money. Whether any of this is legal or not doesn’t seem to matter. It’s just the way things are done. When rental agents finally do get paid, it always seems to be less then expected. That’s because your beloved Broker probably forgot to explain the extra fees charged for office space, phone use, website and email sharing, lead generation and advertising.
Make sure you have the money if you are going to invest. You will need enough to cover a down payment, closing costs, points and earnest money. When dealing in commercial real estate, it is much nicer if you will not do it all alone. Properties valued highly fall outside the investment range of most individuals, but if you partner up with a few others, a group investment becomes possible. Besides, the more folks there are in your network, the more likely it is you will hear of a deal before it gets listed.
My article is geared towards existing business owners who plan to be in business for the next five to ten years. Prices are low and there are many amazing buying opportunities AND Rates are at a 40 year low. If you have been reading and watching the news lately, you know the government wants banks to lend. The Obama Administration even temporarily eliminated the SBA guarantee fees to make borrowing even easier for business owners.
Buy better – Work with your suppliers to obtain lower costs. Consolidating suppliers could give you some bargaining power and simplify the buying process. More Profit.
Client contact, inspections, and negotiation during a listing and marketing process should be comprehensive and complete. Put the client into your efforts so they know what you are doing and why.
Employees – It is hard to let go of any employee. You have invested time and resources in them. However, the time is now to cut the unproductive part of your wage expense. Review each employee and ask yourself this question: is this person good for my company? If the answer is yes, hold on to them. If the answer is no, get rid of them now.