real estate investors

Podcast: Download (Duration: 7:40 — 7.5MB)

In this episode, we take a deep dive into the importance of having an updated PFS (Personal Financial Statement) , along with a detailed schedule of real estate owned when buying a business or commercial real estate.

Most SBA Loan Programs—including the 7(a) loan and 504/CDC loan, two of the agency’s most popular loan programs, require that you complete SBA Form 413 as part of your application.

Additionally, depending on your business entity, the following individuals will also need to fill out and submit their own versions of the SBA personal financial statement:

• Each proprietor
• Each limited partner with 20% or more interest and each general partner
• Each stockholder owning 20% or more of voting stock
• Any guarantor of the loan

It’s important to note that if you’re married and file a joint tax return, your spouse will need to be included on SBA Form 413. Similarly, any applicable spouse from the list above will also need to sign off on their versions of Form 413.

Podcast: Download (Duration: 9:52 — 9.6MB)

Take advantage of our many loan opportunities to and expand your small business.

SBA financing provides small business financing for working capital, commercial real estate, ground-up construction, equipment, inventory, business acquisition, and debt refinance. We lend nationwide.

General overview of programs uses:

Purpose:

Working capital, refinance, business acquisition, R/E purchase/construction, purchase equipment, or inventory

Loan Amounts:

$350,001 to $5,000,000

Collateral:

Commercial R/E, inventory, FF&E (furniture, fixtures, and equipment)

Term:

Varies, up to 25 years

Rate:

Fixed or variable rate

Eligibility:

Owner-operated and for-profit

LTV:

Varies, up to 90%

What Is the Purpose of SBA Franchise Loans?

The Small Business Administration (SBA) was created in 1953 to help small businesses secure the “capital, contracts, and counseling” that they need to become financially viable. Naturally, a significant portion of what the SBA does is provide prospective new businesses with purpose-driven loans.

The SBA has partnerships with numerous banks and lenders in all 50 states. As a franchise business owner, you can use an SBA loan to build a financial foundation for your new business. Or you can use it to grow your operations and manage short-term expenses. This may include paying franchise fees, opening an additional location, resolving cash flow issues, or even paying for commercial real estate.

Podcast: Download (Duration: 5:51 — 5.8MB)

In this episode, we discuss a recently-closed bridge loan. The sponsor had a 19-unit multifamily property in contract. He was new to the multifamily game and needed some help.

Listen/watch this episode to get some ideas on what type of financing is out there for multifamily properties.

Podcast: Download (Duration: 7:13 — 7.1MB)

In this episode we discuss the different multifamily loan programs. We talk about prepay penalties, leverage, sponsor qualification and much more. Feel free to schedule a call with Beau to discuss the options available and additional lending questions you might have. Please visit https://beaueckstein.com/ .

Podcast: Download (Duration: 6:29 — 6.4MB)

Why a Bridge Loan?

There are several reasons a borrower might look to a bridge loan, from the need to close a deal in a short period of time to a desire to take advantage of a limited-time business opportunity. Working capital can be an issue at this level, and there are some situations where reputable borrowers might nonetheless fail to qualify for a traditional institutional commercial loan. A bridge loan is also commonly used because the property itself is not stabilized. There is a value-add component to the deal itself. Once stabilized the property can be refinanced at the new “stabilized value” allowing the sponsor to pay back investors and roll that equity into the next deal.