Podcast

Podcast: Download (Duration: 49:43 — 47.3MB)

In this webinar, we covered the following topics:
✅ Recent Closings
✅ Basic questionnaire
✅ Bridge / Renovation loans
✅ Seasoning for cash-out refinancing
✅ Portfolio loan advantages
✅ General underwriting requirements for portfolio loans
✅ Why and when a bank loan might be your best choice
✅ Projection-based portfolio loans for short-term rentals
✅ Blanket loans
✅ Building business credit
✅ Financing furniture & fixtures

We started off with showing recently funded short-term rentals that are sure to earn their owners sizable profits, if not doing so already (some of these were VERY recently funded).

Then we moved on to the kinds of questions a broker or lender may ask you about your short-term rental property to get the loan sizing and terms right.

We covered various loan types, like bridge and renovation loans for STR properties.

Watch the video to learn all about short-term rentals and their financing.

Podcast: Download (Duration: 7:28 — 7.3MB)

You don’t have to have collateral to get an SBA loan. However, the SBA will require the applicant to pledge collateral when it is available to fully secure the loan. If there is not sufficient collateral in the business, the SBA must take available equity in the personal real estate (residential and investment property) of any owners with 20% or more ownership. (An exception is made if there is less than 25% equity in personal real estate.)

SBA 7(a) Small Loans of $25,000 or less do not require collateral.

Personal guarantees are also generally required. An individual who owns 20% or more of the business must provide a full unlimited personal guarantee. (Sometimes referred to as “guaranty.”) And each loan must be guaranteed by at least one individual or entity. Sometimes the SBA may require a personal guarantee from a key person in the business even if they don’t own 20% or more of the business. Spouses may be required to sign a personal guarantee when the combined interest of the two spouses and minor children totals 20% or more. In addition, non-owner spouses will be required to sign off if jointly held collateral (such as home equity) is pledged.

Note that startup businesses (businesses in existence for one year or less) require the small business owner to contribute at least 10 percent of the total project costs. While you may think of this as a down payment, it is officially called an “equity injection.

Podcast: Download (Duration: 7:43 — 8.1MB)

One of the keys to getting your SBA 7a or 504 loan approved is to write a detailed executive summary.

Your executive summary should include a simple and direct cover letter. In it, describe who you are , your business background, what your business does, and how the loan will help the business succeed.

You should also include the following:
Executive Summary. Begin your proposal with a simple and direct cover letter or executive summary. Clearly and briefly describe who you are, your business background, the nature of your business or start-up, and how the loan will be used to help the company succeed.

Business Profile
Management Experience
Loan Request
Loan Repayment
Collateral
Personal Financial Statements
Business Financial Statements
Equity Investment
Projections
Other Items (if applicable)
Lease (or copies of proposal)
Franchise agreement
Purchase agreement
Articles of Incorporation
Partnership agreements
Copies of business licenses and registrations required for you to conduct business
Copies of contracts you have with any third parties

Podcast: Download (Duration: 57:45 — 53.3MB)

We have Carey back on the show and we dive into SBA Financing. Learn the Ins & Outs of the SBA 7a and SBA 504 lending guidelines.

🎁 We cover gift funds

💰 Seller financing

⌚ Timelines

☑ CDC

⚡ 504 Green loan

✅ Submission requirements