Get help, advice and information on all your Finance issues. http://advice-and.info/Finance/commercial.htm Mon, 04 Aug 2008 15:35:57 GMT en Getting a commercial loan for an apartment building is considered one of the easier loans to get with respect to other investment properties. This is due to the fact that commercial lenders focus primarily on the subject property as the repayment source with the borrower being a secondary repayment source. As apartment buildings have historically been a very stable asset class, they typically can get some of the best lending terms. Many property investors focus on single family homes, rather than apartment complexes, because it is often easier to manage. Financing can be difficult to obtain from the commercial lenders for single family homes, and it can be difficult to get the business off the ground. However, many investors recommend that when borrowing from commercial lenders, you take the focus off yourself, as it is with single family homes, and put it on the property, like an apartment building. Often, even with little capital, a loan will be approved, because of the high return on apartment buil dings, and the low risk from defaulting on a commercial loan. Before you go out and try and purchase an apartment building, you should know what qualifies as an apartment building under commercial loan guidelines. One to four family dwellings are usually not considered commercial loans; this would include duplexes and fourplexes. However, if there are five or more units in the building, this would be considered a commercial loan. Apartment buildings can have tremendous profitability if managed correctly. For example, if you have a gross income of 100,000 from rental income on a building, and you deduct 60,000 for operating expenses and vacancies, you still come away with a 40,000 profit off of it. Dividing by a 7 percent cap rate, will give you an estimated value of the property, which would come close to 570,000. Often commercial lenders will look at statistics, like this, to determine the cash earning potential on apartment complexes. Naturally, it is not hard to see why these types of loans are app http://advice-and.info/Finance/88970_The_Logistics_Of_Obtaining_Commercial_Loans_For_Apartment_Buildings.html Sun, 22 Jun 2008 05:43:18 GMT Getting a commercial mortgage for a hotel property is very similar to getting a commercial mortgage for an owner occupied commercial property with a few subtle differences. The driving force for the majority of most hotel income is the RevPar or revenue per available room. RevPar is most commonly calculated by multiplying a hotels average daily room rate (ADR) by it occupancy rate and is a key indicator of performance. Rising RevPar is an indication that either occupancy is improving; the ADR is increasing, or a combination of the two. Although RevPar only evaluates the strength of room revenue, it is typically the most relevant indicator of performance. While many full service hotels generate revenue through other means such as restaurants, casinos, conferences, spas, or other amenities the majority of hotel properties are either limited service flagged properties or limited service unflagged properties. A limited service hotel is simply a hotel with out a restaurant. Because the operating costs of the r estaurant component generally run higher than that of the hotel operations, it is common for the net operating income (NOI) as a percentage of total sales to be lower for a full service than a limited service hotel. For this reason the majority of commercial lenders prefer to finance limited service hotels. Flagged vs. Unflagged Properties: A flagged hotel property is simply a hotel that belongs to a national franchise. An example of a flagged property would be a Holiday Inn or a Best Western. For the guest, a flagged property provides the benefits of a uniform standard that is upheld by the franchisor. A guest could stay in a flagged property on the east coast and could expect the same flag on the west coast to have the same standard of cleanliness and amenities. The owner of the property gets the benefit of a nationwide reservation system and marketing. For this benefit the operator is expected to pay a franchise fee which can typically range anywhere from 5 to 10 of room revenue. Because of the ad http://advice-and.info/Finance/88791_Commercial_Loan_For_Your_Hotel_Property.html Thu, 19 Jun 2008 11:17:25 GMT Commercial Mortgage Loans are often required for buying the business real estate and commercial properties that can be utilized for commercial shopping centers and malls, industrial and high-rise office buildings, complexes, apartment buildings, factories, hospitals, warehouse, golf courses, hotels, restaurants, gas stations, movie theatres, retail outlets, farms, car washes and other such real estate for businesses. Commercial mortgage loans are to be borrowed by the businesses and not by the individuals and so are secured by the real estate which is not to be considered as a residential property. http://advice-and.info/Finance/84956_Commercial_Mortgage_Loans_For_Your_Properties.html Wed, 16 Apr 2008 00:37:19 GMT Any type of insurance can be found much cheaper online and when looking for commercial vehicle insurance this is no exception. By going with a specialist to cover your commercial vehicle you can make huge savings. The beauty of going with an online specialist is that you are able to gather together quotes from the entire insurance marketplace from just inputting information one time. Looking for and taking out commercial vehicle insurance is different to insuring your car; there are certain aspects that have to be taken into account which should be included in a policy. Of course commercial insurance should also protect against such as damage to the vehicle in an accident and injury to the occupants but as the vehicle is used for business you should also make sure you are covered for other factors as standard. http://advice-and.info/Finance/79699_Commercial_Vehicle_Insurance_Cheaper_Online.html Tue, 26 Feb 2008 16:17:57 GMT There are many advantages to obtaining the help of a commercial mortgage broker. Of course the main reasons are that you will get your mortgage in the shortest time possible along with getting the best deal attainable. While you will have to pay the brokers fees it is still possible to save money on your development project. The biggest advantage when it comes to shaving money off the loan is the fact that a commercial mortgage broker will have the knowledge of where to look when it comes to lenders. From past experience they will know from looking at your proposal which lenders are likely to offer what you want for the cheapest rates of interest. A broker will also if need be, be able to search with the whole of the marketplace to secure the cheapest and best deal possible based on your individual circumstances. http://advice-and.info/Finance/77436_If_You_Want_To_Save_Money_Use_A_Commercial_Mortgage_Broker.html Thu, 07 Feb 2008 13:16:23 GMT