If you’re looking to acquire commercial real estate (CRE), buying and leasing are two options you can consider: Buying real estate typically requires more cash upfront but it allows you to build equity, has more flexibility in making modifications to the property, and has fewer long-term variable costs. Leasing real estate requires less upfront money,…
Business Financing
7 Best Fix and Flip Loans for 2024
The best fix-and-flip loans typically have repayment terms of two years or less and come with competitive rates. They should also have funding speeds no greater than 30 days. Since the best loan will depend on your specific circumstances, we’ve selected lenders with a wide range of qualification requirements and loan terms. Here are the…
What Is Liquidity Risk & How It Can Affect Your Business
Liquidity risk is a company’s ability to meet its short-term debt obligations. It is generally lower when you can convert assets into cash quickly and is typically higher if that is a process that will take a longer time. Liquidity risk for business owners is an important concept to be aware of as it can…
Investment Property Line of Credit: What It Is & How It Is Used
An investment property line of credit is a revolving loan that allows you to draw funds on an as-needed basis. When you make a draw from the credit line, the money can be deposited into your bank account. Popular uses for the funds include paying for property improvements, repairs or other expenses that fix-and-flip or…
7 Best Real Estate Portfolio Lenders for 2024
The best portfolio lenders can offer financing for real estate with low rates and flexible qualification requirements. They should also have multiple loan programs, such as bridge loans, construction financing, and rehab loans. Although portfolio loans tend to have higher rates than traditional financing options, they can be a good fit for borrowers who are…
Balloon Mortgage Calculator
A balloon mortgage is a type of loan that requires a final lump-sum payment to be made at the end of the financing term. By comparison, fully amortized loans do not require this lump-sum balloon payment as the balance is typically paid in equal installments over a period. Balloon mortgages, however, typically have lower monthly…
9 Best Hotel Loans for Small Businesses
The best hotel financing options will have a combination of low rates, flexible loan terms, easy qualification requirements, and excellent customer service. Funds from the best hotel loans can be used to cover different types of expenses. Some examples of this can include the purchase or renovation of a building, expenses associated with acquiring business…
What Is the Loan-to-Cost Ratio: Formula & How to Calculate
The loan-to-cost ratio (LTC ratio), is calculated by taking the loan amount of a commercial mortgage and dividing it by the property’s total project costs. Project costs can include things like the purchase price, renovation costs, construction costs, and other related expenses incurred as a part of completing the improvements or repairs. The LTC ratio…