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Stonebriar Mortgage

Stonebriar Mortgage

Commercial Refinancing

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Commercial refinancing may seem complicated at first glance. Here at Stonebriar Mortgage, we strive to make it as easy as possible. In this week’s blog post, we are here to help you understand how to make the right choice when you refinance. Refinancing is a crucial step to accomplishing the financial goals of small businesses and real estate investors. Our team is here to discuss commercial mortgage refinancing options and programs available in California and Dallas, Texas.

Using Commercial Refinancing Programs

Many owners face ballooning commercial loan rates, especially after the mortgage crisis earlier this decade. These borrowers are often asked to pay a large sum in a short amount of time. For this reason, they need to refinance quickly or gain fast access to cash. You can even refinance one property to pay off a ballooning rate on another. Obtain a statement from your lender of the ballooning rate and submit it as a deal to broker the best option.

Refinancing Tips and Tricks for Commercial Loans

You will need to demonstrate what collateral you have to obtain financing for your deal. Obtain details on the type of property, its location, its size, and its value. Rent rolls will also be requested if your building has a lot of tenants. Speak to the lender and obtain exactly what they need in order to approve your refinancing. By making things easier for the lender, you’ll ensure the process is faster and more favorable.

Cash-Out Refinancing for A Commercial Loan

Cash-out refinancing is a type of loan used by commercial borrowers. Many have great reasons to use this system. Some use the cash to pay off other debts and begin to consolidate their mortgages. Be sure to be clear exactly how much money you need. Your cash may come from borrowing against the equity that is currently in another property.

When using cash out refinancing, you are essentially borrowing money you already paid, including interest. However, in some situations it makes the most sense to create cash flow from what you have already invested. For example, if you are using the funds to purchase a second property. If this is something you’re considering, be sure to include the agreement of sale. In other situations, the cash can help you make needed repairs to an existing property. Be sure you have detailed cost estimates to submit with your refinancing package.

Many Great Ways to Use Commercial Refinancing

Other commercial borrowers use refinancing to generate working capital for another business. Perhaps you have a great investment opportunity in front of you and need access to the cash quickly. Whatever your reason, Stonebriar Mortgage is here to help. Take advantage of the great commercial refinancing options available today in California and Dallas Texas.

Commercial Purchase Loans

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Making a commercial purchase is a great way to invest in the booming real estate markets of Dallas Texas and California. Before you dive in, you’ll want to ask yourself many questions, learn the terms and study best practices. Understanding your goals and objectives in buying the property will help foster success. In this week’s blog post, Stonebriar Mortgage discusses things to consider when making commercial purchases in Dallas, TX or California.

Questions to Ask During a Commercial Purchase

It is important to review the commercial purchase market, your goals, and what you are looking for. Learning the real estate world is a big task, below are some simple questions to ask yourself while studying the investment possibilities:

  • What kind of property am I looking for?
  • Do I desire to use the building for my own business, rent it out, build equity, or something else?
  • What kind of location do you need?
  • Do I want to buy, or can I lease the property? What will I get approved for?
  • Thinking on approvals: what is my cash, financing, and/or ability to make a down payment?
  • Can and should I partner with someone else to buy the property?
  • How much money and effort am I willing to risk?
  • How much time do I have to manage the property?
  • How much work can I afford to put into the property?
  • What skills and knowledge do I need or already have?
  • Will I need to contract someone to get the knowledge needed?
  • Do I need a specialized property manager or not? What sort of manager do I want?
  • Finally, can I handle the responsibilities of being a landlord?

Learning More about Commercial Purchase Real Estate

Whether you’re experienced or just staring out, there will be an ongoing learning curve. Subscribe to this blog and follow other expert investors to stay current on the trends and predictions for Dallas, TX and California markets. You will want to keep a glossary of the technical terms handy. Here are some frequently used terms:

  • Debt Service Coverage Ratio (DSCR) refers to the amount of debt you’ll be able to pay each year using the income from the property.
  • Vacancy Rate refers to the average time and percent of properties that are vacant over the year in a certain area.
  • Usable versus rentable square footage- rentable square footage is the total amount of space, not just the portion the tenant will occupy. Usable square footage refers to the specific area the tenant will use for their business and can even include the columns, recessed entries, etc. This is an important term as you can maximize how many square feet you can charge for rent.

Stonebriar Mortgage is knowledgeable about the opportunities in Dallas, Texas and California markets for commercial purchases. Work with us today to start maximizing your wealth in real estate.