A Franchise Loan is a type of Small Business Loan that offers an Entrepreneur less risk and piece of mind. Starting up a franchise is perfect for someone who wants to start their own business,but does'nt want to go it alone. Entrepreneur Magazine looked at all of the possibly Franchise opportunities out there,and made a top 10 list of the best Franchises to be apart of. The top ten best Franchises respectively are Subway,McDonald's,7-Eleven Inc.,Hampton Inn/Hampton Inn & Suites,Supercuts,H&R Block,Dunkin Donuts,Jani-King(Commercial Cleaning), ServPro, and AMPM. It is good to note that Subway won the #1 Award as Best Franchise this year. Also, Hampton Inn broke the number 10 list this year,in a time where Hotels had their worst year of Revenue.
Being a Franchise Owner can alleviate a lot of the stress that comes with owning and operating a business. However,once you start a franchise,it is important to note that you have to go by the rules of the Franchiser. This can put you in a good position if you want to be financially independent but do not want to run into all the questions and problem solving in a non-franchise small business. Franchises are also a good option if you see a need for a type of business in your town that just is not there yet. For example,if your town has many fast food restaurants but does not have a good sandwich shop,it could be time for you to put a Subway so customers do not have to travel far in order to get a good,healthy sandwich.
One of the best things about Franchises is that you have a great deal of information at your fingertips on the business you are looking at. For example,just like I found the top 10 Franchises online at Entrepreneur Magazine,you can also find online an estimate of how much money you would need to start a particular franchise and also how much money the business could potentially gain in your area. Owning a franchise takes a good chunk of risk out of the picture because if you go to a lender with a franchise in mind, the lender can easily see if it will potentially work in your town. Lending institutions will be less harsh on your business plan too because they also have revenue numbers and Franchise information at their fingertips. Remember,before starting a business or if your small business is currently growing,it is very important to build your business credit so lenders will take your loan application more seriously.
Have you started a Franchise recently? Where and what type of Franchise did you start? Was getting a loan for that Franchise easy or hard for you?
David Hitchcock is a Business & Commercial Loan Consultant for MortgageCerv Financial. He can provide outstanding funding and is considered the go-to-guy for business loan transactions as well as commercial real estate funding. Please feel free to give him a call at 478-451-9977 (mobile).
There are a variety of of different types of working capitol loans available to small businesses today. If your new to working capitol loans,basically they're short-term loans that are used to help sustain a business during a time of need. Companies often apply for this type of loan during times of explosive growth as well.
If you have the opportunity to build your business by investing in additional equipment,supplies,or more advanced technology,it may be in your best interest to it. A short-term loan will allow you to act quickly. Working capitol loans may also be used to pay for things like advertising costs,salaries,rent and monthly bills while you wait for the funds to come in.
David Hitchcock is a Business Loan Consultant/Owner of MortgageCerv Financial a commercial mortgage company.David is the go-to-guy for small business loans and commercial real estate loans in Georgia and nationwide.Please give us a call if you have a question @ 478-451-9977 (mobile) or 888-282-0601.
Well small business owners the sba guarantee fees are back in full swing until further notice.90% guarantee is 75% again.We are awaiting congress for another package that will that will waiver the sba guarantee fee.I will get back to you as soon as i get word on the approval.
But i also have good news-we have lenders that are HUNGRY for church loans! Thats right,church loans.
David Hitchcock,Business Loan Consultant
MortgageCerv Financial.
Mobile:(478)-451-9977
email:david@mortgagecerv.com
www.mortgagecerv.com
A commercial bridge lender will have numerous questions about your deal.Here are a few questions for which we should have answers before approaching a lender:
In what city and state is the property located?
Is the title held by an individual.LLC,corporation,a trust or another entity?
What is the property type?
How much income does the property produce?
What type of lease or leases does the borrower have?Full-service,modified or triple net?
What are the credit issues if any?
If the income on the rent roll is greater than reported on the IRS Schedule E,whats the reason?
Cash out? WHY
David Hitchcock,Business Loan Consultant/Owner
MortgageCerv Financial
Mobile:478-451-9977
david@mortgagecerv.com
Why is hard money so important to commercial real estate investing? There are several reasons. Commercial real estate investing is a cash intensive financial activity. In order to take advantage of ongoing projects,investors often require more operating capitol than conventional banks are prepared to provide on short notice. Commercial hard money lenders can turn on a dime.
Mortgages for commercial real estate investing can take anywhere from two to six months to be completed by conventional banks and lenders. Commercial hard money lenders can generally fund within two weeks once you have all the paperwork in place.More next blog.
David Hitchcock,Owner/Broker
478-451-9977 :Mobile
Cost segregation is an IRS recommended and sanctioned reclassifying procedure which allows real estate investors to take advantage of accelerating depreciation on their property which will reduce their current income tax liability.
Heres how it works.
When an investor purchases or constructs a property the IRS allows them to write off or depreciate the property over time (typically 39 years for commercial property:office buildings,shopping centers,restaurants etc.. and 27.5 years for residential,such as rental houses,duplexes or apartments).This write off is taken equally each year and is used as an income tax deduction.The investor takes the purchased price excluding the land value as the "basis"or beginning value.This is called "straight line" method of depreciation.
How cost segregation benefits an investor.
Instead of taking the entire value and depreciating it equally each year over long life (39 or 27.5 years) a cost segregation study allows the investor to "carve out" components of the building and depreciate them over a shorter period.
Some investors will assume their CPA is already breaking out these components which the CPA generally cannot do themselves.
In order to take advantage of cost segregation the IRS requires the investor to have an engineering study performed (written report) to document the assets and their values using specific guidelines for the correct asset classification.This requires construction engineering and tax expertise.Most major accounting firms ("big four" or large reginal firms) have a cost segregation practice igneous which consists of CPAs and engineers.However,the majority of CPA firms do not have engineers on staff to perform these studies.
David Hitchcock is the Owner/Broker of MortgageCerv Financial.MortgageCerv specializes in small business loans and commercial real estate loans.MortgageCerv has now added cost segregation studies to its financial product line.If we could be of assistance to you or answer any questions,give David Hitchcock a call @ 478-451-9977.
In SBA and commercial finance news,the return of dreaded guarantee fees (up to 3.75% of the guarantee on 7A loans and 50 BP on the senior 504) has been delayed — so the rush is on yet again to get your guarantee, this time by 31 May. The Senate voted to extend the Recovery Act Program through May 31, 2010 and provided $80 million for 7(a) and 504 fee reductions/waivers. It has also extended the 90% guarantee on the 7A through May 31st. It is expected that President Obama will quickly sign this legislation into law.
The first 504 pool should be ready to roll by the end of May — SBA is in last minute talks with Colson, the master servicer. Stay tuned!
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In todays tough lending climate commercial bridge loans are picking up steam.With lenders hoarding cash and some raising the bar making it difficult to qualify for financing/refinancing commercial bridge funding is the only option in some cases.What is a commercial bridge loan you may ask?A commercial bridge loan is exactly what it sounds like,a loan to help you get from a current situation were conventional financing is not possibly for some reason or another (,ie quick closing,bad credit,avoid foreclosure,etc) to a point were conventional financing is available.Commercial bridge loans are not as costly as hard money...but come close.Bridge loans can be used for numerous reasons such as:for business acquisitions or mergers,to take advantage of a bargain priced commercial property where purchasing and financing are needed immediately,when borrower need capitol to satisfy taxes,to make business changes to comply with new govt regulations,to stabilize a company facing a temporary cash crunch because of unforseen market or economic conditions etc.
David Hitchcock is Broker/Owner of MortgageCerv Financial.MortgageCerv Financial is a commercial mortgage company that specializes in small business and owner-occupied commercial real estate financing.David can be reached at 888-282-0601
The 2009 Stimulus Plan allocated approximately $375 million to the SBA for higher loan guarantees to lenders, and waived borrowers’ fees. The initial funding was consumed before the year’s end. A number of weeks elapsed, and a second infusion was made of approximately $150 million. That too expired shortly.Since then, on March 2, 2010, President Obama signed the Temporary Extension Act of 2010 for another $60 million infusion to the SBA. This last infusion has a known termination date of March 28, 2010. The SBA has not announced what will happen beyond that date.
The effect of the higher guarantees is an increase in the amount of loans made. Banks that would not have loaned money are lending. Banks that would lend smaller amounts are increasing the size of loans. This is not to say that every lender is maximizing either the number of loans or the size of loans. However, it is clear that the program is working and having a positive impact.
The frustration is created from the intermittent support the SBA is receiving. All lenders and most business people thrive on some degree of predictability. Some amount of consistency in the economic climate needs to exist in order for American small business to flourish again.
Recently, the benefit of small business employment numbers has been widely discussed in the media, and there is consensus that small business is an economic engine with a far reaching positive employment history. Unfortunately, SBA funding and the benefits that can be extended to borrowers lack consistency. It would be beneficial if the SBA could be funded sufficiently over a longer period of time to eliminate these repeated changes in lending terms. The program is working and should be allowed to operate on a more consistent basis.
David Hitchcock is the Owner / Broker of MortgageCerv Financial whom of which specializes in owner occupied commercial property& commercial business funding.If you feel we could be of service to you,please give us a call at 888-282-0601
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