Infinity Commercial Capital

Investing in rental properties is a popular way to generate passive income and build wealth over time. However, securing financing for these types of investments can be challenging. Traditional bank loans are often difficult to obtain, particularly for new investors or those with less-than-perfect credit. Fortunately, there is an alternative financing option that can help investors overcome these obstacles: DSCR loans. Benefits of DSCR Loans DSCR stands for Debt Service Coverage Ratio, and DSCR loans are specifically designed for rental property investors. Here are a few advantages of DSCR loans over traditional bank loans: Longer loan terms: Most bank loans for rental properties come with a 5-year term, which means that the borrower must refinance or pay off the loan after 5 years. In contrast, DSCR loans often have a longer loan term, such as 30 years, giving investors more time to pay off the loan and generate income from the property. Fixed interest rates: Many DSCR loans come with...

Infinity Commercial Capital is proud to have recently funded a client’s acquisition of a rental property, helping her expand her portfolio and generate passive income. We’re thrilled to have been a part of this success story and are excited to share the details of this transaction. The Situation Our client was a real estate investor who was looking to expand her portfolio with the acquisition of a rental property. She had identified a property that was a perfect fit for her investment goals, but she needed financing to make the purchase. She had previously worked with traditional lenders who had offered her short-term, high-interest loans that did not align with her long-term investment strategy. She was looking for a better solution to help her acquire this property and grow her portfolio. The Solution Our team worked closely with the client to understand her investment goals and financial situation. We recommended a 30-year fixed-rate commercial loan that would provide her with ...

W. Karl Baker, CPA When discussing commercial financing needs with prospective clients, one of the first things we get asked all the time is “What’s the rate?”  That depends on a lot of factors, such as property address, the borrower’s credit score, net cash flows from the lease agreement, leverage and a few other factors.   We also remind clients that “rate” is important but is not always the most important factor if cash flow is the goal. It’s certainly not the only factor to evaluate.   We also are asked, “What’s the term of your notes?”  Many people are surprised that it is possible to obtain 30-year commercial money, especially if their only experience is what banks offer.  So there’s usually a follow-up question when we tell them about our 30-year fixed rate commercial mortgages:  “Is it really FIXED for 30 years, and it’s a commercial note?”, said with some astonishment!  Our response is “YES!  You really can get a 30-year fixed-r...

By W. Karl Baker, CPA Industry commercial lending underwriting criteria contain some “norms” that are universally agreed upon but applied differently from lender to lender.  One of those “norms” is the rule of thumb that lenders will loan at 80% of the value of the subject property in a purchase transaction with long-term financing, and then this metric is often scaled back to 75% for a cash-out refinancing, to hedge valuation risk.   Lenders do not set these norms in a vacuum.  Private lenders sell the majority of their long-term loans and some of their bridge loans to the capital markets. These institutional buyers pool loans into packages and convert them to bond funds, called mortgage-backed securities.  Investors buy these funds with the expectation that they will obtain a return on investment commensurate with the risk.  This is a macro-economic way to put capital into the market, allowing property buyers and investors to finance their purchases with low-cost loan terms. Therefor...

By W. Karl Baker, CPA There’s lots of news out there saying “now’s not the time.” “The economy is slowing down.” “We’re headed towards a recession.” “The cost of borrowing is going up.” This is a good one: “Rates will go down eventually and that will be the time.” I heard a podcast recently that gave the quote from a celebrity author, “Don’t wait to buy real estate.  Buy real estate and wait.” That really resonated with me, so I looked it up. The best I can tell it was mis-attributed and is actually a  Will Rogers quote.   As I’m writing this I’ve been thinking about another phrase “‘tis the season”. It’s the Christmas holiday season. It’s a time when people are reflective. It’s a time for love, and there are many other important things to celebrate at Christmas, such as the birth of a savior. However, I’ve also been struck with that phrase as a mantra for rea...

There are going to come times when your business experiences a disruption with its cash flow. When this happens, it can prevent you from taking care of crucial expenses related to keeping your company operational. To avoid a catastrophe, you need to learn what alternative financing solutions are available to your business. A service like equipment financing, for example, can be beneficial to explore when you need to maintain better control over your budget. Look over these details to discover how you can use this form of financing to your advantage. What Is Equipment Financing? Financing your equipment is a straightforward and practical decision to explore. For one, almost all businesses rely on some form of machinery or tech in order to operate. Additionally, this machinery can usually be expensive and it is not always possible for a business owner to pay out of pocket for vital equipment. With this alternative financing option, you can spread payments for equipment out over a period ...

Many people are looking to make and start something that has never been done before. Small businesses are starting to pop everywhere as people realize it’s something almost anyone can start. If you are looking to open one, there are some things you need to take into account. Employees It will take employees to help you run your business. Your business size will help determine how many you need. The larger your company gets, the more help you will most likely need. Pay If your company has competitive pay, it will be a highly sought-after job. Employees who feel they get paid their value, are more likely to work harder for you. If your business is very successful, offering raises and bonuses will also help boost the morale of the employees. Struggles Starting a new business opens the door to a lot of struggles and problems. Throughout these times though, you will need to keep the course. If you have a plan, work through it no matter the ups and downs you face. Expenses No matter the busi...