Infinity Commercial Capital

Securing financing for ambitious business ventures can be a complex dance, especially when commercial lenders express concerns about borrower qualifications and lending restrictions. While initial setbacks might seem discouraging, they can also serve as opportunities for creativity, strategic thinking, and ultimately, deal success. In this article, we’ll explore strategies to navigate such situations and get your deals done even when lenders initially hesitate. Open Dialogue and Understanding the Lender’s Perspective When a lender expresses doubts about a proposed deal, it’s crucial to initiate an open and respectful dialogue. Understanding their concerns can provide valuable insights into their decision-making process. This also presents an opportunity to address their apprehensions directly and show your willingness to work together to find a solution that suits both parties. Mitigating Risk in Phases In scenarios where a lender recommends starting with a smaller-sca...

Getting a commercial loan can be difficult due to several factors that lenders consider when evaluating loan applications. These factors are aimed at assessing the risk associated with lending money to a business. Here are some reasons why obtaining a commercial loan can be challenging: Risk Assessment Lenders need to assess the risk associated with lending to a business. They evaluate factors such as the business’s financial stability, credit history, business plan, market conditions, and industry trends. If the lender perceives too much risk, they may be hesitant to approve the loan. Business Viability Lenders want to ensure that the business has a solid plan and is likely to generate enough revenue to cover the loan payments. If the business plan is unclear or lacks feasibility, lenders might be hesitant to provide funding. Creditworthiness Just like individuals, businesses have credit histories. If the business has a poor credit history, a history of late payments, or outsta...

Introduction Commercial real estate investment can be a lucrative venture, but it often requires significant capital. When investors need financing for their projects, they typically have two options: approaching their network of known banks or hiring a commercial financing advisor. In this article, we will explore the reasons why a commercial real estate investor might choose the latter option, delving into the various advantages of hiring a commercial financing advisor over relying solely on their local banks. 1. Specialized Expertise Commercial real estate financing is a multifaceted arena. Investors need to understand the numerous capital options available to them, including traditional bank loans, private lenders, commercial mortgage-backed securities (CMBS), and more. Each option has its own unique terms, conditions, and eligibility criteria. A commercial financing advisor is well-versed in this complex landscape, offering invaluable expertise to investors. Commercial financing a...

When borrowers explore loan options, they often encounter lenders’ marketing materials promising loan amounts “up to” a certain loan-to-value (LTV) ratio. However, it is not uncommon for borrowers to receive loan offers that fall below the advertised maximum. Let’s explore the reasons why lenders may offer less than the “up to” amount like debt service coverage ratio, creditworthiness, and property considerations. The Underwriting Process and Loan Limitations The underwriting process is an essential step in lending where lenders assess the borrower’s financial capacity and the risk associated with the loan. During underwriting, lenders evaluate various factors and may determine that offering less than the advertised maximum LTV ratio is prudent. This ensures responsible lending practices and mitigates potential risks. Factors that influence loan offers include: Debt Service Coverage Ratio (DSCR) One primary factor that influences a lender’...

In the world of real estate investing, one popular strategy is fixing and flipping properties. This involves purchasing a property in need of renovation, improving it, and selling it for a profit. To finance such projects, real estate investors often seek loans. While traditional banks have been the go-to option for many, private Debt Service Coverage Ratio (DSCR) lenders have emerged as a viable alternative. Streamlined Approval Process Private DSCR lenders typically offer a more streamlined and efficient approval process compared to banks. Traditional banks often require extensive documentation and have stringent qualification criteria, resulting in a time-consuming and complex application process. In contrast, private DSCR lenders focus on the property’s potential profitability, allowing investors to secure loans quickly, and enabling them to act swiftly in a competitive real estate market. Flexible Credit Requirements Banks heavily rely on credit scores and credit history to d...

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 ...