As commercial real estate investors continue to breathe new life into neighborhoods throughout the Indianapolis area, the need for special financing is coming to the forefront. Indianapolis blanket loans solve the challenges faced by local commercial real estate investors who are trying to handle multiple properties at once.
One Loan Per Property is Inefficient And Expensive
Traditionally, if commercial real estate developers in Indianapolis, IN wanted to purchase, renovate, or build multiple properties, they would need a loan for each one. Unfortunately, taking out a separate loan for each property in your portfolio is inefficient and expensive. Trying to juggle multiple loans, each with their own terms and rates, places a major burden on commercial real estate investors. Fortunately, there is a much easier methods.
Indianapolis Blanket Loans Streamline Finances
Indianapolis blanket loans are designed for local commercial real estate developers with multiple properties. Instead of taking out a bunch of individual loans when properties need to be renovated, purchased, or built, Indianapolis blanket loans cover multiple properties all at once. For local commercial real estate investors, this means a group of properties can have the necessary work done, and everything will fall under one loan with a single payment schedule. Indianapolis blanket loans remove the red tape and chaos involved with balancing multiple loan payments per month to alleviate the strain on finances.
Property Types That Work With Blanket Loans
Indianapolis blanket loans are versatile and designed for the local property market. Indianapolis blanket loans can be used for town houses, single and multifamily dwellings, retail properties, and office space. Blanket loans are frequently used by house flippers in the Indianapolis area, who have multiple projects running simultaneously. Since Indianapolis blanket loans can be used to purchase, renovate, and build, they are also popular among property developers, as well. Having access to blanket loans means multiple renovation or construction projects can happen simultaneously without delays, or having to stagger progress while waiting for individual loans to process.
The Best Indianapolis Blanket Loans
At Liberty Commercial Capital, our goal is to meet the needs of Indianapolis area commercial real estate developers, while helping them to overcome the challenges they face in today’s financial landscape. If you have multiple properties in your portfolio that need attention, or you are looking to purchase multiple properties, Indianapolis blanket loans can ensure everything transpires smoothly. Contact our offices today to learn more.
07 Sep / 2017
In the past, when a small business owner purchased a piece of equipment, it was depreciated over time until the full cost of the equipment was eventually realized. This was often problematic in that the accounting needed to keep track of depreciation schedules could be costly. Further, some types of equipment do not have long lifecycles compared to their corresponding depreciation schedules. Section 179 of the IRS Code now allows the tax deduction to be taken immediately, for the full purchase price, in the same year applicable equipment was purchased and put to use.
This rule encourages growth in that now business owners do not have to worry about purchasing new equipment and the associated accounting costs, and applying the rule will also provide them with more immediate cash in hand to invest in the business itself.
Who Can Use the Deduction?
All businesses that purchase new and used equipment can use the deduction. However, the spending cap is 2 million before it is decreased by a dollar-per-dollar amount after that. This is why a section 179 deduction is often called a “true small business deduction.” Large companies that spend more than the spending cap on equipment will not be eligible.
What Equipment Is Applicable?
The deduction can be applied to new, used, or leased business equipment that is purchased or financed and used in your daily business operations. Business equipment includes items such as office furniture, computers, and manufacturing equipment. Also applicable is off-the-shelf computer software so long as it is not custom-coded software. Some vehicles will apply for the deduction if they are used more than 50 percent of the time for business use, but certain other restrictions will apply.
When Should the Deduction Be Used?
You must use the section 179 deduction in the year you purchase the business equipment and put it to use. “Put to use” in this case means that it must be set up and in use by the business during the tax year the business made the purchase and is claiming the deduction. In other words, you may not purchase the equipment, take the deduction, and set the equipment aside to use in another year.
What Forms Are Needed to File?
To file the deduction, you must complete Part I of IRS form 4562 and attach it to your tax return. You will need to identify where you purchased the equipment, the date of purchase along with a receipt, and when you put the equipment into use if not the same day.
A section 179 deduction may benefit your business. If you’ve purchased equipment to which the rule is applicable, consider whether it’s in your business’s best interest to utilize this deduction.
10 Aug / 2017
Indianapolis commercial real estate investors understand the importance of having financing options available for purchasing, renovating, building on, and refinancing properties. Indianapolis commercial real estate investors are also very aware of the challenges they face in securing fast, flexible, and affordable financing.
Not All Indianapolis Commercial Real Estate Lenders Are The Same
Traditional lending channels, such as banks, have a very specific chain of command when processing loan requests. For Indianapolis commercial real estate investors, the chain of command can translate to longer closing times as the loan travels from department to department, and in some cases, from branch to branch. Unfortunately, the longer closing times mean missed opportunities on very profitable properties.
Preferred lenders are able to expedite loan requests for Indianapolis commercial real estate investors. SBA loans, mezzanine financing, HUD and FHA loans, bridge loans, blanket loans, and many more are available to CRE investors through preferred lenders. Additionally, preferred lenders can customize loan agreements to fit the property involved in the transactions. Certainly the financing required for building a new hotel is vastly different from the funding needed to purchase a multifamily residence. Under-delivering on financing is as bad as overburdening someone with more debt than they can handle. Instead of a cookie cutter approach to commercial real estate financing, local investors and property developers, Preferred lenders will take the time to understand the needs of Indianapolis commercial real estate investors, and what goals they want to achieve. From there, a financing strategy can be arranged, tailored to those needs, to help commercial real estate investors start generating revenue as quickly as possible.
Anyone Can Be A CRE Investor
The commercial real estate area has really opened up over the past few years. We have seen people acquire revenue-generating properties to supplement their regular income. We have even seen people who start off flipping houses in their spare time, who end up transitioning into commercial real estate as a full-time career. The commercial real estate market in Indianapolis and the surrounding neighborhoods is still growing, with no sign of slowing down in the upcoming years. With the right financing and a little know how, people can jump right into CRE investments and create very nice streams of revenue for themselves.
Finding The best CRE Financing In Indianapolis
Indianapolis commercial real estate investors turn to Liberty Commercial Capital for financing. No matter the size of the transaction, our team of experts will work with you to create the financing strategy you need. Contact our offices today to learn more.
04 Aug / 2017
With consumers becoming more and more conscious about the ethical standards of the companies they buy from, it has become increasingly important for companies to reevaluate the effort they put into environmental causes. That’s why it’s important for businesses to consider recycling. Even for small businesses, it can be relatively simple to start a program.
For one, being environmentally friendly can improve the business’s image. Consumers are conscious about their own carbon footprints and want to buy from environmentally friendly companies – so much so that many are willing to pay extra money. So not only are consumers often going to support and appreciate the companies willing to go the extra mile to be conscious, they will more likely go out of their way to purchase from those businesses, even if that means spending an extra dollar or two.
It’s not just consumers. Employees will likely approve of environmental programs too, which can drive up worker satisfaction and therefore productivity. In addition, recycling can actually save you some costs once it becomes standard protocol at your workplace.
To recycle more at your workplace, it’s important to develop a plan. Start by measuring the amount of garbage being thrown out around the office. This will give you an idea of which departments are wasting the most renewable resources, and the plan can be tailored to account for the specific kinds of waste and where it’s being thrown out.
Once you have decided that your business is going to start recycling more, it’s important to be genuine. Research the specific guidelines recommended by governmental and national agencies, and make sure to learn industry practices and how they might affect garbage disposal.
To really commit to reducing waste, be sure to involve the whole staff. Certain tasks should be delegated to specific people to ensure things get done. Be sure the plan is not too distracting or strenuous for employees to handle with regular assignments; otherwise it could backfire. For instance, clearly establish what should and shouldn’t be recycled.
Being environmentally conscious can go beyond the internal workplace, too; making sure to purchase recyclable materials helps too. To get staff even more fired up, try offering incentives for successful and consistent efforts.
Make sure to evaluate how the program is running even after it’s been implemented. You don’t want to spend all that effort only to find there’s been a miscalculation somewhere. Analyze how much waste is being recycled and what the effects are to get the most out of the effort.
The environment is important to most people, and as a business owner, you want to gain the respect of customers and employees alike. Implement a recycling program to reduce waste, save money, and earn the support of clients and workers.
Mezzanine loans are not unusual in the world of commercial real estate. However, due to their unique structure and purpose, local commercial real estate investors have a difficult time finding Carmel, IN mezzanine loans. Add to the rarity the fact that very few people fully understand loans, and it makes for a lot of confusion. As a business that deals regularly in Carmel, IN mezzanine loans, Liberty Commercial Capital has put together this article to clear up misconceptions.
How Carmel, Indiana Mezzanine Loans Work
Carmel, Indiana mezzanine loans are a form of hybrid financing. The first part of a mezzanine loan is the subordinated debt component. In the case of commercial real estate, this means that Carmel, Indiana mezzanine loans are often unsecured, and rank lower on the hierarchy of creditors. The terms can be customized to fit the commercial real estate transaction, instead of having a rigid structure. The second part of Carmel mezzanine loans is the equity component. Lenders want to see a property transaction to fruition, so that commercial real estate investors can start generating revenue quickly. Since Carmel, Indiana mezzanine loans are unsecured, investors usually take an equity stake in the transaction. One of the main differences between mezzanine loans and traditional lending channels is that mezzanine lenders have years of experience in the commercial real estate market. The equity component means commercial real estate investors will have someone on their side who knows how to sidestep any potential pitfalls, and maximize profitability without cutting any crucial corners.
When To Use Mezzanine Loans
Carmel, Indiana mezzanine loans are not designed for local fix and flip projects. Mezzanine loans are used for larger transactions, such as purchasing and renovating entire apartment complexes, or acquiring large office space and industrial plants. Additionally, mezzanine loans can be used to development projects on raw land. Mezzanine loans can also be processed faster than traditional financing, which helps when time sensitive business opportunities are in your sights.
Get The Best Mezzanine Loans In Carmel, Indiana
At Liberty Commercial Capital, we offer the most comprehensive mezzanine loans in Carmel, IN. Our team of experts have the experience and depth of knowledge about local commercial real estate markets to structure solutions to meet your needs. Contact our team today, and we will work with you to understand what you need, where your goals are, and provide the mezzanine loan you need to make your next project a profitable success.
Indianapolis, IN house flippers do much more than renovate houses. Indianapolis, IN house flippers are strengthening the local economy and breathing new life into the city’s neighborhoods, one house at a time.
Indianapolis, IN House Flippers Are On The Rise
Indianapolis, IN house flippers are overhauling entire neighborhoods. With the overall process of flipping houses becoming more accessible, people are diving into the world of commercial real estate as a side job, and even turning it into full-time careers. By purchasing houses that can use some TLC, bringing them up to modern standards, a then selling them at a profit, Indianapolis, IN house flippers are making a very lucrative living while giving back to the community.
Indianapolis, IN House Flippers Are Revitalizing Communities
When Indianapolis house flippers renovate homes and put them on the market, they are revitalizing entire communities. Many neighborhoods in Indianapolis and the surrounding areas have outdated and abandoned residential properties that just sit on their lots and deteriorate. Indiana, IN house flippers take these homes and turn them into attractive, liveable spaces. In the process, Indiana, IN house flippers hire local contractors, which puts capital into the local economy. When the homes are sold, the new homeowners live in newly revitalized neighborhoods, and they also spend money locally, take local jobs, and send their kids to nearby schools. Flipping houses has a much greater impact than many people realize, and both the short and long term effects on the local economy are extremely beneficial. By virtue of Indianapolis, IN house flippers working independently, they can put in those customized touched to each property, so each house has its unique charm and style.
Financing For Indianapolis, IN House Flippers
Flipping houses in the Indianapolis area can generate a great amount of revenue. However, to take the first step toward success requires capital. Indianapolis, IN house flippers are currently facing numerous challenges when it comes to getting adequate commercial real estate financing. The high requirements from banks often preclude independent commercial real estate investors from getting the financing they need for house flipping projects. Liberty Commercial Capital is dedicated to providing fast, efficient, and affordable financing solutions to Indianapolis, IN house flippers. From CRE loans for property acquisitions to bridge and hard money loans to cover the immediate expenses like closing costs, permits, and even staging, we can help. Contact Liberty Commercial Capital to learn more.
08 Jun / 2017
A company’s future success is often dependent on one of its most prized resources – its employees. So much of the direction of a company is dictated by how much passion and talent is held within its workforce. Since quality employees are so important, how can one ensure that his or her workforce consists of such? Hiring valuable employees is the first step in securing your company’s future success.
How can you ensure that the candidate you recruit will be the right fit for the job, staying with the company for several years and contributing to your goals? There are several best practices that you can follow, increasing your odds of hiring and retaining talent. First of all, employee referrals should bear a lot of weight. You can even offer an incentive program to current employees to encourage referrals. The idea is that your staff is hopefully invested in the future of your company and will share the burden of bringing in additional talent. It’s ideal if the current employee can vouch for the candidate’s professional acumen, but vouching for his or her character is essential too.
Having a straightforward attitude and an honest approach within the hiring process is another best practice that will benefit both parties greatly. Neither manager nor candidate will benefit if the job is incorrectly marketed or if the manager is not honest about what the position entails, including the growth path.
This starts with creating an accurate job description. Be honest and realistic about your expectations. Ensure that the salary offered matches the position requirements. Likewise, when interviewing candidates, make sure that they fully understand the position, both the positive and negative aspects. Sugarcoating a job description or exaggerating opportunities for promotion will result in a disillusioned employee who likely won’t stick around for as long as you’d like.
Finally, instituting a background check is always prudent. You want to ensure that the candidate’s resume checks out and that his or her education and experience is valid. Likewise, as workplace violence becomes more prevalent, it’s become crucial that you ensure your candidate doesn’t have a criminal record. You owe that to your current employees to protect their safety and security.
Hiring driven and talented employees can be an important factor in your company’s success. Finding the right employees isn’t entirely up to chance, however. With a few proven practices, you can increase your chances of employing reliable staff who will support your business now and in the future.
Need more tips on how to run your company? Contact us today!
10 May / 2017
Whether you are buying an existing business, or creating your own startup, you want it to grow, right? Taking the proper steps is paramount to successful and sustainable growth. This translates to four important factors: the right people, scalable or single source, proven financial principles and financing options. When you implement these things, you might be amazed at how successfully you achieve business growth.
Find the Right People
As much as you may think you can do it all, owning your own business is time and energy consuming. The smart business owner knows what her greatest skills are and hires someone to do those things she is not as good at. The trick is hiring the right people, letting go of the people who aren’t contributing, and making sure each person is doing the right job. In the long run, this will make for a staff of happy people, doing what they are good at, and staying with the business for the long haul.
Scalable or Single Source
Do you want one business, and one location, that thrives on its own, or is your dream to create a product that sells itself over and over again? Your business plan will help you to decide whether your best bet to achieving growth is making it scalable or singular.
Follow Proven Financial Principles
Tip number three to help you achieve business growth is to make sure you are handling your money responsibly and following sound business practices. You’ll need accounting systems that don’t require a degree in mathematics. You’ll need simple tools to track income and expenses. Thinking about what you’ll need for tax preparation ahead of time will save major headaches when the deadline is looming. Also, sooner rather than later, you’ll want to be thinking about obtaining the services of a good accountant.
What About Money
Whether startup or established business, you’re going to need capital. Surprises lurk around every corner – unexpected equipment breakdowns, new equipment needs, opportunities with limited timeframes, expansions. It’s important that you have the capacity to handle the unexpected without it causing a setback to your business operations. Customized financing options are a perfect solution for the savvy entrepreneur focused on smart business growth. Options you may not have heard of include obtaining a merchant cash advance, accounts receivable financing and hard money loans. You’ll want to get the right advice on which of the many financing options would be best for your business.
Once you’ve established a business, your focus becomes its growth. By following these four business growth tips, you’ll be making sound decisions based on proven practices, techniques and advice. Contact Liberty Commercial Capital in Carmel, Indiana today to learn more.
09 May / 2017
The Carmel, IN commercial real estate market is growing quickly. Between rehab projects, multifamily residences, and an influx of new businesses, financing Carmel, IN commercial properties is one of the biggest goals, and challenges, for local investors and property developers. Many investors have multiple properties to manage, and financing each one individually can become a costly endeavor. Fortunately, there is a solution for financing multiple Carmel, IN commercial properties at once.
Using Blanket Loans For Carmel, IN Commercial Properties
Sometimes juggling multiple Carmel, IN commercial properties can be challenging. Previously, when Carmel, IN commercial real estate investors has multiple properties in their portfolios, renovating, repairing, and building had to be performed one property at a time. Taking out individual bank loans was not the most cost-effective method, and the process resulted in a lot of unnecessary debt. Blanket loans, on the other hand, provide financing for many Carmel, IN commercial properties at once.
How Blanket Loans Work
Instead of financing Carmel, IN commercial properties piecemeal, investors can get blanket loans which can cover the financing needed for a handful or even hundreds of properties. Blanket loans provide commercial real estate investors with the financing necessary to purchase, renovate, or build onto multiple commercial properties without having to seek out individual loans. Projects can be coordinated, instead of staggered or delayed due to the processing of individual loan requests.
Consolidated Terms And Rates
When local investors take out multiple loans to finance Carmel, IN commercial properties, payments become chaotic. Different loans have different terms and interest rates, and eventually, debt consolidation enters the picture. Blanket loans by their very nature, have consolidation built into their structure. Investors and developers can finance multiple Carmel, IN commercial properties at once, and get one set of terms and rates.
Types Of Carmel, IN Commercial Properties That Work With Blanket Loans
While blanket loans can sometimes be used for retail and office space, most investors use them for Carmel, IN commercial properties such as houses and apartments. With the recent growth in the local commercial real estate market, people have been building their portfolios with house flipping projects and multifamily rentals. Blanket loans cover the financial needs, without the hassle of the numerous terms and rates that come with individual loans.
Get The Best Blanket Loans For Your Commercial Properties
If you are trying to expand your commercial real estate portfolio in Carmel, IN, contact the experts at Liberty Commercial Capital, Inc. We offer the best blanket loans in the Carmel, IN area, as well as a wide array of commercial real estate financing programs.
If you’re interested in real estate investments, one of the first decisions you have to make is whether to invest in residential or commercial real estate. Any properties that generate income are considered commercial. Residential properties are typically purchased by people who intend to live there.
A lot of people let their instincts direct them toward investing in residential properties, because there’s an inherent familiarity—everyone has lived somewhere before, whereas leasing property for a business is a much less common experience. Rather than letting unfamiliarity direct you away from commercial real estate, take the time to consider what kind of property would genuinely suit your financial goals better.
One of the major differences between the two types of properties is in how their values are assessed. Residential properties are usually assessed based on comparable properties that have sold in the area. Often there are many “comps” to look at for any given residential property, which is why this easy method is used. Many people are already familiar and comfortable with this method of assessment; either they, or friends or relatives, have likely at least considered purchasing a home.
Commercial properties tend to have few, if any, comparable properties to look at. That’s why there’s a completely different method used to assess them. Commercial properties generate income every year, and that income is the basis of the property assessment. It’s a little more complicated than the comparison method but not hard to understand. It’s based mostly on the net operating income of a property—the income that it generates after expenses—and the price paid for that property. This gives an idea of the return on investment a piece of commercial real estate can offer. It’s affected by a number of other factors, too: what kind of tenants currently lease there (are they reliable, long-term tenants with good credit?), market conditions, the demand for that kind of property in the area, etc.
One effect of this difference in the way properties are assessed is that it’s easier to increase the value of commercial properties. If the neighbors are selling similar-sized homes for a certain amount, your property’s value may be pegged to theirs whether you’ve made lots of improvements or not. However, any method of increasing the net income generated by a commercial property can increase its value, regardless of what the neighbors are doing.
Unlike stock market investments, real estate has inherent, lasting value; that property still exists when the market crashes and has a better chance to recover value over time. Will you choose to buy residential or commercial real estate?