Loans & Financing for Rental Properties in Indianapolis
For investors who are new to the real estate markets in Indianapolis, rental properties are probably the most accessible method for generating revenue. Indianapolis rental properties offer a number of advantages to commercial real estate investors which are often overlooked.
Indianapolis Rental Properties Provide Steady Revenue
Fix and Flip Loans & Financing
Selling properties through fix and flip projects can yield a very high amounts of revenue. However, houses do not always sell on a weekly, bi-weekly, or even monthly basis. Buying and selling is not something you can set your watch to. Indianapolis rental properties, on the other hand, generate revenue on a monthly basis. Investors even have the option to sell rental properties at a later date as a means of “cashing out” of the landlord business.
Indiana Rental Properties Pay For Themselves
The point of owning rental properties is to generate a passive income with little oversight. Currently, single family rentals are not getting much traction in the Indiana property market. The more units a property has available, the more revenue it can generate. Most investors tend to take a very pragmatic approach to handling revenue. Typically, rent from one unit will go to cover mortgage payments, while the rest goes into the bank account. In a short period of time, the property will pay for itself, and then everything from that point on is pure profit.
Rental properties offer a number of tax advantages to investors as well. Improvements and repairs can be claimed as tax deductions. Owner occupied rental properties offer Indianapolis real estate investors additional benefits as well. Indiana may also have tax incentives for real estate investors, because rental properties bring in people who will be spending money locally, thus increasing revenue for the state.
Financing For Indianapolis Rental Properties
There are a number of financing and loan options for Indianapolis rental properties. A combination of conventional loans and bridge financing can help investors purchase, renovate, and reconfigure homes into multifamily rentals. SBA loans can be used for owner occupied rental properties. Blanket loans are very useful when making improvements to multiple rental properties all at once. Larger financing, such as HUD and FHA loans, are ideal for specially-designated multifamily properties.
Liberty Commercial Capital provides financing solutions for Indianapolis rental properties of all sizes. Whether you are purchasing your first investment property, or are handling multiple rentals at once, we will work with you to create a financing strategy tailored to your needs. Contact us today by email or by calling (317) 569-1110.
A brand-new business venture brings with it a variety of emotions – excitement, enthusiasm, and passion, but also uncertainty, fear, and hesitancy. After your venture has an established foundation and gains some traction and momentum, it may be time to start the process of incorporating your business.
You spend business hours (and often early mornings and late nights) creating product, establishing a supply chain, marketing, interacting with customers, and completing many other tasks, so researching the requirements for incorporation will likely be low on the priority list. Unfortunately, there are myths and misunderstandings regarding the legal implications for small businesses. This can cause a delay and perhaps even prevent business owners from pursing incorporation.
There are a few foundational principles to remember when considering the process of incorporation. First, it does not have to be complicated. There are incorporation service companies you can hire to help with proper preparation and filing of documents for incorporating your business. While some small business owners complete the incorporation process on their own, there can be a greater risk of error if you do the work yourself, because the daily responsibilities of your business will generally naturally consume most of your time and energy.
Second, it does not have to be expensive. Any funds spent to legally recognize your small business will often be well-invested monies. Incorporation can be a wise and worthwhile investment that boosts the overall stability and growth of your business. Although legal formation results in annual compliance fees, you can receive tax breaks and your risk of being audited may be much lower.
Third, it is not required. You can run a successful small business without being incorporated. That said, incorporating your business may be the smartest professional move for a growing enterprise. There are many benefits, including the fact that official legal formation increases your credibility with customers. You can separate your personal assets from your business assets and safely protect both. If you desire to establish investors, providing a formal business structure gives clarity to where, why, and how their capital investments will be used.
Finally, it does not have to be time-consuming. Your time is inevitably stretched thin as an entrepreneur working to establish and grow your small business. The process of incorporation can be daunting and seemingly not worth the time and effort that must be spent on the required research and paperwork. Find a filling service company that assists startups to help make the process easier.
If you are considering incorporating your business, look for a company that specializes in this area to help you. This will allow you to get back to the work of running your organization!
09 Jan / 2018
Indianapolis CRE markets are rife with opportunities for ambitious investors and developers. However, there are two major methods of generating revenue through Indianapolis CRE properties, and many people often get caught up on which is better.
Buying And Selling Indianapolis CRE Properties
Certainly buy and selling Indianapolis CRE properties is one of the simplest methods, and with a potentially high monetary yield. Local commercial real estate investors purchase Indianapolis CRE properties at well below market value, and then restore them to greatly boost the selling price. Additionally, some property developers will build units from the ground up on vacant land and sell them as condos, single family houses, or office space, depending on the designation.
Renting Our Indianapolis CRE Properties
For those seeking steady revenue, renting out commercial properties may be the solution. From multifamily residences to office space, motels, hotels, and more, renting out property space yields revenue on a monthly basis. While rentals properties may not yield the one time revenue that selling a property does, the revenue from rentals is steady, and ca be multiplied by the number of units available. In some cases, when sellers are waiting for local property markets to increase in value, they will rent out their properties until the right buyer comes along.
Financing Indianapolis CRE Properties
There are a number of methods available for financing commercial real estate. SBA and conventional loans are widely used for purchasing properties. Bridge loans are ideal for covering time-sensitive expenses on renovation projects while larger loans are still in the pipeline. Construction loans provide working capital to ensure there are no delays on large projects. Blanket loans provide capital to make improvements to multiple properties at once, instead of taking out a separate loan for each property. Instead of taking on debt, some Indianapolis commercial real estate investors may opt for mezzanine loans, because of the equity component. Still others use CMBS conduit loans to acquire properties and save money in the process. Of course, there are more creative methods as well, such as seller-carry financing, where the property seller finances the purchase, with an agreement so that the buyer pays directly to the seller over a certain period of time.
Liberty Commercial Capital Finances Indianapolis CRE Properties
At Liberty Commercial Capital we specialize in financing Indianapolis CRE properties. From first-time investments to large construction project, and everything in between, we provide solutions tailored to the needs of our clients to ensure success. Contact us today to learn more about how we can help you.
Is your office inundated with paper clutter? Have you wasted hours trying to find the warranty for your printer or the lease agreement for the company car? If all you’ve managed to accomplish during your frantic search is to send precarious piles of electric bills and bank statements fluttering to the floor, maybe it’s time to give all that paperwork a good spring cleaning!
Spring Cleaning Tips
Consider that you have many kinds of documents filling your file drawers and covering every flat surface in your office. You realize that some of these papers are more important than others. You need to organize them, but where do you begin? As with everything in your small business, you should start with a plan.
First, determine what you need to keep and how long you need to keep it. An internet search can help you with those decisions, but here are some general guidelines. Payoff statements, year-end statements from bank and investment accounts, valid warranties, and personal items such as passports and wills are all examples of documents to tuck away for more or less permanent safekeeping. Other paperwork fits into a hierarchy of retention. Tax records involving a deduction for a bad debt or a loss claim should be kept for at least seven years. Keep receipts for business expenses, medical bills, and tax returns for three to seven years. However, utility bills and monthly statements need only be kept for one year. The same goes for credit card bills and pay stubs.
Next, get all that paper out of sight! Once you have a good idea which documents you plan to keep, you should categorize them and file them in labeled folders – or in a locked safe, if warranted. Choose a filing system that makes sense to you. Organize your files alphabetically or functionally. Use different colored folders or tabs for ease of retrieval. Make it a habit to file daily, or at least weekly, to avoid those unsightly paperwork pileups. You may even want to try an e-filing system, which can be a particularly good solution for a small office!
Finally, properly dispose of whatever you don’t need. Invest in a large capacity cross-cut shredder, and use it every day. Not only will you be able to stem the tide of junk mail, thus freeing up some of that desktop space, but you’ll find it easy to scrap the oldest month’s phone bill as you file the current one.
Start with a plan, figure out what to keep and what to shred, and keep on top of documents as they come in. You’ll keep your file folders from bulging, and you’ll have a much faster paperwork cleanup job next spring!
15 Dec / 2017
The market for Indianapolis investment properties is expanding, and becoming more accessible to private individuals than ever before. However, for those starting out their careers as commercial real estate investors, the selecting and appropriate financing can seem overwhelming. We have put together a handy guide to help you identify which Indianapolis investment properties are right for you, and how you can finance them to start generating revenue.
Defining Indianapolis Investment Properties
Indianapolis investment properties span a wide range of building types. Retail space, motels, hotels, offices, industrial plants, houses, and apartments all qualify as investment properties. For those starting out in commercial real estate, taking on a multi-stage construction project from the ground up may not be the ideal first time venture. However, Indianapolis investment properties that offer rehab projects, fix and flip opportunities, or the ability to renovate and rent out properties are great for first time property investors. Retail space can generate a lot of revenue from store owners, as can office buildings.
To Sell Or Rent Indianapolis Investment Properties
Buying and selling investment properties is a great way to make a large chunk of revenue very quickly. The process usually involves fix and flip loans which provide the capital to purchase investment properties and meet the cost of renovation. Commercial real estate investors in Indianapolis will purchase properties below market value, make renovations, and then sell them for a much higher price. Renting may not have a higher revenue yield to start, but can be more profitable because they rent recurs monthly. Obviously, the more units you have to rent, the more you can multiply your revenue. For the most part, Indianapolis commercial real estate investors will use a combination of conventional loans and bridge financing to cover all costs. Then the property will be renovated and rented out to qualifying tenants. There are even blanket loans, which allow people to purchase or renovate multiple Indianapolis investment properties all at once, instead of taking out separate loans for each rental.
Get Started On The Right Path
If you are looking for financing for Indianapolis investment properties, or you simply need some guidance as to what type of property is right for your goals, contact the experts at Liberty Commercial Capital. Our team has the knowledge gained from years of experience in Indianapolis property markets to advise and finance commercial real estate investors, both new and seasoned. Call our offices today and put our knowledge to work for you.
Indianapolis commercial real estate investors are very familiar with the hurdles involved in obtaining fast and adequate financing. Trying to navigate the red tape involved with traditional loans often lead to missed opportunities. Fortunately there are a number of Indianapolis commercial real estate financing alternative which are more flexible and easier to arrange than traditional loans.
Indianapolis Commercial Real Estate Financing Is Project-Oriented
Traditional lending institutions have limits on what they are able to offer to Indianapolis commercial real estate investors. The amounts are not based on the project at hand, but rather credit ratings, arbitrary loan board decisions, and other factors. Commercial real estate financing alternatives focus on the property transaction or project itself. Potential revenue is often given more weight the existing condition of the property, when making decisions. This gives Indianapolis commercial real estate investors larger amounts of capital throughout each stage of a project. Whether purchasing a rehab project or taking on a large construction contract, commercial real estate financing can keep things on track.
A Larger Financing Selection
Indianapolis commercial real estate financing alternatives provide a wide range of options, so investors and property developers can find programs tailored to their ventures. There are conventional loans for commercial real estate transactions; mezzanine financing to cover larger projects while bringing in aspects of equity loans; blanket loans to purchase or improve multiple properties at once; HUD and FHA loans for public works and specially designated properties; bridge loans for fix and flip projects, and much more. There are even financing programs for large, multistage, ground-up construction projects. There is no such thing as “one size fits all” when it comes to Indianapolis commercial real estate financing. Solutions can be customized to fit the needs or requirements of investors and their projects.
Indianapolis Commercial Real Estate Financing Is More Efficient
Traditional lending institutions use a chain of command to process loans requests. If Indianapolis commercial real estate investors meet the high requirements for traditional financing programs, the applications travel from department to department, along with all of the other various loan requests. The chain of command can cause delays in financing, and lucrative opportunities to be missed. Commercial real estate financing in Indianapolis, especially with a preferred lender, can be approved quickly without any internal bureaucracy.
At Liberty Commercial Capital, we offer a wide range of commercial real estate financing solutions for investors and property developers in Indianapolis, IN. As a preferred lender, we can bypass the red tape of traditional lending institutions to provide the funding your need quickly and efficiently. Contact our offices today to get started.
06 Nov / 2017
Renting out a property can be fraught with risk, especially if you don’t do your due diligence when selecting tenants. It may seem like a difficult task to find the perfect tenants, but there are tried and true ways to mitigate your risk and select tenants who won’t cause you problems down the line. Here are six things to check for to make sure you’re choosing a good tenant:
Even if candidates have a good income and make three times the amount of rent, they may still be late with rent payments if they have piles of debt. Always be sure to run a credit check to make sure your potential tenants aren’t facing financial difficulties.
You should also check credit scores to see if your prospective tenant has a history of making late payments, or even missing payments entirely. This is likely a sign of poor financial planning and responsibility, and this person is unlikely to be a good tenant.
A respectful tenant will be a quiet neighbor, will keep the property clean and well maintained, and will alert the landlord whenever something goes wrong that needs to be fixed. A good way to judge respectfulness is by seeing how the tenants conduct themselves when meeting you. Are they on time for their appointment? Are they polite? Or do they constantly complain about things and tell you all about their problems?
A criminal background check is necessary to make sure the person you’re considering renting to has a clean background with no criminal history. In some cases, it may be fine to rent to someone with minor infractions on his or her record, but a background check should always be considered essential.
A good tenant is one who is stable, responsible, and respectful. Call previous landlords to see if your potential tenant made rent on time, caused any property damage, or had noise complaints from neighbors.
While it’s nice to think that most people are honest, it is possible for prospective tenants to lie when giving out information. Always check that their application information matches their license, and require income verification.
Finding a good tenant to live in your rental property isn’t always easy, but it is possible. By being mindful of these six points, you’ll be much more likely to find a tenant you can trust. Need more tips on how to run your company? Contact us today!
The Carmel, IN commercial real estate market is exploding, and local house flippers are improving neighborhoods while generating a lot of revenue in the process. However, taking on house flipping projects takes careful planning and the necessary capital to keep things moving on a tight schedule. Carmel hard money loans are becoming the “go to” solutions for ensuring success at every stage of a house flipping project, from the initial purchase to renovation, and even placing the final touches on a home before the sale.
Carmel Hard Money Loans Fill In Funding Gaps
Carmel hard money loans are designed to help local commercial real estate investors fill in any gaps in funding, while larger loans are still being processed. Because of the time it takes for large loans to process and disburse funds, Carmel, IN house flippers face challenges when trying to cover more immediate costs. Local house flippers know the pressures involved with paying closing costs, lining up contractors, purchasing equipment and appliances, picking out tile and fixtures, and getting permits for construction and renovations. Not having the capital on hand to cover those expenses can cause house flipping projects to stall. Carmel hard money loans provide the interim funding until the capital from the larger loans becomes available.
Keeping Projects On Track
As stated above, Carmel hard money loans allow local commercial real estate investors to keep house flipping projects from experiencing delays. House flipping projects, while certainly more accessible in individuals than other commercial real estate undertakings, still run on a tight time table. The fast a home can be purchased, renovated, and listed, the quicker it can generate revenue. Delays caused by a lack of capital can end up costing more in the long run, and end up eating into profit margins. Carmel hard money loans eliminate the stress and anxiety surrounding house flipping projects. Carmel, IN house flippers can get all their ducks in a row and move forward on every stage of the project without worrying about a strain on finances.
The Best Hard Money Loans In Carmel, IN
Liberty Commercial Capital offers a wide range of financing solutions for Carmel, IN commercial real estate investors and property developers. Our Carmel hard money loans can be arranged quickly, and offer affordable funding while larger loans are still in the pipeline.
If you are taking on a house flipping project, contact the experts at Liberty Commercial Capital today.
10 Oct / 2017
The purchase of commercial real estate can be a smart investment, but the sheer complexity involved in the taxation of these properties can be a hefty deterrent to potential buyers. You can make a smarter property choice, however, if you understand what the taxes are and how they would apply to your individual business situation.
Every year, homeowners are required to pay property taxes, and the same is true for commercial real estate. What is different is the tax rate and the way these properties are assessed, because a variety of factors, such as income generated, expenses to maintain and the overall condition of the building, can come into play. Incentives can sometimes be found as well, such as a reduction in the tax rate for early payment. Talking with your local tax assessor and/or using resources it may have available will help you gather the information you need to manage this yearly expense effectively.
Local and State Taxes
Cities, municipalities and counties can sometimes levy taxes on commercial real estate. Since this varies broadly across the country, you will need to determine what taxes apply to the property you’re considering. You can look online, work with your realtor or visit your local officials for more specific information. State taxes also vary and are typically centered more around the income generated from the property. When the property is sold, there can also be a state tax on capital gains or losses from the sale. The online information provided by the state where your property is located will provide valuable information and typically have help lines you can call with questions.
Like state taxes, federal taxes on commercial property generally fall into the elements of income and capital gains or losses. Factors such as depreciation, cost of improvements and maintenance, mortgage interest and many others have an impact on both elements. The IRS website provides an exhaustive list of publications, forms and FAQs, as well as a help line to help you understand current tax laws and rules.
Your Tax Picture
Being clear about how you plan to use your property is critical to gaining a clear picture of your tax liabilities. For example, a business owner who owns his or her own property can be taxed very differently than someone who rents a property out to others. Applying this knowledge when you use your various resources, talking with officials or consulting with a tax professional will help you make a confident, smart purchase of commercial real estate.
Need more tips on how to run your company? Contact us today!
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.