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.
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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.