Earlier today I received an email from our CEO, and the subject of the email was Franchise Business Financing. The email was filled with positive news regarding the number of Franchise Loans we’re closing.

After reading this email and getting myself all excited to share this news with you, I decided to do some searching online to see what others were saying and doing with regards to obtaining Franchise Business Financing.

The more I looked, the more upset I became. The more upset I became, the more I looked, and the more I looked the more upset I became. This is not really a healthy pattern, but it is necessary.

It’s necessary if you are looking to obtain a Franchise Loan or Franchise Business Financing. Actually, it’s necessary for anyone looking for any type of Commercial Real Estate Financing or Business Financing.

Why is it necessary? To explain this requires I go on a bit of a rant. Okay, it’s not really a bit of a rant, it’s a major rant! First let me explain why.

There are a LOT of hard working people out there who are in need of a Franchise Loan or Franchise Business Financing. Most have probably been banging their heads against the wall talking to Banks and other Lenders, only to find themselves left out in the cold.

Has this happened to you?

Here are the problems you face in trying to find your Franchise Business Financing. You spend months talking to the Banks, who initially promise you the world. But at crunch time they pull the carpet out from underneath you. You’re left frustrated and confused.

So what do you do? You hit the world wide web in search of your financing. (THIS IS THE PART THAT SENT ME OVER THE EDGE TODAY)

Most of us never look past the first page when we search Google or another search engine. And for good reason because the search engines usually do a pretty good job of giving us relevant results for what we search for.

But sometimes they get fooled. And boy did they get fooled when it comes to searching for Franchise Financing. And if Google can get fooled, the rest of us don’t stand a chance. Specifically, YOU don’t stand a chance!

But I am going to try and rectify this right now. READY? Good, let’s dive in…

When you go online searching, and you click the first link (or any link in the results), take a step back and really look at what shows up. When I looked, what I saw was DISTURBING. And it will more than likely lead to a BIG BLACK HOLE for anyone looking for a Franchise Loan.

You think you’re looking at a Lender’s website, or a Broker’s. But in reality what you’re most likely looking at is a website that WILL SELL YOUR INFORMATION MULTIPLE TIMES, TO MULTIPLE Brokers or worse!

You think you’re talking directly to someone who can get you the Franchise Loan you need, but you are more than likely talking to someone who’s ONLY goal is to get your name and telephone number so they can sell it. 

Now do you see why this drives someone like me nuts?

You’re already frustrated having wasted time with a Bank (or Banks) that won’t fund your Franchise Loan, then you end up on a website of a company that is only interested in selling your information. And sadly, most of those buying your name and contact information will end up being no better than the Bank who has already wasted your time.

And round and round you go, wasting time until you end up throwing your hands up in disgust and giving up on ever finding the Franchise Business Financing you need and deserve.

Look, it’s not your fault. You’re not supposed to know this stuff. And if I don’t open my mouth and share it with you, you may never know.

Here’s the bottom line. If you already know what franchise business you want, you’ve already done your due diligence, and now you’re looking for the Franchise Business Financing to help you get the deal done, don’t waste time talking to “lead generation” marketing firms.

TALK TO SOMEONE WHO IS ACTIVELY CLOSING FRANCHISE BUSINESS LOANS!

That’s what my point is. We’re actively closing these Franchise Business Loans. Yes, Franchise Business Financing is alive and well, as long as you know where to go to find it.

Here’s how to get the answers you need, and to determine exactly where you stand in obtaining your Franchise Business Financing.

First, complete our Commercial Financing Assessment Form. It will take you all of 3 – 5 minutes to do. The more complete your answers, the faster we can give you the REAL answers you need.

I want to encourage you to complete the Commercial Financing Assessment Form BEFORE you try calling us. Because of our heavy call volume we ended up spending more time talking to folks on the phone then helping those who needed financing the most.

Besides, if we did talk to you first, we’d be asking you the same questions on the Commercial Financing Assessment Form, and then having to call you back after discussing your specific loan scenario with our underwriter. 

Doing it this way, we can eliminate the longer delay in getting you the answers you need. And if you need answers about your Franchise Business Financing, you do not want to wait any longer than necessary!

This officially ends my rant for today. But I won’t feel better until you have the Franchise Loan you need!

We’ve been able to do these loans on owner occupied deals for a while, but finding investor money for gas stations and hotels has been difficult to impossible to find. Until now…

Here are some quick hits on this investor financing:

• $750,000 – $5,000,000 (anything under $750K is a case by case basis)
• Interest Only Option available at 4.95% FIXED – 1.5 Debt Coverage Ration REQUIRED
• 1.3 Debt Coverage Ratio required for principle and interest option
• Triple Net Leased Investor deals are the focus
• Can also do RV Parks, Retail, Mobile Home Parks and MORE
• NO Construction on this product

This is a SMOKING HOT Investor product for the deals that the life conduits and big banks IGNORE!

Tired of being ignored by the banks? Ready to talk to people who know how to get you the Investor Financing you need?

Here’s what you need to do to get the quickest response.

Step 1: Simply take 2 – 3 minutes to complete our online Commercial Financing Assessment Form.

Step 2: Send any supporting documents to us via email at Info@CommercialMortgageTips.com.

We urge you to follow these two simple steps so that we can review your information and get back to you quickly, with “real” answers regarding your specific investor gast station or investor hotel loan scenario.

If you call us you are guaranteed to get our voicemail. And we always respond to inquiries from those who use the Commercial Financing Assessment Form first.

Why? Because after we were constantly inundated with so many telephone calls from folks with non-specific loan questions,  it caused a huge delay in us getting back to people just like you who have actual deals needing funding.

So, in order to stramline the process, and help those who are most in need of a financing solution, we decided to let the calls go to voicemail while we work to help you get the commercial real estate financing you need now!

It’s just takes two simple steps if you’re in need of a Small Balance Bridge Loan.

This is our own in-house financing product. From Underwriting to the Credit Committee, it’s all done in-house!

These Small Balance Bridge Loans are closing in 3 weeks or less. The shortest has been ONLY 8 days to close!

Here’s the skinny on these Small Balance Brideg Loans:

• We will consider ANY Property Type or Deal with a good story
• Need a solid Exit Strategy
• Loan-To-Value 60% or Less (65% on exception)
• Loan Amounts under $1 Million
• Minimal upfront due diligence – REMEMBER, these are done in-house. We’re the Underwriter and Credit Committee

We’ve done vacant warehouses in Michigan… a Cell Phone Tower… a Note Discount Deal at 100% of the discount!

Simply put, this is the BEST SMALL BALANCE BRIDGE LOAN ON THE PLANET!

If you have a deal that juast can’t fit into Conventional Financing, let us take a look at it. Don’t just give up!

Interested? Here’s what you need to do to get the quickest response.

Step 1: Simply take 2 – 3 minutes to complete our online Commercial Financing Assessment Form.

Step 2: Send any supporting documents to us via email at Info@CommercialMortgageTips.com.

We encourage you to follow these two simple steps so that we can review your information and get back to you quickly, with “real” answers regarding your specific scenario.

If you call us you will almost certainly get our voice mail. And we always respond to inquiries using the Commercial Financing Assessment Form first.

Why? Because we were inundated with so many telephone calls from folks with non-specific questions, that it caused a huge delay in us getting back to people just like you who have actual deals needing answers and funding.

In order to stramline the process, and help those who are most in need of a financing solution, we decided to let the calls go to voicemail while we work to help you get the commercial real estate financing you need now!

It’s just takes two simple steps if you’re in need of a Small Balance Bridge Loan.

If you’re in need of Hotel Construction Financing you know all too well this has been one of the most difficult forms of Commercial Real Estate Financing to find.

Now it just got a little easier! That’s because we now have a lending source for ground up Hotel Construction Financing!

This is a Nationwide Program for Ground Up Hotel Construction for Flagged Hotels with a loan amount up to $5 Million.

Quick Hits:

• As little as 15% down
• Flagged Hotels
• Nationwide
• Up to $5 Million
• Strong experience needed
• Feasibility study required prior to full underwriting

If you’ve been searching for Hotel Construction Financing you have found your source!

Here’s what you need to do now to get the answers you need as quickly as possible. First, complete the online Commercial Financing Assessment Form.  

We strongly encourage you NOT to call us, and instead complete the online Commercial Financing Assessment Form first. Because of the current market conditions we have been inundated with telephone calls.

These calls have tied us up, and have made it more difficult to get back to those who have current financing opportunities, and who need answers quickly. So we’ve been forced to stop taking live calls so we can instead focus on getting back to you with “real” answers regarding your specific loan scenario.

If we spoke to you first, we’d still need to ask the same questions, and we’d still have to get back to you after discussing your loan scenario with our underwriters. Now, by having you send us the information first, we have eliminated a time consuming step, allowing us to respond more quickly to your needs.

The bottom line is, if you’re looking for Hotel Construction Financing, complete the online Commercial Financing Assessment Form, and if you have an Executive Summary or other documents please email those to Info@CommercialMortgageTips.com. 

Once we have everything we will review it with our underwriter and we will get back to you at the telephone number or email address you provided. Please be patient as it may take several days before we can respond.

Our goal is to get back to you as quickly as we can, and with “real” answers to your loan scenario.

A Frank Discussion Regarding Commercial Real Estate Financing in 2012

I had the opportunity to talk with our CEO, Brian Peart, about the State of the Commercial Real Estate Financing Market. Now I want to share that conversation with you.

If you are a Business Owner, Commercial Real Estate Investor or Commercial Real Estate Professional, it’s critically important that you take into consideration where the current Commercial Real Estate Financing market is right now, as well as where it will be moving forward throughout 2012.

There’s just so much mis-information out there from the media as well as from inside the industry itself, that it’s easy to make assumptions about the availability, or lack of availability of funds that can lead to making costly mistakes.

Yes, the economy has had a negative impact on commercial real estate financing. However, it’s important to recognize and understand that not all commercial real estate financing sources have dried up.

While some sources have gone away, most notably from the majority of Banking institutions, other sources of commercial real estate financing have opened up and continue to offer significant opportunities.

Now it’s time you hear what’s really happening from someone on the inside.

Brian Peart, CEO Commercial Capital, Ltd.

Remember, if you’ve been turned down by a Bank, do not think your ability to obtain Commercial Real Estate Financing is no longer possible. As you heard in this call, most Banks are turning down the large majority of those applying for commercial real estate financing. So if you’ve been turned down, take a few minutes to complete the Commercial Real Estate Assessment Form. Let us look at your situation and give you a straightforward answer.

We simply ask you to complete the Commercial Real Estate Assessment Form BEFORE calling us.

Jay Estis, Branch President Commercial Capital, Ltd.

Because of the heavy call volume, it’s become necessary to ask you to utilize the Commercial Real Estate Assessment Form to allow us to respond to your inquiry more quickly.

Once we receive your information, we’ll then get back to you with “real” answers to your specific situation.  If we can help you obtain your financing, we will explain exactly what the next steps will be. And if for any reason we are unable to help, we will let you know why.

As a reminder, if you listen to the call above you should know that just because you’ve been turned down by a Bank for your Commercial Real Estate Financing, do not assume that is your only options. Complete the Commercial Real Estate Assessment Form and allow us to give you the proper time and attention you deserve.

How big of a Commercial Real Estate Financing industry insider is he? Well it’s my understanding that he’s involved in more commercial real estate financing closings than anyone else in the Country. So yea, that’s a pretty big fish!

On this call I threw a lot of tough questions at him, and he didn’t back down one bit. He was blunt, honest and told it like it is. Keep in mind I asked him some of the same questions you’ve been asking me!

You are going to want to hear every word he had to say. It may just make the difference between you successfully obtaining the financing you need, or completely losing out because you went to the wrong source who told you what you wanted to hear, but never had any intention of actually helping you.

The difference between those two outcomes can literally change your life, so you need to hear what he has to say on this call!

We also talked about what’s going on in the market, and what you can do to protect yourself.

As soon as I can get this recorded call uploaded I will let you know.

Stay tuned…

And we’ve seen the stock market sell off on the heals of the downgreade. And what should have happened in this situation didn’t. In fact, just the opposite occurred.

I’m referring to interest rates going DOWN, when they should have gone up!

Hey, I’m not complaining. But I do want to be sure you know what happened, so you can take advantage of it.

The stock market sell-off of the last two weeks has actually created the refinancing and purchase opportunity of a lifetime in commercial real estate!

Rates on most products are in the 5′s now with the low 5′s and even the 4′s available on select property types. That’s a huge opportunity!

And if you have a balloon note due in the next 2 years, you should be seriously considering a refinance. And, if you’re in the market for commercial real estate, you simply cannot beat the financing rates currently available.

Obviously financing is still tight. Not impossible, just tight. The key is in deciding who to work with.

And who should you work with? I’d strongly suggest someone with a proven track record for actually closing loans. Hint, hint…

| SIDE NOTE |

I wasn’t going to do this, but it’s driving me nuts and I need to vent a bit. I get telephone calls and emails almost every single day from business owners, investors and commercial real estate professionals.

They all have one thing in common. FRUSTRATION! And I share your frustration. Here’s part of an email I received from a frustrated commercial real estate professional who was in search of financing to assist her client.

“I have had no success in finding them financing. There are so many bogus companies and programs out there, that I have about given up looking.”

When I hear something like this I want to stand on the roof of the tallest building and scream at the top of my lungs, “Don’t EVER give up!”

But I get it. I understand her frustration. I’d probably feel the same way if I were in her shoes. And while I am not sure I can help her client, ne thing I do know, if anyone can, we can. It’s true, the odds are against them.

But the situation is not hopeless. And she is not helpless in this market. The economy may be in dumps, but the money has not dried up.

Money does not just disappear. It moves. It’s not where you’rer used to looking for it. In this case at the banks. But that’s not your fault. When that’s the only place it’s ever been, why would you look elsewhere?

But if you’re reading this, then you know you must look elsewhere. Right now there is an incredible opportunity. Do not let the past dictate your future! This is a new and changing market.

And in this new market, money is available at very low rates. And you’re at the best place to find it.

| END OF SIDE NOTE |

Okay, I’m glad I got that off my chest. Now back to some good news…

While there are some Lenders who are exiting the commercial space, new Lenders and HOT products continue to come into the market.

An example of this is a new Bridge Loan we’re rolling out. It just happens to be the  HOTTEST BRIDGE LOAN ON THE PLANET for loans $3 Million and up!

Here’s some additional information on this Bridge Loan:

• Up to 85% LTV
• Rehab OK
• Non-Recourse (No, I’m not kidding!)
• Rates between 9 and 11% generally
• All property types considered – YES, even HOSPITALITY
• Available in all 50 States

If that sounds like it may fit, or for any commercial real estate and/or business financing, please be sure to complete the Form (Complete Form).

Completing that Form FIRST, will allow us to get back to you with some real information, and save us both a good deal of time. Our goal is to get you answers as quickly as we can.

But the news is not all bad. I’ll explain why in a minute.

First, it’s important to understand what this news really means to you if you’re a Business Owner, Investor or Commercial Real Estate Professional.

We’re talking about the ONLY Wholesale Lender to survive the Lehman crash, and now they’re pulling out of 13 States because these are apparently the highest foreclosure and delinquency states in their portfolio.

Not only do we use this Lender, but so do about 6,000 Banks. Think about that. There are approximately 6,000 Banks that have just lost their biggest wholesale lending source. They simply do not have an alternative lending source.

Do you see why that might be a problem? If you think the market was constricted before, things just got a whole lot tighter. At least in these 13 states, and with at least 6,000 Banks.

And it wouldn’t surprise me at all if this news had a ripple affect with other Banks. Remember what I reported recently about how few Banks are really lending? There will be even fewer now. In my opinion, this will have a potentially crippling impact on commercial lending.

But I said the news was not all bad. And it’s not. That’s because while those 6,000 Banks lack an alternative lending source, we don’t!

You see, that’s the advantage we have in this market. And that advantage is passed on to YOU, if you can see through the banking mess to find us.

This news puts 6,000 Banks out of business in these 13 states, but we keep on rolling. Now I’m guessing you’d like to know what those 13 states are, right? Well here they are:

Al, OK, IN, MI, FL, MS, LA, MA, NJ, northern OH and ME

If you are in any one of these 13 states, and you’re reading this, I want to advise you to NOT waste your time trying to get blood from a stone. Yes, that’s being blunt. But if you are serious about obtaining Commercial Real Estate financing, you’d be better served by starting right here.

And if you’ve already been turned down by a Bank, whether in any of these 13 states or elsewhere, don’t give up! I’m telling you this because in a recent telephone call with our CEO, he mentioned to me that he cannot recall the last person we helped that wasn’t first turned down by a Bank first.

Some of these Business Owners and Investors that were turned down wasted valuable time and resources by trying to do things the old fashioned way. Keep in mind the current market is unlike any other we’ve seen. The rules are changing, as are some of the players. So keep an open mind.

And if you want to know more about financing for your situation, I want to urge you to use this Form which will only take about 4 minutes to complete, but will allow us to get back to you quickly with real information and answers.

It’s not that we don’t want to talk to you. We do, and we will more quickly if you will complete the easy Form first. Otherwise we end up spending twice as long (or longer) asking you the same questions, and then we will still have to call you back anyway.

The reason we do things this way is because there is no one size fits all in Commercial Real Estate financing, especially in this crazy market. We can speak to two borrowers who are trying to financing the purchase of a shopping center, for example. And even if it is the same shopping center, they’re different borrowers. So the situations are completely different, therefore the answers we provide will also be completely different.

So help us help you, and please take a few minutes to complete the Form, and we will get back to you more quickly. If you do call, I am going to apologize now for the delay.

The “this” I’m referring to is a conversation I had recently with our CEO, who was relaying a story about his trip out west to meet with a consortium of credit unions. I won’t bore you with the details of the reasons why they engaged his services, but it is important that you know these credit unions have a lot of capital to deploy, but are scared to do so.

You need to know this because it’s exactly the same with most of the Banks you are going to go to for your Commercial Financing. The same Banks that are turning you and other Business Owners and Investors down for Commercial Financing.

It’s important that you know this because more than likely you think you were turned down because of you, or your lending situation.

Maybe that’s possible, however he related to me that in his discussions with hundreds of Banks in the last few months, he estimates 60% – 70% are NOT REALLY LENDING. Combine this with the fact that he estimates the big 5 Banks DENY 80% – 90% of the applications they take in and you start to see the true state of money availability to the local business owner or investor.

More importantly, YOU should recognize that there’s a good possibility that the real reason your loan was denied may have little or nothing to do with you or your lending situation.

In those numbers above are perfectly good loans, with perfectly good borrowers. Their ONLY mistake was going to the wrong Bank or Lender for their Commercial Financing. But you won’t read about this in the media. You won’t hear this being discussed on the 6 o’clock news or in your local newspaper.

But if you had a loan denied, it just might be your reality! So what about you? Where does all of this leave you? Where do you go from here?

It’s worth explaining that just because these sources of Commercial Financing have disappeared or perhaps just flat out refuse to lend money, it doesn’t mean all of the money has just disappeared.

That’s an important distinction that you need to make and understand. I won’t sit here and blow smoke at you and suggest there’s easy money to be had in the Commercial Market. That’s just not the case.

But there is money available, and there are Commercial Loans being closed more often than you realize. I’m sure you’ve heard this quote at one time or another, “When one door closes another one opens”.

This is exactly what’s happened with Commercial Financing. The only question is, do you know what door is now open for you?

If not, you do now because you’re standing right in front of that door! That’s because Commercial Capital has resources around the Country who are aggressively lending. The bottom line is, if it’s a good deal, we have resources to fund it.

Our resources include life companies, hedge funds, conduit lending, private money and even local Banks and Credit Unions that are lending. And we also have our own in-house line of financing we can offer.

It’s worth repeating. All of these sources are aggressively lending.

We can bring the resources of the country right to you, the local investor or business owner and help you get the financing you need.

An example of this is a $6.4 Million loan we closed recently with our in-house lending facility for a re-modeling contractor. Listen closely to this. This was a strong borrower with plenty of money in the bank who could not get his loan funded until he came to us. This loan was denied before it came to us. NOT because he wasn’t a strong borrower. NOT because it was a bad deal.

So why was it denied by his Bank? I can only guess it had more to do with the Bank, because it was a strong borrower with a solid deal. And that’s why we funded that loan.

I’m not telling you this to brag or to pat myself on the back. I’m telling you this because you just might be sitting where this business owner was, turned down by a local Bank and thinking there’s no place to turn.

My advice is to stop reading the newspapers and listening to the news, where all you hear is how bad the economy is, how there’s no money to lend and BLAH, BLAH, BLAH!

Take a step back, and realize if you have a good deal that just got turned down, it must mean there’s another door open for you to walk through. And whether it’s us here at Commercial Capital or someone else, find that door and open it up and walk in so you can get what you need.

With all of this talk about the economy and everyone having an opinion about how to fix it, I still firmly believe it will only turn around when more Business Owners, Investors and Entrepreneurs like you get the financing you need to expand your business.

Only then will we see more jobs being offered, unemployment going down and growth in our economy!

It all starts with YOU!

That’s why we’re so proud to be part of the process of actively and aggressively funding loans all around the Country.

Our doors are always open to you! Come on in.

If you are not familiar with the importance of the SBA 504 Refinance, and unless you are in the commercial financing business you probably won’t be, please take a minute to go read my prior post regarding the Small Business Jobs Act, AKA: House Bill 5297.

Okay, so here it is in a nutshell. Originally, when the SBA 504 Refinance Program became available there was one particular restriction which was going to make it impossible for a large number of small business owners to take advantage of the program.

The restriction I am referring to was that your commercial real estate mortgage or balloon payment had to mature BEFORE December 31, 2012 in order for you to be eligible to refinance using the SBA 504 Refinance Program. The problem with that is, it left out way too many business owners who desperately need this program.

In my humble opinion the powers to be recognized they had made a huge mistake by using that date as the cut-off for eligibility. Fortunately, they were wise enough to see if they did not change, or extend the date, they were going to be facing a serious problem with small business owners being forced to default on their commercial real estate loans. And that would have created a huge mess in the commercial real estate market, on top of the huge mess in the residential real estate market.

Now the SBA is going to lift the date restriction, allowing many, many more business owners (maybe even YOU) to take advantage of this great opportunity to refinance your commercial real estate mortgage.

Let’s take a look at some of the highlights of this program.

SBA 504 Program Highlights:

• Up to 90% financing (borrowers 10% contribution can be satisfied by equity in the property and/or equipment)
• Below market, fixed interest rates
• Loan amounts up to $5.5 Million
• Amortization terms up to 20 years

Eligible Use of your SBA 504 Refinance Proceeds:

• For Debt refinancing ONLY! (which is fine because this is the reason for this loan in the first place)
• Not to be used for the expansion or the purchase of real estate or other fixed assets.

SBA 504 Refinancing Program Guidelines:

• This is a “no” cash-out refinance program (which is okay since most just need to refinance out of the loan they are currently in)
• Existing SBA 504, SBA 7(a) or USDA loans are not eligible. So you cannot refinance an SBA 504 loan with this program.
• Loan proceeds may not be used for other business expenses
• Business must have been in operation for at least 2 years
• The debt to be refinanced must be for owner-occupied real estate and have been incurred no less than 2 years prior to the date of application
• Payments must be current for the last 12 months

Keep in mind this is considered Phase I of this program, and it is widely believed when Phase II is announced some of these rules will be changed.  For example, it is believed that Phase II of this program will include a cash-out provision.

Here are 4 Important Questions To Consider If You’re Thinking About Applying For an SBA 504 Refinance:

1. Has the debt been outstanding for at least 2 years?
2. Has the business been in operation for at least 2 years?
3. Have you (the borrower) been current (meaning no payment deferrals or past dues of more than 30 days) on the note for the past 12 months?
4. Was the debt to be refinanced substantially (85% or more) used for eligible 504 purposes originally (owner-occupied commercial real estate, heavy machinery, equipment, and closing costs related to the project)?

If you answered “YES” to all of the above 4 questions, simply complete the easy online Loan Questionnaire Form so we can get back to you quickly with some solid answers on your eligibility.

You can certainly call us toll free at 1-800-553-3442, however for the FASTEST response, complete the Loan Questionnaire Form.

If you want fast answers, no matter what your loan situation, the secure online Loan Questionnaire Form is the best way to go!