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Adam Torkildson
Adam Torkildson
I am a marketer with a passion for online lead generation for all categories of business. Loans, marketing, seo, internet, etc.
 

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Sep. 27, 2012 2:41 pm
Here is a market update on hard money loans for commercial real estate. The lenders are looking for borrowers with experience and good equity in the real estate they are looking to finance. It is important for the lender to understand how you will pay off their loan. Typically the hard money lenders are only loaning money for 6-12 months. The most common payoff for the lender is debt refinance. ...  Read More
Sep. 26, 2012 1:48 pm
I was asked today if a commercial loan could be secured with corporate stock. Lenders often will use securities of various kinds as collateral for their loans. Borrowers should be prepared with the following. Is the stock publicly traded? Which exchange? Are there any restrictions on the stock? Are the securities professionally handled by a third party? Stock certificates may need to be...  Read More
Sep. 10, 2012 12:53 pm
There are many borrowers out there that think they will be better off going directly to the bank lenders for their loans. What they don't realize is that bank's "sell" commercial loans. Banks are for profit entities and thereby are more profitable if they can charge you more for your loan. The loan officer is there to close the deal and gain a small bonus on your loan. The bank's interest is to...  Read More
Aug. 29, 2012 1:03 pm
A non-recourse commercial loan is one in which personal guarantees from the owners of the project are not required. The project itself must be strong enough to support such a request. Typically, lenders are looking for a stable income stream from the property as well as a good collateral position in the asset. I typically see these types of loans on income producing real estate projects that are...  Read More
Aug. 24, 2012 1:09 pm
Many borrowers ask for the wrong loan when they pursue commercial credit. The best way to know what type of financing is most appropriate for your request is to start with the borrowing cause. This is the root reason or need for capital. Once we understand the borrowing cause it becomes much easier to source the right credit source for the borrower. I have been asked for a line of credit on many...  Read More
Aug. 17, 2012 12:50 pm
The SBA debentures are selling for 4.51% right now. On an SBA 504 loan you could get a 4.51% fixed rate for 20 years. If you plan on purchasing business real estate and occupying at least 51% now is a great time to do it. I have never seen interest rates this low. The bank rates for these loans are low to mid 5% range as well. Call me today to see if you will qualify for these great long term...  Read More
Aug. 15, 2012 10:04 am
Recently we closed an owner occupied real estate loan with a bank 5 year fixed rate of 4.9%. When we began the application process we hoped to have a 5.25% interest rate; however, with the downturn in rates we were able to beat our own expectations by 35 bps. It was a great day for us to provide such competitive pricing. The borrower had been in business 3+ years. Cash flow was strong for the...  Read More
Aug. 9, 2012 2:16 pm
Most businesses will ask the vendors they are purchasing their new equipment or remodel furniture from for financing. Although these vendors are convenient to use, they generally are also a more expensive source for money. Fixture's, Furniture and Equipment typically fall into a tenant improvement or remodel budget for most businesses. In many cases traditional bank lenders struggle to provide...  Read More
Aug. 6, 2012 5:04 pm
Buying a business is an exciting journey. There are many things to consider and prepare for. Here are some places you should start looking for capital to purchase a business. For loans of $1-$200,000 you should look to home equity lines of credit, peer to peer lending sites, credit cards and other lines of credit, family members and friends, and some smaller community banks and credit unions....  Read More
Jul. 26, 2012 3:07 pm
Although the credit markets have been really tight lately, commercial loans are closing. The days of quick approval and funding in the commercial industry are long gone. No rock goes unturned during the business analysis and underwriting process. It is amazing how much closer the lenders are looking at borrowers and their businesses. Things that in the past haven't presented problems have become...  Read More
Jul. 18, 2012 11:48 am
Here are a few good reasons why you would want to engage a commercial broker for your next loan request. Options: A broker will normally have several lenders that may be interested in your loan request. Advocate: A broker that is paid on commission is going to fight for your loan. Bankers who get paid a salary are not as motivated. Expectations: A broker has a pulse on the commercial credit...  Read More
Jul. 16, 2012 1:22 pm
This post is written for those borrowers who are accustomed to the consumer mortgage lending processes and are venturing into a commercial credit for the first time. There are a few expectations that will go a long ways in your preliminary due diligence. Commercial mortgages take anywhere from 45-60 days at best. Commercial appraisals range from $2,500-$5,000 and take 2-3 weeks. Environmental...  Read More
Jul. 11, 2012 1:38 pm
As of the date of this post it seems that commercial lending has lightened up a little. It is still more difficult to obtain a commercial loan today than it was during the economic boom; however, financial institutions are beginning to market for loan opportunities again. I've seen a surge in new business loan requests as well. Business owners seem to have more confidence in the economy to start...  Read More
Jul. 10, 2012 3:40 pm
I have been asked lately what commercial loan services we offer. Essentially any type of commercial debt financing we have sources who fill those needs. As a commercial loan broker we know which lenders are interested in which types of deals, industries, risks, etc. Working with us can greatly improve your chances of success in pursuing a commercial loan. Because we know what the commercial...  Read More
Jul. 6, 2012 10:10 am
Are You Committed to Your Loan Request? This may seem like a silly question. Why would you be pursuing a commercial loan if you were not committed? Why would anyone want to go through the pain of applying and gaining approval for a commercial loan if they were not prepared to go through with it? My question here is not directed at borrowers who for extreme or outside purposes are unable to close...  Read More
Jun. 29, 2012 11:13 am
It's difficult to get commercial loans because... Banks a being scrutinized by the FDIC and regulators. Approving officers at the banks are worried about industry trends. Approving officers have had bad experiences with certain industries and loan types. Government guarantees have not always performed as the banks expected. Secondary market investors are more conservative. Borrowers are...  Read More
Jun. 27, 2012 11:48 am
If a start up business has the option to pursue a residential loan to obtain the money they need for their business I will always recommend that first. For example: If a borrower needs a $200,000 loan and they have the equity in their home or other assets to meet that need, I recommend a second mortgage or refinancing the first. It may also be wise to get personal loans on automobiles as well. ...  Read More
Jun. 25, 2012 5:11 pm
Borrowers should beware of commercial loan fee agreements. In some cases the commercial loan broker/lender/business is not regulated. For this reason you are not protected like you are when you pursue traditional consumer financing. Keep this in the back of your mind as you engage in any commercial project that needs financing. I'm not suggesting that you should take a cynical approach to the...  Read More
May 29, 2012 5:57 pm
In general is appears that commercial lending is beginning to loosen it's purse strings. Driving around I have noticed many more construction projects underway. I have also had several phone calls lately for new commercial loan requests. These are good signs for the economy. More jobs and more money in circulation in our local economies. The impact of these dollars on local businesses and...  Read More
May 25, 2012 6:12 pm
Not all franchises make it easy to get financing. It is important for you evaluate the franchise agreement and franchise disclosure documents (FDD) in their entirety to ensure you are getting exactly what you expect. You may also want to look on the SBA website to see if the franchise is on their approved list. When a franchise is not on their approved list an attorney must review the...  Read More
May 11, 2012 2:02 am
Documentation: This stage can be really quick. Most lenders can turn loan documents around in a 24 hr period. You should always take time to review your loan docs and make sure they match the commitment letter issued. Mistakes are much harder to get corrected after the loan funds and can be costly to you. In some cases where special exceptions are made for your loan, lenders will hire attorney’s...  Read More
May 9, 2012 2:04 am
Underwriting: This is when the clock really starts. You want to get your loan to this stage as quickly as possible. Underwriting can take a couple weeks to 30 days depending on your loan’s complexity. Often times (almost every time), underwriters will request more information or updates to the loan file. It is crucial that you are quick to get the information requested. The lender will put your...  Read More
May 7, 2012 12:49 pm
Commercial loan processing falls into a few stages. They are gathering, prescreening, underwriting (bank, participants, SBA), documentation, and then booking. Here are the expectations you need to have in mind during each stage of the commercial loan process and a timeline. Gathering: This entails putting together your complete loan package. This stage can take as long as needed for the...  Read More
Apr. 26, 2012 6:00 am
Here are some general rules that lenders look for immediately when considering a business acquisition loan. Is this a turn around business acquisition? Lenders do not like to lend money to failing businesses. If there is a declining sales trend you will have an extremely difficult time finding a lender. How long has the business being acquired been in operation? What tangible assets does the...  Read More
Apr. 25, 2012 2:02 am
A close family member of mine almost purchased a failing businesses. The individual was emotionally invested in each of the clients she served. She was the technical operator for a cosmetic laser clinic in CO. The doctors who originally opened and operated the clinic wanted out. The doctors offered to sell the business and it's assets for the outstanding debt on the books. The problem was the...  Read More
Apr. 23, 2012 12:40 pm
Business acquisition loans are some of the most challenging deals I have worked on. Although the SBA guarantee program assists lenders in eliminating some risks associated with these types of loans, the risks are great enough that lenders still exercise extreme caution. Many things can go wrong in a business acquisition. Will the new ownership maintain the historical growth performance, will they...  Read More
Apr. 19, 2012 2:08 am
Be careful if you see any of the following red flags from your lender. Bait and switch. This is when a lender will give you one set of terms in a letter or verbal quote in an effort to get you to exclusively work with them. This takes other bankers out of the running. Because of the time you will spend with a lender, you are unlikely to switch to another lender once you have submitted all your...  Read More
Apr. 18, 2012 2:08 am
Quick Tips: Here is what you need to remember when reviewing your bank letter. Does this lender have the ability to lend? Some brokers will issue a letter of intent to a borrower to outline the terms; however, without a true lender the broker could never fund your loan. Any letter from a broker is only a letter of intent. This is true with an SBA approval as well. If the bank doesn't approve...  Read More
Apr. 17, 2012 8:41 am
Borrowers need to beware in the commercial lending market. The regulations are different in the B2B world. Understanding what is "real" and what isn't can be a challenge for many business owners. Be cautious as you move forward with any lender; even national lenders will set false expectations at times. I have seen letters of intent, proposals, conditional approvals, commitments and email's that...  Read More
Apr. 12, 2012 1:35 pm
I have had 3 requests in the last 6 months that have dealt with land leases. The projects varied from multifamily to theme park equipment and improvements. Although the improved structures were owned by the borrower, the land was leased rather than owned in some cases for up to 99 years. Many lenders will not issue loans to borrowers who are leasing the land if the improved structure is the only...  Read More

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