This article highlights the five primary reasons that banks decline commercial mortgage loan applications. The reasons provided below do not represent obscure issues, so it is likely that two or three of the reasons described will be important for typical commercial mortgage situations. The first two reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many commercial loan officers will start their loan review process by stating some variation of “Can you show me your business plan?” and “We will need to see several years of tax returns”.Commercial projects are frequently too unique for traditional commercial banks. In these situations (even if a commercial borrower has favorable tax returns and an adequate business plan), it is not unusual for commercial borrowers to be declined for a commercial mortgage loan by a traditional commercial lender. Commercial borrowers are likely to be confused when they are turned down and will be unsure as to why it happened and what to do next. For each of the five major reasons that a bank might decline a commercial real estate loan, a practical strategy is provided for converting the declined loan into an approved commercial mortgage.Reason # 1: A bank’s loan officer or loan underwriter is not satisfied that the business plan provided by the commercial borrower supports the requested loan.Strategy # 1: Most commercial borrowers will benefit directly from dealing with a commercial lender that does not require a business plan due to the following major benefits:
Reduce commercial mortgage costs by thousands of dollars. A common range for an average business plan (prepared to typical bank specifications) is $5,000 to $10,000.
Reduce mortgage closing time by several months. Business plans can be prepared before or after applying for a loan, but either way the net extra time required will probably be 1-2 months or more.
If the lender does not require a business plan, there is one less item standing between the commercial borrower and their approved loan.
Reason # 2: Loan underwriters find something on a tax return that disqualifies a borrower under the bank’s lending guidelines. This “something” will frequently be insufficient net income, but when loan underwriters look at tax returns, there are many other possibilities which produce a similar result.Strategy # 2: Business loan borrowers will never have Reason Number 2 to worry about if they are applying for a “Stated Income” commercial real estate loan. Very few traditional banks use Stated Income (no tax returns, no income verification, no IRS Form 4506) for a commercial mortgage. Commercial borrowers should seek out lenders using Stated Income Commercial Loans. However, this strategy will not work for all commercial mortgages since there is a maximum loan amount of $2-3 million for most Stated Income Commercial Mortgage Programs.Reason # 3: The bank does not generally make business loans for the type of business involved or imposes special requirements that make the loan impractical for the commercial borrower. Fewer banks are making loans to bar/restaurant properties. Similarly, auto service businesses are frequently given unnecessary (and expensive) environmental reporting requirements. There are many “special purpose” properties such as funeral homes, campgrounds and churches that most traditional banks will not include in their business lending portfolio.Strategy # 3: For most business borrowers that can get approved at a traditional bank, there are prudent options available elsewhere. And “prudent options” are clearly available only elsewhere when the bank won’t make the business loan in the first place! There are very capable commercial lenders that are interested in special purpose properties.Reason # 4: When a business is refinancing their current commercial mortgage and wants to get a significant amount of cash out for various uses, it is not unusual for the bank to restrict what the funds are used for and to limit the amount of cash to amounts as small as $100,000. Even though the bank might make the loan, if they won’t provide the amount of cash needed by the commercial borrower, this is equivalent to declining the loan.Strategy # 4: As mentioned in Strategy Number 3, there are other options available elsewhere! The commercial borrower’s mission (and it is not impossible at all) is to use a commercial real estate lender that will allow them to get much larger amounts of unrestricted cash out of a commercial refinancing without restrictions on what they do with it.Reason # 5: The bank will not provide a business loan without adequate collateral, usually in the form of a lien on personal assets such as the commercial borrower’s home.Strategy # 5: Commercial mortgage borrowers should seek out lenders that do not “cross collateralize” assets as a condition for obtaining a business loan. This will provide greater flexibility for the commercial borrower and avoid unnecessary (and unwise) connections between personal and business assets.Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.
Commercial Mortgage Disapprovals – Five Major Reasons for Bank Rejections
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The Best Home-Based Business for Beginners: 4 Important Tips for Starting Your Business!
If you’re a beginner in the home-based business world; whether it’s online or predominantly “on the street;” you can find a million web sites that claim you can make money right away! Many “wealth gurus” say they can make you fast cash!However, millions of home based business ideas on the internet are failing to produce their claims.Why?Because most home-based business ideas are usually too difficult for the beginning entrepreneur. Or, in an effort to make them simplistic, most of the benefits are in favor of the owners.In fact, many programs are usually challenging for the intermediate and advanced Internet marketer.You’ve heard it before… “You can make $150,000, $500,000 and even $1 million a year with no experience, not time, no money and no brains!”You’ve heard these outrageous claims before and they get old after a while! It makes it hard to know the difference between the hype and an online home business or home-based business idea that can deliver a real promise!So if you’re trying to get out of the 9-to-5 rat race and work for yourself, the best way to prevent wasted time is to find a dependable mentor and invest the required time and money to get the necessary foundation that can help you make money from “jump Street!”It’s common for the average home based business entrepreneur to invest 10, 20 or $30,000 in training and tools before finally getting the right skill set to make things happen. In fact, it probably happens to over 70% of us who get into home businesses. Of those, most fail.In fact, I was no exception. Before it finally made some sense to me I had invested over $20,000 in training, software, tools etc.The biggest tragedy is; I could have spent $500 or even $1000 and received the same or even better results! However, I started like most of us do. spending $10 here, $25 there, etc. But that’s like trying to put a 500 piece puzzle together and purchasing five pieces at a time.So you’re faced with the choice of constantly being persuaded by all the get rich quick scams and jumping from one hot idea to the next!Don’t Repeat the Same Mistake most Home-Based Beginners Make!Like many of us, I took the plunge into online and home-based entrepreneurship and experienced instant failure! Even though I began working on the internet when it virtually started. I worked many home-based businesses as early as when Amway was very popular.I failed at over 50 different home and online businesses with every marketing strategy you can think up.I fell for several of the web site gimmicks that told me to “just purchase a sleek looking $500 web site and get rich! One such opportunity was a car web site that I worked on for five years. During those years I never made one dime!I purchased e-courses, signed up for all the free programs, I spent many hours posting to free ad boards, ad blasters, banner ads, studied SEO, basic HTML and much more. I probably tried every kind of internet business and strategy on how to make money!I tried an equal amount of home-based businesses that do most of their work on the street instead of the internet.Basically, I was spending all my free time draining my bank account and still didn’t make one penny!Don’t let anyone fool you; although working in the home-based business world can be very lucrative, you are going to have to make an investment in time, money and dedication before you get the results you desire. The good news is, it takes much less time and much less money than in the “brick and mortar” world.Important Tips for Starting Home Based BeginnersOK Mike, you told me all the bad news! So what can I do that will work!Glad you asked!Good money can be made with a home business idea, and lots of it! In fact unlimited! But these secrets are important.If you are making tons of money without them, you should be able to at least DOUBLE your income with them!1. BEST HOME BUSINESSES Concentrate on programs or products that need to be purchased monthly!There are many great products and services for you to support. You can earn big commissions to represent them. HOWEVER, would it be better to make a $39 profit just one time, or a $10 profit over and over again indefinitely?2. BEST HOME BUSINESSES know it takes some money to make money!Despite all the hogwash you read about making $1 million and never spending a dime; ladies and gentlemen, it might happen once in a million years! But don’t hold your breath!It’s always going to take some money to make money. The good thing is it takes a whole lot less to start a work from home business.Also, even though you can join many programs FREE; realize it only gets you in the door; and without benefits to actually make a financial profit fast.3. BEST HOME BUSINESSES “put their eggs in several baskets!”The best home businesses entrepreneurs diversify their businesses. Getting involved in a program or selling a product with multiple sources of income or sources of prospects is what I’m talking about! If your business has more avenues of income, it will be more stable and you will be less likely to go under.I would keep in mind that because of our unstable economy, a rewarding home-based business idea should not solely be dependent on the online world. You can conduct your business online and “on the street” but what if the internet goes down for some reason? Just something to keep in mind.4. BEST HOME BUSINESSES invest in a business with a solid financial foundation.Can you imagine if you invested all your time and effort in a program and after one year it closed its doors! Make sure you don’t invest all your effort into a program that is weak in the first place!Also, when you have a “business developer mindset”, instead of a “recruiting mindset”, you will have a friendly team of associates to keep your business going.Even if you’re flagship project goes under, your associates are likely to join you on the next venture.
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How Social Media Allies and Upsides Your SEO Efforts?
SMM and Search Engine Optimization are usually given a separate space in the digital marketing arena.
And, quite reasonably, they are the two most decisive factors in the online marketing sphere.
But what we fail to understand is why many businesses do not acknowledge social media marketing as one of SEO’s most influential allies.
Do we intend to say that social media directly encourages your Search engine rankings?
The simple answer could be NO!
You must recognize that social metrics like Facebook likes and Twitter followers indicate social profile authority but have no hand in directly circumscribing the search engine rankings.
Surely, our straightforward answer is confusing. However, we completely believe that SEO and smo are powerful collaborators whose association must be leveraged for digital marketing success.
Let’s dig deeper and express how SMM can merit and warrant your SEO strategy.
The Relationship Between Social Metrics & SEO
Let’s assume that there might have been experiments conducted in the past that determine the use of social-media metrics such as social mentions and engagement level for search engine rankings.
But due to the unpredictable and unstable nature of smo and the weak signals generated, professionals might have dropped the attempts.
This was well elaborated by Matt Cutts back in 2014 in a Webmasters video. He was the Head of Google’s Webspam Team back then, and he revealed that social media provided incomplete signals.
Also, search engine algorithms can’t ascertain the reliability and authority of the smo posts and the profile.
Nevertheless, is there an Indirect way that social media influences search engine rankings?
And, this was embellished in the Cutt’s video itself.
He said that Google treats all social media websites like any other website on the Internet, which means that the same rules apply to Facebook, Twitter and so on as it applies to other websites.
Benefits of Social Media for Business
A Linkable Opportunity
As most social media consists of links to other websites, site owners and content creators can use it to promote their content.
You can employ a particular mixture of organic and paid promotions strategy to maximize your audience base.
Here’s how this happens-
As you use social media, there might have been countless times that some articles impacted you.
The impression an article made is evident in the things you share and communicate on social media. You might often use the information from the article in your other works, giving the source article a reference.
Understand that people cannot relate to something unless they know about it. Social media gives the perfect opportunity to content creators to prompt the audience and share link-worthy content.
You might well concede that SMM has given attention to many websites and individuals who were not known before. Creating Brand Mentions
Now, suppose someone or something (brand, product, service, individual, business, etc.) that has not yet been identified by Google suddenly notices many remarks online. In that case, it will influence Google to categorize them as an “entity”.
These are some unique circumstances that can boost your search engine rankings. This is bound to the context you are being mentioned or how people are talking about you online.
Understand that you are not adjudicated for how high you rank for a thing but what you entail as an entity.
So your website might not be getting a mention for a specific thing right now, but seeing the number of people who put trust in you, they can well start recognizing your business for that particular piece.
This is called the power of positive mentions.
Nevertheless, you need to make sure that positive mentions are not just on social media but on all public forums.
You can spring your brand marketing with your true audience base and inspire positive reinforcement and communication on social media.
Social Media For Searches
You cannot miss the fact that people use social media to search for a particular product or brand, and your audience base is just not limited to Google or Bing.
As you operate Twitter, you will realize that the social media channel with its trends, hashtags, insights and other tools give you a perfect opportunity to collude with the potential customers, making your content visible to the users.
You will find similar responses to Pinterest and Instagram.
Also, if anyone wants to know more about your company, he/she will likely ascertain your presence on Facebook, Instagram, Twitter channels- do a quick search and decide upon if he/she wants to deal with your business or not.
In 2016 Mark Zuckerberg had mentioned that “Now people are doing more than 2 billion searches a day between looking up people, businesses, and other things they care about.”- source Techcrunch.
Facebook had earlier retreated on a semantic graph search engine and launched a true keyword search, which landed in more search queries for media channel.
Twitter, since its onset, has been the leading destination for the population to flock for searches, especially in the event of big global news. Full post search appeared to have worked for Facebook and have expedited query volume.
Changing The Idea Of SEO
We have reached the phase where SEO is not just centered till Google optimization. We need to realize that search engine optimization is extending and converging on smo.
Also, if Google has been unclear about its stand, Bing, on the other hand, has been quite positive in including social metrics in its search engine algorithms.
You may well agree that the audience that reaches the company website, lurking through digital media channels, has already interacted with the company in a very pragmatic sense.
Also, digital media gives users the capability to engage more powerfully and compellingly. Hence, it will be only effective to broaden your social, media capacities and elicit brand awareness and growth.