Denver is a draw for people looking for big city life as well as those seeking opportunities to explore the outdoors. Its reputation as a health-conscious city is appealing to young professionals and families ― especially people more apt to be renters instead of homeowners.

Denver’s multifamily real estate market is strong and there’s no end in sight. With the city’s housing inventory at record lows, would-be homebuyers are opting for multifamily apartments that offer lower monthly payments versus a mortgage. Occupancy rates on multifamily in Denver are more than 94%.

Denver is a destination for tech workers fleeing the pricier coastal markets.  The Colorado “Front Range” appeals to young professionals and families alike. While rising home prices have prevented many residents from buying a home, they give real estate investors an opportunity to buy multifamily units to rent out – a good way to secure a steady stream of income for the long haul.

Preferred Capital Funding has some of the strongest multifamily lending packages in the industry, with rates starting at 2.5%, 35-year fixed terms and Loan to Value up to 90%. Some programs require no tax returns of 4506C. If you’re looking at investing in or refinancing a multifamily property in Denver, or anywhere in the US, we’ve got a program for you. Contact us to learn more.

The post Denver: One of the Country’s Hottest Multifamily Real Estate Markets appeared first on Preferred Capital Funding.

Specifically, the 7a program was enhanced by increasing the government loan guarantee to 90 percent; forgiving the standard SBA Loan Guarantee Fee; and waiving the first three months of loan payments. Those subsidies were of great help to many small business owners accessing new loans during this challenging period.

Unfortunately, those benefits are scheduled to elapse on Sept 30, 2021. But that doesn’t mean the 7a program isn’t still a great option. In fact, in many cases it might be the only option if you don’t qualify for a conventional loan from your local bank.

Here are some of the many benefits of the SBA 7a loan program:

• Many types of business are eligible, including gas station/C-stores, self-storage, assisted living, medical/dental, etc. Most franchise brands qualify for the program, which means their franchisees can access most of the costs of building and opening a startup franchise business.
• Highly competitive interest rates that are lower than most alternatives.
• Low down payments, typically between 10%-20%.
• No prepayment penalties.
• Longer loan terms than most alternatives (typically 10 years, or up to 25 years if real estate is involved).
• Can be used to buy another business, restructure existing debt, increase working capital, and many other uses.

For business owners with solid credit, a sound business plan, and good record-keeping, the SBA 7a loan is a great option and one that should always be considered when weighing your financing needs. Preferred Capital Funding has many years of experience helping clients navigate the process of applying for and obtaining a 7a loan, and we’re happy to discuss your situation to see whether this option is a good one for you.

The post SBA 7a Loans: Still a Great Option! appeared first on Preferred Capital Funding.

A letter of explanation, sometimes called a “LOX,” is a simple solution to this problem. It allows you to describe any past issues and how you resolved them so that we can get your loan approved. Tax liens, bankruptcies, prior late payments – if any of these are in your story, a LOX can be your key to a successful loan closing.

For example, if you were late on credit card payments or haven’t paid taxes in a few years, explain why. Also outline your plan for the future and how the loan will allow your business to succeed. The more detail the better in describing past financial issues will help us overcome common problems like these. Supporting documentation such as bank statements, receipts or legal documents can often help.

Commercial mortgage lenders are willing to work with non-traditional scenarios. If the loan makes sense to the underwriter, we many times have a path forward. The letter of explanation is often the tool that gets us to closing.

The post Keys to a Successful Letter of Explanation appeared first on Preferred Capital Funding.

Over the past year, many homeowners realized what they need in a home is changing, especially with the rise
in remote work. If you’re longing for a dedicated home office or a change in scenery, now may be the time to
find the home that addresses your evolving needs.
Working from Home Isn’t a Passing Fad
Before the pandemic, only 21% of individuals worked from home. However, if you’ve recently discovered
remote work is your new normal, you’re not alone.

A survey of hiring managers conducted by Statista and Upwork projects 37.5% of U.S. workers will work remotely in some capacity over the next 5 years (see chart below):

Working from Home Gives You More Flexibility and More Options

If you fall in that category, working from home may provide you with opportunities you didn’t realize you had. The ongoing rise in remote work means a portion of the workforce no longer needs to be tied to a specific area for their job. Instead, it gives those workers more flexibility when it comes to where they can live.

If you’re one of the nearly 23% of workers who will remain 100% remote, you have the option to move to a lower cost-of-living area or to the location of your dreams. If you search for a home in a more affordable area, you’ll be able to get more house for your money, freeing up more options for your dedicated office space and more breathing room. You could also move to an area you’ve always dreamed of vacationing in – somewhere near the beach, the mountains, or simply an area that features better weather and community amenities. Without your job tying you to a specific location, you’re bound to find your ideal spot.

If you’re one of the almost 15% of individuals who will have a partially remote or hybrid schedule, relocating within your local area to a home that’s further away from your office could be a great choice. Since you won’t be going into work every day, a slightly longer commute from a more suburban or rural area could be a worthy trade-off for a home with more features, space, or comforts. After all, if you’ll still be at home part-time, why not find a home that better suits your needs?

The post Working from Home Isn’t a Passing Fad appeared first on Preferred Capital Funding.

Many people are sitting on the fence trying to decide if now’s the time to buy a home. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.

To determine if they should buy now or wait another year, they both need to ask two simple questions:

1. Do I think home values will be higher a year from now?
2. Do I think mortgage rates will be higher a year from now?

Let’s shed some light on the answers to these questions.

Where will home prices be a year from now?

If you average the most recent projections from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let’s take a house that’s valued today at $325,000 as an example.

If the buyer makes a 10% down payment ($32,500), they’ll end up borrowing $292,500 for their mortgage. Applying the projected rate of home price appreciation, that same house will cost $350,025 next year. With a 10% down payment ($35,003), they’d then have to borrow $315,022.

Therefore, as a result of rising home prices alone, a prospective buyer will have to put down an additional $2,503 and borrow an additional $22,523 just for waiting a year to make their move.

Where will mortgage rates be a year from now?

Today, mortgage rates are hovering around 3%. However, most experts believe they’ll rise as the economy continues to recover. Any increase in the mortgage rate will also increase a purchaser’s cost. Here are the forecasts for the first quarter of 2022 from four major entities:

• Freddie Mac – 3.5%
• Fannie Mae – 3.5%
• National Association of Realtors – 3.5%
• Mortgage Bankers Association – 3.9%

The projections average out to 3.6% among these four forecasts, a jump up from where they are today.

What does it mean to you if home values and mortgage rates increase?

A buyer will pay a lot more in mortgage payments each month if both of these variables increase. Assuming a buyer purchases a $325,000 home this year with a 30-year fixed-rate loan at 3% after making a 10% down payment, their monthly principal and interest payment would be $1,233.

That same home one year from now could be $350,025, and the mortgage rate could be 3.6% (based on the industry forecasts mentioned above). That monthly principal and interest payment, after putting down 10%, totals $1,432.

The difference in the monthly mortgage payment would be $199. That’s $2,388 more per year and $71,640 over the life of the loan.

Add to that the approximately $25,000 a house with a similar value would build in home equity this year as a result of home price appreciation, and the total net worth increase a purchaser could gain by buying this year is nearly $100,000. That’s a small fortune.

Bottom Line

When asking if they should buy a home, many potential buyers think of the nonfinancial benefits of owning a home. When asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.

The post Should We Buy or Should We Wait? appeared first on Preferred Capital Funding.

Coin Laundry Franchises:

• $800k Startup coin laundry in Chicago: equipment, store construction, working capital, miscellaneous soft costs
• $1.7mm coin laundry expansion in Dallas/Ft Worth: commercial retail property acquisition, store construction, working capital, miscellaneous soft costs

Massage Studio Franchises:

• $400k startup luxury massage concept in Denver: debt consolidation, store construction and working capital. Currently in underwriting for $600k expansion to a second location in Denver.

Qualifying for an SBA 7a loan for a franchise business requires an understanding of the process and relationships with the right “Preferred” 7a lenders. At Preferred Capital Funding, we’ve streamlined the process so you can focus on getting your franchise up and running while we help you line up the capital you need to grow.  Contact us to discuss how we can help you realize your dream of franchise ownership.

The post Recent Loan Closings: Franchise Startups and Expansions appeared first on Preferred Capital Funding.

Traditional bank loans can include ten or five-year balloon maturities. Private money loans may be due in as little as two years (and have very high rates and fees). You can avoid the stress and uncertainty of impending maturities and high costs with our fixed rate programs.

Preferred Capital Funding’s programs are for independent real estate investors and small business owners seeking a simple financing solution for a purchase or refinance. Lock in historically low fixed rates for the long haul without rate hike uncertainty.

We are proud to provide loan products that address the unique needs of independent real estate investors and business owners who may not qualify for traditional bank loans.

For more information, call a PCF loan representative today at 770-648-8100. We are ready to provide some peace of mind for your next real estate transaction.

The post 30 Year Fixed is for Commercial Real Estate appeared first on Preferred Capital Funding.

Price gains were broad-based geographically, with no states logging a February decrease in home prices. Idaho saw the
largest year-over-year price increase at 22.6%, followed by Montana at 19.5% and South Dakota at 17.1%.

The post Home Prices Soar to Fastest Growth Since 2006 appeared first on Preferred Capital Funding.

First, click this link and input your business’ address to see if you are in a qualifying area –

New Market Tax Credit Map. If so, read on and a whole new world of affordable financing may await.

How does the program work?

In short, the NMTC program helps economically suffering communities attract private capital by providing investors a federal tax credit. Sources of capital that would not otherwise want to invest (or lend) in a community now have an attractive incentive, and businesses in that community benefit.

Historically, low-income communities have seen more vacant commercial properties, run down manufacturing facilities, and inadequate access to needed retail and service businesses. The NMTC program has a goal of reversing this trend and reinvigorating struggling local economies. Individual and corporate investors receive a tax credit against federal income tax obligations in exchange for making capital available through the program.

How does your business benefit?

While the details can be worked out with your accountant and lender, your business can benefit through project financing with better terms than with a traditional direct bank loan. Benefits can include lower rates, lower origination fees, higher loan-to-values, and longer maturities. From your vantage point though, financing is structured to look almost identical to a traditional business or real estate loan.

A wide range of uses can qualify. Recent examples of NMTC transactions include mixed use commercial real estate, manufacturing facilities, hotels, restaurants, nonprofit theatres, apartment buildings and even high-end shopping malls.

Where do I go to learn more?

If your business is in a qualifying geographic area, and you believe your project could qualify, we at Preferred Capital Funding would love to take this journey with you. Call us today at 770-648-8100, or email apps@4pcf.com and one of our loan specialists will be on the case.

The post Could a New Market Tax Credit Loan Work for Your Business? appeared first on Preferred Capital Funding.

While business may be on the upswing now, and the near-term future a bit brighter, it’s going to take time to dig out. As a business owner or real estate investor, you may have delayed much needed projects around your property.

Now you’re ready to move forward, but what to do if your goal requires borrowing money? Banks have tightened their standards, or with some industries stopped lending to them altogether. You may have hit some financial bumps that prevent an easy answer…until now.

An asset-based loan may be the answer

If you’ve been through the underwriting process at a local bank (with no result), don’t despair. It may be hard to believe, but there could be an easy solution.

Asset based loans emphasize a property’s value and income generating potential. No more roadblocks from bumps in your credit history, or lack of W-2 or tax return verified income.

Is your real estate a single family house? Apartment building? A commercial or mixed-use property? You may have enough equity or rental income to borrow strictly on it without regard to outside factors.

Business owners may want to buy a warehouse for a new venture without an established credit history. Or a successful fix and flip investor may hit a seasonal slow period causing erratic income. An inconsistent or undocumented revenue stream will be a big hurdle with a traditional loan.

Simplicity is the solution  

If these situations sound all too familiar, Preferred Capital Funding may be your solution. We have several programs based only on the collateral being pledged, not your outside financial condition. The application process is quick and stress-free. Asset based loans are far less complicated and therefore simpler to fund.

Call us today at 770-648-8100 and let’s get started on your real estate goal.

The post Could an Asset Based Loan Be in Your Future? appeared first on Preferred Capital Funding.