Commercial

Tax Cuts and Jobs Act Allows Business Owners A Tax Break On Roofing Projects

Consider this: The Tax Cuts and Jobs Act offers business owners a new way to recover costs on projects including roofing projects as long as it’s on a qualifying project.
What is a Qualifying Project?
A depreciable tangible personal property purchased to use to conduct business counts as a qualifying project. The new Tax Cuts and Jobs Act lets businesses avoid devaluation on capital investments with expected lifespans of 20 years or less. So, while some roofs may last longer that 20 years, Everyone knows the lifespan of an asphalt shingle roof is considered 20 years.

Plus, the maximum investment is $2.5 million!

The new tax law includes business improvements, if you can believe it. Imagine deducting the cost of a roof all in one single year! The brand new Tax Cuts and Jobs Act is expected to extend through 2025, so there’s no need to rush. Remember, we’re hard money lenders, we’re not tax experts. So, check with your CPA to make sure you do everything needed to take advantage of this opportunity!

Are You Looking for a Hard Money Loan to Flip a House?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure […]

How And When To Obtain A Business License In Nashville

If you’re considering purchasing a property in Nashville to use for business, you’ll need a business license. If a business is located within the Nashville city limits, the owner must pay for a business license or a minimal activity license. The fee for that is $30. Now, if the business is outside the city limits, but still in the county, the owner still has to pay for a business license or a minimal activity license. Outside the city limits, the fee is just $15 though.

If your gross receipts fall between $3,000 and $9,999 during a fiscal year, you only need a minimal activity license. This license is renewed annually.

The City of Nashville makes it easy to get a business license. You can download and print the application right from their website.

You have to include the following information on the application:

Business name
Business address
Business telephone number
Owner’s name(s)
Owner’s home address
Owner’s home telephone number
Owner’s social security number
Copy of owner(s) driver’s license
Signature of each owner

Don’t forget, you still have to report your gross receipts to the Tennessee Department of Revenue each year.
Are You Looking for a Hard Money Loan to Flip a House?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.

Call us at 404-814-1644 or contact […]

Commercial vs. Residential Loans

 

The differences between commercial hard money loans and residential hard money loans may seem cut-and-dry, but there are some big differences you need to understand because they’ll impact which type of loan is right for you.
Differences Between Residential and Commercial Hard Money Loans
Residential mortgage loans are intended for properties that have one to four family units. Anything above that, or a property intended solely for business (not a dwelling), falls under a commercial loan.

When you require a residential loan, your personal income, debt and ability to repay a loan are reviewed before you’re approved for a mortgage. If you need a commercial loan, the property itself is evaluated for past income and expenses. This usually requires a few years of historical figures. Your lender will want to see the income that can be generated from the building, compared to what will be owed.

It is important to note that if you’re interested in obtaining a residential loan, and wish to put it under the name of a limited liability company (LLC), you may not be able to. Lenders are under strict guidelines as to which type of loan they’re able to offer an LLC. There may be an opportunity to transfer at a later time, but you would need to consult your attorney or lender.
Do You Need a Commercial or Residential Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and […]

Commercial Loans vs. Residential Loans

The differences between commercial and residential loans may seem cut-and-dry, but they’re not always obvious. Determining which type of loan you require can be confusing at times, and being prepared before you speak with a lender may save you some time.

Residential mortgage loans are intended for properties that have one to four family units. Anything above that, or a property intended solely for business (not a dwelling), falls under a commercial loan.

When you require a residential loan, your personal income, debt and ability to repay a loan are reviewed before you’re approved for a mortgage. If you need a commercial loan, the property itself is evaluated for past income and expenses. This usually requires a few years of historical figures. Your lender will want to see the income that can be generated from the building, compared to what will be owed.

It is important to note that if you’re interested in obtaining a residential loan, and wish to put it under the name of a limited liability company (LLC), you may not be able to. Lenders are under strict guidelines as to which type of loan they’re able to offer an LLC. There may be an opportunity to transfer at a later time, but you would need to consult your attorney or lender.

If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount […]

  • Environmental Reports in Real Estate - Atlanta Hard Money Lender
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    What is an Environmental Report in Commercial Real Estate (And Do You Need One)?

What is an Environmental Report in Commercial Real Estate (And Do You Need One)?

Many traditional and hard money lenders in Atlanta require an environmental report before they’ll grant someone a commercial loan. The report should show that the property has been examined for environmental contamination. Even if there’s no lender requirement, though it may be a good idea to obtain one anyway, just for your own peace of mind — and for your future buyers’ peace of mind.
What is an Environmental Report?
An environmental report is an investigation on commercial property to discover if there are any dangerous contaminants. Potential buyers assume the cost of the investigation and it is completed in one or two phases.
Phase I Environmental Report
This is the initial investigation to test for dangerous contaminants. Investigators will research past tenants and prior uses of the property to determine suspicion of contaminant use. In addition, they’ll look for evidence of pollution by examining the adjacent land. If there is indication of contamination; phase II will be initiated. The cost for this report is around $3,000.
Phase II Environmental Report
After contamination is suspected, investigators will conduct a more thorough investigation. If necessary, tests such as soil, groundwater and air analysis will take place. The cost for this report can vary depending on the property and the situation.
What Does This Mean for You and a Lender?
If you’ve purchased contaminated commercial property, you will be on the hook for any clean-up costs regardless if you caused the contamination or not. A lender could be on the line in the event of a foreclosure; making this a risky deal. You won’t always be denied a loan; however, it may be a good idea to search for something else.
Do You Need a Hard Money Lender in Atlanta?
If you’re looking for a hard […]

Energy-Efficient Commercial Buildings

If your real estate niche is investing in commercial buildings, be sure to check out the federal tax incentives offered for energy efficiency upgrades. Since commercial buildings release the most carbon emissions and are the world’s largest energy consumers, the government is looking for ways to entice building owners and designers into going green.
Commercial Building Tax Deduction
You may be eligible for a deduction of up to $1.80 per square foot if you reduce your building’s total energy usage by at least 50%. You can qualify for this deduction by replacing your building’s boiler or furnace with a new heating and cooling system; installing energy efficient interior lighting technology; or doing things like adding insulation or replacing windows. Even though this offer is set to expire (it must be installed by December 31, 2016), this type of credit is typically extended.

If you haven’t yet decreased your total energy usage by 50%, you still may be able to take advantage of partial deductions of up to $0.60 per square foot. You’ll need to implement and meet energy saving goals throughout the year.
Solar Investment Tax Credit
A 30% tax credit is available if you install rooftop or utility-scale solar energy systems. The Solar Investment Tax Credit has been extended to last until 2023. After that, the tax credit will go down to 10%.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of […]

How to Deal With Late Rent During the Holidays

While everyone is scrambling to get their festivities organized and shopping done, unfortunately, it’s too common for rent payments to be put on the back burner. Landlords are faced with this problem each year, and if it’s happened to you, you know that it’s a tough decision (you know, whether  or not to be a Scrooge).
Keeping a Professional Distance From Your Tenants
If you’re a landlord, you know that maintaining a professional relationship and not becoming involved in your tenant’s financial woes is a necessity. No one enjoys evicting a tenant—especially during the holiday season—but you should remember that this is a business decision where you can weigh the pros and cons.
A Word on Eviction
Evicting someone is not easy, and it’s quite a lengthy process. After evicting your current tenant, you’ll most likely need to turn around the property quickly. However, it’s not easy finding an excellent tenant, especially when you’re facing the potential loss of more than one month’s income. Deciding to evict someone for a one-month lapse may not be worth it to you—especially if you’ve had a solid relationship with your tenant in the past.

If your tenant is always late, the answer should be easy. If not, you may want to consider things such as communication, history and present circumstances to help you decide.

Having to chase down your tenant for the monthly rent is not your job. If they contact you first, it may be to your advantage to just hear them out and work out a payment plan. Good tenants are sometimes hard to come by, and if they’ve always paid on time in the past, there may be some options you could explore for handling their arrears.
Do You Need a Hard Money Loan […]

Commercial Lease Acronyms That You Need to Know

If you’re new to the world of commercial investment—there are a lot of terms, lease types and calculations you’ll need to be aware of. On top of that, everything is an acronym. Learning the lingo of the industry can be overwhelming—but it should be ranked high on your to-do list.

If you’ve acquired a building and think you’re ready to start looking for a tenant, you’ll want to have the lease conditions drafted well ahead of time—but be prepared for negotiations! Here are some acronyms you should be familiar with before starting out.

Building Owners and Managers Association International (BOMA): A network for commercial real estate professionals and a source of information for industry standards, legislation and developments.

Common Area Maintenance (CAM): Operating expenses that are passed on to tenants such as building supplies and maintenance, snow removal and landscaping upkeep.

Rentable Area or Rentable Square Feet (RSF): The amount of the tenant’s usable space, plus a portion of the building’s common areas (hallways, restrooms, etc.). These areas are usually shared by all tenants in a building.

Tenant’s Improvements and Betterments (TIBs): Permanent changes to the landlord’s property or building that will increase its value.

Triple Net Lease (NNN): A common commercial lease type where the tenant assumes the responsibility of paying all real estate taxes, insurance and maintenance on top of a specified base rent.

Usable Area or Usable Square Footage (USF): The area that is usable by the tenant only and does not include common area space.

While there are dozens of terms not listed, you’ll run into the above quite often. It won’t be long before you find yourself fluent in the language of commercial real estate.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a […]

3 Tips for Valuing a Commercial Property

 

Many real estate investors understand the value of walking around a residential neighborhood to gauge the potential investment value of a property. However, fewer REIs place the same importance on walking a commercial property. However, if you know what to look for, you can glean some valuable insight into value of commercial real estate.
Valuing Commercial Property: Typical Vehicles and People in the Area
As you walk through the area, make note of what you see.

Do you feel safe as you walk?
What kinds of cars and trucks do you see?
Is the neighborhood demographic appropriate for the type of business you’re considering buying?

Check the alleys for signs of rodents, homeless camps and other factors that may make a property less than desirable. You can renovate a building but you can’t change its surroundings.
Ease of Ingress and Egress Has an Impact on a Commercial Property’s Value
Speaking of things you can’t change, how easy is it to access the commercial property you’re considering? Look at the traffic flow in and out of the parking lot, entryway and loading area. Would it be easy to access in a car? What about a local delivery truck or a semi with a trailer? Depending on the type of business, tight spaces and a lack of pull-through options might be a deal breaker.
Use of Neighboring Properties in Valuing a Commercial Property
Do the local businesses compliment the intended usage of the property you’re considering? For retail, it’s ideal to have complimentary, but not competing, stores nearby. For any business, you should consider whether neighboring sounds, smells or activities will impact the potential value of your property.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan […]

Commercial Real Estate Investing 101: What You Need to Know

Commercial real estate investing can be a lucrative field – but if you’ve primarily dealt with residential investment properties, you might be a bit nervous about jumping in with both feet.
Commercial Real Estate Investing 101: What Makes a Good Investment Property?
If you’re a commercial real estate investor, the same principles that apply to residential investors will apply to you:

Appreciation. Property values that go up result in a profit for you.
Cash flow. If you rent a property to make a profit, and you have more income coming in than expenses going out, you’ll have a positive cash flow.
Principal reduction. Each month, you’ll pay down on your property. The amount you owe decreases. Naturally, with a short-term hard money loan, this won’t have as much of an impact as it would if you had a conventional loan – but many people start with a hard money loan and transition into conventional financing over time.

Where to Find Commercial Real Estate Opportunities
If you know a commercial broker, you’re already well on your way to finding great investment opportunities. It’s always a good idea to cultivate professional relationships with industry professionals.

However, if you don’t already know a broker, there are still plenty of ways to find amazing deals on commercial properties. You can:

Use websites such as Loopnet.com, which is a large site for commercial properties. You can find apartment buildings, office buildings and restaurants (and several other types of commercial properties, as well) on Loopnet.
Talk to local Realtors®. In many cases, even if the real estate agent you talk to doesn’t have commercial listings of his or her own, they’ll be able to help you find several in your area.

Do You Need a Hard Money Loan for a Commercial […]

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