Have you heard of the commercial mortgage term, "Debt Service Coverage Ratio?" It's the term to describe the ratio that lenders use to evaluate and qualify for the financing of a commercials structure. It shows the cash flow compared to debt service. DSCR For Commercial Properties In general, most banks will need a ratio of 1.5 - 1.35 (net operating income to annual debt service) before lending for commercial property. They just want to make sure you will have enough cash flow to cover the payments each month. Net operating income should include interest, principal, lease payments and sinking fund.
If you're shopping for a Hard Money lender, here are some things to look out for. You want a real hard money lender, like Paces Funding. You don't want a broker or a scam, right? So, take our advice and avoid a bunch of hassles. If you're purchasing property in Atlanta, Nashville, Florida or the North and South Carolina metropolitan areas, just stick with Paces Funding. But if you're outside our service area, use these tips to avoid fake hard money lenders. Watch out for online directories. These aren't actually hard money lenders. They're usually just websites that will sell your
You’ve probably heard the term cash-out refinance before, but what does it really mean – and what does it have to do with hard money lending? Explaining Cash-Out Hard Money Loans A cash-out refinance is a mortgage transaction in which the new mortgage amount exceeds the existing mortgage amount. Its purpose is to pull out equity; it’s an alternative to a home equity loan. It’s a way for borrowers to get money out of the equity in their homes to pay down debt or make additional purchases. Cash-Out Loans for Investors If you own a property, either with no loan
To start 2014 off, we've updated our website. New content as well as the ability to apply for a hard money loan online. If you need an Atlanta hard money loan or for other parts of the south, contact us today at (404) 814-1644 x101 or email Dean@PacesFunding.com. We also do hard money loans on commercial properties. Check us out at www.PacesFunding.com
Paces Funding is Atlanta’s largest hard money lender. We are leading the way with innovative financing solutions for real estate investors. Our staff has processed over 1,000 loans over the past decade and is excited about the new opportunities we will be providing our clients. Over the next six months, Paces Funding will be introducing new real estate financing and investment opportunities. Contact us today to get pre-approved for a hard money loan.