Victor M. Lopez
Baird & Warner 724 Ogden Avenue, Downers Grove, IL 60515 Web: myplaceinchicago.com Email: [email protected]
Broker Associate / Realtor
C: 630-660-1292
Commercial Properties For Sale in the Chicago and Suburbs

CommercialBuildings.webs.com

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Private and Hard Money Lenders

Posted by vlopez023 on November 12, 2017 at 5:10 PM Comments comments (0)

Private Lender, Hard Money Loan Lenders

1)

Kurt A. Nederveld

Chief Executive Officer


Rainstar Capital Group

P.O. Box 140991

Grand Rapids, MI 49504

Direct: 616-821-6535

Fax: 616-588-6170

Email: [email protected]

Email: [email protected]

www.rainstarcapitalgroup.com

Learn about our Sister Companies:

www.rainstarmarketing.com

www.debtstarcapital.com


2)

Brian Murphy

Senior Vice President


Wilshire Finance Partners

1990 S. Bundy Drive, Suite #630

Los Angeles, CA 90025

CA BRE #01792922

O: 310-256-2238

Toll free: 866-575-5070

Email: [email protected]


3)

Century Capital Partners

Century Capital LLC

336 W. Passaic Street, Suite 310

Rochelle Park, New Jersey 07662

[email protected]

877-335-5464

www.centurycapllc.com


4)

Franchise Capital Advisors

9903 E Bell Rd

Scottsdale, Arizona 85260

480-355-4399

www.franchisecapitaladvisors.com

[email protected]


5)

Adam LeBlanc

Business Development


First Rehab Lending

327 Plaza Real Boulevard

Mizner Park - Suite 301

Boca Raton, FL 33432

Office: 631-847-8707

Mobile: 561-322-5535

Fax: 631-393-4685

Email: [email protected]

www.frlinvestors.com


Paul Smoot

Business Development

Office: 269-944-7296

Fax 888-973-6935

Email: [email protected]


6)

KTD Financing & Investment

John Ness

Commercial Mortgage Broker, KTD Financing & Investments


Mobile: 410-493-6272

Fax: 410-844-0474

Email: [email protected]

Website: http://www.johnness.com/


7)

Business Purpose Loans

Use your home for a Business Purpose Loan

Rates from 9.5* Monthly Interest Only Payments

12-60 Month Term (w/extension provisions)

UP to 70% Loan to Total Project Cos


Dennis Dahlberg

Broker/RI/CEO/MLO


Level 4 Funding LLC

22601 N 19th Ave Suite 112

Phoenix AZ 85027

O: 623-582-4444

www.level4funding.com

[email protected]

NMLS 1057478 AZMB 0923961


Michael Norris

Managing Member


Cornerstone Capital Group, LLC

2288 Gunbarrel Rd Suite 154-374

Chattanooga, TN 37421

O: 423 400-8787

[email protected]


9)

Howard Linker

David Lessnick


OSTEND DEV LLC

1900 Western Ave,

Las Vegas 89102,

Nevada USA.

Call Line: +1(914)-368-6119

Tex Line:+1(702)907-9359

[email protected]

[email protected]

[email protected]


10) 

Biggerpockets.com

https://www.biggerpockets.com/hardmoneylenders/illinois


11) 

Facebook Private Lenders

https://www.facebook.com/groups/680267635373402/


12) 

Steven Haig

National Account Executive

949.510.9497

[email protected]


13) 

Todd Probasco

Refinance

708-205-2983

www.toddprobasco.com


14) 

Visio Lending

[email protected]

(512) 334-1506

Visio Lending drops rates to our all-time lows!

Email John Sperling for new rate sheets and terms

[email protected] or call 512-334-1506.


15)

(866) 575-5070 | WilshireFP.com | [email protected]

Los Angeles Office | 1990 South Bundy Drive, Suite 630, Los Angeles, CA 90025

Mission Viejo Office | 25950 Acero Drive, Suite 345, Mission Viejo, CA 92691


16)

VFS investor loans are the fastest easiest way to purchase or refinance your

investment property - email me for more details

[email protected] or call any time 512-334-1506.


17)

Riverdale Funding, LLC*, All rights reserved.

Call Today: 888-505-1639

Our mailing address is:

[email protected]

 

Stephen Page

305.790.8554

[email protected]

 

19)

ICG10 Capital, LLC. All rights reserved.

18851 NE 29th Avenue, Suite 1000, Aventura, FL 3318

Visit ICG10.com | [email protected]

[email protected]


20)

Sean Harrington | Sr. Loan Officer | NMLS # 631480 I Branch NMLS # 1248193

CMG Financial | 275 N. York Road Ste 400 | Elmhurst, IL 60126

Office: (847) 809-7458 | Cell: | Email: [email protected] | Web: sharrington.cmgfi.com


21)

Brad Lober

[email protected]

(818) 930-5571

Athas Capital Group 27001 Agoura Road Suite 200

Calabasas Hills, CA | 91301 US


22)

Stuart Solomon 415-793-9476

[email protected]

(415) 793-9476

Stuart Solomon | STUART SOLOMON, 336 North Louise Street, ste 11,

Los Angeles, CA 91206


23)

Mark Gregory

President

(O) 818.936.4800

(C) 818.406.2002

[email protected]

23274 Park Ensenada

Calabasas, Ca 91302

www.activecapitaladvisors.com

Ca BRE Broker # 01379884

Real Estate Investor Terms to Know when Buying a Building

Posted by vlopez023 on November 12, 2017 at 5:10 PM Comments comments (0)

What is CAP RATE and why should you care about it?

The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor's potential return on his or her investment.

What is GRM and why should you care about it?

Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, utilities, etc.


What is CASH-ON-CASH RETURN and why should you care about it?

In investing, the cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage. It is often used to evaluate the cash flow from income-producing assets.

What is TOTAL RETURN and why should you care about it?

Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

What is DEBT COVERAGE RATIO and why should you care about it?

The DSCR or debt service coverage ratio is the relationship of a property's annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments). For example, if a property has $125,000 in NOI and $100,000 in annual mortgage debt service, the DSCR is 1.25.

What is PRE-TAX CASH FLOW and why you should care about it?

Calculating the cash flow before taxes is a matter of determining the net operating income and deducting the debt service. The debt service is the debt the investor is obligated to repay in connection with the investment property.


What is PRICE PER UNIT and why you should care about it?

The first way a real estate professional will underwrite a property is by looking at its price per unit. In other words, how much the seller is asking per unit of building. Each real estate industry sector generally uses a different unit:

For example, a retail property may be priced at $300 per square foot (PSF), a multifamily residential property may be priced at $250,000 per housing unit, and a luxury hotel could be priced at $500,000 per hotel key.

- Retail, Office or Industrial: Price per square foot

- Residential: Price per housing unit

- Hospitality: Price per hotel key

Because real estate is a hard asset (i.e., has an intrinsic value like a commodity), investors want to know how much per unit you are asking them to pay. Oil is priced per barrel. Gold is priced per ounce. Similarly, investors will price property on a per unit basis too. As we have mentioned previously, many real estate investors aim to purchase property at or below replacement cost (i.e., meaning how much it would cost to replace the building, including purchasing the land).


What is NOI?

Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.

Real Estate Formulas for:


CAP RATE

The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%


GRM

1) Getting the GRM for recently sold properties:

Market Value / Annual Gross Income = Gross Rent Multiplier (GRM)


Property sold for $750,000 / $110,000 Annual Income = GRM of 6.82


2) Estimating value of property based on GRM:

Let's say that you did an analysis of recent comparable sold properties and found that, like the one above, their GRM's averaged around 6.75. Now you want to approximate the value of the property being considered for purchase. You know that its gross rental income is $68,000 annually.


GRM X Annual Income = Market Value


6.75 X $68,000 = $459,000


If it's listed for sale at $695,000, you might not want to waste more time in looking at it for purchase


CASH ON CASH RETURN

Consider the following series of cash flows: The year 1 cash on cash return in the levered example above shows a 3% cash on cash return. To find this simply take the end of year (EOY) 1 cash flow of $15,805 and divide it by the initial equity investment of $515,000.


TOTAL RETURN

How-To Calculate Total Return

1) Find the initial cost of the investment.

2) Find total amount of dividends or interest paid during investment period.

3) Find the closing sales price of the investment.

4) Add sum of dividends and/or interest to the closing price.

5) Divide this number by the initial investment cost and subtract 1.


DEBT COVERAGE RATIO

The debt service coverage ratio (DSCR) is defined as net operating income divided by total debt service. For example, suppose Net Operating Income (NOI) is $120,000 per year and total debt service is $100,000 per year.


NOI

1) Determine the operating expenses of the property. This would include expenses for management, legal and accounting, insurance, janitorial, maintenance, supplies, taxes, utilities, etc.

2) Subtract the operating expenses from the Gross Operating Income to arrive at the Net Operating Income.

VACANCY COST

When there is no tenant living at an investment property, you do not have any cash flow from rental payments, resulting in you losing money for every month a rental home is vacant. Although there are costs associated with having rental homes unoccupied, declines in vacancy rates for rentals have reassured investors that investment properties are good buys. According to the U.S. Census Bureau, the national rental housing vacancy rate dropped 0.7 percent to 7.5 percent in the second quarter of 2014. While it might take time to find tenants, you may not have to wait long if you prepare to find new tenants before your properties become vacant.

The vacancy rate is calculated by taking the number of vacant units, multiplying that number by 100, and dividing that result by the total number of units. The vacancy rate and occupancy rate should add up to 100%

Rule of thumb use 5% vacancy rate times yearly income, subtract total vacancy cost from year income


Also check out http://www.myplaceinchicago.com/First-Time-Real-Estate-Investor.html for more information


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