How to Invest in Multi-family Apartments

How to Invest in Multi-family Apartments

Many buildings can only house between one and four families or dwellers, and these are commonly referred to as one-to-fours. When a building can accommodate five or more residents, it is classified as an apartment building. These kinds of dwellings call for somewhat different underwriting and will generally require a stricter standard when it comes to qualifying for a purchase loan. One major difference is that lenders tend to take a hard look at any previous experience you’ve had managing multi-family dwellings, whether they were apartment buildings or one-to-fours. As you can see there are many variables that need to be taken into consideration while investing in Multi-Family Apartments, read on to learn more about how investing in this type of property works.

Investing in an multi-family apartments 

There are some fairly standard qualifications that lenders will closely check with applicants requesting a loan for a multi-family dwelling. Here are some of the things that a lender will check on:

  • Debt service coverage – this measures your current cash flow against your debt payment obligations. If you’ve had difficulty making payments on time, it will signal a lender that you may not be able to repay a loan to them. 
  • Loan-to-value ratio – this compares the amount of the loan to the total value of the property. Obviously, you don’t want the amount of the loan to be significantly more than the property value, so choose a property with high value that will compare favorably with the loan amount. 
  • Net operating income – this figure is arrived at by subtracting all expenses from the total amount of income the property brings in annually. The ideal net operating income will be a figure where the income is much greater than expenses, which bodes well for future stability.  
Investing in an apartment building?

There can be some significant benefits to investing in multi-family apartments, but they also call for a significant initial outlay. If you’re in need of funding to secure an apartment building, we may be able to provide financial assistance. Contact us at My Commercial Capital, so we can discuss your eligibility for a loan that will help you to close the deal.

Use Personality Assessments to Improve the Hiring Process

Use Personality Assessments to Improve the Hiring Process

Human resources managers work hard at finding the right applicant for an open position. Between crafting an ideal job posting reviewing resumes and performing initial interviews, finding the right candidate is a time-consuming process. More and more employers are focusing their time on understanding the soft skills that an applicant brings to the organization.
Treating the onboarding process as a marketing strategy, helps you develop the best hiring practices for your business.

One of the most effective ways to guarantee long-term employees is to make sure the employee fits into your company’s culture. Personality tests help you identify the soft skills of applicants. The results help you predict how the candidate’s character will fit in with the rest of the company. Here are some ideas on implementing personality assessments.

Test Current Employees

Marketing analysis asks you to identify the strengths and weaknesses of your company as a whole. When you apply this concept to the skills and talents of your staff, you can build more effective teams. Ask all employees to take the personality assessment and determine what soft skills are needed for each role in the company. With this information, you can re-organize teams based on the employees’ strengths and the manager’s management style.

Screen All Applicants

All applicants should complete the personality assessment test early in the screening process. Prioritize interviews based on applicants’ scores in defined skill categories. Develop interview questions based on the talents needed for the position. For example, if time management is a critical skill, ask applicants how they prioritize and schedule their workday.

Tailor the Job

Personality assessments should not be used to build a cookie-cutter staff. As you understand the personality, learning style, and motivation techniques of each applicant, you may find the candidate is a better fit in a different department. For instance, you may find a candidate that prefers variety in their workload. Perhaps cross-training them between the marketing and bookkeeping departments helps them to be a more successful employee.

Motivate Your Employees

Upon hiring the candidate, review personality assessment information to better understand the employee. Properly motivating employees and job satisfaction will soar. For example, understanding that an employee prefers verbal praise over written praise allows you to build a stronger relationship with them.

Implementing personality assessments and incorporating them into the hiring process can be a time-consuming endeavor. However, once you have a system in place, you will see the benefits of adding this tool to your hiring process.

An Introduction to SBA 504 Loans

An Introduction to SBA 504 Loans

As most small business owners know, the federal government does not itself issue loans to applicants, but they do guarantee such loans up to about 85% of the value of the loan. This makes lenders much more willing to approve a loan request than they would be without government backing. In the case of an SBA 504 loan, loans are used to support the economic development of a given community. Thus, if you were to open up a new physical therapy clinic in your community, it would be seen as a good step in community development, and you might be eligible for a 504 loan. Continue reading to learn more about how SBA 504 loans work.

How an SBA 504 loan works

SBA 504 loans are long-term loans that offer fixed-rate financing for the purpose of acquiring or updating assets like real estate, or perhaps to purchase needed equipment for your business. The maximum amount of money you could borrow under this program is $5.5 million, and they have their own standard structure. Loans like this are usually funded to about 40% by the government, 50% by a lender, and 10% by the borrower. Keep in mind that the SBA will only fund this kind of loan if you can demonstrate that it will provide some long-term benefit to the community.

The duration of 504 loans can be for either 10, 20, or 25 years, and the interest rate will be tied to the five or ten-year rate of US Treasury notes. This typically amounts to about 3% of the amount being financed. In most cases, it will be necessary to come up with a 10% down payment, although there are certain cases where this amount will be higher. You can expect to pay several fees, including SBA and CDC fees, as well as the bank fees associated with the loan.

Looking for an SBA 504 loan?

Not everyone offers SBA 504 loans, so you’ll probably have a limited number of lenders you can work with to secure one of these loans. Contact us at My Commercial Capital if you’re in need of a 504 loan and want to work with a reliable and trustworthy lender.

Tips for Business Tax Preparation

Tips for Business Tax Preparation

Each year, when the calendar reaches the end of December, some small business owners go into a mini-panic, recognizing that tax time is right around the corner. If you’re totally unprepared for it, tax time can be a nightmare, but if you’ve been observing some good practices throughout the year, your accountant may not have much trouble in filing your taxes and keeping your current. Here are some recommendations on how to prepare for that all-important tax time, so you don’t have to dread it every year.

Preparing for tax time 

By taking the steps below, you should be well-prepared for tax time, which means you won’t have to dread it when it comes:

  • Get organized – throughout the calendar year, you should be organizing your expenses, invoices, and business statements so they’re all accessible and ready to support your tax claims 
  • Bank reconciliations – make sure all your banking transactions have corresponding entries in your accounting system. This should be done each month, so it’s not a mammoth task at the end of the year. 
  • Quarterly payments – if you’ve made quarterly payments this past year, these will need to be compared to your end-of-year statement. When your books are fully reconciled, you’ll have no trouble preparing year-end statements accurately. 
  • Prepare W9 documents – if you’ve done business with contractors in this tax year, you’ll need to prepare the mandatory W9 statements, provided that your contractors earned more than $600 from your business. 
  • Start early – it’s never a good idea to wait until tax season to contact your accountant. By getting an early start, you can be sure that you’ve allowed enough time to handle any issues that come up, and you can be sure of booking time with your accountant.  
Owe money on your taxes? 

Many small business owners find that at the end of a tax year, they owe the government money, and this just isn’t budgeted for. To cover this shortfall, you may want to apply for some kind of business loan that will keep you current with the federal, state, or local tax agencies. Contact us at My Commercial Capital if you’re in need of financial assistance to cover your tax responsibilities.

Time Management Tips for Entrepreneurs

Time Management Tips for Entrepreneurs

For entrepreneurs starting up new businesses or taking their companies to the next level, effective time management is essential. Time is a valuable asset, and too often it seems you don’t have enough of it when you measure it against everything that needs to be done. However, you can use your time more efficiently by adopting these tried and proven time management strategies.

Clarify Your Goals

As an entrepreneur, you may have numerous goals in mind for your business. One of the first things you should do is list these in order of priority. As you consider the goals, you will realize that some are essential while others are desirable but of obviously lesser importance.

Prioritize What Pays

At the top of your list of goals should be tasks that pay off in funds to run your business. If you are deciding between various project options, first take on the one that brings in the most income for the least amount of effort.

Plan Ahead

Once you have settled on your short-term and long-term goals, prepare a plan for their accomplishment. Break up larger projects into several intermediate milestones that will mark your way towards ultimate fulfillment.

Do the Most Urgent Tasks First

Many people obtain satisfaction from accomplishing numerous smaller items on their checklists, but for entrepreneurs this is inefficient time management. Instead, always tackle the biggest, most urgent task first. See this task through to completion, and then go on to the next urgent task. Remember that the quality of what you get done is far more important than the quantity.

Set Deadlines

Deadlines are an important factor in your time management strategy. Estimate how long it should take you to finish important tasks, and set realistic but challenging deadlines for their accomplishment. These time constraints will spur you to focus better and work harder.

For more tips on time management for entrepreneurs, get in touch with My Commercial Capital.

How Trade Financing Works

How Trade Financing Works

All business owners would probably prefer to conduct all transactions on a cash-only basis, but that just isn’t realistic because it would tend to limit the volume of sales in your company. By allowing for trade financing with your customers, you make it possible for them to make purchases, or to make larger purchases, than they would have been able to make if all transactions were strictly cash. On the other hand, allowing trade credit to customers can open up a real can of worms, in terms of delayed or late customer payments. Here is how trade financing works, and how you can take advantage of it to help your business grow.

The nuts and bolts of trade financing

By allowing customers to purchase goods on credit, you can enjoy some or all of the following benefits:

  • Higher sales volume – customers will almost always buy goods in greater volume when they don’t have to pay cash for them. 
  • Customer loyalty – the fact that you’re allowing customers to buy on credit will usually instill a certain amount of loyalty in them, so you can count on repeat business 
  • Competitive advantage – if your rivals cannot offer trade financing, you might get a leg up on them because you do make this option available to customers 
  • Early payment incentives – you can offer incentives to your customers to pay early, so you’re not obliged to wait the full 30 days before receiving payments. For instance, by offering some kind of discount for early payment, you may be able to get most payments well ahead of the 30-day terms allowed for in such purchases.  
Is your business hampered by trade financing late payments?

Many business owners who offer trade financing find themselves with cash flow issues, simply because payments are delayed while expenses remain immediate. If your business is suffering for this reason, we may be able to provide financial assistance. Contact us at My Commercial Capital to find out if you’re eligible for a business loan that can help you stay afloat until revenues come in.

Online Marketing Tips for Lawyers

Online Marketing Tips for Lawyers

Attorneys often find the majority of their clients through referrals. Even when this is true, they can still benefit from maintaining an online presence. Perhaps your firm could use guidance with online promotional efforts. Here are some marketing tips for lawyers with the potential to attract promising clients.

Include Calls to Action

It’s human nature to follow the path of least resistance. If someone’s on your website and contact information is difficult to find, that person is likely to go elsewhere to handle legal obligations. Contact forms make sending inquiries quick and easy. Incorporate them into every page of your site. If you send promotional emails, provide information on how to get in touch at the bottom of each one. Use language that encourages reaching out. Stress that there is no fee or obligation for consulting with a representative.

Create a Blog

When people face legal problems, they often search the internet for information about their situation before deciding on a lawyer. Have articles addressing relevant topics on your webpage, and those in need of assistance might wind up reading them. Individuals who find your words useful are more likely to solicit your services. Use search engine optimization practices to improve your Google ranking.

Get Involved with Charities

There’s no better press than earned media. Unlike traditional advertising, this type of exposure stems organically from your actions. By contributing to a worthwhile cause, interested outlets will naturally start singing your praises. When reporters come calling, request that links to your home page and social media accounts be a condition of your doing an interview. The charity you’re connecting with is likely to have a website. Ask if the association is willing to promote your services on account of your generosity. Besides the promotional aspect, it nourishes one’s soul to help those in need.

Optimize for Mobile Devices

Many access the web from their phones, not high-end desktop computers. Smartphones don’t display websites the same as their PC counterparts. Smaller screens sometimes make navigation difficult. Limited memory might mean fancy plug-ins and sophisticated add-ons do not work. Your site should look great no matter how it’s accessed. Create a slimmed-down version of your domain that users are automatically sent to when browsing from less powerful devices.

The law is a competitive field. Thus, attorneys should use every promotional advantage at their disposal. These and other marketing tips for lawyers can make an enormous difference in whether they stand above the crowd.

How You Can Get an Unsecured Line of Credit For Your Business

How You Can Get an Unsecured Line of Credit For Your Business

The big advantage of obtaining an unsecured line of credit is that you don’t need to offer any business assets as collateral, which means you can’t lose those assets if you should default on the loan. In most cases though, it means you’ll need a really good credit score to qualify, and you’ll also need to have been in business for several years to demonstrate stability. Some lenders may also require you to have a specific annual revenue income before they’ll consider your request.

Qualifying for an unsecured line of credit 

When you apply for an unsecured line of credit, the lender will review the status of your business, and may also investigate your personal income situation. Most lenders want to know that you’ve been in business a while and are an established company, and they’ll also take a good look at your cash flow. If you’ve been regularly experiencing cash flow issues, it will be a definite red flag for the lender. Sometimes a newer business can get an unsecured line of credit by accepting a smaller line of credit amount, at least until they become better established.

Once you’ve been in business for a time and have established good credit, you may be eligible for a larger line of credit. Some lenders also will increase your line of credit after you’ve shown that you can consistently pay back borrowed amounts on the credit line, and are not maxing it out soon after obtaining it. The amount of any line of credit you receive will always depend on the age of your company, your credit history, your business revenues, and your business expenses.

Looking for an unsecured line of credit?

Of course, it’s easier to qualify for a secured line of credit by using business assets as collateral, but if you lack these business assets, you may still want to apply for an unsecured line of credit. Contact us at My Commercial Capital to see if you’re eligible for one of these loans, and our specialists will be glad to work with you in that regard.

Use Working Capital Loans to Meet Your Business Needs

Use Working Capital Loans to Meet Your Business Needs

Working capital loans can be issued by banks or alternative lenders and their purpose is to cover the short-term needs of a small business. It can temporarily increase cash flow, until revenue streams become more steady and consistent. Most companies that look for working capital loans need them for such expenses as rent, debt payments, wages, inventory, or sales and marketing expenses. Even if your business assets are greater than your liabilities, you may not have the working capital you need, because many assets are not liquid, and cannot be easily converted into cash. Here’s how a working capital loan can help you meet the needs of your small business.

Using a working capital loan

Generally speaking, a working capital loan is used to cover some kind of shortfall in cash flow, and it can be used for almost any purpose whatsoever. One common use for working capital is to purchase additional raw materials from your suppliers, in order to fill an unusually large order. You might also secure such a loan when an opportunity arises to get a significant discount on raw materials by purchasing in volume. When cash flow is lacking, you might need a working capital loan to pay your employees or to manage monthly expenses like utility bills, facility rent, or vendor payments. 

It would not be advisable to use a working capital loan for long-term purposes, such as financing equipment or buying capital assets. These things can be obtained by applying for a different kind of loan that would offer more advantageous long-term interest rates and financing. When securing a working capital loan, you will probably need to use business assets as collateral, since unsecured working capital loans will require that you have a very high credit rating. 

Need a working capital loan?

If your business is in serious need of more working capital, we may be able to provide the financial assistance you need. Contact us at My Commercial Capital so our financial specialists can work with you to determine your eligibility for funding.

How Alternative Lending Can Help Your Business

How Alternative Lending Can Help Your Business

It has been estimated that between 50% and 67% of all small businesses will need business loans at least once during their operating lifetimes, and most businesses actually require several loans during that time. In many cases, working with traditional lenders like banks and credit unions simply won’t work for a small business, because the approval rates are typically low with those institutions. It’s also true that even if you are approved, it will generally take between one and two months before you actually have money in hand. Fortunately, alternative lenders can fill in the gap and provide much of the funding needed by small businesses.

How alternative lending helps

Many new businesses simply don’t have the cash reserves or the good credit history to be eligible for a loan that might be sorely needed. This is when alternative lenders can really fill the void left by all those bank disapprovals. In many cases, banks won’t even lend amounts of less than $200,000 to businesses, because they can’t make enough profit on them. Again, alternative lenders can fill this gap and provide needed funding to small business owners who qualify. 

Alternative lenders are not under the same constraints that banks are, and can be much more agile in lending than all the machinery involved in a bank loan. When you need money quickly to take advantage of a sudden business opportunity, you might be able to secure the necessary funding in a matter of days with an alternative lender, as opposed to the weeks or months it would take in a bank loan. You might have to pay a higher interest rate, but that’s because the alternative lender is exposed to the possibility of you defaulting on the loan, and they have to protect themselves.

Looking to work with an alternative lender? 

You can often be approved for a loan more readily by an alternative lender than you would be with a bank, because alternative lenders are not subject to the same kinds of restrictions that banks are. If you’re ready to work with an alternative lender, contact us at My Commercial Capital, so our financial specialists can help you secure the funding you need.