How to Finance Your Fix and Flip Project

Uncategorized Mar 07, 2022

Fixing up a property and then selling it for a profit is a great strategy for new real estate investors as well as seasoned institutional investors too.

The premise is simple, find a distressed property that could use some work and purchase it at a discount. Then put some money into home improvements and renovations, and sell it for a profit!

While the process sounds simple, straightforward, and easy, there can be some significant obstacles that could get in the way of you making a profit. Many of these obstacles include having to do with financing.

Read on to find out how to finance your fix n flip project and to put yourself in the best position to make a good profit while doing it.

What is a Fix n Flip?

Another name for a fix n flip project is known as a simple house flip. The reason that “flip” is included in this is that you will generally take a property that is damaged, incomplete, or significantly distressed, and then you will “flip it” into a...

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How To Finance Your Hotel Acquisition

Uncategorized Feb 25, 2022

How To Finance Your Hotel Acquisition

Hotel financing gives you the necessary capital to build, renovate, and purchase hotels with commercial real estate loans. Since acquiring a hotel will often require a substantial amount of capital, you will likely need to find funding for the purchase. That’s where Alto Capital can help.

Some options that you have when financing your hotel acquisition include outside investors, small business loans, and forming partnerships with other real estate investors. 

Hotel developers are in luck. There have been recent changes in the way that hotels can be purchased and financed for investors. There are more and more private resources that investors can tap into when looking to find financing for the purchase of hotels, motels, and other commercial properties.

 Sources of Funding

While we mentioned that there are becoming more ways to finance a hotel purchase privately, there does remain some traditional ways that developers and real...

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Commercial Real Estate Loans: An Overview of Your Options

Uncategorized Oct 28, 2021

Commercial real estate is extremely expensive for many businesses — especially ones that are just starting. The good news is that there are a variety of loans that can allow your company to find the perfect commercial real estate.

The only problem is that there are a lot of different types of loans available for commercial real estate out there. As such, finding the best one for you can sometimes be a challenge. Luckily, we’ve organized this guide to give you an overview of all your options. That way, you can choose the loan that best works for your needs. Let’s get started!

What is Commercial Real Estate?

Simply speaking, commercial real estate (CRE) is any type of structure that is used to produce income, or owner occupied real estate for a business. This can be as wide-ranging as landlord-run apartment buildings, or a local donut shop, or your business’s office building. Commercial property usually requires a much higher deposit than residential...

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How To Optimize Your Search for Profitable Real Estate

Uncategorized Oct 16, 2021

The ability to acquire commercial real estate properties worth investing in is a key skill that every home flipper needs to master. Here are four ways to improve your odds of obtaining buildings that are likely to turn a profit.

  1. Be Prepared

The more ready you are before an opportunity presents itself, the better positioned you will be for handling whatever transpires. Review every process by which your business operates. Investigate software tools that streamline daily responsibilities and ease the challenge of scoping out opportunities. Organize contacts so that they can be reached ahead of the competition. Many wise actions can be taken before a property goes on sale.

  1. Eliminate Uncertainties

The most dangerous element inherent in any business transaction is the unknown. Mitigate risk by learning as much as possible about every property you are considering. Hire an assessor to compile a list of repair necessities and have a mold inspector check for infestations. Investigate...

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Guide For Financing Commercial Real Estate Loans

Uncategorized Oct 05, 2021

Looking to expand your business with a loan?

You’re not alone. Around 59% of entrepreneurs get a loan for this purpose.

Businesses, small ones especially, have a heavy reliance on loans for their continued success and growth. However, you need to choose the right type of commercial loan if you want to be successful.

If you need to buy, develop, or expand a property, you need commercial real estate loans. Find out the different types and how to get financing for commercial property below.

1. Select the Right Type of Loan You Need

Did you know that there are several types of commercial real estate loans 100 financing? Here are some of the most popular types offered nowadays.

Traditional Commercial Mortgage Loan

You can get a traditional commercial loan from traditional lenders, like banks. This type of loan is for buying commercial properties like buildings, apartment complexes, warehouses, shopping centers, etc. 

It isn’t ideal for short-term needs. The...

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What Kinds of Businesses Use Factoring for Cash Flow?

Uncategorized Sep 15, 2021

Factoring is an easy to use method of evening out your cash flow when it’s used in ways that minimize the cost and ensure your payments show up at predictable times, but it’s not for every business. Only companies that work on an invoice system can qualify, since you have to be able to assign payment of those invoices to your factor as part of the process. It works like accounts receivable financing that way. Unlike financing receivables, though, the transaction with a factor is final. The invoices are no longer on your books, and if the customer does not pay, that is the risk the factor takes.

Controlling the Costs of Factoring

The biggest reason companies are reluctant to use a factor is the perception of a high cost for the service. While the costs can be steep under certain circumstances, they’re a lot like the costs for any other financial product in that they can be reduced and controlled with the right processes. Factors are like lenders, they price their...

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An Informational Guide to Franchise Financing

Uncategorized Sep 12, 2021

Starting a business is often one of the most fulfilling endeavors that you can pursue. And, there’s a strong chance that it can be highly lucrative if you manage it properly.

But, you don’t always have to come up with an original idea in order to become a business owner. Starting a franchise is a viable option that many entrepreneurs choose due to its stability and convenience.

Not everybody understands what they should about franchise financing, though.

Let’s dive into what you need to keep in mind.

Understand the Costs You Will Incur

As you might guess, you’ll need to have a strong understanding of the costs associated with starting a franchise. Interestingly, many entrepreneurs are unaware of the vast amount of expenses associated with owning and operating a franchise.

For example, there are costs associated with zoning, required software, and permits. These will highly vary depending on what type of franchise you wish to open.

In general,...

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What are the Different Types of Small Business Loans?

Uncategorized Aug 19, 2021

In the US, there are over 30 million small business companies doing business today. This industry hires almost 60 million people today. That amount represents close to 50 percent of the total US workforce.

Are you thinking of opening your own company?  If so, check out our guide on how to get a small business loan. Do your homework now to see if this funding source can bring your business to life.

What’s a “Small Business”?

A ”small business” is a privately owned company with a specific amount of annual revenues and employees, based on their industry.  Companies are considered “small”  if they hire less than 250 workers and earn under $750,00 in annual revenues.

Types of Small Business Loans

Applying for a small business loan might seem pretty straightforward until you learn that there are a variety of loan types varieties (with different names) that can help you.  These loans range from public (government) to...

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How to Finance a Vacation Rental

Uncategorized Aug 01, 2021

Looking to invest in a vacation rental? It’s a popular real estate strategy, and for good reason; demand is constantly increasing and they can provide high returns.

Wondering how to finance the property? It’s not as hard as you think. In fact, most people who finance a vacation rental make less than $100,000 per year. So you don’t need to have an extremely high income to make it happen.

But what does it take to acquire financing on your first vacation rental? And what loan programs are available to you? Keep reading to learn how you can get started investing in short-term rentals.

Why Should You Invest In a Vacation Rental

There are many reasons why a vacation rental is a perfect addition to your wealth-building portfolio. For starters, it’s a piece of property that will appreciate in value an average of 3% per year.

If you have a mortgage on the home, then every payment you make will also help increase equity, growing your net worth. And of...

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What Are the Advantages of SBA Loans?

Uncategorized Jul 01, 2021

Running a small business has many obstacles, one of which is the availability of capital. There are many funding types, but they are often out of reach for small companies or those just starting. The Small Business Association aims to help organizations flourish by working with banks to minimize lender risks. SBA loans give you options you would not have otherwise.

Helpful Resources

  • The purpose of SBA loan guarantees is to help your operation grow by supplying access to funds and resources. There are mentorship and training possibilities available, providing valuable information to assist your progress. You can take advantage of these programs regardless of your loan approval status. The SBA hosts events, seminars and courses across the country to provide education and networking opportunities.

Capital Availability

When your organization needs a large amount of capital, this type of government-backed lending is an excellent option to secure the necessary funds. You may not qualify...

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