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Other Added - Commercial Land- The Asset That Lenders Forgot
"I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep." -TalleyrandAs you rise in power and position you will attract enemies. An old maxim teaches us to judge men by their enemies not by their friends. There will always be those who plot against you. Accept that now before you go any further and your life will be easier. Cloud yourself with delusions that you are universally loved and you will learn the harshest lessons of defeat.
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because
When it rains, oil, antifreeze, detergents, pesticides and other pollutants get washed from driveways, backyards, parking lots, and streets into storm drains and then directly into waterways. Detergents in particular present a real problem not only for large bodies of water but also for water treatment facilities.Soaps containing phosphates are common contributors to storm water pollution. These phosphates create problems for Publicly Owned Treatment Works (POTWs) because these
She spluttered: “Wha … How could rates possibly be so high?!? My home loan is at 6% and you are telling me that a lender wants over 10% for a land loan? That is ridiculous!”
Well, not really.
I understood her confusion, but she was comparing apples to oranges. From an investor’s standpoint, land is a great investment for a number of reasons: “They” are not making any more of it (except possibly in Dubai), you can put your hands on it (it is “real”), no one can pick it up and take it away without a mounting a stupendous effort, and eventually it will be worth more than you paid for it (in most cases). However, when we look at land from a lender’s perspective, it is leaves a lot to be desired.
When making a loan, the lender’s primary objective is to get paid all of its interest and principal. The lender relies on the borrower to fulfill his obligations under the note, but asks for some “insurance.” That insurance comes in the form of a lien on a real property, called “securing” the loan, and is the lender’s last resort in the event the borrower can’t pay off his loan. The loan is made to the borrower, not the property. It is secured by the property in the event the borrower defaults on the loan. So a lender looks for the best security that it can find to ensure that it will be paid back.
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because
If you’ve ever tried to purchase Tennessee low cost car insurance, you’re probably aware of the impact your credit score has on policy-underwriting and rate-determining procedures. While there are a few restrictions auto insurers have when it comes to using your credit score (an insurer can’t, for example, take action against you based on your score), it’s no secret that having a decent score increases your chances of finding affordable car insurance in Tennessee.Making repairs t
Well, not really.
I understood her confusion, but she was comparing apples to oranges. From an investor’s standpoint, land is a great investment for a number of reasons: “They” are not making any more of it (except possibly in Dubai), you can put your hands on it (it is “real”), no one can pick it up and take it away without a mounting a stupendous effort, and eventually it will be worth more than you paid for it (in most cases). However, when we look at land from a lender’s perspective, it is leaves a lot to be desired.
When making a loan, the lender’s primary objective is to get paid all of its interest and principal. The lender relies on the borrower to fulfill his obligations under the note, but asks for some “insurance.” That insurance comes in the form of a lien on a real property, called “securing” the loan, and is the lender’s last resort in the event the borrower can’t pay off his loan. The loan is made to the borrower, not the property. It is secured by the property in the event the borrower defaults on the loan. So a lender looks for the best security that it can find to ensure that it will be paid back.
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because
The UK online casino industry is booming and there are more jobs than ever, thanks in part to recent U.S. rulings that outlaw online gambling,. Companies displaced by the new laws in the U.S. are seeking new bases of operation and hiring in record numbers for online casino jobs in customer service, marketing, software and product development and finance and risk management. You can put away your croupier visors – the online casino jobs are far more likely to be in a call center or busin
When making a loan, the lender’s primary objective is to get paid all of its interest and principal. The lender relies on the borrower to fulfill his obligations under the note, but asks for some “insurance.” That insurance comes in the form of a lien on a real property, called “securing” the loan, and is the lender’s last resort in the event the borrower can’t pay off his loan. The loan is made to the borrower, not the property. It is secured by the property in the event the borrower defaults on the loan. So a lender looks for the best security that it can find to ensure that it will be paid back.
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because
Hearing impaired people often encounter difficulty at work because their disability isn’t visible. I’d like to relate to you, briefly, the sorry saga of a young man who has recently been dragged through a performance management process, essentially brought about by misunderstanding, frustration on his behalf, and failure by an employer to make a ‘reasonable adjustment’ [Australian law includes the concept of reasonable adjustment which in effect means that employers are required
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because
Does your business have a lot of overhead? Do you feel like your spending too much money in certain areas of your business? If you said no then you’re either untruthful or you are not fully aware of the ways in which you can minimize your resources to save money and reduce your company’s overhead. The following article explains the positive consequences of implementing a Web-based system to manage and automate certain aspects of your business. First, let me start off by clar
Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because there is usually an active market in which to sell one and a borrower is likely to do everything he can to keep his primary residence. Even owner-occupied business property is a good bet for a combination of the reasons above.
Not so, land.
Land, for all of its potential value, just sits there. No one lives on it, no one works on it, tumbleweeds roll across it, and unless it is used as a parking lot or a swap meet, it produces no income. Add to these challenges the reality that the process for converting land into income producing or residential property takes a great deal of effort, specialized knowledge, and time. Most lenders really do not like these characteristics in their security and thus, don’t lend on land.
As a result, when faced with taking land as security for a note, those lenders who do make loans on land do a couple of things to mitigate their risk. The first is that they usually reduce the loan to value significantly. The more equity you have in the land, the bigger the discount they can offer to a buyer when selling it and the safer they feel in making the loan. Note that this was not the case in my opening example. That particular lender had a specialized program that would have loaned up to 90% of the value of a finished lot, but it was for residential, owner-occupied development.
The second thing a lender does is increase its rate of return to match the perceived risk of disposing of the property in the event of a default. If a lender gets 12% to 14% on its money for a land l
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