Avatar's Blog
» Getting Your Building Ready for a Hard Money Loan
On every owner occupied commercial or industrial refinance that Avatar funds, somewhere in the documents, I note the words, "pride in ownership." These powerful three words are used describe the condition of the building occupied by a company who is using the asset to generate working capital on short notice. For a business, the ability to use the plant or office to generate working capital when you need it most can be a life saver.
In times like these, when money is needed in a heartbeat, the last thing on anyone's mind is whether there are flowering shrubs out front, whether the lawn is mowed, or perhaps evern whether the bathrooms are cleaned and scrubbed. But, ironically, it is the attention to those details that can help get a deal funded. If a building is and looks well maintained, which includes landscaping, as well as cleanliness in all areas, from broom closets to bathrooms, and the working floor, hard money lenders are going to be more likely to make the loan.
Naturally, cleanliness and posies out front do not replace the need for strong financial backing, including financially capable guarantors, P&Ls indicating a current ability to afford the loan, and past financial data proving the 'story' and identity of the owner, as well as hard facts concerning the value of similar properties in your location. But, when things hang in the air, the lender is busy and must choose which projects to look at first, etc. having a building that can be described as demonstrating 'pride in ownership' will be an invaluable asset.
Clean; plant, paint, mow, change out the light bulbs, etc. Pride in ownership will improve more than your chances for a hard money loan - it will improve morale and dedication in your staff and may reduce on-the-job allergens and sick days, as well!
