Privately funded, often called ?hard money? commercial mortgage loans typically carry annual interest rates of more than 10% and charge origination points of 2%-4%. Hard money lenders can make on-the-spot decisions and can close fast.
Private lenders are among the most efficient and professional bridge lenders in the financial services industry. When a commercial property owner or developer finds themselves in need of a bridge loan (short term, interim financing) they are well served turning to private funding sources.
Cash is still king and having a reliable hard money lender on your team is like money in the bank. Advantages ? Unlike a finance lease, no restrictions apply to term structures.? Tax ownership lies with lessee ? interest expense and depreciation are claimed.
Disadvantages? For those on the ?cash? method of accounting, GST is claimed and amortised over the duration of the loan period.? Amount financed inclusive of GST ? interest expense is therefore higher.Equipment Finance Broking Firm Established in 1990, Melbourne Finance Broking is regarded as one of the most progressive broking firms in Australia. Heavy Equipment Financing Each broker or broking team within Melbourne Finance runs their own business specialty.
Source: http://www.inbb.org/commercial-finance-commercial-hire-buy
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