Finding the Funds to Buy and Get Your Franchise Off the Ground Or Expand

For entrepreneurs, owning a franchise is a great avenue to fulfill your dreams Residential Real Estate Investing but the road to getting from an idea to opening your doors can be rocky. Why?
In today’s economic landscape, banks are not lending for commercial real estate the way they used to because they are aware of a glut of commercial real estate that is going to become all to apparent starting this year.
However, there are many franchises approved by the SBA that are cash cows like fast food restaurants and anyone who makes loans like to see a successful franchise. The SBA even has a list of approved franchises that helps in your decision process.
So, what route should I take in getting a loan for a franchise? I would say, SBA is the best because it’s fast, rates are low and is backed by the US government. Another avenue for expansion of an existing franchise is again an SBA loan where banks and the government become partners in your success.
What about a franchise that needs funds for improvements? This can be done with what’s known as a, “Small Balance Commercial Loan which is anywhere from100K-400K to make improvements and to take some cash out. I will give you a great clue where to get more details in the resource box.
You might be wondering why there is such a problem with banks funding my deals. Part of the problem is the FDIC which is watching banks like an hawk because of the mortgage crisis. Banks can borrow money at almost zero percent interest How To Get Into Real Estate For Beginners and turn around and buy government securities and get a 3% return. So, banks are very picky about who they fund. Money is tight except with direct lenders, Charlotte Capital Partners who deal with private equity and hedge funds.
The other thing you should not do is ask about rates up front, it depends on the situation and underwriters are skilled at making accurate decisions so if someone quotes you a rate, you will know they are inexperience or wanting to charge you a big up front fee Of course with SBA there is very little difference between loan rates.
To fund the American dream is possible but you have to know what you’re doing with commercial funding. Beware of people who charge up front fees, most do but a few don’t. They brokers who know they can’t get funds could charge you 5-10K for a small project up to 50K for a large project.

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