Purchasing, Rehabbing

& Holding

Over the past 5 years, many options have been created to help  new and experienced real estate investors acquire & grow their portfolio or business. No matter if you are looking to purchase properties to rent out aslong term holds, short term or corporate rentals, or strictly to
rehab and sell for profit, there is an option available when you connect with the right lending partner like Co/LAB Capital Funding.

Some of the options available are:

• DSCR Loans – Debt Service Coverage Ratio loans are used for real estate investors to qualify on purchases or cashing out of their investment properties where the lender is basing the loan on the buildings debt ratio instead of the buyer’s personal income information. These are most
useful for when buying through LLC’s or if you have already maxed out the number of Fannie & Freddie loans you are allowed to hold personally.

• Hard Money Loans are used when there is a hurdle the buyer must overcome to be able to acquire the property. These hurdles could be credit and qualifying issues, amount of time to close on the deal or simply not qualifying for the other real estate loan options.

• Bridge Financing is a temporary or short term financing solution for buyers who need to get funding for a short period of time until they make necessary changes or updates, and then they will secure long term financing once everything is ready.

• Investment Rehab & Construction Financing is a type of financing that allows real estate investors to acquire a property AND borrow additional money to rehab and make the investment worth  more at the end of the work being completed. There are multiple types of rehab loans on the market, explained in more detail below.

Flipping & Rehabbing

Investment Real Estate

If you’re a real estate investor looking to purchase properties that require renovations before being sold or rented out long term, stick around, so you can dive in and discover how our Fix & Flip & Renovation loan options can help you achieve your real estate investment goals.

Understanding Fix & Flip Loans

What exactly are Fix & Flip Loans? Fix & Flip Loans are specialized financing options designed for real estate investors who purchase properties in need of renovations, before you either sell the property for profit or rent out and hold the building.
If you are still new to the real estate investing world, buying a piece of real estate that you plan to renovate can be a costly project. If you go to a residential mortgage lender, there is only one option that allows you to borrow the money needed for the
renovations, and that is only on a single family rental home. With our loans, you have the flexibility to finance the cost of renovations directly into the loan, eliminating the need for separate funding sources.

Advantages of Fix & Flip Loans

Let’s explore the advantages of our Fix & Flip Loans. Firstly, our financing solution streamlines the process by providing a single loan that covers both the property acquisition and renovation costs. This simplifies your financial management and saves you time and effort. Additionally, by financing the renovations, you can conserve your working capital and use it for other investment opportunities.

➔ Qualifications based on the property, not your personal debt or asset qualifications.

➔ Ability to use the “After Repair Value”

An example of this would be the following:

Loan to Cost: 85% Purchase Price: $100,000

Renovation Costs: $25,000

Total purchase price + Renovations = $125,000 * 85%= $106,250

After Repair Value: 75%

Now let’s assume the same property we just used above has an appraisal completed on it and the appraiser gives the property a value of $165,000 once all the work is complete.

$165,000 * 75% = $123, 750 Vs. $125,000 * 85%= $106,250

Flexible Long Term Financing Options for Investors:

We understand that every real estate project is unique, and that’s why we offer flexible financing options. Whether you’re working on a small-scale fixer-upper or a large-scale renovation project, our Fix & Flip Loans can be tailored to meet your specific needs. Our team will work closely with you to determine the loan amount, terms, and repayment structure that align with your overall investment strategy.

➔ Light Rehab Projects – is used when the renovation a property is needing is less than the purchase price, and do not involve any structural changes or work. This would include work such as: Flooring, New windows & other components, Kitchen or bathroom renovations.
➔ Heavy Rehab Projects – when the property you have found requires more than a good facelift, using a financing option that supports structural renovations is important. This happens when you are adding or taking away square footage to a property or performing any work that involves foundational consideration.
➔ Ground up Construction is reserved for those large projects. Projects where the investor is tearing down and rebuilding frames & foundations. Maybe adding a second story or doing a large addition. Some investors may even be building an entirely new building.

Streamlined Approval Process

Time is of the essence in the real estate investment world. That’s why we’ve designed our approval process to be efficient and streamlined. Our experienced team understands the dynamics of fix and flip projects and will work diligently to expedite your loan approval. This allows you to seize investment opportunities quickly and stay ahead of the competition.
Some lenders of these products have started using value tools that don’t require a walk through appraisal of the property, which has helped with investors being able to close quickly when an opportunity arises.

InEligible Property Types

➔ Manufactured Homes
➔ Mixed Use buildings
➔ Working Farms

The Most Important Consideration For Any Renovation Project

While the financing options we are talking about in this blog were made specifically for those properties that have immediate renovation work that needs to be completed, it is important for investors and loan officers to remember the most important consideration when applying for one of the options we mentioned earlier: EXIT STRATEGY.

These renovation options are different than most financing in that they are:

● Interest only
● Terms of 12-36 months
● Do not carry prepayment penalties
● Have you pay fees and points upfront

Partnering for Success

At Colab Capital Funding, we believe in fostering strong partnerships with our clients. When you choose our Fix & Flip Loans, you’re not just getting financing; you’re gaining a dedicated team that supports your success. We provide personalized guidance throughout the process, from loan application to project completion, ensuring that you have the resources and support you need at every step.

Are you considering expanding your business by acquiring commercial real estate?

Securing the necessary funding is a crucial step in turning your vision into reality. At Co/LAB Capital Funding, we specialize in providing tailored commercial real estate loan solutions to help you achieve your goals. In this article, we will explore the concept of commercial real
estate loans, highlight various types of loans available, and outline the types of commercial buildings that can be financed.

Types of Commercial Real Estate Loans

➔ Traditional Commercial Mortgages: Traditional commercial mortgages are the most common type of commercial real estate loan. They offer long-term financing options with fixed or adjustable interest rates. These loans are ideal for established businesses or investors seeking to acquire or refinance commercial properties.

➔ SBA Loans | SBA 7(a) & 504 Loans: Small Business Administration (SBA) 7(a) loans are government-backed loans designed to support small businesses. These loans can be used for various purposes, including commercial real estate financing, business expansion, purchasing new equipment, converting space in your office building for additional space.

➔ Commercial Bridge Loans: When time is of the essence, and immediate financing is required, commercial bridge loans can be a viable solution. These short-term loans provide interim financing until long-term financing can be secured. Bridge loans are
commonly used for time-sensitive transactions, such as purchasing commercial properties at auctions or closing a deal quickly.

➔ Construction Loans: If you’re planning to build a new commercial property from the ground up or undertake significant renovations, a construction loan can provide the necessary funding. Construction loans are typically disbursed in stages as the project progresses. Once
the construction is complete, the loan can be converted into a long-term mortgage.

Types of Commercial Buildings that Can Be Financed

➔ Office Buildings: Whether you need a small office space or an entire building for your business operations, commercial real estate loans can help you secure the necessary funds.

➔ Retail Spaces: From storefronts to shopping centers, retail spaces can be financed through commercial real estate loans. Whether you’re starting a boutique or expanding your retail chain, these loans provide the financial support you need.

➔ Industrial Facilities: Manufacturing plants, warehouses, and distribution centers are essential for many businesses. Commercial real estate loans can help you acquire or upgrade these vital industrial facilities.

➔ Multifamily Housing: Investing in multifamily housing complexes, such as apartment buildings or condominiums, can provide a stable income stream.

Commercial real estate loans enable you to finance these lucrative ventures. Warehouses, Manufacturing Buildings, Special Use buildings for restaurants, self storage, car washes, and so many more..

The type of financing you will have available to you and the amount you need to put down as a downpayment will depend on if you are buying the commercial property for investment purposes or as an owner occupied commercial building.

Owner Occupied Commercial RE

Owner-occupied real estate – When a business owner purchases a piece of real estate to “house” their business and team.

The type of real estate can be any classification and will be determined by the type of business.

Examples:

• Accounting firm buying a commercial office building
• Beer Distributor buying a mixed use property for their store front and warehouse needs
• Physician opening their own practice and purchasing a building to operate out of
• A new entrepreneur purchasing or opening a franchise

I am standing here in my owner occupied real estate building because I operate my business out of the building I am working in. If I rented this building 100% to other businesses, it would not be owner occupied.

The benefits of owning such property – Just like buying a home or renting a home, the space your business lives in is the same. Not only are you building business equity and cash flow to hopefully sell your business one day, but you also control what, how and have control over everything you do with your building.

Types of Loans are out there for owner occupied

➔ Traditional Commercial 20% down loan is what you will find at most local banks

➔ Agency – Fannie & Freddie

➔ SBA Loans – some with 0-10% downpayment

Commercial Business

Equipment Financing

Are you a business owner in need of essential equipment, but worried about the financial burden? Look no further! Co/LAB Capital Funding is here to Level Up your equipment financing experience. With our comprehensive range of lending options and unbeatable benefits, we empower businesses of all sizes to thrive and succeed.

Co/LAB Capital Funding offers three primary types of financing tailored to meet your Equipment Financing needs:

• Lease: Our lease program provides you with the flexibility to acquire the equipment you
  require without the burden of a large upfront downpayment. With customizable payment
  plans and the ability to upgrade or replace equipment during the lease term, you’ll always
  stay ahead of the curve.
• Secured Loan: If you prefer ownership and long-term value, our secured loan option is the
  perfect choice. Enjoy competitive interest rates and access to the full range of equipment
  financing, while leveraging the benefits of equipment expertise and asset management
  solutions provided by EquipFinPro.
• Line of Credit: For businesses seeking financial flexibility, our line of credit option allows
  you to access funds as needed, precisely when you need them. Say goodbye to cash flow
  constraints and seize opportunities for growth, expansion, and innovation.

Financing business equipment comes with many unparalleled advantages, that we have listed below:

● 100% Financing with No Down Payment: Unlike traditional lenders, we offer the possibility of arranging 100% financing with no down payment. Preserve your cash flow and invest it where it matters most.
● Maintain Cash Reserves: With EquipFinPro, you can hold onto your working capital, ensuring it remains available for crucial areas such as expansion, marketing, research and
development, or any other business needs.
● Manage Risk Effectively: Mitigate uncertainties and risks associated with capital investments by leveraging equipment financing. Achieve desired returns, enhance efficiency,
and meet your business objectives without compromising financial stability.
● Hedge Against Inflation: Protect your business against inflationary pressures with EquipFinPro. Our financing solutions delay your outlay of funds, while locking in rates at the
date of closing, shielding you from future financial risks.
● Flexible Budgeting: Plan your expenses effectively with customized rent payments tailored to match your cash flow and account for seasonal fluctuations. EquipFinPro ensures your
budgeting remains precise and adaptable to changing business cycles.
● Stay Ahead with Technology: EquipFinPro enables you to acquire cutting-edge equipment, surpassing what would be possible without financing. Embrace the latest technology
advancements, enhance productivity, and maintain a competitive edge in your industry.
● Optimize Tax Considerations: Benefit from tax-oriented leases that offer lower rents and increased tax deductions. EquipFinPro helps you navigate tax implications while maximizing
financial advantages.
● Leverage Equipment Expertise: Gain access to the knowledge and guidance of our experienced equipment financiers. From setting residual rates to lifecycle asset management solutions, EquipFinPro ensures you make informed decisions for sustainable
growth.
● Avoid Obsolescence: Worried about your equipment becoming outdated? EquipFinPro eliminates this concern. With true leases, the risk of obsolete equipment rests with us, allowing you to focus on running your business efficiently.
● Streamlined Asset Management: Simplify your operations by outsourcing asset management to EquipFinPro. Our comprehensive services include equipment tracking, upgrades, installations, maintenance, and proper disposal, ensuring compliance with
government regulations.
● Convenient Bundling Solutions: Experience the convenience of financing the complete equipment package, including installation, maintenance, training, and software charges. EquipFinPro consolidates all elements into a seamless, easy-to-manage solution.
● Effortless Equipment Disposal: EquipFinPro goes the extra mile to support your business. We take care of equipment disposal, preventing legal penalties for improper asset disposal. Focus on your core operations while we handle the logistics.

If you are wondering if your business and professional industry is eligible for equipment financing, here is a list of industries that commonly finance their equipment. This list is not all encompassing, but includes the most common industries we see:

• Agriculture
• Construction
• Trucks and Trailers
• Office Machines
• Materials Handling
• Machine Tools
• Computer – PCs and workstations
• Medical Imaging, Diagnostic, Surgical, Electronic Medical Devices
• Software
• Other Industrial/Manufacturing Equipment

Don’t let financial limitations hold you back from reaching your business goals. Choose Co/LAB
Capital Funding and unlock a world of possibilities. Take the first step towards success today!

Exploring Various Loan Options for Your Business

When it comes to financing your business, Real Estate & Equipment Loans are just the tip of the iceberg. There are numerous other loan options available that can provide you with the necessary funds to support your business operations and growth. In this article,
we will explore several loan options suitable for sole proprietors, small businesses, medium-sized enterprises, and large corporations.

• SBA Loans: Unlocking Opportunities – SBA Loans, or Small Business Administration Loans, are a popular choice among entrepreneurs and small business owners. These loans are backed by the U.S. Small Business Administration and offer attractive interest rates and flexible terms. Whether you need capital for expansion, working capital, or purchasing equipment, SBA Loans can provide the financial support you require.
• Business Lines of Credit: Accessible Capital – Business Lines of Credit are a flexible financing solution that allows businesses to access funds whenever needed. Similar to a credit card, you are granted a predetermined credit limit, and you can withdraw funds as necessary. This option provides the freedom to use the funds for various purposes, such as managing cash flow, purchasing inventory, or covering unexpected expenses.
  Lines of Credit Types:
  ❖ Secured Line of Credit – this line requires businesses to put up collateral, which can be personal asset or short term assets, like accounts receivable or inventory.
  ❖ Unsecured Lines of Credit– Are In other words, it’s a loan that is not backed by any asset. This type of financing is ideal for small businesses or business owner’s that do not have any assets to pledge as collateral. 

Here is the thing, most business owners think that the bank that they have their checking and savings accounts with are the places that will get them these loan options, but it is the farthest thing from the truth. The local banks we all use for certain things, are not the best banks for creative and flexible solutions. They are like your general or family doctor.

You want to go to a business or commercial loan broker for your business financing needs.

• Purchase Order Financing: Fulfilling Orders with Ease: For businesses that operate in the manufacturing or distribution sector, Purchase Order Financing can be a game-changer. This type of loan enables you to fulfill customer orders even if you lack the necessary funds to produce or purchase the required inventory. Purchase Order Financing covers the cost of manufacturing or purchasing goods, allowing you to complete orders and deliver on time.
• Loans to Buyout a Business Partner or Purchase a Business: Seizing Opportunities – If you’re planning to buy out a business partner or acquire an existing business, specialized loans are available to facilitate the process. These loans provide the necessary capital to complete the buyout or purchase, allowing you to take full control of the business. With favorable terms and competitive interest rates, this option opens doors to new opportunities and expands your business horizons.
• Startup Business Loans: Nurturing Entrepreneurial Dreams – For aspiring entrepreneurs looking to turn their ideas into reality, Startup Business Loans offer vital financial support. These loans cater specifically to startups, providing capital to cover initial expenses, such as equipment, marketing, hiring employees, and establishing a solid foundation for your business. With the right funding, your startup
  can thrive and flourish in the competitive business landscape.

As you can see, Real Estate & Equipment Loans are just the beginning. There are numerous loan options available, tailored to meet the diverse needs of businesses. Whether you’re a sole proprietor, a small business owner, or a large corporation, exploring these loan options can provide the financial boost your business needs to succeed.

Remember, understanding your financing options and choosing the right loan for your business is crucial. Consider factors such as interest rates, repayment terms, eligibility criteria, and your business’s specific requirements when making your decision. By selecting the appropriate loan option, you can fuel your business growth and achieve
your entrepreneurial goals.