Commercial Lending Services Archives — Houlihan & O'Malley Commercial Services

Types of Commercial Property to Invest In

Brenda Sigurdson / July 27, 2021 / Leave a Comment

When investing in commercial real estate, you must consider a range of factors, including things such as the difficulty of owning and managing the property, the options that are available, and what you’re expected return on the investment would be.

Commercial properties have the potential to continue earning for you for years to come, however, you may be wondering which types of properties will work best for you. Let’s look at some of the most common property types to invest in.

Apartment Buildings

Properties that have at least five residential units are considered commercial properties and are worth looking into as an investment. There are plenty of reasons that make apartment buildings a good option to consider, but the core tenet of these is that there will always be a need for housing. Simply put, everyone needs to have a place to live and there is almost always more demand than supply, but as with everything else in real estate, location is key.

Some other factors that make apartment buildings attractive investments include the ability to raise rents in most years, helping to offset increasing costs and/or increase profit. Apartment buildings can also work well as tax shelters, and they …

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Why Is Commercial Real Estate a Good Investment?

Brenda Sigurdson / June 10, 2021 / Leave a Comment

Choosing the right investment vehicle can prove to be quite the challenge. Everyone has their own opinions about what type of investments are best and which will be the most lucrative, the easiest to manage, the least risky, etc. And, with all that handy insight and advice, how could you possibly narrow it down? Well, that starts by taking the time to explore the options yourself, learn what each offers and then decide what combination of investment vehicle and strategy works best for you.

In this blog we’ll take a brief look at commercial real estate, including what makes it a good investment and why so many people choose it.

Return On Investment (ROI)

One of the biggest benefits of commercial real estate investing is that it garners a much higher ROI, on average, than other investments, even when compared to residential real estate. When the deals are bigger, so are the returns. Just like how people are always going to need housing, people will always going to need a space for their business. Covid may have tweaked some of the rules, but it didn’t rewrite them.

Diversification

Another big reason people choose to invest in CRE is because it …

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$1,300,000 First Mortgage – Freemason owned Mixed-Use property – Brooklyn, NY

Rich Salinaro / March 1, 2021 / Leave a Comment

$1,300,000 First Mortgage – Freemason owned Mixed-Use Property- Brooklyn, NY

This was another repeat borrower for H&O Capital Funding, and they coincidentally were also a fraternal order of Freemasons based out of Brooklyn. The borrowers had an existing first mortgage with H&O for $750,000 and needed to clear some cash for property improvements. The retail space at the property is fully leased to a small grocery store and the Freemasons occupy the upper 3 floors, where they want to do the renovation work. Although it took some time to get all board members to sign off on the loan, H&O was still able to close the loan in 3 weeks.

H&O Capital Funding has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.

For more information on loans that we offer, visit our website.

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$450,000 Second Mortgage – Masonic Temple – Brooklyn, NY

Rich Salinaro / March 1, 2021 / Leave a Comment

$450,000 Second Mortgage – Masonic Temple – Brooklyn, NY

A fraternal order of Freemasons based out of Brooklyn, NY came back to H&O Capital Funding looking for a bit more cash to help clear off some debts that had accumulated during the pandemic. The borrowers, who rely on the proceeds from renting out the temple for various events, have not been able to host an event since the pandemic began. There really wasn’t a good option to quickly raise some funds to take care of their outstanding debts, aside from a membership assessment, which they desperately wanted to avoid. Based on their current relationship with H&O Capital they reached out looking for a small second mortgage to keep them afloat until things open up again. Despite a few title insurance issues, the loan closed in less than a month.

For more information on loans that we …

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Myths vs. Facts: Hard Money Lenders Perform Very Little Due Diligence

Brenda Sigurdson / September 28, 2020 / Leave a Comment

True or false: Hard money lenders look only at the property they are underwriting, and do NOT look at the investor?

In short, the answer to that question is “false.” For all lenders, even conventional lenders, the most important factor in any loan is the underlying asset to be mortgaged. This is especially true for hard money lenders. On a stabilized asset, with a good debt coverage ratio, a hard money lender will rarely, if ever, ask for any personal financials. The property secures the loan, and the lender typically lends to an entity, rather than an individual or group.

This structure, however, does not mean that the Lender ignores whether or not a borrower can repay the loan and make timely monthly payments. For example, a loan on vacant land would likely be a scenario where some sort of personal financial data may be requested as the property itself would not be producing any income to cover the monthly debt service.

Terms and Due Diligence

The terms of the typical hard money loan are simple: The amount given to a borrower is based on the value of the property being used as collateral. Generally, terms are NOT based on …

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$225,000 Second Mortgage – Mixed-Use Building- Bronx, NY

Rich Salinaro / November 19, 2019 / Leave a Comment

$225,000 Second Mortgage – Mixed-Use Building – Bronx, NY

H&O Capital Funding was contacted by an investor who needed some quick funds for another transaction. He knew that he had some equity in his mixed-use property with two apartments and a store in the Morrisania section of the Bronx. H&O Capital was able to close the deal is less than two weeks, allowing the investor close on his other deal without a hitch.

For more information on loans that we offer, visit our website.

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$1,700,000 Blanket First & Second Mortgage – Mixed-Use Property & Development Piece – Westfield, NJ

Rich Salinaro / August 2, 2019 / Leave a Comment

$1,700,000 Blanket First & Second Mortgage – Mixed-Use Property & Development Piece – Westfield, NJ

The borrower in this deal is a developer who has done a lot of work in Northeast New Jersey. Having hit a few roadblocks with his conversion of a vacant property from office to residential use, he needed some funds to pursue the issue with the town. A vacant property without the approvals for redevelopment isn’t very marketable and most lenders were stymied trying to underwrite the deal. H&O Capital, however, was able to determine that there was enough equity behind a first mortgage on a mixed-use property the borrower owned in the same area. H&O did the deal as a blanket to make it work. There were a number of moving pieces here, but H&O was still able to get the deal closed in just three weeks.

For more information …

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$500,000 First Mortgage – Single-Family Investment – Milford, CT

Rich Salinaro / July 31, 2019 / Leave a Comment

$500,000 First Mortgage – Single-Family Investment – Milford, CT

This deal was an odd one from the start. The borrower came to H&O Capital Funding looking for $500,000 on a $1,300,000 purchase price, with the seller holding the balance as a second mortgage. Because the seller illegally re-configured the home to a four-family home, both he and the borrower/buyer understood that conventional financing was out of the question. Not only was the home non-conforming with the CO, the buyer was trying to do a Reverse 1031, which just added another wrinkle to the deal. While things took some ironing out, the deal was still able to close in just three weeks.

For more information on loans that we offer, visit our website.

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$550,000 First Mortgage – Mixed-Use Building – Brooklyn, NY

Rich Salinaro / July 26, 2019 / Leave a Comment

$550,000 First Mortgage – Mixed-Use Building – Brooklyn, NY

In this deal, the borrower came to H&O Capital Funding needing some money to finish up some renovations he was doing to his property in the Clinton Hill . The property consisted of two apartments and one commercial space that was divided into 3-4 smaller spaces for separate tenants. With plenty of value in the property, the loan was a no-brainer for H&O Capital Funding. Despite a few legal hurdles, the loan closed in under three weeks.

For more information on loans that we offer, visit our website.

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$285,000 First Mortgage – Freestanding Restaurant Property – Glen Cove, NY

Rich Salinaro / February 5, 2019 / Leave a Comment

$285,000 First Mortgage – Freestanding Restaurant Property – Glen Cove, NY

Another day, another quick closing for H&O Capital Funding! The borrower here got into the restaurant business a few years ago and within his first three weeks there was a fire and the entire restaurant went up in flames. After spending two years, and the majority of his own savings rebuilding the restaurant, the restauranteur and the landlord had a falling out. To make a long story short, there was a court ordered sale of the restaurant from the landlord to the restauranteur. In stepped H&O Capital Funding to get the restauranteur the funds he needed to close on the property. Despite a few hiccups along the way provided by the seller, H&O Capital was able to close the loan in just a month.

For more information on loans that we offer, visit our website.…

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Commercial Lending Services

Types of Commercial Property to Invest In

Apartment Buildings

Why Is Commercial Real Estate a Good Investment?

$1,300,000 First Mortgage – Freemason owned Mixed-Use property – Brooklyn, NY

$450,000 Second Mortgage – Masonic Temple – Brooklyn, NY

Myths vs. Facts: Hard Money Lenders Perform Very Little Due Diligence

$225,000 Second Mortgage – Mixed-Use Building- Bronx, NY

$1,700,000 Blanket First & Second Mortgage – Mixed-Use Property & Development Piece – Westfield, NJ

$500,000 First Mortgage – Single-Family Investment – Milford, CT

$550,000 First Mortgage – Mixed-Use Building – Brooklyn, NY

$285,000 First Mortgage – Freestanding Restaurant Property – Glen Cove, NY

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