Owners conducting an automotive property refinance are often surprised to discover how many new attractive loan programs that have become available within the last 3 years. 30 year amortization periods, stated income and cash out refinance up to 75% LTV are now on the market. However, automotive refinances are still heavily scrutinized by lenders that are concerned with the environmental status of the property. In addition, the special use nature, as well as the high level of seller financing (land contracts) further complicate and make lenders cautious.Underwriting criteria is broken down into a few main categories – Loan to value, debt service coverage ratios, property analysis, tenant evaluation and credit worthiness of the borrower.LTV – CLTVLoan to value restrictions on automotive refinances are typically capped at 70% on rate and term and 65% on cash out refinances. However, there are a few lenders that will now allow up to 75% on a cash out basis. Lenders also will permit high leverage with seller held financing (sits in second lien position). The combined loan to value can be as high as 90%. For example, if the current first lien position existing convention loan is at 40% loan to value and the seller held is at 30% loan to value the owner could pull an additional 20% equity out on a cash out refinance (40% + 30% + 20% =90% CLTV).DSCRDebt Service Coverage Ratio restrictions are typically conservative at 1:1.3 for this building type. Meaning that for every $1.30 of net income (income after taxes, insurance, repairs, etc) the property/business produces, the mortgage payment will not be allowed to exceed $1.00. Said in another way, after all expenses and the mortgage have been paid, the owner needs to net $.30 to qualify.Due to the cash nature of this business, stated income loans, (where borrower does not have to provide tax returns) can be a solid option for owners that do not show enough net income to qualify for traditional loans. With this type of loan the DSCR discussed above is not relevant.Tenant EvaluationIn the case of investment automotive refinances, tenant evaluation is very important. Lenders may request tenant financials as well as borrower financials and scrutinize the time left on the current lease; among other relevant information. In addition, many lending source will only consider owner occupant transactions.Property AnalysisGreat caution will typically be used as market value and market rent is evaluated and compared to the subject property. Environmental status of the property will be examined and buildings constructed before 1997 will be further analyzed. Appearance, location, accessibility, and local market conditions, as well as other factors are considered.Credit WorthinessThe personal credit worthiness of the borrower will be scrutinized. 680 credit score is normally the minimum for the best finance options. Exceptions can be made (on a limited basis) as some conventional lenders will consider scores as low as 640. The overall strength of the property, tenants, net worth, DSCR, and LTV can offset concerns of low credit scores.Every potential automotive property refinance is unique and are considered on a case by case basis. However, the above can give you a good idea of what the capital sources look for when considering funding this type of commercial loan.
We can choose from several options for the best way to market our product or service in the Internet. In several instances, you find difficulty in deciding what internet marketing strategies you are going to adopt. Here are the marketing vehicles you can choose from when deciding on how you are going to start your Internet marketing:
Search Engine optimization
Where and how will you get the biggest bang from your buck?Things would have been a lot simpler and easier if we can have the answer to this question or a plan that we can use that instantly guarantee success. Unfortunately, different products require different marketing strategies and different market would respond differently to a particular marketing effort or campaign.With all the confusions and complications that beset the practice of Internet marketing, there will always be the common and basic marketing strategies that will help you bring the bucks from the sale of your product or service.You can use organic listing for your search engine optimization in order to boost your placement in search engine results pages. The only downside when you are using this internet marketing strategy is that it may take 3 to 6 months before you are able to see the results of your marketing efforts. The big question that you have to answer when considering this approach in marketing your product or service is whether you and your business can afford to wait it out for 6 months or not. In most cases, you will definitely not be able to do so as recycle and ROI are critical elements for the success and survival of any business.You can opt for the paid search as an alternative to organic listing as this can really speed up things for your company. In this marketing approach, you will be using internet advertising networks such as Google AdWords or Yahoo Marketing. You can then work on an Internet marketing effort within a preset budget range and pay-per-click program for the listing in pages that places at the top of the search engine result for specific keywords and phrases.This is a perfect marketing tool especially when implemented by the company in tandem with other Internet marketing efforts. Suffice it to say, it would be wise for the company not to rely solely on pay-per-click as this would tend to be costly in the long run. In most cases, companies thinking of using pay-per-click would outsource the requirement to a third party provider not because this could not be effectively managed by these companies but primarily because the company wants to take advantage of the expertise of these providers in order to ensure that they get the most out of their marketing expense.Make no mistake about it, email marketing remains to be relevant and important in the Internet marketing landscape. The only thing that we have to remember is that it is now harder to effect behavioral changes and grab attention using email. There is now the strong tendency of most of us to automatically punch the delete key every time we receive unsolicited or spam mails. When you are doing email marketing, it is extremely important that you are able to design a sales pitch that can really get the attention of your reader within the first 30 seconds or else you are a goner as far as email marketing is concerned. You sales message must be subtle but must have the call to action in order to get your reader decide on your sales offer.Blog marketing spread like wildfire in 2006. The search engines have strong affinity with blogs and we have a wide and deep readership of a broad range of blogs. Your blog will always be your reliable and effective marketing tool in keeping your viewers and target customers up to speed of your ongoing product offers and marketing and promotional campaigns.The best way to launch your Internet marketing campaign is by hitting the market trail at full speed. Start your marketing campaign going for a paid search while you are working on your organic listing search results. Don’t waste time and start your blog immediately and concentrate your email marketing effort to those included in your permission list.