InnCap Blog
Insights and Recently Funded Deals
Meet Nick Leonard, Commercial Loan Officer
Our team at Innovative Capital Corporation is excited to welcome our newest member, Nick Leonard. Nick is joining our Innovative Capital team from Hendricks County Bank and Trust (HCBT) as a Commerical Loan Officer. Nick’s experience in business management accounting, real estate and lending makes him an invaluable asset to our team. Get to know Nick below!
Are We in a Real Estate Bubble?
Homebuyers may worry the market is entering a real estate bubble due to record high housing prices, low inventory, and the prevalence of bidding wars. However, after surpassing the “mid-2000s housing-bubble high watermark of 11.9%” in April of 2021, economists predict the real estate market is heading toward more balanced conditions.
Top Five Reasons Banks Turn Down Loan Applications
According to research, only 37% of small businesses apply for financing. Of the businesses that do apply, however, banks reject about 80%. Why might this be?
Banks consider several factors in determining whether or not to approve a loan for a small business. These factors can be both quantitative and qualitative, ranging from a low credit score to industry concerns.
If your loan is denied, the good news is that you can take a few simple steps to adjust and reapply. And, if traditional lending isn’t the right fit for you and your business, alternative lending provides attractive options to consider.
Who Will Give Me a Loan When No One Else Will?
The process of traditional lending typically involves a borrower visiting a financial institution and trusting a single banker to find the best rates and terms for their loan. This process can take months and, due to each lender’s strict guidelines and varying underwriting criteria, often results in a decline. In fact, commercial banks approved only 27.3% of submitted loan applications in 2019.
What are the Advantages of SBA Loans?
The U.S. Small Business Administration (SBA), established in 1953, provides funding for small businesses.
Its mission is, “as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, preserve free competitive enterprise and maintain and strengthen the overall economy of our nation.”
They support small businesses through their 504 and SBA 7(a) loans. Let’s discuss the advantages of each.
Join us in Welcoming Shelley Capron to the Innovative Capital Team
Our team at Innovative Capital Corporation is excited to grow as we welcome Shelley Capron as our Director of Client Relations. Capron has over 30 years of experience in the industry, representing both private and large commercial entities—which makes her an invaluable asset to our team.
Her active commitment to advocating for her clients with professionalism by adapting to the pulse of real estate cycles, market trends, and rate volatility makes her the perfect fit.
Multifamily Property Values Skyrocket in Metropolitan and Suburban Areas
Multifamily property values have increased at an exponential rate that surprised even seasoned industry veterans. After all, 2021 experienced over $335 billion spent on multifamily properties. The record breaking growth doesn’t appear to be slowing down in 2022.
The growth, however, is not blossoming in what was considered commonly sought after urban space. Instead, values have found another sector to thrive in metropolitan and suburban areas.
Top 6 Benefits of Purchasing Commercial Real Estate
Franklin D. Roosevelt said it best, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
Commercial real estate (CRE) is a booming industry that builds wealth over time. Other than building wealth over time, we explain the added benefits of purchasing CRE in this article.