Commercial Loans | Commercial Capital | Commercial Lending

Your Questions About Commercial Capital Financing

lesong — Fri, 24 Jun 2011 19:37:05 +0000

David asks…

Business funding services inc from Las vegas, nv 89102?

Is business funding services from nevada a scam for grants?

lesong answers:

Before you do anything else, check them out at http://www.bbb.org/ and/or http://www.ripoffreport.com/

Robert asks…

Has anyone used the grants services of Small Business Funding Company sbfcompany.com. (Only users pls reply)?

I am considering signing up for their grants services – it costs a lot. If anyone has used their services I would appreciate any advice or suggestions. I’ve already read the answers to other related questions on sbfcompany.com – about SBA, SCORE, etc. I already have all this information and I’m not looking for such details. Only users having experience with the services of SBFCompany – please reply.
Thank you.

lesong answers:

If you’re dumb enough to spend a lot of money for something that you could do by yourself, for free – go ahead.

Your Questions About Commercial Capital Financing

lesong — Tue, 14 Jun 2011 02:01:52 +0000

Joseph asks…

Business Loans?

Business Loans?
Can I get a business loans to buy investment properties?

lesong answers:

As an individual it is not possible, but as a corporate it is very much easy

Donald asks…

business loans?

I am looking in to buying a local shop and need a business loan of $100,000 what is the best way of going about this. I don’t have the best credit rating and I don’t own my own home. I also live in Australia. Also what banks or companies do you think will lend to me.

lesong answers:

Hmm with your credit rate and with the amount you need loaned i guess the only thing you could do is wait until your credit rate gets better and you have more money in the bank or you could always get a business loan from the bank but you would have to pay so much interest. But you could pay little by little.

Paul asks…

What can u tell me about business loans to start up a new business?

In the process of opening a new business. How do business loans work – I know I need a business plan etc before I can apply for a loan, but what’s some other info? What’s the interest rate range, what’s the range of how many yrs u can have the loan, range of amnt they can loan, will they include the first yrs lease amnt in the loan if needed…etc, etc?
We have good credit.

lesong answers:

A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.

However, some companies out there offer “business” credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.

When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business’ credit, while avoiding creating problems with your own.

Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for “strong business credit” (just like that in quotes) to find services that sell the information.

Good luck,

Ilya Bodner
Small Business Owner
Initial Underwriting Group

Your Questions About Commercial Capital Financing

lesong — Sat, 04 Jun 2011 18:00:19 +0000

Chris asks…

explain three major liabilities of commercial banks?

. Are a bank’s liabilities best described as its sources of funds or its uses of funds

lesong answers:

It depends on what you mean by liabilities.

A. If corporation X deposits money on commercial bank B, then the books of bank B that deposit is a liability.

Http://en.wikipedia.org/wiki/Liability_(financial_accounting)

B. If a bank engages in criminal behavior such as money laundering, then it has criminal liabilities.

Http://en.wikipedia.org/wiki/Strict_liability_(criminal)

http://en.wikipedia.org/wiki/Corporate_liability

Similarly, if it does not take its fiduciary responsibilities seriously, it can civil liabilities as well. (For example, it pays out on an invalid check, pays the wrong person on a valid check (forged signature, etc.))

http://en.wikipedia.org/wiki/Fiduciary

http://www.rsc.org/images/2_Difference_tcm18-17644.pdf

Note that these tend to be in terms of the uses of its funds, though some crimes, such as money laundering, have to do with the sources of funds.

C. Then there are the classic public liabilities of any business that has dealings with the public:

http://en.wikipedia.org/wiki/Public_liability

This is clearly in its use of funds, as well as other factors.

Etc.

David asks…

Why the opposition to high speed rail and amtrak funding?

1. Both our highway system and airline industry are heavily subsidized. In 2002, Congress appropriated $32 billion in highway funding and $14 billion for the airline industry in 2002. The FAA ran on a 2005 budget of $7.8 billion. How “successful” would the private airline industry be if it were not subsidized by the government? Would our “car culture” exist without our governments involvement in building and maintaining highways?

2. Amtrak operates on a pauper’s budget in comparison, receiving just $521 million in 2002. Amtrak’s entire budget accounts for less than one per cent of US Department of Transportation spending. The ratio of highway/airline to rail government funding between 1971-2001 was 63:1. How can rail compete with these modes of transportation considering such lopsided government support?

3. The government has appropriated $13 billion dollars for high speed rail construction ($8 billion initially and $1 billion every year for five years). Construction of the interstate highway system cost taxpayers $114 billion(adjusted for inflation, $425 billion in 2006 dollars). The replacement value for our commercial airline industry that was subsidized by the government (airports, traffic control towers, etc…) is estimated at $1 trillion. The proposed LAX expansion would cost the state and federal government $11 billion alone!

4.Amtrak carried 28.7 million passengers in 2007 posting six straight years of ridership and revenue growth. Amtrak averages about 69,000 passengers a day.

5. High speed rail will provide $1.3 billion in highway congestion relief and $700 million in airport congestion relief. One third of commercial airline routes are regional. Imagine how much air traffic congestion could be eased by transferring those passengers to rail. It is estimated that a full passenger rail train takes between 250-350 cars off the road.

6. High speed rail is lightyears ahead in other nations. The U.S. operates one high speed rail line (Acela express in the northeast corridor) that averages 89 mph with a top speed of 150 mph. France’s TGV operates 1,700 km of LGV averaging speeds around 173 mph with a top speed of 357 mph. Japan’s Shinkansen is a 2,459 km network averaging about 162 mph with a top speed of 361 mph. China operates a 430 km/h network (Plans 12,000 km by 2020) with a top speed of 217 mph (Highest top operating speed in world). High speed rail service that operates well above the United States exist in France, Japan, China, Italy, Spain, Germany and South Korea. High speed rail proposals that would exceed what currently exist in the United States (Acela express) are being planned in nations such as Iran, Morocco, Malaysia, Singapore, Saudi Arabia, Vietnam, Argentina and Brazil.

7. High speed rail across the nation has the support of many republicans including Transportation secretary Ray Lahood and Republican Leader of the House Transportation and Infrastructure Committee, John Mica of Florida.

Here is a video of California’s HSR proposal: http://www.youtube.com/watch?v=zD1QGNsRg…

My sources:

http://en.wikipedia.org/wiki/Interstate_…

http://www.trainweb.org/moksrail/advocac…

http://www.hasbrouck.org/blog/archives/0…

http://www.dot.gov/bib2005/admins.html

http://wjz.com/local/amtrak.ridership.2….

http://www.usatoday.com/travel/news/2006…

http://en.wikipedia.org/wiki/Shinkansen

http://en.wikipedia.org/wiki/High-speed_…

4. Even considering the tax that is levied on the airlines for the FAA, the taxpayer has to subsidize $3 billion of its annual operating cost. Why not transfer ALL that cost onto the airlines?

Sun Down:

1. If the airline industry is so successful, why do they need funding at all?

2. No matter your financial situation, you cannot neglect the transportation needs of your state. Either California builds high speed rail or they build yet more highways.

3. Rail exist in only a select few places. Most Americans don’t have access to rail. Its flawed logic to compare ridership numbers to the overall general population. I’d also like for you to read again what I wrote about underfunding
Moltar:

1. Four of the seven largest U.S. airlines are in bankruptcy and the airline
industry needed $5 billion in cash and an additional $10 billion in loan guarantees from the government to continue operating. The ONLY airline
that operates with a profit is Southwest airlines.

2. China is roughly the size of the United States. Secondly, no one is proposing CONNECTED high speed rail across the nation but rather regional networks that would exist only where it’s profitable to do so. Thirdly, the networks that exist in France and Japan are roughly the size of the networks that would exist under the proposals.

3. The cost to connect San Francisco to Los Angeles is $40 billion dollars.HSR cost only half as much to build than the same capacity in roads and air. The same geographical obstacles exist in Japan and France. Also, the engineering aspect of California HSR has already been laid out with construction phases already scheduled.

lesong answers:

1- Amtrak consistenly loses money.
2 – The country is too geographically large for a nationwide network of high speed rail lines. Comparing our geography to that of France, for example is ridiculous.
3 – The cost to connect LA and SFO alone is staggering, not to mention nearly geographically impossible.

By the way, Amtrak is the end result of poorly managed, money-losing railroads being bought out by the government. People simply stopped taking the train on a large scale.

The FAA is a regulatory authority, not an airline.

Michael asks…

How can I find an investor for my fashion line that is willing to pay for everything?

My name is David Davis, Jr. and I am starting my own fashion line. I would like to know where can I find investors that would help me with funding for the startup. I need commercial real estate technology resources, money for manufacturing and much more. My business plan is ready for an investor. My entire plan is ready for an investor. I live in Houston, Texas. However, I would need an investor from a pretty reputable source. Anybody I am prepared for business.

lesong answers:

Talk to venture capitalists. It’s a long, tedious process that’s basically the social equivalent of turning people upside down and shaking them so the change falls out of their pockets. The chances that you’ll find one person willing to put up all the money is very low, especially if this is your first business, so talk to as many people as you can and ask them to refer you to others who might be interested. When someone turns you down, ask them why or if there’s anything you could do to change your mind. Almost no one is lucky right away, so just keep chugging away if you really want it.

Your Questions About Commercial Capital Financing

lesong — Thu, 26 May 2011 20:41:04 +0000

Ruth asks…

Where is Commercial Capital Bank, FSB located in L.A. County?

lesong answers:

Los Angeles & Ventura Counties
Office Name ATM
Baldwin Hills
Beverly Hills
Gardena
Hawthorne
Hermosa Beach
Malibu
Manhattan Beach
Redondo Beach
Tarzana
Torrance
Valencia – Opening Summer 2006
Westchester
Westlake Village

James asks…

How can I find out how much is the asset under management of my employer (a commercial bank)?

I need this information to fill out the CFA registration. Is there any way I can find that out on the company’s website (public co.)? I found their total capital. I know it’s not the same as AuM, but do you think I can simply use that info. for the purpose of exam registration? I try to avoid asking my manager. Thanks.

lesong answers:

I’d think that kind of information would be in the company’s annual report. Did you look there? That’s usually posted on their website as well.

Mark asks…

What are hedge funds and private equity funds? Why do they put bank capital at risk?

Also, how would devaluing the U.S. dollar benefit our economy? What does that even mean?
Here’s the article:
Stepping out of the shadows again, Paul Volcker, the head of President Obama’s Economy Recovery Advisory Board, writes in Sunday’s New York Times that more needs to be done to improve the “safety net” which keeps commercial banks stable. The former Fed chair takes aim at the commercial banks, which sponsor hedge funds or private equity funds, putting bank capital at risk. He says banks that have a foot in both worlds “present virtually insolvable conflicts of interest with customer relationships.” He writes, “We need to face up to needed structural changes, and place them into law. To do less will simply mean ultimate failure—failure to accept responsibility for learning from the lessons of the past and anticipating the needs of the future.” One long-term consequence of the meltdown and our soaring deficit, writes Jeffrey E. Garten on The Daily Beast, is the slow decline of the U.S. dollar, The politically easiest way to repay our debt, Garten writes, would be to devalue the dollar, so we could pay back our creditors in less-valuable currency, but to change from a dollar-centric world would “create financial instability everywhere.”

lesong answers:

1. Hedge funds are basically gamblers:

http://en.wikipedia.org/wiki/Hedge_fund

When they use only the money from their investors, they are not dangerous.

2. But to make a great deal of money, they want to make bigger bets, so they borrow from the banks. This is called leverage:

http://en.wikipedia.org/wiki/Leverage_(finance)

Now if they lose too many bets, not only have the investors lost, but the hedge funds can’t pay the banks back and so the banks lose big too. Ditto if the banks are allowed to invest in hedge funds directly.

3. The article does not say that devaluing the dollar would benefit the economy. What it says is that a major devaluation would make it easier to pay back the debts, but have other consequences which would not be good.

It is the case that a slightly weaker dollar will make imports slightly more expensive and exports slightly cheaper so the U.S. Will import less and export more, reducing the trade imbalance.

And as long as the trade imbalance continues, there is a natural tendency toward weakening the dollar anyway.

4. As for “devaluing”, the U.S. Has no direct control because the dollar is a floating currency whose value is determined by the market. But there are steps the government can take to encourage the market to move one way or the other.

Http://economix.blogs.nytimes.com/2009/11/12/the-great-shrinking-american-dollar/

http://krugman.blogs.nytimes.com/2009/11/24/notes-on-the-dollar-panic/

http://www.nytimes.com/2010/01/01/opinion/01krugman.html

Mandy asks…

Will a bank lend you millions of dollars for commercial real estate?

I ask this out of mere curiousity. There is a commerical property that I believe can be redeveloped and highly profitable, but I lack the capital to purchase it and redevelop it.

lesong answers:

No.

Susan asks…

What jobs should I look for with this degree?

Major in Economics (emphasis on econometrics)
Minor in Business
Minor in Statistics

I’ve also read the same Finance textbooks that a finance major does. FOR FUN! And I remember them by heart! (investment analysis, trading risk, capital markets, commercial bank management, investment banking, real estate finance, RE appraisal, RE investment analysis)

So I know Statistics, economics, finance what jobs are open to me?

lesong answers:

Banker, market analyst, accountant, budget analyst.

2011 Apartment Market Outlook and Investment Strategies Webcast

lesong — Thu, 13 Jan 2011 23:10:33 +0000

You are invited to Watch the 2011 Apartment Market Outlook and Investment Strategies Webcast. To check out this webcast, please click on this URL: http://goo.gl/luZ1K

Hello Commercial Property Investors and Business Owners!

lesong — Sat, 26 Jun 2010 03:30:48 +0000

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