Real Estate Archives - OMJ Mortgage

An Investment Properties Commercial Financing Primer

Morteza Sadeghi — Tue, 04 Jun 2024 15:04:11 +0000

OMJ Mortgage Capital offers a diverse range of financing options for commercial and investment properties, including investment properties’ commercial financing packages. We can help you find the right kind of financing to suit your unique needs.

Let us help you build your investment portfolio if you want to add industrial properties, multi-unit residential buildings, office buildings, or retail spaces.

This is a useful type of commercial financing for a business because it allows you to do several different things, including purchasing buildings and land to increase the capacity of your present enterprise. You can also get this type of commercial financing to renovate and expand your existing location.

Invest Properties Commercial Financing for Expansions

It’s also possible to get this type of help to replenish any working capital depleted by other real estate costs.

When applying for commercial financing for investment properties, detailed financial statements from your enterprise will be required. To prepare, it’s a good idea to put together balance sheets, income statements, and cash flow statements for several years.

Remember to consider the importance of a business plan that fits a commercial property into your overall goals.

Make sure to include all of the details here. For example, you’ll need to provide a thorough description of your business with information on its history and present market conditions. It also needs to include the business structure, such as whether you’re a corporation or partnership, as well as the nature of your goods and services.

Looking To Finance The Right Investment Property Today?

OMJ Mortgage Capital is a specialist in investment properties commercial financing. With our boutique-sized mortgage brokerage, we have funded billions of dollars in loans and arranged mortgages through alternative lenders and different financial institutions for various property types. Our expertise lies in land, commercial, and construction mortgages.

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Top Commercial Mortgages in Toronto Trends to Consider

Morteza Sadeghi — Sat, 03 Feb 2024 00:45:48 +0000

The conversations around commercial mortgages in Toronto have primarily centered around inflation lately. However, as the rate hikes start to recede, other trends must be considered.

There’s concern over the rising government debt. That’s combined with significant government expenses, High private debt levels, and a weakening GDP. These three factors can be considerable stressors in commercial real estate. High government debt levels foster economic uncertainty, affecting investor confidence in retail markets. Governments can also reduce spending and or increase taxes, and that, in turn, can affect the demand for commercial spaces.
The requirements for commercial mortgages and the criteria for qualifying for CMHC-insured commercial mortgages differ from the commercial ones. The maximum loan-to-value ratio is 85%. Other minimum requirements include five years of property management and a net worth over 25% of the entire loan value.
There’s also a sustainability focus that needs to be considered. Companies looking for commercial mortgages in Toronto must consider proactive property portfolio risk mitigation and value creation. That means businesses and others are looking to reposition themselves to more sustainable and efficient business practices. Reports from Deloitte in the United States say that many real estate firms need more time to meet governance, social and environmental (ESG) regulations. Finally, one of the other significant trends in the space is more companies are planning on Outsourcing to become more efficient

OMJ Mortgage Capital specializes in commercial mortgages in Toronto. Expand your business horizons today by using our top commercial mortgage expert services. We are a boutique-sized mortgage brokerage with decades of experience and a proven track record. We are always ready to help with our team of experts who have years of experience. Get in touch with us today to learn more.

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A Land and Subdivision Financing Overview

Morteza Sadeghi — Tue, 29 Aug 2023 19:19:25 +0000

Land and subdivision financing might seem like a simple process at first. However, this type of lending can get complex quickly.

Any lender that decides to finance one of these projects will be interested in making sure investors and developers meet key milestones. If the developers can’t meet these benchmarks, they might not be able to get the additional capital needed to continue work.

Making sure you check your boxes thoroughly is important. Following are a few pieces of key information you won’t want to miss.

Financial projections are a key piece of the data you’ll need to include. There’s a few subcategories here you’ll want to add on like a profit cost analysis and any estimated working capital requirements. Make sure to add in other expenses like land acquisition and marketing costs.
A project submission is necessary for a land and subdivision overview. Mention the location. Plus features like access to entertainment options, towns, and roads. The overview should also mention items like access to gas lines, electricity as well as storm sewers, and sanitary lines if these already exist. This stage can also include what’s called a development plan which includes the subdivision’s layout — the size and number of units and lots.

Remember, we are commercial construction financing experts who can help you through the land and subdivision financing process. Our team is here to support you through every step including environmental site assessments and appraisals as well as building inspections and legal and closing aspects. Get in touch with us today so we can help you in structuring and sourcing appropriate debt and equity capital. Contact OMJ Mortgage Capital Inc. We can help you with your next deal. We are looking forward to hearing from you.

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Tips for Accessing The Risk With Commercial Mortgages in Toronto.

Morteza Sadeghi — Mon, 10 Jul 2023 14:32:22 +0000

Before you dive right in with commercial mortgages in Toronto, it’s a good idea to assess the risk of the real estate class you’re considering.

Risk and returns can vary considerably. Healthcare assets can be less prone to economic cycles. Other commercial assets like hotels can be vulnerable to room rates and occupancy changes. Regardless of the type, every commercial real estate investment has some risk.

Any commercial real estate (CRE) market is cyclical and subject to overarching general economic trends. A variety of factors ranging from GDP growth to inflation can influence a CRE market and the risk involved. For example, an inflationary surge can bump up operational costs while diminishing returns on leases that have already been signed. Businesses holding commercial mortgages in Toronto need to be wary of floating interest rates as well.
Property risk is another consideration. These are usually under the direct influence of whoever’s investing in the asset. Due diligence comes into play. For example, there are improvement and replacement risks related to the construction needed to repair, upgrade or develop a building. These factors become even more important when you’re making an assessment of an older property in a high-demand area. Older buildings can become obsolete much faster under these conditions.

OMJ Mortage Capital looks after a variety of different mortgage brokerage needs including commercial mortgages in Toronto. Our specialties include construction, land, and commercial mortgages through the GTA. We have an outstanding track record of funding billions of dollars in loans and have fully established ourselves as a leader among brokerages. We look forward to working with you and helping you reach your individual goals and overcome any unique challenges you have when investing in commercial property. Please take a moment to look through the different awards on our website and then get in touch with us today.

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Good Reasons To Invest in Commercial Property

Morteza Sadeghi — Wed, 29 Mar 2023 23:47:47 +0000

As a commercial mortgage broker, we understand how risky this type of investing can be. Plus, today’s economic landscape isn’t all that encouraging. However, investing in commercial property still provides a good ROI and stability against market fluctuations.
Here are some good reasons to get commercial mortgages and get started investing today.
• These are excellent equity investments. This type of investment can include buying a minority ownership in some type of hard asset like an office building or apartment complex. Rising rents always provide a steady cash flow for investors.
• There are tax benefits. One of the other advantages is commercial real estate investments usually offer different tax benefits to an investor. These types of deductions can be related to items like depreciation and interest expense.
• Commercial property can also be an inflation hedge. Given the present circumstances, investors can be worried about how inflation can adversely affect their portfolios. This type of investment is a great hedge. Generally, over a five-year span, commercial real estate ROI outpaces inflation.
• Diversification is another big advantage of this type of financing. Traditional investments like mutual funds, stocks, and bonds aren’t generally diverse enough to provide stable returns during a downturn. This type of diversification protects against any losses.
Commercial properties are also tangible assets. Stocks can lose their value from one day to the next. However, real estate maintains an intrinsic value due to the land and the building itself. Even though property values can spike and then fall, this type of tangible asset doesn’t lose all of its value.
Get in touch with us today for all of your construction financing and commercial mortgages. We are a commercial mortgage broker with a proven track record. Our firm is located in the greater Toronto area and focuses on commercial, land, and construction financing.

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Looking for Construction Land Loans? Here’s a Mortgage Financing Checklist

Morteza Sadeghi — Tue, 21 Feb 2023 20:44:48 +0000

Maybe you’re looking for construction land loans to develop a small acreage or piece of vacant land with the hopes of building a new commercial building. Here’s a quick financing guide from your Toronto mortgage broker that will help to get the project started.

There are generally four steps that you need to take to get the right financing.

It’s important to realize that you’re going to need a bigger down payment. This amount can be as much as seven times the minimum down payment needed to buy a residential home. Lenders generally call this a cash requirement. It’s also important to remember you won’t get all the money in a lump sum. You’ll need to set up some progress milestones to get cash released.
There is also a property requirement. It stands to reason that before you get the loan, you’ll need to meet the requirements set out by the lender.
The experience requirement is another aspect that you need to consider for construction loans. These are guarantees that any project you take on will be done on budget and on time.
The most important tip comes last. It’s important that you can show your company’s profitability. That means it’s imperative that you keep your company’s finances in order.

When you’re looking for construction land loans and you’ve found the right property, you need to put together the documents to show the lender. Up-to-date financial statements are critical. You’ll also need a solid business plan.

These need to have an excellent description of your enterprise and where it is in relation to the marketplace. Don’t forget these documents also need to include an excellent sales and marketing plan and strategy to target their customers.

A solid business plan also needs to have an executive summary. This is a final review of your business operations and the reasons why you are looking for construction land loans financing.

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Interested In Mortgage Financing for Building Your Own Home?

Morteza Sadeghi — Tue, 31 Jan 2023 16:07:38 +0000

Construction loans can help you build a custom dwelling. That can mean a lot of things to your family. There’s a sense of satisfaction and accomplishment. Of course, you get to live in the home of your dreams too.

However, putting together the finances for the whole process can be overwhelming.

Here are a few of the things you need to know about the construction mortgage process.

The Draw Term

There are two parts to consider. The first aspect is called the draw term. It comes during the initial construction phase and allows people to pay for trades, suppliers, and contractors as well as the builder. You’ll get the money released to you at various stages of the construction process. It’s important to have a worksheet or budget that shows the timing requirements and projected cash needed. This will illustrate when the money is available and when it’s going out and whom it’s being paid to. A template is a good idea.
It’s important to keep in mind as the borrower you won’t get the money in advance. However, you can get a separate loan to purchase the lot.

Get in touch with us today to learn more about the draw formula and how the money flows from it.

The second stage for these types of construction loans is called a completion mortgage or end term. That is usually a normal mortgage that gets activated after the construction is complete.

OMJ Mortgage Capital can help you with construction loans to build a dream home or other facility. Take a few minutes to look at the different awards we’ve won including Commercial Mortgage Broker of the Year Finalist. Then get in touch with us so we can help you get the right commercial mortgage. We are looking forward to hearing from you.

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The Beginner’s Guide To Construction Loans

Morteza Sadeghi — Thu, 22 Dec 2022 00:59:58 +0000

OMG Mortgage Capital can help you with construction loans. Whether you are planning to build hotels or townhomes, plazas, or condominiums, we are the team that you need.

An informed customer is our best client. That’s why we’ve put together this beginner’s guide for these types of loans.

A construction loan is specific. This type of financing gets used for different reasons including:

Building on a newly purchased parcel of land.
Renovating or building a custom home.
Building a commercial project like an industrial plaza or a medical building.

There are a few other things that you should know. For example, one of these loans will not give you the total value of the mortgage upfront. You’ll need to achieve specific milestones as the project moves along to receive more money.

The rates for these loans are generally higher than with more traditional mortgages. These are also called draw mortgages. The lender provides financing during certain milestones. The money gets used to pay for supplies and contractors.

Some lenders will give the funds to your lawyer who then disperses them to contractors. Other financial institutions might decide to deal directly with the contractor. Keep in mind that you’ll need to have a budget and or construction plan.

Construction costs can vary depending on the type of home or building you want.

For example, in Toronto, the general cost per square foot is $115-$900. The average home size in that city is 2,380 ft.². That means the total building costs can be anywhere from $273, 700 to $2142,000.

OMJ Mortgage Capital specializes in custom home construction loans across the GTA. Some of the advantages of using our services include the fact we deal directly with an institution’s decision-makers. What’s more, our fees and rates are always industry competitive.

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Commercial Mortgage Broker Tips for Finding The Right Property.

Morteza Sadeghi — Sun, 21 Aug 2022 00:05:46 +0000

As a commercial mortgage broker in Toronto, we can help you with the application process for a loan. There are five criteria that you’ll need to check off.

Finding the right property is another matter. Here are some tips for getting that part of your enterprise underway.

Talk With An Accountant.

It’s important to have a budget before you make any further plans. Affordability is a big part of any commercial real estate purchase. These professionals will help you determine all of the hidden costs involved. Commercial mortgages can have complicated tax implications. Some issues that need to be looked at include succession planning and transition financing.

Work On Your Financing

Any commercial mortgage broker will tell you this type of financing isn’t easy to get. Before you even start looking at locations, bankers will want to see high-quality financial statements.

Check Out The Local Markets

Check out the local markets before you make any other decisions. Different zones have unique environmental issues, land inventory, and tax rates. Find out how much skilled labor is available in any area.

Plan A Good Layout

Your business might be renovating or buying an existing building. The best bet is to hire an expert to optimize the layout

OMJ mortgage capital is a commercial mortgage broker that can help you with your commercial mortgages. We specialize in fast approvals and closings as well as unbiased independent advice. We are located in Toronto, Ontario.

Commercial Mortgage Broker Contact Options

Contact us through the forms on our website or by telephone, email, or the social media links we have provided. Our team includes ex-bankers with specific knowledge of commercial financing. Our number one priority is to make the major lending institutions compete for your business. Get in touch with us today to learn more.

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Mortgage Broker in Toronto Borrowing Tips

Morteza Sadeghi — Mon, 30 May 2022 23:18:00 +0000

If you’ve decided now is the time to buy a house, we are the mortgage broker in Toronto that can lend a hand. Let us help you by supplying the best mortgage rates and some useful information on how to prepare for an approval.

It’s a good idea to begin with your credit report. Remember, one of the first things any lender will look at is your credit. Make sure that the report is accurate and that your scores are where they should be. If you need to do a little work on your numbers, start by paying your bills on time and a little more than the minimum.
Plan to pay your mortgage off faster. Find out if you can make lump-sum payments on the principal or accelerated payments. For example, some lenders will let you make two monthly payments which equals 24 year. You can accelerate that by making them every two weeks which equals 26 per year.
Make sure to ask about any prepayment penalties. As your mortgage broker in Toronto we suggest you find out whether you’ll be penalized for paying off the mortgage quickly and early. Some people can afford to double up on payments during certain times during the term. It’s important to find out whether you’ll be penalized for trying to get to your end goal sooner.

Finally, it’s a good general rule to borrow less than you’ve been approved for. Here’s a few guidelines that can help you figure that part of your financing out. Your housing costs should not exceed 32% of your gross income. Your total debt should not be more than 40% of that same number.

If you need some help navigating through the process, we are the mortgage broker in Toronto that can help.

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