• Why is IPS the best choice for your Commercial Financing and Cash Flow needs? • What documentation will I need to provide? • How do I create a business plan if I do not have one available? • What is a Cost Component Analysis and how can it create cash flow? • Why have I never heard of Cost Component Analysis or Cost Segregation? • What else do I need to know about Commercial Mortgages? Q. Why is IPS the best choice for your Commercial Financing and Cash Flow needs? A. Our experienced experts will work diligently with you and your company to raise the capital your company needs. It is our obligation and passion as professional commercial brokers, to help you in presenting your company and communicating your story to the lender with your company’s best interest in mind. The mortgage market is evolving everyday and we will guide your loan through the ever changing market with ease from the submission process until closing your loan. In comparison to a simple refinance on a residential transaction, commercial financing appears to be much more cumbersome and complicated to most business owners. A lot of time is required for all business owners, new or existing, to present the necessary paperwork required for a commercial loan coupled with learning about all the different types of loan programs available. That is where we come in and can help smooth out the whole process for you. We understand that your business requires your attention on a daily basis. Let our experts do what we do best so you can continue to effectively run your business. Utilizing all of our experience along with a unique advisory approach, we consistently are able to provide suitable financial solutions and products while simplifying the whole entire process for you.

At IPS, whether we are obtaining you financing or performing a Cost Component Analysis to increase your business’ cash flow, the procedures we have in place and our dedication to delivering superior service enable us to consistently help business owners grow and meet their business objectives. A fortunate result of the advisory approach we take is we truly get an intimate understanding of your short and long term business goals. Our passion is to provide an experience and product offering that helps you meet and exceed those goals.

Contact Us today with any questions you might have.

Q. What documentation will I need to provide?

A. The following information is required for each principal of the company:

1. Resume that explains how long the company has been in business, lists the principals of your company, how your company is structured, and information regarding your personal background.
   
   
2. A personal financial statement for each borrower/principal.
   
   
3. Signed Credit Authorization (link to our form)
   
   
4. Business Plan describing business objectives of existing or proposed business.
   
   

A. The following information with regards to your property will be required:

1. A fully executed purchase contract if the transaction is an acquisition.
   
   
2. If the transaction is a refinance, a summary of the current financing, price originally paid and acquisition date.
   
   
3. Income / Expense Statement for the property. Every lender will need to know the property tax, insurance, fuel and electricity, water/sewer bills, and annual maintenance. Operating statements for the last 2 years. In some cases, business and personal tax returns will be necessary.
   
   
4. For certain property types, a rent roll, including number of units, the tenant names, amount each tenant pays in rent will be required. Such properties include but are not limited to strip malls, office rentals, industrial properties, apartment buildings, and mixed use properties.

Q. How do I create a business plan if I do not have one available?

A. A business plan is very important to obtaining the type of financing you are looking for. Look at like this way… it is you opportunity to tell your story to the bank. They are usually 6 – 10 pages long and typically are a snapshot of your whole business.  Keep in mind no one is better suited to sell your story and explain your business objectives than you. The enthusiasm you show, the competitive edge your business has, and your ability to operate and run your business profitably are very important factors your potential lenders consider. You can find some useful information on writing a business plan at www.sba.gov. Your expert at Integrated Property Solutions has experience with reading business plans and can help assist you with your plan prior to submitting the document to a lender.

For a detailed outline of what should be covered in your business plan and an acceptable order please visit
http://www.smallbusinessnotes.com/planning/sbabusplan.html

Q. What is a Cost Component Analysis and how can it create cash flow?

A. A Cost Component Analysis, also known as a Cost Segregation Study, is an IRS endorsed tax strategy that allows commercial property owners to accelerate the depreciation of components within their property to increase cash flow. Integrated Property Solutions, in conjunction with our affiliate partner Commercial Property Consultants, conducts an Engineering Based Cost Segregation study, which is the preferred method of the IRS. Very simply, an engineer, after visiting your building will reclassify certain components from 39 year life to 5 or 7 year life. The impact of the reclassification can be dramatic and create significant cash flow, as often 20%-50% of your asset can be moved to shorter life.  Learn how to obtain a no obligation, no cost feasibility study detailing your anticipated tax benefit by clicking here.You can also contact one of our experts to  learn how a Cost Segregation study can add great value to your business.

Q. Why have I never heard of Cost Component Analysis or Cost Segregation?

A. Most commercial property owners are surprised to learn that Cost Segregation has been around since the 1960’s. Fortune 500 – 1000 companies have already used this tax benefit strategy as it is offered to them by the larger national accounting firms that in a lot of cases employ their own engineers to conduct the study. Since 9/11, the process has become much less cumbersome for the small to mid tier commercial property owner, as the rules surrounded this strategy have become less stringent. Just a couple years back, an amended tax return was required and the tax benefit sometimes took years to be applied. Now, you do not have to amend your return and the benefits are available immediately.

Another reason you may not be familiar with this strategy is due to the fact that an engineer is required for a detailed and balanced Cost Segregation Study. Most CPA’s are experts at depreciating furniture and fixtures at 5 year life and can effectively classify some of the more obvious components into personal property vs. real property. That being said, you will be pleasantly surprised to learn how much more of your asset can be moved to short life depreciation when an Engineering Based Cost Segregation study is completed. We will work hand in hand with your accountant and or financial team throughout the whole entire process to ensure that you receive the highest ROI and most detailed and balanced study available. It is important to stress that we are strictly an engineering firm, not a CPA firm; therefore we look to join your financial team, not replace it.

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Q. What else do I need to know about Commercial Mortgages?

A. At Integrated Property Solutions, we stress that there are a variety of Commercial Loans available. Amortizations typically are 25 years, although in certain cases can be shorter or longer. Terms can be 5, 10, 20 or 30 year fixed with Interest Only payments available when applicable. In many cases your expert at Integrated Property Solutions will provide several different options. It is our job and duty to learn enough about your current business, your short and long term goals, and to find the most suitable product available. If your business is very successful and your credit profile is excellent, given the low rate environment, a longer term fixed rate may be more attractive. On the other hand should your credit profile be imperfect, a shorter term product with a high rate and a desirable prepayment structure may be the best option available. Whatever your business and credit profile looks like, please know there are usually many options to consider and evaluate, and your expert at Integrated Property Solutions will work diligently with you to find the most suitable financing available.

A. Many borrowers desire to know what their rate is going to be.  Rate is undoubtedly a very important factor however closing costs, terms of your loan, points and fees all must be taken into account when doing a commercial loan as well. This is where your expert at Integrated Property Solutions can help. Please keep in mind that we need to look at your whole picture, understand your business objectives, and clearly define the purpose of your commercial loan. Once all these factors are considered, your IPS expert will find the most suitable loan with the most competitive rate. Being too rate conscious at the beginning of the process can sometimes be counterproductive in obtaining the best overall loan program for you and your business.