Tuesday, April 6th, 2021
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Baylor capped a dominant NCAA tournament run with an 86-70 win over Gonzaga in Monday’s championship game to end the Bulldogs’ perfect season.
The Rockies’ Coors Field has been chosen to host this year’s All-Star Game, sources told ESPN on Monday.
What is a Commercial Loan for Real Estate Financing?
Commercial real estate (CRE) is income-producing property with just business (rather than residential) purposes. Examples include retail malls, professional offices such as for dentists, office buildings and complexes, and auto dealerships. Financing, including the acquisition, development, and construction of these properties, often comes from commercial real estate loans. These are mortgages secured by liens on the commercial property. So this is a commercial loan for real estate financing.
What is a Commercial Loan for Real Estate All About?
Commercial real estate loans are often made to business entities.
These include developers, corporations, limited partnerships, and funds and trusts. These entities are often formed for the specific purpose of owning commercial real estate.
But such a business entity may not have a financial track record or any credit rating. In that case the lender may require the principals or owners of the entity to guarantee the loan.
Hence a person (or group of people) puts their property on the line. In case of loan default, the lender can recover from them.
If the lender does not require this type of guarantee, and the property is the only means of recovery in the event of loan default, this debt is a non-recourse loan. It means the lender has no recourse against anyone or anything other than the property.
Unlike residential loans, terms for commercial lending typically range from 5 years (or less) to 20 years. The amortization period is often longer than the term of the loan.
Amortization is an accounting technique. Its use is to periodically lower the book value of a loan or intangible asset over a set period of time.
A lender, for example, might make a commercial loan for a term of eight years, with an amortization period of 30 years. Here, the investor would make payments for eight years, of an amount based on the loan being paid off over 30 years.
Then one final balloon payment of the entire remaining balance on the loan follows.
The length of the loan term and the amortization period affect the rate the lender charges. Depending on the investor’s credit strength, these terms may be negotiable.
But in general, the longer the loan repayment schedule, the higher the interest rate.
Learn business loan secrets and get money for your business.
What are Loan-to-Value Ratios in a Commercial Loan for Real Estate?
LTV is a calculation measuring the value of a loan against the value of the property. A lender calculates LTV by dividing the amount of the loan by the lesser of the property’s appraised value, or its purchase price. For example, the LTV for a $80,000 loan on a $100,000 property would be 80% ($80,000 ÷ $100,000 = 0.8, or 80%).
Borrowers with lower LTVs will qualify for more favorable financing rates than those with higher LTVs. This because they have more equity (i.e., a stake) in the property. It works out to be less risk from the lender’s perspective.
Commercial loan LTVs tend to fall into the 65% to 80% range. While some loans may be made at higher LTVs, they are less common. The specific LTV will often depend upon the loan category
What is Debt-Service Coverage Ratio?
DSCR compares a property’s annual net operating income (NOI), to its annual mortgage debt service. This includes principal and interest. It measures the property’s ability to service its debt. You calculate it by dividing the NOI by the annual debt service.
For example, a property with $150,000 in NOI and $100,000 in annual mortgage debt service, would have a DSCR of 1.5 ($150,000 ÷ $100,000 = 1.5). The ratio helps lenders determine maximum loan size. That has a basis in the cash flow generated by the property.
What Does it Mean to Have a DSCR of Less than One?
A DSCR of less than 1 means a negative cash flow. For example, a DSCR of .93, means there is only enough NOI to cover 93% of annual debt service. In general, commercial lenders look for DSCRs of at least 1.25. This is to ensure adequate cash flow.
A lower DSCR may be okay for loans with shorter amortization periods, and/or properties with stable cash flows. Higher ratios may be required for properties with volatile cash flows. These include, for example, hotels. This is because hotels do not have long-term (i.e., more predictable) tenant leases, which other types of commercial real estate have.
What Sorts of Interest Rates and Fees Do You Typical Pay with Commercial Real Estate Financing?
Interest rates on commercial loans tend to be higher than on residential loans. Commercial real estate loans also often involve fees adding to the overall cost of the loan. These include appraisal, legal, loan application, loan origination, and/or survey fees.
Some costs must be paid up front before loan approval or rejection. Others apply annually. A commercial real estate loan may have restrictions on prepayment. The intention is to preserve the lender’s anticipated yield on a loan.
If investors settle the debt before the loan’s maturity date, chances are good they will have to pay prepayment penalties. See investopedia.com/articles/personal-finance/100314/commercial-real-estate-loans.asp.
Learn business loan secrets and get money for your business.
What are Some Types of Commercial Real Estate Loans?
You can invest in real estate with an SBA 7(a) loan, or an SBA 504 loan. Conventional bank loans are another option, as are hard money loans. Joint venture loans allow parties to share the risk and returns from commercial property investment, without having to formally enter into a real estate partnership.
You can get a commercial mortgage from Freddie Mac, or Fannie Mae. You can try credit unions, or even life insurance companies. Another option is HUD. See stacksource.com/commercial-mortgage-rates.
You can try an online marketplace loan, AKA a soft money loan. Here, interest rates are still higher than conventional bank loans. But they are lower than loans from hard money lenders. For the most part, online marketplaces match borrowers with shorter-term loans. These run from six months to a few years. See fortunebuilders.com/commercial-real-estate-financing-basics.
What Do Most Lenders Look for When Checking if You Qualify for Commercial Loan for Real Estate Financing?
This depends on the lender and the type of financing. What they check can include available collateral, borrower creditworthiness, and certain financial ratios dependent on characteristics of the property.
Borrowers may have to provide several years of financial statements and income tax returns. Lenders may also want to see financial statements indicating cash flow for the property to be financed. See reonomy.com/blog/post/commercial-real-estate-financing.
Check Out a Commercial Loan for Real Estate Financing from Credit Suite
Did you know Credit Suite offers commercial real estate financing? It ranges from $100,000 – $20,000,000. You can use this financing for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV is 70%.
Loan-to-values range from 55 – 65%, depending on the purpose of the loan. Plus your clients can also get SBA loans. Renovations get loan to value of up to 60%.
Credit Suite has funding programs available including conventional property financing, money for investment properties and hard money loans, bridge loans and loans for the purchase of commercial real estate.
Get Commercial Real Estate Financing for All Types of Buildings!
Credit Suite offers financing for many different, even unique property types. Get funding for offices, industrial offices (this includes general or medical/dental), industrial facilities, light manufacturing buildings, and self-storage facilities.
With our commercial real estate financing, you can also get funding for mixed use properties, commercial condos, auto dealerships, light auto services, and day cares.
And you can even get funding for assisted living facilities, entertainment venues, multi-family properties, retail warehouses, and more.
Learn business loan secrets and get money for your business.
Check Out Details on Credit Suite’s Commercial Loan for Real Estate Financing Program
Approval amounts go up to $20,000,000. Bad credit is okay. Use the real estate as collateral. You will need to provide bank statements. A commercial real estate loan is a big step, let’s take it together.
A Commercial Loan for Real Estate Financing: Takeaways
Commercial real estate financing is for buying properties used solely for commercial purposes. Loan terms tend to be shorter than with residential loans. Plus there are added fees such as an appraisal of the property. You can get a commercial real estate loan from the SBA, HUD, conventional lenders, etc. Credit Suite offers a commercial loan for real estate financing for up to $20,000,000. Check out our terms.
With over 660,000 restaurants operating in the U.S. alone, digital food advertisement is an incredibly competitive market.
To stand out, you need to combine humor, design, strategy, and user engagement, all while keeping your audience hungry.
What Makes Food Advertisements Unique?
Without creative marketing campaigns, the food industry could be pretty dull. Luckily, there are so many ways to bring food to life in digital food advertisements.
What makes food advertisements unique is their ability to turn the mundane into excitement.
A simple burger on a plate can become a narrative story about your favorite sports game.
In order to create unbeatable food advertisements, you need to focus on high-quality ingredients.
Here are a few things to keep in mind when creating a unique food advertisement:
- Create visually stunning content
- Use high-quality images
- Keep the text on the ad short and sweet
- Use video to capture your audience’s attention
- Appeal to audience emotion with a story or nostalgia
- Personify the food for a humorous touch
- Get creative with your graphic designs
- Stay on top of the latest trends
Great Food Advertisement Examples
Great food advertisements should make your mouth water, your belly growl, and your heart warm.
Here are some of our top picks for digital food advertisements.
1. Jif Peanut Butter
Leveraging motion graphics in your digital food advertisement is a great way to catch the eye of your scrolling audience.
In this Jif Peanut Butter ad, a beating heart communicates the excitement and love that the world has come to feel for Jif. Branded in the signature Jif colors, it also delivers clear brand awareness and integrity. This is a big brand marketing lesson in a jar!
Staying up to date on trends, holidays, and seasons is a great way to deliver relevant food advertisements to your audience.
Also, adjusting your PPC campaigns seasonally will help you create important audience connections and let your followers know you’re paying attention.
In this Twitter ad, @GoldfishSmiles used narrative video to tell a classic St. Patrick’s Day tale of two little fish who drank a bit too much.
This food advertisement is funny, creative, quirky, and relatable. Plus, it’s short and sweet, which makes it perfect for your Twitter feed.
3. No Frills
No Frills is a Canadian supermarket chain that has made its name in recent years with humorous social media advertising.
No Frills is most known for its meme-worthy content, taking inspiration from the internet’s latest trends and delivering them in dead-pan content across their social channels.
In this No Frills Facebook ad, No Frills takes advantage of the popular “expectation versus reality” meme while also advertising their in-house pancake batter brand.
The result? A resounding audience laugh, hundreds of likes and comments, and a food advertisement win for this growing brand.
Sometimes, all you need to create a high-quality food advertisement is a bit of color and simple movement.
In this Clevr food advertisement, the brand displays its Matcha Chai Latte and Chai Super Latte drinks.
Simple design, calming music, and pastel colors give the viewer a relaxing feel that evokes tranquility and calm.
Not only is the ad visually appealing, but it also offers diverse advertising usage. Clevr could easily use this food advertisement on a number of channels, from Twitter to Instagram and more.
5. Panera Bread
This Panera Bread Facebook ad leverages the thing we love most about food advertisements: the food!
With an immediate appeal to our most natural human emotion (hunger), this food advertisement sets the stage for our cravings. From there, high-quality, macaroni-and-cheese imagery delights the senses.
It’s so delectable, you can almost taste it.
Another great thing about this food advertisement is that it uses a call-to-action at the end of the ad. In this way, Panera guides its audience directly to its desired end goal of purchasing some of their delicious macaroni.
6. Five Guys
Five Guys is one of those brands that always keeps it real. They do a few things really well, namely burgers, fries, and milkshakes.
With this kind of established brand identity, Five Guys can lean on the quality of their products more often.
In this ad, they are showcasing one of their best-loved products: the burger bun. The ad shows an image of the bun warming up, just waiting to be ordered.
They also use a creative call-to-action at the bottom, urging viewers to find their nearest Five Guys shop. This is a great tactic for brands who have a widespread presence and are looking to make sales in multiple locations.
Using a bit of humor, an appeal to emotion, and a simple yet effective image, this Instagram ad reminds customers that Five Guys knows what they’re good at, and they deliver it every time.
7. Burger King
Legacy fast-food chains have had to get creative in recent years in order to capture the hearts of millennial viewers.
Burger King knows millennials love nostalgia, and what better way to appeal to that emotion than by bringing back their legendary chicken fries.
In this Burger King Twitter ad, the brand relates its chicken fries to some of the most essential human traits. This appeal, although absurd, delivers the right dose of comedy to the ad.
In addition, the use of a custom graphic design is eye-catching and fun. The design ensures that any millennial scrolling down will stop and stare, remembering chicken fries from days past.
There’s no doubt about it, IHOP is an American classic. When it was time for the brand to celebrate 60 years of successful business, they wanted to do it in style.
This IHOP Twitter ad uses music, design, and graphics to thank their loyal customers for 60 years of continued service.
The creative copy of the post offers comedic relief, stating that the brand has been operating “for 60 pancakin’ years.”
Also, they further entice viewers by hinting at a surprise announcement only available on a certain date. This use of a deadline to encourage conversions is a great way to maintain audience engagement over time.
This food advertisement immediately piqued the attention of IHOP’s viewers, bringing in more than 43,000 retweets.
What was the big reveal? We’ll let you visit the IHOP Twitter page to find out.
9. Taco Bell
Emojis are part of the modern lexicon. Every day, the online world is full of these fun, little pictures that help us communicate over text.
Although emoji are always evolving, users often complain their favorite images aren’t available in emoji.
Taco Bell decided to flip this idea on its head and in 2015, they began petitioning for a taco emoji to be included in the emoji dictionary.
Not only did Taco Bell create a legendary advertising campaign, but they started a petition to lobby emoji creators, Unicode Consortium, for their cause.
The result? We now have a taco emoji.
This food advertisement campaign was one part passion and two parts humor, resulting in one of the most memorable creative marketing campaigns of the decade.
User-generated content is a great asset to your marketing strategy.
In this HelloFresh story ad, a human voice is heard listing off the benefits of the meal-delivery service in an honest and human way.
The quality of the video is less than what we would expect from a well-known company like HelloFresh, but it adds to the honest nature of the post.
By using social proof, HelloFresh manages to show its audience that its product is legitimate and trustworthy.
One of the easiest ways to appeal to audience emotion is to connect your product to a well-loved pastime.
Publix knows America loves football. They also know no football game is complete without friends, drinks, and food.
This Publix Facebook Ad ran in the Southern U.S. during football season. It targeted southern users who were known to enjoy football and were ages 21+.
If you were planning your weekend with a tailgate party and you saw this ad, it would immediately remind you to stock up on your favorite beer and snacks at your local Publix. This is emotional targeting at its finest.
Another great paid advertising tactic is to offer a deal or use a coupon strategy.
In this Wendy’s Instagram ad, the brand uses a creative flatlay to promote their 4 for $4 summer deal.
This ad is effective because it creates a story for the viewer. Once you see this image, you can immediately picture yourself sitting poolside with a cheap meal, enjoying your best summertime life.
Wendy’s manages to promote their sale, appeal to emotion, and create a narrative, all with a few pieces of cardstock paper and a chicken burger. That’s impressive!
When creating digital food advertisements, it’s important to leverage every tool available to you.
When you advertise using paid social, there are so many ways to get creative, encourage audience interaction, and show off your products at the same time.
Take this Dunkin’ food advertisement as an example. Dunkin’ is promoting their iconic donut fries.
To build hype around the release, they created an interactive Instagram story using the poll feature. This allowed their audience to vote on what they liked better: donuts or fries.
(Spoiler, the correct answer is donut fries).
Not only was this a creative way to boost user engagement, but the brand gathered important data to inform their future campaigns.
14. Dr. Pepper
Beverages and food go hand in hand. There’s nothing like a cold Dr. Pepper alongside your favorite meal.
Dr. Pepper wanted to capitalize on the way their customers pair their drinks with other foods.
In this Diet Dr. Pepper advertisement, the brand uses fun motion graphics and design to show all of the different snack foods and meals that go well with the popular drink.
The use of music in the ad also adds a fun, youthful element to the viewing experience.
The end result? Viewers are both thirsty, hungry, and looking forward to cracking open their next Dr. Pepper.
15. Mochi Foods
Mochi Foods is a gluten-free, Hawaiian food maker that creates pancake mixes, breads, waffles, and more which use rice flour instead of wheat.
In this fun Mochi Foods social media ad, they show viewers what they can create with one pack of Mochi Food mix.
This ad is a great example of showcasing a product in action. Although a bag of Mochi Food mix might seem a bit boring, the product takes on new life once we see how it can be transformed into a delicious stack of fresh pancakes.
This ad can be used on a variety of platforms, which makes it diverse and multifaceted.
After watching it, you’re immediately hungry, which is the sign of an effective food advertisement.
To create successful digital food advertisements you need to come up with unique campaign ideas and maintain a cohesive brand image.
It’s also important to harness your social media marketing tactics across all channels, appeal to your audience’s emotions, leverage storytelling, and showcase your products in action are great ways to create food advertisements that stand out.
Because the food advertising marketing is so saturated, it may be hard to develop a paid ad strategy that actually gets you noticed. If you’re struggling to create or find success with your paid ads, our agency is here to help!
What tactics do you use when creating great food advertisements?
SEO is all about ranking high on Google.
The higher your rank the more clicks you get to your website.
But what if Google starts sending fewer clicks to websites over time, what should you do?
Well, just look at the graph below. It breaks down the last 4 years of click on Google.
According to data that we pulled from Ubersuggest, 62.41% of all searches globally get 0 clicks.
Literally 0 clicks.
But here’s where it gets interesting…
Expect fewer clicks over time
Over time the number of people that clicked on no result has increased. It went from 54.11% in 2017 to 62.41% in 2020.
Now keep in mind we don’t have data on every single Google search, as only Google would have that.
But we buy data from a few different providers and we have data on hundreds of millions of searches each year. So directionally the data is accurate.
Here’s where it gets interesting. According to Comscore 50% of the searches are voice search.
The data providers we get our Ubersuggest data from don’t have access to voice search data yet. So, you can assume the number of “no clicks” is actually greater than what’s presented above.
None-the-less you should expect it to get worse over time as the graph is showing.
Now, why is this? Well, it’s because Google is answering your questions for you when you search.
For example, if you type in, “Las Vegas weather”, you’ll see a listing like this:
Google’s pulling the data from weather.com, but there really isn’t a need for you to click on over to weather.com.
And as a user, this provides me with a better user experience, so I like it. But if I was a website like weather.com I probably wouldn’t as it decreases my traffic, which decreases my ad revenue.
Expect Google to continually do this more over time as it tends to create a better user experience.
Is it fair that Google does this?
Before I dive more into the data and give you ways to increase your SEO traffic, even though Google is taking away some of your clicks… I want you to keep this in mind.
A lot of marketers and business owners don’t like this, and they complain that what Google is doing isn’t fair.
But hey, it’s up to you if you want Google to even crawl your site. If you don’t like it, you can always block Google from your site.
I personally don’t have an issue. Just imagine life with Google, it would suck.
And as a searcher, I don’t want to search for the weather and have to click on a few links to get my answer, I just want to know the weather right now in the least number of clicks.
I recommend that you focus on what you can control versus worrying about what you can’t, such as Google’s future plans or random algorithm updates.
So, what can you do?
I want you to look at this as two separate problems.
The first is how can you get more clicks when people are clicking less.
And the second is how can you get more conversions from the clicks you are getting to make up for the loss in traffic.
Typically, with clicks, the main thing that impacts it is your meta tags. You know your title and meta description. Here’s what I am talking about… when you perform a search on Google, this is what it looks like:
Here are 10 ways to adjust them to help you get more clicks (some of the data came from Clickflow, others from Ubersuggest):
- Questions have a 14.1% higher CTR – For example, your title tag could be, “What is SEO?”.
- 8.6% higher CTRs for 15 to 40 characters title tags – I would recommend that you keep yours closer to the 40 character mark so you can include more keywords.
- 45% increase in CTR when the exact query is in URL – make sure your main keyword is in your URL. It doesn’t have to be in your domain name, just the URL. So if I was trying to rank for the term “SEO” my URL maybe https://neilpatel.com/what-is-seo/.
- Power words increase CTR by 13.9% – some power words examples are: effortless, incredible, best, or amazing.
- 7.3% higher CTR for titles that contained emotions versus ones that didn’t have emotion – an example of an emotional headline is, “Learn how to stand up to your boss (without getting fired)”. You can find more examples of emotional headlines here.
- 5.8% higher CTR if you have a meta description – if you don’t manually create one for each page, Google will just pull one for you.
- Titles with years generate 4.9% higher CTR – a great example of this is “how to start a blog in 2021”. You would want to update year every year to make sure you don’t have an old date in your title tag or it can hurt your clicks.
- Evoking curiosity increased CTR by 5.9% – my favorite example of this is, “The 7 Benefits of Green Tea (#6 Will Shock You)”.
- Titles that resembled education had 10.4% more clicks – think how-to titles. People love learning how to do things step-by-step.
- You’re more likely to be successful if you look at the paid ads – Google uses quality score to determine where ads should be placed. If an ad gets no clicks Google doesn’t make money. By look at the paid ads, you can get ideas of copy that is appealing for any keyword you are trying to rank for.
Don’t forget to optimize for conversions
As I mentioned above, the second thing you need to optimize for is conversions.
When you do get clicks, you’ll want to drive as many sales as possible.
Here are some articles I wrote that you should read. They will teach you how to boost your conversions.
- 19 A/B Tests You Should Run on Your Website
- How to Craft and Measure Profitable Funnel Conversions from Scratch
- How to Use the Psychology of Color to Increase Website Conversions
- How to Leverage Storytelling to Increase Your Conversions
- How to Create an Engaging Value Proposition
- 12 Best Landing Page Examples
- How to Increase Conversions by Analyzing Bounce Rate Analytics
- 9 Steps to Creating a Landing Page That Reads Your Prospects’ Minds
Don’t forget about mobile
When optimizing your site, don’t just think about the desktop version of your site either.
It’s even more important to go through this process for your mobile traffic.
According to our Ubersuggest data, 61% of all searches are mobile.
And based on our data providers, the no click data for mobile is even worse.
Typically, when it comes to optimizing your meta tags, you don’t have to worry as much as you are going to use the same meta tags for both the mobile and desktop versions of your site as most sites are responsive.
But when it comes to conversion optimization, you’ll want to create a different mobile experience, which you can easily do through a responsive design.
Don’t focus on the fact that Google is driving fewer clicks to websites. Focus on what you can control and make the best out of the situation.
If I were you, I would do 3 things.
- Optimize your meta tags as I described above.
- Optimize your conversion rate so you can generate more revenue.
- Start creating question-based content because drives 34.17% of the SEO traffic to popular blogs.
So what do you think of the data I shared above?