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How Change Orders Can Impact Your Construction Budget

How Change Orders Can Impact Your Construction Budget

In the complex world of construction, change orders are practically inevitable. They are modifications to the original contract that can occur due to unforeseen circumstances, alterations in design, or changes to the scope of work. While change is a natural part of progression, it’s important to understand how change orders can significantly impact your construction budget.

The Impact of Change Orders

Change orders often lead to an increase in project costs. The reasons for this can range from the need for additional materials, labor, or equipment, to extensions in project timeframes that escalate overhead costs. Occasionally, change orders can lead to a decrease in costs, but this is generally the exception rather than the rule.

Managing Change Orders

Understanding how to manage change orders effectively can limit their impact on the overall budget. This starts with careful planning during the pre-construction phase and continues throughout the project lifecycle. Having a robust change management process in place can help ensure that any changes are addressed promptly and efficiently.

Planning

During the planning phase, it’s crucial to anticipate potential changes and account for them in your budget. This involves understanding the project’s scope and identifying any areas that might be prone to alterations. For example, if you are renovating an old building, it’s prudent to account for potential issues that might arise once the work starts, such as the need for additional structural support.

Implementation

Once construction is underway, it’s critical to have a process in place for handling change orders. This involves understanding what triggers a change order, who can authorize it, and how it will be documented. Having a clear process helps manage expectations and prevent disagreements or misunderstandings.

Re-evaluation

After a change order has been implemented, it’s crucial to re-evaluate the project’s budget and timeline. This involves updating your cost and schedule estimates to reflect the changes. It’s also important to communicate these changes to all stakeholders to ensure everyone is on the same page.

In conclusion, while change orders are often a necessary part of construction, understanding their potential impact on your budget and managing them effectively can help ensure your project stays on track. By taking the time to plan, implement, and re-evaluate, you can navigate the change process successfully and maintain control over your construction budget. If you need ongoing or permanent financing for your construction project, contact the team at Kenbry today.

The Benefits of Using Permanent Loans for Commercial Real Estate

The Benefits of Using Permanent Loans for Commercial Real Estate

Commercial real estate is a key arena for savvy investors looking to expand their portfolios. One financing option that has emerged as exceptionally beneficial is the use of permanent loans. These loans, also known as term loans or end loans, offer myriad advantages that can propel the success of commercial real estate ventures.

What Are Permanent Loans?

Before delving into the benefits, it’s essential to understand what permanent loans are. Permanent loans are long-term financing options, typically used to pay off construction loans, and may span 15 to 30 years. They are named ‘permanent’ because they are designed to be in place until the property is sold or the loan is fully paid off.

Why Choose Permanent Loans for Commercial Real Estate?

Long-Term Stability

One of the primary benefits of permanent loans is the financial stability they offer. With fixed interest rates over the term of the loan, investors can accurately forecast their financial obligations, mitigating the risks associated with variable rates and market fluctuations.

Lower Monthly Payments

Due to their long duration, permanent loans typically have lower monthly payments compared to short-term loans. This allows investors to effectively manage their cash flow and allocate funds to other critical aspects of their business.

Potential for Property Appreciation

Commercial real estate often appreciates over time, meaning that the property could be worth significantly more when the loan period ends. Therefore, a permanent loan lets investors potentially reap the rewards of this appreciation.

Considerations and Conclusion

However, just like any financial product, permanent loans are not without their risks and should be carefully considered. Prepayment penalties and longer time to equity are among the factors to account for when deciding on this route.

In conclusion, permanent loans offer numerous advantages that can make them an excellent choice for commercial real estate financing. They provide financial stability, lower monthly payments, and the chance to benefit from property appreciation. While the decision to use a permanent loan should be made based on individual circumstances, these advantages make them an attractive option for many. Contact Kenbry today to explore our permanent loan programs for commercial real estate.

7 Different Ways to Use Bridge Loans for Property Investments

7 Different Ways to Use Bridge Loans for Property Investments

Real estate investors are always in the hunt for the next lucrative deal. Yet, the fast-paced nature of the property market means opportunities can disappear in the blink of an eye. That’s where bridge loans come in, providing quick, short-term financing that can be the key to securing that all-important deal. Here are seven ways to use bridge loans for property investments:

1. To Fund Renovations

Renovating a property can increase its value significantly. However, these renovations require upfront capital that may not be readily available. A bridge loan can provide the necessary funds, enabling investors to enhance their properties and sell them for a profit.

2. To Close on a Property Quickly

Real estate markets can be highly competitive. A bridge loan allows investors to close on a property quickly, beating out other prospective buyers.

3. To Bridge the Gap During a Sale

When selling one property to finance the purchase of another, there may be a time gap between the sale and the purchase. A bridge loan can cover this gap, ensuring continuity in investment activity.

4. To Purchase Foreclosed or Auctioned Properties

Foreclosed or auctioned properties often require immediate payment. Bridge loans allow investors to seize these opportunities by providing instant financing.

5. To Acquire New Investment Properties

While waiting for a long-term loan approval, a bridge loan can provide the necessary funds to acquire new investment properties.

6. To Leverage More Investment Opportunities

By providing instant cash, bridge loans enable investors to leverage more investment opportunities without liquidating their existing assets.

7. To Refinance Existing Loans

If an existing loan is due but the investor is not yet ready to sell the property, a bridge loan can refinance the loan, buying extra time for the property sale.

In conclusion, bridge loans offer a flexible financing option for real estate investors, allowing them to stay agile and responsive in the face of ever-changing market dynamics. Remember, while all these opportunities can be beneficial, it’s important to carefully evaluate the costs and benefits of a bridge loan before making a decision. Contact Kenbry today to learn more about our bridge loan program.

How to Become a Better Leader

How to Become a Better Leader

Leadership is an essential part of business success. But it’s not always easy to know what makes a good leader and how to become one. It takes practice, dedication, and a willingness to learn from mistakes. Fortunately, there are some simple steps you can take today that will help you on your journey to becoming a better business leader.

Communication

One of the most important qualities successful leaders possess is strong communication skills. When you communicate effectively, it helps build trust and shows that you understand your team’s needs. Make sure to take the time to listen to your team members’ points of view and be open to new ideas. Additionally, practice using clear language in conversations so that everyone understands your instructions and intentions.

Take Risks and Learn from Mistakes

Leaders also need to have the courage to take risks and make mistakes. People often fear failure, but it’s important to remember that you can learn from your mistakes and grow as a leader. Being open-minded enough to take risks and try new things will help you become more successful in the long run.

Keep Your Team Motivated

A good leader always keeps their team informed and motivated. Keep your employees up to date on any developments or changes in the company, and make sure that everyone understands their role within the team. Being able to motivate your team is also key—provide them with regular feedback and praise for a job well done.

Stay Focused

Finally, successful leaders have a clear vision and set goals. Knowing what direction you want your team to take, and setting realistic objectives that everyone can work towards will keep everyone focused and on track.

You may find that developing these skills can be difficult at first. It’s important to remember that practice makes perfect! Take time out of each day to reflect on how you’re doing as a leader and what areas need improvement. Additionally, seek out mentors or coaching to help you stay on track and provide feedback when needed. With the right guidance, you’ll be well-equipped to become an effective business leader.

Avoid These 8 Mistakes When Starting a Business

Avoid These 8 Mistakes When Starting a Business

Starting a business is an exciting journey, but it’s also fraught with potential pitfalls. From not researching the market to undervaluing your product or service, many mistakes can lead to failure. If you want to be successful in launching and sustaining your business, then it’s important to be aware of these common mistakes so you can avoid them from the start.

1. Not researching the market

Before you start a business, it’s essential to conduct thorough research on the target markets and competitors. Market analysis will help you identify opportunities and gaps in the industry that your product or service can fill. It will also ensure that you don’t enter into a highly competitive field with little chance of success.

2. Failing to create a business plan

Many people make the mistake of not creating a detailed business plan before launching their company. A comprehensive business plan clearly outlines your goals for the future and is essential to success. It should include a thorough understanding of the market, financial forecasts, and exit strategies.

3. Undervaluing your product or service

When starting a business, it’s important to price your offerings appropriately. If you undervalue the products or services you are offering, then customers won’t take you seriously and may opt for a competitor instead. Additionally, undervaluing can lead to decreased profits and hamper your ability to grow the business.

4. Not having sufficient capital

Starting a business requires money, whether you are investing your funds or borrowing from a lender. Lack of adequate funding can be an obstacle to success, so it’s important to have enough capital upfront to cover initial expenses and invest in long-term growth strategies.

5. Not hiring the right people

Building a successful business requires more than just one person. You need to hire the right talent to help you reach your goals and make sure that everyone is on the same page with company objectives. Hiring employees who don’t fit within the organization can lead to inefficiency and decreased productivity.

6. Not building a strong brand

Your brand is the public face of your business, and it’s essential to create a strong one if you want to stand out in the marketplace. This includes crafting a memorable logo and tagline, establishing an online presence, and creating strategic marketing campaigns.

7. Neglecting customer service

As important as it is to make sales, it’s also necessary to provide excellent customer service. This means responding promptly to inquiries, offering helpful advice and suggestions, and taking the time to build relationships with customers.

8. Not doing enough market testing

Testing your products or services with potential customers can be a great way to gauge how well they will be received in the marketplace. Market testing can also help you make improvements and adjustments before fully launching a product or service, reducing the risk of failure.

By being aware of these common mistakes and taking steps to avoid them, you will have a much better chance of succeeding with your business venture. Contact Kenbry Capital today to get the financing and guidance to ensure long-term success for your business.

Avoid These 8 Mistakes When Starting a Business

Avoid These 8 Mistakes When Starting a Business

Starting a business is an exciting journey, but it’s also fraught with potential pitfalls. From not researching the market to undervaluing your product or service, many mistakes can lead to failure. If you want to be successful in launching and sustaining your business, then it’s important to be aware of these common mistakes so you can avoid them from the start.

1. Not researching the market

Before you start a business, it’s essential to conduct thorough research on the target markets and competitors. Market analysis will help you identify opportunities and gaps in the industry that your product or service can fill. It will also ensure that you don’t enter into a highly competitive field with little chance of success.

2. Failing to create a business plan

Many people make the mistake of not creating a detailed business plan before launching their company. A comprehensive business plan clearly outlines your goals for the future and is essential to success. It should include a thorough understanding of the market, financial forecasts, and exit strategies.

3. Undervaluing your product or service

When starting a business, it’s important to price your offerings appropriately. If you undervalue the products or services you are offering, then customers won’t take you seriously and may opt for a competitor instead. Additionally, undervaluing can lead to decreased profits and hamper your ability to grow the business.

4. Not having sufficient capital

Starting a business requires money, whether you are investing your funds or borrowing from a lender. Lack of adequate funding can be an obstacle to success, so it’s important to have enough capital upfront to cover initial expenses and invest in long-term growth strategies.

5. Not hiring the right people

Building a successful business requires more than just one person. You need to hire the right talent to help you reach your goals and make sure that everyone is on the same page with company objectives. Hiring employees who don’t fit within the organization can lead to inefficiency and decreased productivity.

6. Not building a strong brand

Your brand is the public face of your business, and it’s essential to create a strong one if you want to stand out in the marketplace. This includes crafting a memorable logo and tagline, establishing an online presence, and creating strategic marketing campaigns.

7. Neglecting customer service

As important as it is to make sales, it’s also necessary to provide excellent customer service. This means responding promptly to inquiries, offering helpful advice and suggestions, and taking the time to build relationships with customers.

8. Not doing enough market testing

Testing your products or services with potential customers can be a great way to gauge how well they will be received in the marketplace. Market testing can also help you make improvements and adjustments before fully launching a product or service, reducing the risk of failure.

By being aware of these common mistakes and taking steps to avoid them, you will have a much better chance of succeeding with your business venture. Contact Kenbry Capital today to get the financing and guidance to ensure long-term success for your business.

Don’t Miss These Warning Signs When Considering In Alternative Lending

Don’t Miss These Warning Signs When Considering In Alternative Lending

Alternative lending is a great way to access quick capital for your business when traditional banking isn’t an option. But, as with any financial decision, it’s important to be aware of the potential pitfalls Whether you’re considering peer-to-peer or online lenders, here are some warning signs to watch out for before signing on the dotted line.

1. High-Interest Rates

Alternative lenders often charge higher interest rates than banks do because they take on more risk. Make sure you understand all the terms and conditions associated with any loan you consider and know what kind of rate you can expect in return for that risk. If it seems too good to be true, it probably is!

2. Short Loan Terms

Most alternative loans come with shorter repayment periods than traditional bank loans so borrowers have less time to pay back their debt. This means larger monthly payments which may not fit into your budget if other expenses arise unexpectedly during the life of the loan. Be sure to plan and make sure that whatever repayment schedule you choose fits into your current cash flow situation and doesn’t put undue strain on your finances over time.

3. Hidden Fees

Many alternative lenders will bury hidden fees in their loan agreements and repayment terms that can add up over time. Make sure to read through the fine print of any contract you sign and understand all of the costs associated with your loan before committing to it.

4. Poor Customer Service

Because alternative lenders operate outside of the traditional banking system, they may not have the same level of customer service and support as a traditional bank. Make sure to research the lender thoroughly before signing any loan agreement so you know what kind of assistance they offer if you need it in the future.

5. Too Good To Be True Promises

Alternative lenders may promise things that sound too good to be true, like quick funding with no credit check or no fees. Be wary of any lender who makes promises that seem too good to be true and make sure you read the fine print of all contracts before signing them.

By being aware of these potential pitfalls, you can protect yourself and your business from making a financial mistake when considering an alternative loan. Kenbry Capital is committed to transparency and providing tailored solutions for all of our clients. Contact our offices today to start working directly with one of our team members.

Venture Capital Defined

Venture Capital Defined

Venture capital is a type of investment that provides financial backing to startups and small businesses with high growth potential. It’s an important source of funding for entrepreneurs who are looking to launch or expand their businesses, as it can provide them with the resources and expertise they need to succeed. But what exactly is venture capital, where does it come from, and how does it work?

What is Venture Capital?

Venture capital is typically provided by a group of investors, known as a venture capital firm. These firms specialize in funding early-stage businesses and providing them with the resources they need to reach their goals. Venture capitalists provide not only money but also strategic advice and mentorship to help startups grow and succeed. The investment usually takes the form of a stake in the company, meaning that venture capitalists will take an equity position in the business and receive returns if the business is successful.

What do Venture Capital Firms Look For?

When evaluating potential investments, venture capitalists look for a variety of factors, such as the strength of the management team their track record, the market size and projected growth rate, and competitive advantages over competitors. They also look for companies that have the potential for significant returns, meaning that the investment is likely to yield high profits if successful.

Securing Venture Capital

While venture capital can be an extremely beneficial form of financing, it’s important to note that it’s not always easy to secure. Venture capital firms are selective in their investments and typically only invest in a small fraction of the businesses they review. That’s why it’s important to have an experienced team, a well-developed business plan, and a strong network of contacts when seeking venture capital investments.

If you need venture capital solutions for your business, reach out to the team at Kenbry Capital today.

How to Test Your Business Idea Before Launching

How to Test Your Business Idea Before Launching

Having a great business idea is the first step in becoming an entrepreneur, but it’s not enough to guarantee success. Testing your business idea before launching it can help you identify potential problems and refine your strategy so that when you do launch, you have a better chance of succeeding. But how do you test your business idea?

1. Research Your Target Market

Start by researching your target market to determine if there’s an appetite for the products or services you plan to offer. Identify who these consumers are, where they buy, how much they spend, and what their interests are. This will help you refine your business idea and understand if the market is likely to accept it.

2. Create a Prototype

The next step is to create a prototype of your product or service to see if the concept works in practice. This could involve producing a sample, creating an online demo, or conducting focus groups with potential customers. Once you’ve tested out the idea and received feedback, you can begin to refine and improve it.

3. Launch a Pilot Program

Once you’ve tested your concept and made the necessary adjustments, the next step is to launch a pilot program. This could involve launching a limited version of your product or service in select markets, or it could be done through an online platform such as Kickstarter or Indiegogo. Not only will this help you gauge demand, but it will also give you valuable insight into your pricing and marketing strategies.

4. Collect Feedback

During the pilot program, collect feedback from customers to gain a better understanding of what they think about your product or service. Ask customers for their opinions on everything from pricing to customer service to product features. This feedback can help you refine your offering and ensure that it’s meeting the needs of the market.

5. Analyze Your Results

Once you’ve collected enough data, analyze the results to see whether or not to move forward with your business idea. If the results are positive, then you can move ahead with launching your product or service. If the results are negative, you can use this information to make necessary changes before launching.

Testing your business idea is an important part of ensuring success as an entrepreneur. By taking these five steps, you can gain insight into customer demand and make informed decisions about whether to pursue your concept or go back to the drawing board. Contact Kenbry Capital today to get the financing you need to make your business idea a reality.

Habits of Successful Real Estate Investors

Habits of Successful Real Estate Investors

Real estate investing is a great way to build wealth and generate passive income. But it’s not always easy—especially if you’re starting. To be successful, real estate investors need to have the right strategies in place and adhere to them consistently.

1. Have a Plan

Successful real estate investors always have an overarching plan before making any investments. This plan should include their investment goals, strategies for achieving those goals, and the resources required to do so (i.e., money, people, and technology).

2. Stay Organized

Real estate investing involves a lot of paperwork and transactions, so it’s important to stay organized. Successful real estate investors create systems for tracking their expenses, maintaining records, following up on leads and contracts, etc. This helps them stay on top of their investments and remain compliant with all applicable laws.

3. Diversify Investments

Diversifying investments is one of the most important rules for real estate investing. By spreading out their money across different types of properties and regions, successful investors can mitigate risk and ensure a steady stream of income.

4. Network With Other Investors

Networking is key to success in any industry, but especially in real estate. Connecting with other investors can provide valuable insights, help you identify potential deals and even introduce you to lenders or partners.

5. Stay Informed

Staying on top of the latest developments in real estate investing is essential for success. Successful investors ensure they are up-to-date on market news, tax laws, financing options, and more. They also have a network of trusted advisors and professionals they can turn to for advice.

By adopting these habits, you will be well on your way to becoming a successful real estate investor. Contact Kenbry Capital today to get the financing you need for your commercial real estate investments.