Ken McNabb Senior Account Executive at Commercial Loan Corporation
Congratulations to Kenneth McNabb on his recent promotion to Trust & Estate Senior Account Manager. Ken is one of our top Trust & Estate loan professionals and assists both clients and Attorneys with loans to Irrevocable Trusts and Probate Estates. Our loans help clients take advantage of the California Proposition 58 Parent to Child Transfer. The Prop 58 Parent to Child Transfer allows a parent to transfer real estate and the associated low Prop 13 protected property tax base to a child. By doing so the child who is inheriting to property saves on average over $6,000 a year in property taxes.
If you, or a client of yours is in need of a loan to an irrevocable trust to equalize a trust distribution, Ken can provide you with a free cost benefit analysis. The free cost benefit analysis details exactly how much you could save by taking advantage of your California Prop 58 parent to child transfer benefit. Unlike a traditional lender, Commercial Loan Corporation is able to lend directly to an Irrevocable Trust with no personal guarantee from the acquiring beneficiary, meeting that California Board of Equalization requirement to qualify for Proposition 58.
For immediate assistance, please call us at (877)464-1066.
Commercial Loan Corporation has moved to a new larger location.
Our new address is:
Commercial Loan Corporation 20250 SW Acacia Street #105 Newport Beach, CA 92660
If you need assistance finding our new location, please call us at 877-464-1066 for assistance. We are on the first floor of the Acacia Court building located in suite #105. Here are some photos of our new building and office space.
20250 Acacia Street, Newport Beach CA 92660
The above photo is the entry of the 20250 Acacia Court Office building. The Commercial Loan Corporation Suite is immediately to the left once you walk into the building.
Commercial Loan Corp Office
This is the Commercial Loan Corporation meeting area in the center of our office.
Commercial Loan Corporation Office
The above is the Commercial Loan Corporation Lobby Area.
We hope that you have a chance to visit our new office space soon! We are always available for your Trust & Estate financing or Private Money Lending needs. Commercial Loan Corporation can help you maximize your trust distribution and receive more money from an inheritance. Call Commercial Loan Corporation at 877-464-1066.
California Proposition 58 Parent to Child Property Tax Transfer
California Proposition 58 and Property Taxes
When inheriting real estate from a parent, one of the primary considerations in determining if you will keep or sell the property is often the expenses associated with the home. Typically one of the greatest expenses is the homes property taxes. In California, Proposition 58 grants qualifying children the ability to retain a parents low Proposition 13 protected property tax rate. Doing so could mean a savings of thousands of dollars each year. Commercial Loan Corporation helps beneficiaries and heirs qualify for their Prop 58 property tax benefits by providing bridge loans to trusts and probate estates so that an even distribution can be made.
Information About Proposition 58
In 1986, California’s Proposition 58 became effective and with certain limitations, it allows for the exclusion from reassessment of property taxes on real estate transfers between a parent and child. In the State of California, real estate is reassessed at market value if it the home is either sold or transferred. The property value reassessment may cause property taxes to increase dramatically in some cases. Preventing a property tax reassessment may save a beneficiary or heir thousands of dollars annually depending on the difference between the existing assessed value and the current reassessed property value. If the transfer of property is between a parent and child, under certain circumstances the property will not be reassessed if all required conditions are met. If applicable, an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize the distribution to qualify for an exclusion from property tax reassessment. An application must also be properly filed in a appropriate amount of time to be eligible for a Proposition 58 exclusion from property tax reassessment. When done properly, the new owner’s taxes are calculated on the parents established Proposition 13 factored base year value, instead of the current market value.
California Proposition 58 Limitations
There are some limitations to Proposition 58. For instance, on non primary residences transfers of the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this exclusion. Additionally, when applicable an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize a trust distribution. In the situation where fund are needed to make an equal distribution, a third party loan is required. That is where Commercial Loan Corporation can assist you by providing a bridge loan to the trust or estate. The Commercial Loan Corporation third party bridge loan provides enough cash to the trust or estate so that all parties can receive an equal portion of the trust or estate assets and enables one or more of the beneficiaries to receive the home as their portion of the distribution.
Additionally, Prop 58 defines a child as child born of the parent(s), a stepchild while the relationship of stepparent and stepchild exists, a son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law. Information found at https://trustandestate.loans
California Proposition 193
California Proposition 193 grants the same rights to a grandchild as Proposition 58 grants to a child. An eligible “grandchild” for purposes of Proposition 193 is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.
There are some additional requirements and exclusions for Proposition 58 and Proposition 193. Please call us at 877-464-1066 so that we can assist you.
In a world where to increase profits many lenders opt to use overly complicated phone systems to replace live customer support; we believe that customer service holds a greater value. At Commercial Loan Corporation we are determined to provide you with the best customer service experience possible.
Regardless of if you are an attorney representing a client on a trust loan or a borrower looking for third party financing to make an equal distribution of a parents estate; our professional staff is here to assist you. We are happy to take as much time as is needed for you to understand the loan process and will keep you informed along the way. In addition to setting the highest standards in customer service, we also fund the majority of our trust and estate loans with our own capital. This is important because it allows us to underwrite the loan to our own guidelines, quickly grant an approval you can rely on and also complete your financing more quickly; often times in as little as 7 days.
We don’t stop there. Unlike most of our competitors in the Trust & Estate loan marketplace, we do not charge any form of loan prepayment penalty or set any minimum days of interest collected requirements. That may not sound like a big deal, but depending on your loan amount and interest rate, it could potentially save you tens or thousands of dollars in pre-payment penalties or interest fees! We even go a step further and if you pay down your trust or estate loan, we will recalculate your payment based on the new lower outstanding mortgage balance.
Perhaps the best indication of customer service is communicated through the words of some of our past clients. Here are just a handful of testimonials from past Commercial Loan Corporation customers and business partners; more are located here:
“I am a California licensed Professional Fiduciary and needed a hard money loan for one of my clients. My client had been turned down for a Second TD by two conventional lenders before I received a cute ad mailer from Commercial Loan Corporation. From my first phone call to Commercial Loan Corporation (when the owner actually answered the phone!), to my last call with Autumn after the loan had been funded, I enjoyed every moment of this loan process. (How many lenders can you honestly say that about?) I look forward to our next loan together and would not hesitate to recommend Commercial Loan Corporation to anyone needing short term funds. You will be treated professionally and with kindness every step of the way.” – Clarice H. – Grover Beach, CA
“CLC was: Professional, Efficient, Thorough, Organized and Extremely Prompt in getting my Loan approved, signed, closed, recorded and Funded. They were ready to Fund within 5 business days! I highly recommend CLC. It was a complete pleasure to work with Mike Riggs and Autumn Skerritt! I’m very glad my attorney recommended CLC. I’m sure you will be extremely pleased, as well.” – Sonia T. – Costa Mesa, CA
“Exceeded expectations. Best service I have experienced with ANY lender! Went above and beyond at every opportunity. Took great care of a client that we referred to them. Response times to any communications from the client or from our office were prompt and complete. Loan processing times were FAST.” – Menke Law Firm, APC, – Long Beach, CA
If you are in need of a professional and reliable, California Trust and Estate loan provider allow us to assist you. Please call us at 877-464-1066.
Commercial Loan Corporation, A California Proposition 58 Lender
Why Commercial Loan Corporation
There are several things that separate Commercial Loan Corporation from other California private money lenders. Perhaps most important is that Commercial Loan Corporation specializes in loans to trusts with the specific goal of retaining the original prop 13 tax status. There are a few lenders that consider these transactions occasionally but these loans are a small percentage of what they do. It is critically important that this transaction is done correctly to ensure that the county doesn’t reassess the property. There are a lot of mistakes that can be made if it’s not done correctly. We work directly with both the customer and the attorney to assist in this process. We have adjusted our documents with the help of numerous attorneys to provide a seamless transition when the property is distributed from the trust to the individual taking the property in the distribution from the trust. We understand the process better than most, because it’s all we focus on. And we are the lender so we make all of the decisions ourselves. You are right at the source.
Another very important thing that separates us from anyone out there is our policy on early payment. You will find that other private money lenders want to make as much interest as possible off of the transaction. This is not a bad thing. Companies are in business to make a profit. However, our policy on prepayment penalties helps us stand apart from other lenders. Most lenders, in addition to their loan costs, require a pre-payment penalty of some sort. This can be a standard 6 month or 1 year early payoff penalty or in some cases can be a specific number of months of required interest. If a lender requires that you make 3 or 6 payments of interest on a loan prior to being paid off, it is the same thing as a prepayment penalty. A requirement for certain number on month’s interest guarantees a lender that the loan will be more profitable. If a borrower is required to make a specific number of interest payments, it adds to the cost of the loan. For example, if a borrower is required to make 90 days of payments on a loan, it is the equivalent of adding 2 to 3 percent of the loan amount in loan costs.
Commercial Loan Corporation has no prepayment penalties of any kind. None. This can be extremely beneficial to the customer financially. If the money to pay the loan back is readily available we have worked with customers that pay off our loan immediately eliminating virtually any interest costs on the loan. This means that the initial fees charged for the loan is the entire cost of the loan.
Here is an example…
Say the customer has a personal line of credit available to pay off our loan from their lending institution. We can work with them to determine the best timing to fund our loan depending on the availability of their funds. If we fund our loan on Monday, they can pay off our loan on Tuesday, effectively eliminating the accrual of interest. This can be a great tool to potentially save thousands of dollars in interest payments.
We also work with the attorney and the customer to decide when to file the re-conveyance showing that the loan has been paid off. Some of the attorneys we work with want to wait to file the reconveyence (proof the loan is paid off) until they are satisfied that the county has concluded the Exemption for Reassessment of property taxes. We can accommodate the preference of the attorney in the timing of filing the reconveyence.
Don’t let any of this confuse you, we are here to answer any questions you have on the subject and look forward to helping! We tend to do business the old-fashioned way. We do what we say we’re going to do and we focus on speed and customer service.
For assistance, contact us at 877-464-1066 or call our California Account Executive Mike Riggs at 714-442-8901 or email@example.com.
Are you are considering taking out a third party loan in order to equalize a trust or estate distribution and take advantage of California’s Proposition 58’s exclusion for Property Tax Reassessment? The act of doing so has saved some of our clients thousands of dollars annually and in most situations it makes sense to do so if you plan on keeping the home for more than just a few years. To make sure that the loan is financially beneficial, it is important to compare the costs of the loan with the expected property tax savings. At Commercial Loan Corporation we do not want to provide a loan to a client if it is not in their best interest and that is why we have created the Trust & Estate Loan Benefit Calculator.
Our easy to use trust mortgage calculator only requires you to enter a few fields of information and then does the rest of the work for you! Simply input the current value of the property in question, the number of siblings who have an interest in the property, the existing low Proposition 13 protected property tax rate and your desired loan amount. From there we can estimate everything from your Prop 58 Property Tax Savings, your proposed loan costs and the time it will take you to recoup your loan expenses. Here is an example of what our easy to use Trust Loan Benefit Calculator looks like:
Trust Loan Calculators
Try Out The Trust & Estate Loan Benefit Calculator
Our Trust & Estate Loan Benefit Calculator is free and easy to use. Click here to try it our for yourself. If you have any problems using the calculator, or have questions on trust or estate loans or would like to start the loan process, please call us at 877-464-1066. The Trust Loan Calculator is meant for estimation purposes only. When we speak with you, we will provide you with a detailed trust loan cost estimate and help you to determine you exact Proposition 58 property tax savings. Often times we are able to complete your trust loan process in under 10 days!