How to Obtain a Commercial Loan Despite Bad Credit

While commercial lending rates are up, there are still many individuals and businesses that are finding it difficult to obtain the commercial loan they need. Fortunately, there are lenders that offer greater flexibility.

In 2017, small banks approved 49 percent of funding requests—quite a jump from 2008 when about 80 percent of small business owners received a rejection. That still leaves over 50 percent that are not getting approved and you may have found yourself one of these. Don’t give up on your dreams. There are other lenders that you can turn to when banks say no.

Hard money lenders are one of these options. They are usually private lenders that base their loan qualification standards on the collateral or assets of the property or business. While most banks require credit scores in the 700 range, private hard money lenders do not have these strict qualifications. They will want to know what your plan is for the business or property and what your exit strategy is. After all, this is how they will receive their capital as most offer interest-only payments for a set amount of time. These lenders offer short-term loans with terms that usually extend from 3 months to 3 years. Because they approve loans that have been declined by traditional lenders, there is usually an increase in risk and, therefore, a higher percentage rate often applies to the commercial loan.

These types of loans are helpful for young or new entrepreneurs who may not have the credit score required by traditional lenders. If you have a high-risk, high-return business strategy, a hard money lender may very well have the capital you seek. Many of these types of lenders are not risk adverse. In fact, if you can get them excited about your proposed business plan, have the necessary collateral, and some experience in your chosen segment, chances are good that you will leave with a loan. This doesn’t necessarily mean that all the required assets must come from the proposed business. Many individuals start their own business by using the collateral that has been established in their home or other investment properties.

What are Possible Exit Strategies in a Hard Money Commercial Loan?

Your exit strategy is an important part of obtaining this type of loan and one that you will want to consider before interviewing potential lenders. Here are a few of the strategies that businesses use: they sell the property or refinance with a more traditional lender after a property has been renovated or a business is showing a profit. Self-amortizing can also be considered, though it is a little risky. While most hard money lenders allow you to pay interest-only payments while you are developing your business or property, you may want to consider paying both principal and interest during the full duration of your loan so that it is paid off upon maturity. You will need to determine just how you will create this cash flow in order to be able to make the scheduled payments.

At Level 4 Funding, we offer hard money commercial loans that are quick to funding and require little paper work.

We offer three simple steps to obtaining your loan: a loan application, purchase contract and written approval, all of which can be accomplished in as little as 24 hours. Call us today to see if we may just be the lender that can make your dreams come true.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Top Seven Questions to Ask Your Hard Money Lender

Hard money lenders are popular lending options when it comes to real estate investments, residential loans, and even capital needs for small businesses. Not all lenders are equal which means it’s important to come to the table with questions that can help you determine if this is the right lender for you.

Hard money lenders are, as the name implies, lenders that base loans on property, collateral or assets. In many instances, they are private lenders who can vary in their lending requirements and processes. Because of this, you will want to take the time to get to know them and what areas of lending they may specialize in. Here, then, are the top seven questions you should ask during your initial interview process. Choosing well is important not only to your current project, but to your future projects that are sure to follow.

What type of lending experience do you possess and what type of businesses or real estate segments do you specialize in? Some hard money lenders specialize in particular types of small businesses while others invest in various real estate properties. Of course, if you have stellar numbers that show increasing profitability and a well-thought out exit strategy, you may have multiple interested lenders. For your sake, obtaining a loan from someone familiar with your project type is highly recommended. Your success is, after all, their success. Leveraging your lender’s experience can help you succeed and give you the additional benefit of professional advice when needed. This leads us to the next question: Are you open to providing information and consultations if I have questions as the project proceeds?

You will also want to find out if they are direct hard money lenders or brokers that will obtain a hard money lender for you. Brokers that work with multiple lenders can often find the best deal for your specific needs which includes the fastest time to funding as well as the best rates. Just what is their interest rate, and do they charge points or processing fees? While these determine the cost of the loan, it should not be the only consideration. Time to funding as well as their experience level can be even more important points to keep in mind when choosing a lender.

Is there a prepayment penalty?

This is one of the most important questions to ask. Why? Because loans that are quick to fund and high risk can carry higher than average interest rates. If you are involved in a quick fix and flip property, you will want to get out as soon as the rehab is complete and a seller is found. And you’ll want to keep those extra profits that accompany a job well done instead of passing it on to your lender.

Make sure your lender does not charge a prepayment penalty.

At Level 4 Funding, we are brokers that specialize in finding the right lender for your particular project.

We do not charge prepayment penalties and offer fast and easy approval processes that can fund within days instead of weeks. Call us for a no-obligation quote.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

OCC Chairman will pursue charter for alternative commercial lenders.

The idea for a national charter for alternative commercial lenders has proven controversial, as it stands such groups must refer to the regulations of each individual state. The charter initiative would provide a unified regulatory framework for online small business lenders.

The OCC's new chairman,Joel Otting, claimed that he will continue to pursue the charter initiative at a recent press conference. ““The question is, what are the requirements on that fintech to get that charter? … We are going to study it,” said Otting.

Otting claimed that financial technology firms are an essential source of credit for many small businesses. When it comes to small dollar loans Otting remarked “ (Fin techs) are coming into a space that they see as unfulfilled, and they’re prepared to fulfill that need.” The new chairman believes that traditional banks have largely stopped providing the smaller loans many small businesses need, largely as a result of regulation. “We as a regulatory body have forced banks out of that space,” said Otting.

The OCC began pursuing the idea of a singular charter for Fin Techs began under the previous chairman Thomas Curry.The idea of a national charter for online alternative lenders has proven controversial among state regulators and liberal consumer advocates. A coalition of these groups attempted to stall the OCC's efforts by way of lawsuits in federal court. One of these lawsuits was recently dismissed this November due to a lack of standing. However the controversy continues.

Alternative commercial lenders have become a vital source of credit for small businesses.

Traditional banks have consistently withdrawn from small business lending in recent years. Small community banks continue to be consolidated by larger lending institutions. Once these smaller banks were the main source of loans for small businesses. The expense of underwriting and historically low interest rates have made lending to small businesses an unprofitable venture for larger traditional banks. As more small banks are consolidated, small business owners are consistently turning to online alternative lenders.

Ottings affirmation of the charter initiative in spite of recent controversy demonstrates his belief in the vitality of alternative commercial lenders.

Otting expressed his belief that financial services will continue to evolve with technology, saying “The old way of doing a lot of things are evolving, and I think the financial-services industry has to evolve as well.” No doubt the new chairman also believes that regulations must evolve as well. The new chairman downplayed concerns about the threat alternative lenders pose to the stability of the financial system as a whole.”Fintech companies function with “underwriting standards that maybe a bank wouldn’t want to put on their balance sheet,” said Otting. But “if it’s a group of private investors, and it doesn’t have the ability to disrupt the financial system, then that’s their choice as an investor.” Otting believes the risks posed by online lenders can be contained such groups do not act as traditional depository institutions. Whether Mr. Ottings assumptions prove true or not remains uncertain; however it seems likely that the OCC will continue to pursue the charter initiative in spite of the groups changing leadership.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lenders – Getting in on the Distribution Craze

Distribution centers seem to be popping up in just about every town and along every highway. Learn a little about this growing segment of CRE and how you can find a commercial lender in order to get in on the latest craze.

You are probably aware of the newest generation’s love of all things online—including shopping. While it may not be the only reason for brick and mortar’s decline, it certainly has contributed. In 2016, online sales of goods accounted for 360.3 billion dollars. By 2021, this figure is expected to rise to 603.4 billion. And, as you know, all these online shops, stores and discounted goods are going to need a home as they crisscross the country—delivery warehouses and distribution centers.

There are various logistics to consider when creating an online presence. While Macy’s is looking to close about 100 stores, their online sales are taking the lead and, while stores are closing, distribution centers are being born. In 2015, it moved into what was once Campbell Soup’s south Sacramento plant, making this location an internet fulfillment center. With Macy’s bringing about 175 warehouse jobs with its presence, Sacramento gave something back in return—a sales tax reimbursement of up to 50 percent. Just two years earlier, Macy’s built a massive 1.3 million-square-foot distribution center near Martinsburg, West Virginia. Commercial lenders are taking notice.

So, what are the different facilities that these online mega-stores require? They need distribution centers which deliver goods to stores and online fulfillment centers which complete online orders—two very different environments. Easy access to the interstate is critical to these facilities as well as a strong labor pool. And while on the subject of a labor pool, another consideration is ease of public transportation for employees as well as affordable housing. So just where are they finding these mega centers?

Warehouses have become the new retail—increasing available capital from commercial lenders.

Real-estate brokerage CBRE pointed out the increase in regional hubs as retailers “bring their supply chains closer to the final mile of distribution.” These locations are determined by their customer’s locations who live within a few hundred miles of these warehouses. Emerging hubs, as determined by CBRE, include Indianapolis, Phoenix, Reno, Central Florida, South Central Pennsylvania, Cincinnati and Bakersfield. It must be very near a hub or major mode of transportation. Some require close proximity to ports. Other important considerations include the impact on the environment.

Warehouses have shown surprising growth and return on investment these last few years, although not too surprising to those in CRE. The Urban Land Institute placed the industrial category at the top for CRE investments in 2016.

So, what’s holding you back? For some, it’s the required capital and a history of being turned down by traditional commercial lenders. If you’re looking to get into this booming segment of CRE, don’t let the past stop you. Call us at Level 4 Funding. We offer loans up to $50 million for warehouses, industrial and distribution centers. Acceptance is based predominantly on collateral, making those with not quite perfect credit scores often pleasantly surprised. In addition, funding can occur in as little as a few days, making it possible to place a quick bid on that property that just came on the market that’s aching to be a fulfillment center. Call us for a no-obligation quote.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lenders

Before you go in search of your first commercial lender, you need to determine just which sector of this lucrative investment strategy you are going to invest in. Let’s look at one of the most popular CRE investments—offices—and find out what’s hot for 2018 and where savvy investors are plunking down their chunk of change in order to increase their ROI.

And once you’ve developed a plan, stick to it. Many an investor has let their limbic system, the emotional overriding component of their brain, waylay them from their chosen investment strategy. So, let’s take a look at offices and see if this might just be the CRE investment strategy that you’ve been looking for.

The office building asset class accounts for about 20 percent of the total CRE market. This segment of the market can be volatile, so it’s important to know just what to look for in this arena. The overall economy is an important consideration as well as the projected job growth when choosing a particular market. Look for a declining vacancy rate and a rising absorption rate. Include the surrounding communities in your assessment as they will have a strong impact on your strategy and market. According to Statista, vacancy rates in office space are forecasted to decline from 12.9 percent in Q4 2017 to 12 percent in Q2 2019. In the first quarter of 2017, office space beat out every other segment in commercial construction starts including retail, warehouse, hotels, amusement and parking garages with a whopping 6.6 billion.

Office assets are usually assigned a quality rating, similar to multifamily units. Their standards can vary depending on the local market, but will be important to your commercial lender.

· Class A: These high-end properties are usually recently built or extensively remodeled. They usually have high visibility and are within easy access to major amenities. Core focused REIT and pension funds tend to veer towards this type of office investment.

· Class B: These are usually older buildings that may require some minor renovation. These are fairly popular among commercial lenders, particularly turn-around investors and private equity groups.

· Class C: These generally require some major capital investment for improvements. They are also not in very desirable locations and are typically used for redevelopment opportunities.

And just what cities have the highest rents? Hong Kong is king with a price of $255.50 per square foot. New York City comes in second with a price of $153, San Francisco in fifth with $105 and Los Angeles edging into 10^th place with a price of $73.

Co-Working Spaces is a growing consideration in this market.

While this type of office space was once considered the go-to for freelancers and small corps, times have changed. Big businesses are using this type of workspace in order to get their feet wet in a community before relocating. According to U.S. News, CBRE reported that co-working in America is experiencing an approximate five-year compound average annual growth rate of 21 percent.

Some investors are turning to REITs in order to get into this segment of CRE. Both Vornado Realty Trust and Boston Properties include co-working in their portfolio.

There are alternative commercial lenders who can help you get the funds you need for your project. At Level 4 Funding, providing capital for office projects is one of our specialties. We offer loans up to $50 million, 90 percent LTV, competitive loan rates and quick funding. Call us for a no-obligation quote.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Importance of Finding Experienced Commercial Lenders

When its time to get a loan, working with skilled and professional commercial lenders makes all the difference. Level 4 Funding shares all the reasons why you should chose experience when seeking a loan.

Not just in the world of commercial real estate, but in any case, experience makes a world of difference. Yes, there is something to be said for a new and fresh perspective. However, when it comes to commercial lending, having experience is super important… especially when it comes to something as important as getting a loan. When you are looking to start a business or grow your existing company, experience is key for commercial lenders.

When you decide to get a loan, you need to do all your research to make sure you find the right lender with not just experience – but experience in the field that you are in. Find out if the lender has dealt with loans for the same type of nice or specialty as you need. This is crucial in ensuring they have the specific experience you desire. This will make the process much easier and smoother if they have gone down this path before — and know how to pave it for you, so to speak.

While it may seem like a good idea to just go with the lender that offers the best rates, this can be a mistake. While good rates are of course very desirable, especially when it comes to paying back your loan, you also want to make sure your lender is steering you down the right path. The old saying, “You get what you pay for,” does have merit, especially in this case. So be wary of a deal that appears “too good to be true.” Experienced lenders have negotiating skills and will do what it takes to get the job done right.

Consider the little and local guy.

While there are many online marketplace lenders and large national chains that may be able to offer a large loan, there is something to be said for the personal experience offered by a smaller, local company. A lender that is local has the experience on the local market, and also has more invested in your loan — much like it is your dream to own your own company, small commercial lenders are living their dreams by owning companies to help people like you get the loans they need. With a large national chain, you also risk working with a “newbie” that does not have a lot of experience yet.

Look at other factors besides experience.

Experience is a huge factor — but it’s not the only one. You should get a good feel for the lender you are ultimately going to be working with and dealing with for years to come by way of your loan. It’s important to trust them and have a good working relationship with them. It’s also a good idea to check references, pay attention to things like customer service with other people on the team and other factors that will ultimately make your experience better… or worse.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips and Tricks for Finding the Right Commercial Lenders

Your commercial lenders can make the loan application process smooth and easy, or it can be a long challenging road. It all depends on the lender so Level 4 Funding offers ways to ensure you find the right one.

When it comes to selecting commercial lenders to work with, the process can seem overwhelming and a little intimidating. But it shouldn’t be. The lender you chose should try to create the very best scenario for you and a win-win solution for you both. While traditional lending institutions can be challenging to obtain a loan from, that does not mean you are destined to “go it alone” or put your business dreams on the backburner until the economic climate is exactly perfect.

Finding commercial lenders that are willing to work with you and believe in your vision is not impossible. It can be time consuming to meet with and narrow down the right one, however. It’s time well spent, however. Once you find the right lender to work with you, the benefits are endless.

To get started, meet with people that you already work it – such as your local bank where you already have a financial relationship and probably know and trust people. While traditional banks can be more difficult to obtain a loan from, it’s still a very viable option. If you already work with them and have money with their institution, they are more likely to offer you a fair deal. So it doesn’t hurt to start there.

If that option doesn't work out, there are other opportunities for commercial lenders.

The truth is, it’s very uncommon to submit a loan package and get approved by the very first lender. You may even have to submit your application up to 50 times. So there is no reason to lose hope. You also want to make sure your needs are aligned with the type of institution you are submitting to. For example, if you require a large loan, you may find little success with a small bank or credit union. You can look to online marketplace lenders or other options such as private lenders or hard money lenders.

Looking local can be a great move.

If you have a reasonable loan size amount, look to local lenders. They will already be familiar with the local economic environment and may be versed in your nice or specialty. In fact, it’s a great idea to look for a local lender that has past experience with a loan like your own that you are looking to obtain. Once you find the right lender, you can start with the pre-approval process, get all your documentation and business plan ready for presentation, and continue the process to loan approval!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Benefits and Advantages of Working with Commercial Lenders

There are many pros to working with professional and experienced commercial lenders. However, every lender has a different specialty so it’s important to understand their expertise before deciding to work with any particular lender.

It’s much easier to work with skilled commercial lenders when its time to obtain a loan. They can benefit you in many ways and assist with specific needs and questions you may have as you go through the process. However, it’s important that you are working with a lender that understands and specializes in your market or niche to make sure that they can best benefit your specific needs.

It’s also a good idea to flesh out your specific needs before meeting with commercial lenders so you can ensure you can properly express your needs. If you are looking to obtain funding via a local credit union or non-traditional lender versus a conventional lending institution like a bank, you’ll want to understand that the processes and requirements will be different. One of the benefits of a credit union is they are fairly stable through economic ups and downs, so they are more likely to lend a higher amount than a bank that has more rigid lending requirements. Credit unions are also more likely to take a chance on a first time borrower, new business or small business.

Another benefit of seeking a loan through credit union commercial lenders is that they typically have lower fees and rates that are more reasonable than conventional banks, hard money lenders or short-term loans. Because credit unions are in a different category than conventional lending institutions, and actually considered non-profit organizations, it is more like using a private lending to obtain funding. This is beneficial to you because they are able to offer better benefits.

Commercial lenders can be the experts you need to help you streamline your approval process.

These professionals are well versed in the application process and they know exactly what is required from the borrower (aka you) in order to ensure eligibility. So it’s very beneficial to utilize a lender in your specific niche to help you get the most “bang for your buck.” Working with a local credit union is also beneficial because these experts understand the market you are in and can help your business based on that knowledge.

How to get the most “bang for your buck” when it comes to your commercial loan.

Doing your research before you meet with lenders is a good idea. Be as prepared are you can prior to meeting with any type of lender by having your documentation in order, being prepared to showcase the collateral you have and prepare a solid business plan that details your intention for your business. Being prepared can be very beneficial in the loan approval process as well. Once you have all your ducks in a row, you may find eligibility to be a lot easier and smoother, especially with the help of the right type of lender for you and your business.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lenders Looking for Another Successful Year in New York City and Hope to Spread Across the Nation

The real estate market is expected to boom in 2018 and that means many commercial lenders are looking forward to another busy and successful year, especially in the New York City area. The past year was pretty promising and many are hoping that the momentum will continue through the new year.

Wells Fargo ended the current year on a good note and is expecting 2018 to shape up to be just as successful. The first 9 months of 2017 was especially great for Wells Fargo with them generating over $4 billion dollars in commercial real estate in New York City alone. They generated over $1 billion dollars in just the 3^rd quarter alone. Being located in San Francisco, they are hoping that the success in New York City spreads to other parts of the United States.

Other commercial lenders have also seen a steady year in the real estate market with optimistic plans for the new year. Based in Arkansas, the Bank of Ozarks are looking to duplicate the success they saw in 2017. They say a $1.5 billion-dollar year. Also, looking for another strong year is Goldman Sachs. They raked in almost $2 billion dollars this year, almost doubling what they totaled in 2016.

Commercial lenders in New York City saw a terrific 2017, even though they weren’t quite expecting to have such a good year and they are hoping that will carry into 2018. Especially with the 4^th quarter of 2017 being one of the strongest, many in the market are hoping the momentum will carry them to at least three strong quarters in 2018. The New York Community Bank really saw an increase in loans in New York City. This was refreshing since previous years haven’t been so promising. This happens to be one of the largest sources for funding in the city and is known as a signature bank, so it can definitely stay on the right track for another successful year.

The first quarter of 2018 will really set the pace for commercial lenders for the rest of the year.

Commercial lenders are really looking forward to start of the new year after finishing off a great 4^th quarter and end to the year. The market might continue to thrive, but will see a little change, hopefully only for the better for the first two quarters of 2018. There might be less momentum at the end of the year, but isn’t expecting to see too much of a negative shift.

The forecast for the commercial lenders looks bright, nothing is ever guaranteed, especially in the real estate market, but not bringing any negativity to the forecast.

Of course, you never know what to expect when it comes to real estate or the economy. But many are hoping that there will not be too many changes in the beginning of the year and that the economy will only continue to grow.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lenders Offer Advice on the Difference Between Personal Credit Scores and Business Credit Scores

When you own a business, you often start establishing a business credit score on top of your personal credit score. There happens to be many benefits of separating your personal credit score from your business credit score, especially when working with commercial lenders.

Once you get your first job, you start having a personal credit score under your belt. Jobs, credit cards and loans play a role in your personal credit score. Companies like Equifax and Experian are popular places that keep track of your personal credit score. You credit score ends up saying a lot about you to commercial lenders, like your ability to pay debt back.

Information that is usually included on your personal credit score include the number of credit accounts you have opened, like mortgages, credit cards, auto loans and more. Also, information like the amount owed on each of these accounts and how much you pay monthly on them. This is why it is important to make proper payments on time and avoid any late payments that may cause a delinquent mark on your credit score.

Personal credit scores range from 300 to 850 points, with a score of 680 or higher being considered an excellent score to most commercial lenders. Each agency look at scores a little differently, but on average, you should be striving for a score of around 680 or higher.

Commercial lenders will often times take a look at your business credit score over your personal credit score and that can be a good thing.

When a business issues another business credit, then that is when your business credit score really starts accumulating. This is often times the largest source of lending. The business credit bureaus are responsible for gathering information on your business and the scores range from 0 to 100 with 75 or more being considered excellent.

There are benefits to keeping your personal credit score and business credit score separate when applying for extra funding from commercial lenders.

Using your business credit score when dealing with commercial lenders can sometimes get you almost 10 times as much extra funding and can really help expand your business. This could get risky thought, especially if your business goes under. Also, keep in mind that if your business is sued, then your personal assets could be at risk. A helpful tip is to start early by setting up a business checking account at the beginning and also getting a separate legal entity. This helps keep your business assets separate from your personal assets, which is always a good thing.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lenders Can Lend a Helping Hand to Solving Problems

If you are needing extra financing for your business, whether it be big or small, there are many benefits to working with commercial lenders. Just like when it comes to loan, there are many options out there, so take the time to find the right person to work with.

A bank loan might not be easy to obtain, so that is when working with commercial lenders come in. Income verification is usually needed when dealing with banks and if you are self-employed, that can sometimes be difficult. But when working with other sources for funding, they might not always require this, but other documentation and financial information will be taken into consideration for approval and won’t hold any of it against you.

Sometimes credit issues from the past can creep up and result in low credit scores. Financial issues from the past can hurt your chance when working with banks, but commercial lenders can be easier to work with because they will usually take the time to listen to the reasons for your low credit score and try to understand. This will give you a better chance at obtaining a low if you might not have the best credit history.

It isn’t uncommon for businesses to owe money to the IRS. This can make it really hard to get extra financing from a bank. Commercial lenders can help when this becomes an issue. They are willing to work with you if you are in debt to the IRS and will even try to help you crawl your way out.

Establishing the right relationship from the beginning with commercial lenders will benefit you and your business in many ways.

It can be very stressful dealing with someone else when it comes to your finances and sometimes obtaining extra funding is going to either make or break your business. Take the time to do the research to find the right person to work with and this will help your chances at getting a loan. Opening up about your financial struggles isn’t always easy, but can be a little easier when talking to the right person that will understand what you are saying.

Commercial lenders are the real deal when it comes to obtaining extra funding for your business.

There are a number of banks and lenders to choose from when it comes from loans. Just like there are several different options when it comes to choosing a loan. Each loan and lender come with different requirements and terms, so always make sure to read the fine print. And also keep in mind that if you aren’t dealing with banks, you might face higher interest rates. But this is the price you pay when the deal is risky and is a better option than being completely turned down.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage