Learn To Be A Fix & Flip Investor: commercial loans for bad credit

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Wednesday, March 14, 2018

Reviewing the Types of Alternative Commercial Loans

Why traditional commercial loans might not be right for you… and how to find the perfect loan to achieve business success. Level 4 Funding shows you how.

There are so many types of loans to consider before you decide which is right for your business needs. For example, a merchant cash advance is an alternative lending program but instead of repaying the loan in monthly installments, loanees pay it back via a percentage of their credit card sales. This is great type of loan for companies that have high credit card business because the rate of how fast the MCA is paid off is related to the volume of sales. The higher the sales, the faster the loan can be repaid — and paid off!

Another form of alternative commercial loans is asset-based lines of credit. With this type, lenders offer lines of credit based on the value of equipment or hard assets of your business. This is a great option for businesses that use a lot of equipment. That would include companies like restaurants, beauty salons, and manufacturing companies. Similar to MCA loans, the value of the equipment determines the amount of the asset-based line of credit (and access to working capital).

Finally, another option is called an unsecured line of credit. For new business, companies that don’t need equipment or ones that don’t have an actual storefront unsecured lines of credit can be great options. This option allows for businesses to obtain working capital. However, in this case the lender may require higher interest rate or payment terms because they are taking on a high-risk investment.

There are many ways that companies can benefits from alternative commercial loans.

For companies that are looking to get cash fast, non-traditional loans are the way to go. They can be approved fairly quickly and traditionally don’t require as much complex documentation required from more conventional lenders. Ultimately, these types of lenders just want to make sure they are going to get their return on investment. If you can prove that to them, a high credit or lengthy established line of credit might not matter as much.

Alternative commercial loans meet a specific purpose, so they might not be the right fit for your business.

For new businesses that don’t yet have a line of credit established or high credit score or ones that don’t have collateral, traditional banks might pass on them as too high risk. However, alternative lenders are more willing to take on these types of businesses. Do your research about the various types of loans available to you and the kind of lenders that can help you. It’s also a good idea to meet with some lenders to discuss your needs until you get a feel for the lender that is right for you. When you are ready, Level 4 Lending is here to help you find the right loan for you — so give them a call today and speak with a professional.

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

Sunday, October 1, 2017

Understanding REO Commercial Mortgage Texas

Purchasing a commercial property can be complicated. But what does it mean for your commercial mortgage Texas when you find the perfect property is an REO?

When you are searching for a commercial property you might find many options but you will want to be sure that you understand all of the real estate terminology that can have an impact on your ability to obtain a commercial mortgage Texas. One of the terms that you might be unfamiliar with is REO. The price of an REO property might make it very appealing but you need to understand that there can be a few risks associated with these properties.

The term REO is an acronym for “other real estate owned”. It is a common accounting term for a real estate property that is owned by a bank. Basically this means that the property was foreclosed on by the lender. The property is then placed in an auction by the local government at the county or state level. The lender gets to set the opening bid amount for the property and it normally will include fees and the balance of the loan. In some cases, that places the property above the current market value. In these cases, the property rarely sells at auction. Then the lender takes possession and it becomes an REO property.

Purchasing an REO commercial property can have more risk involved than purchasing another type of property. In many cases, the property has been vacant for some time and could be in disrepair or even have been vandalized. You will want to try to have a full inspection by a qualified professional before you consider making an offer on the property. The current condition of the property can have a huge impact on your ability to get a commercial mortgage Texas.

Know the Market

When a commercial property does not sell at auction, the owner is normally more motivated to drop the price and get it sold as quickly as possible. This can be great if you make an offer quickly but you should expect other potential buyers to be placing competitive offers. For this reason, it is good to have your financing in order and be ready to apply for a commercial mortgage Texas. It can take a few weeks or months to complete the process and you don’t want to lose a great opportunity.

Understand the Process

Buying a commercial property or an REO commercial property can be a complex process. But knowing what to expect and how to complete the process can eliminate a lot of the unneeded stress. If you are considering an REO property, then you might want to begin the prequalification process with a lender who is familiar with financing REO commercial mortgages. The purchase process might take a little bit longer than buying a conventionally owned property, but you could get a much better than market value price on an REO property. Understand that with an increased risk comes the potential for a greater reward.

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

Qualification for Hard Money Commercial Loans Texas

Conventional commercial loans Texas can be hard to qualify for. But a hard money lender offers a much more stream lined and speedy loan process.

Hard money commercial loans Texas require much less paperwork and third party reports than a convention loan. This is a great benefit to a borrower who needs funding quickly or does not have the credit history needed to qualify for a bank loan. Knowing what it takes to get a hard money loan will help you to decide if this is a solution that you should explore more in depth.

Some hard money commercial loans Texas lenders have an application process that is similar to a conventional lender but others focus on asset based lending. In the case of the asset based lenders, the primary concern is not the value of the commercial property that you are buying but the value of the assets that you are planning to use as collateral. The value of the assets will even be more important than your level of credit or your credit history. In some cases the assets can be inventory or equipment. In other cases, it could be accounts receivables or other property that the business owns.

Regardless of the type of collateral that you will provide, you will need to submit a certain amount of information to the lender. This is just the process for any loan request. But what you will not need to submit is the prior financial history of your business. You will also need to provide information about the reason for your request. In most cases, commercial loans Texas lenders will want to know a little bit about the property and also see photos of the interior and exterior of the property.

What Makes Hard Money Lending Different

Because you are requesting a hard money loan, you need to expect that the interest rate is going to be higher than a conventional commercial real estate loan. The lender is evaluating the risk associated with your business and its ability to repay the loan. They are also evaluating their ability to recover their investment should you fail to keep up with the payments. This could include an evaluation of how quickly and effortlessly they could liquidate your collateral assets. Selling property could be much faster than trying to find a person who is interested in buying old equipment or merchandise which was a part of your inventory.

It is a Viable Option

Even though the interest rate will be higher than a conventional lender, a hard money commercial loan could be a good solution for your business. If you have no credit history or cannot verify cash flow then securing a conventional loan could be impossible. But be sure that you fully understand the terms of the loan agreement before you sign the document. Just because the lender is not a loan company or bank does not mean that the contract will not be legally binding.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

4 Tips for Securing SBA Commercial Loans Texas

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

It can take a lot of time and patience to be approved for SBA commercial loans Texas. But the low interest and down payment requirements as well as the very favorable repayment terms make it worth the extra effort. But to be more certain that you are going to get approved, you need to follow a few tips to make your application stand out from the crowd.

Having your credit and finances in order before you apply is critical. You want to do all that you can to improve your credit score prior to beginning the application. Be sure that you have not maxed out your credit and that any debt that you owe is being paid off ahead of schedule. Your goal should be to get your credit utilization under 30% to get the most favorable review from the SBA lenders.

Having all of your documentation in order prior to starting your commercial loans Texas application will make the process less stressful and more rapid. SBA lenders are notorious for requesting very detailed financial information about your company and about the owners. Having that packet prepared and ready to submit will show all lenders that you have invested time and effort into the process already and are prepared to answer any additional questions that they might have for you.

Be Ready to Relate Your Story

Seeking commercial loans Texas is much like trying to land a client. The lender will have many of the same questions that a potential client might have. They want to know about your business, your industry and why you are the expert that they should put their faith in. A customer wants to know that you will do a good job because they are going to pay you for your product or service. A lender wants to know that you will do a good job because they want your customers to continue to pay you so that you can repay your loan. Also be ready to answer any questions that the lender might have about your business plan or business model. Explaining this information will demonstrate your knowledge and skill in working within your industry and in business in general.

Don’t Be Afraid to Shop Around

Not all SBA lenders are the same. So you will want to be sure that you explore all of your options and the lenders who are working with the SBA. This will ensure that you select the best lender to meet your current and future needs. Being comfortable with the lender is important and so are the terms that they are offering you. Take some time to get to know the lenders and determine who might be the best fit for you. A smaller regional lender might be a better fit for a new company or a smaller loan amount. Following these few tips can make the process a little faster and much more successful.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What Lenders Look for When Granting Commercial Loans Texas

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

When you are applying for commercial loans Texas, you will find that there are many documents that are being requested and many forms that you will need to complete. But all of that general information is only the beginning. Lenders each have their own set of criteria that they uses to make their final decision about writing commercial loans Texas or declining an applicant. Understanding this criteria can help you to craft a more effective application.

One important factor that lenders are looking for is that you and the business have the needed assets and financial reserves to survive any temporary downturn in your business. This can mean making it through a slow season or even through a period when clients are not paying bills on time. But what a lender needs to see is that you have the means to keep your business operating when there is a lull in your cash flow that is beyond your control. If the business has very limited assets then the lender will want to know that the owners are in a position to personally fund the company to bridge the short term issue.

Your ability to repay commercial loans Texas is what the lender is really trying to determine. They are accessing the risk that you represent and how confident that they are that you can make the payments on a regular and long term basis. This means that your cash flow needs to be strong and consistent. Demonstrating that you will easily be able to make your loan payments is critical to getting approved.

Proven Track Record

If your business is new and has no cash flow history or proven track record in the industry then you will need to demonstrate your personal ability. This is best achieved by showing your successes in the industry and in a management position at another company. Showing that you have experience managing and running a successful business will build confidence in your ability to launch and maintain a new company of your own.

Overall Credit Worthiness

All lenders have an image of the perfect client, but that might not exist in the real world. So lenders begin to compromise when they feel that a potential borrower is a solid individual. Showing that you have personally maintained good credit, that you have the means to offer financial support to the business if it is needed and that you understand the industry trends are all critical. This lets the lender know that you are prepared for changes in cash flow and that you have a plan in place to make it through those difficult times. It also shows that you are diligent in protecting your personal financial future and that will carry over to your business finances as well. Taking the time to understand what the lender is looking for from a borrower will help you to supply all of the needed information and will offer you a better chance at getting the loan that you have requested.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How a Private Lender Can Help You Get Your Commercial Loans Texas

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

Working with a private lender can ensure you are working with a trustworthy person and that your source of financing is a solid way to experience growth for your business. Whether you are purchasing a building, need new equipment to expand or improve your company’s services or simply need a bigger supply or cash as a “cushion,” you can count on the expertise of a private lender. Sometimes the fact that a small business’s cash supply isn’t always as consistent as needed when they first start out or are expanding is enough to seek out a private lender for commercial loans Texas.

Unlike conventional lenders and conservative banks, private lenders are more likely to negotiate better terms for you, even it you have a somewhat unsteady cash flow or less than perfect credit. Traditional banks don’t and can’t afford to take “risks” on new or edgy business concepts for example, which is why a lender can be beneficial in this circumstance as well. They might not offer generous mortgage terms that private lenders would be willing to offer. Private lenders are more willing to take the “gamble” on a new or different business concept.

Another example of a good time to seek a private lender is if your company is new and you have yet to establish any business credit, or if you are rebuilding your credit score based on past “dings.” Banks are not very forgiving with no or low credit. But private lenders are typically willing to work with new businesses, especially if the credit history is mostly clean. Private lenders also specialize in short-term loans, which can be very helpful for new and growing businesses.

You can still be eligible for commercial loans Texas if you go through a private lender.

Private lenders won’t make you go through all the red tape that traditional banks require. Lenders are there to help you from start to finish and usually make the process of getting a loan much simpler and stress free.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

Take some time to research private lenders that specialize in the loans you are in need of and who are willing to work with your to negotiate the deal that works best for your business needs. A lender can fast track your loan and get your business in a position for growth and development in no time!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Alternative Ways to Obtain Commercial Loans Texas Through a Broker

In a down economy or if your credit is poor, there are still opportunities to get approval for commercial loans Texas. Sometimes working with an alternative lender or going through a broker is your best bet in these circumstances.

There are many alternative options to obtaining commercial loans Texas, so even if you have dings on your credit history or the economy is making banks extra tight with their funding, doesn’t mean you are out of luck. Seeking a hard money loan would be the way to go. Talking to a broker about this route will help you get the best loan regardless of the circumstances.

Sometimes hard money loans have higher interest rates associated with them, however; there are benefits, too. These loans don’t require going through all the red tape and jumping through hoops (aka having a 700+ credit score or perfect credit history) that is sometimes required to obtain a loan through a traditional bank or other conventional lender.

Typically, when trying to obtain a hard money commercial loans Texas, the most important thing alternative lenders look at is if you are going to be able to pay the terms of the loan back. While the interest rate may be higher, you will typically be able to get the money you need for your business — and get it fast. Even though you may have higher interest rates, getting this loan can make all the difference for the growth of your company and taking your company to the next level.

Talk to a broker to figure out is a hard money loan is right for your needs.

Being honest about your situation and upfront about your needs will help your broker understand how they can best help you obtain your hard money commercial loans Texas. They can also advise you on how you need to be prepared to obtain this loan via having the proper documentation available for review. You will likely need to have documents such as credit report, business and personal finances, bank statements and other documents to show.

Getting the loan you need should not be a stressful scenario.

Getting the hard money you need to take your business to the next level can be a daunting task. But it shouldn’t bee too difficult or cause you too much stress. Remember that there are many options — so it you take one road and it doesn’t work out, don’t be afraid to try another avenue. There are a number of alternative choices when it comes to getting the funding you need to make your business a success! So call a broker today and get started!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, June 24, 2016

Commercial Hard money Lenders: Lending a Helping Hand with Commercial Loans

Hard money loans lenders understand that even some of the most unlikely investment are still investments. You can even find commercial hard money lenders to fit all your needs! So, if you thought there was no way you could quickly find financing for a foreclosure or another unlikely investment property with your credit think again!

Dealing with commercial lenders is never a walk in the park. But, with the right tools and clear plan you can easily navigate them. For instance, if you are dealing with commercialhard money lenders, then you may already know that there are lenders that often deal exclusively in one property type i.e. you will more than likely being dealing with niche lenders for hard money loans. Consequently, if you are actively looking for short-term commercial financing then it is clearly in the best interest of time to make sure that you are dealing with commercial hard money lenders in your particular market or property niche.

As previously suggested, hard money loans are ideal for such property types as foreclosures, land loan, construction loans, fix and flips, short sales, when you or your business need to move quickly and for when the potential buyer does not have the best credit or rather has certain credit issues. Moreover, lenders that typically offer these kinds of commercial loans are not banks. Thus, if you know ahead of time that you will not qualify for conventional financing, say yourself some time by not going through the lengthy process of applying for a bank loan.

So now that you know when to call on commercial hard money lenders and how to narrow down your potential list of lenders, let’s go over what to do if you are experiencing some difficulty actually finding a few good hard money lenders in your area and in your property niche.

How to find your Hard Money Lenders

For starters, it almost goes without saying that doing your research is absolutely key to finding the right lender for you. But, nevertheless, you would be surprised how many quality hard money lenders you can find by doing a simple internet search. Moreover, if need more than a few online research hits to peak your interest most cities have real estate seminars and meetings that focus specifically on obtaining hard money financing. These kinds of regularly held seminars and meetings not only will provide you will direct exposure to local lenders that understand your needs, they will also provide you will valuable information on such things as regulations and hard money loan requirements. Lastly, you can mingle with real estate professionals who know the business inside in and out, which will allow you to expand your network and ask for hard money lender referrals.

Requirements and Regulations

Obviously, once you’ve found your commercial hard money lenders in your area that has reputable experience with your particular property niche it’s time to get down to business. Remember, most hard money lenders are concerned with the amount of equity you are bringing to the table and your overall plan for the property. So make sure that you actually have the necessary collateral, especially if you do not have stellar credit, and that you have a detailed plan in place of just how you intend to pay off your loan.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com

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.

Thursday, June 23, 2016

Applying For A Commercial Bridge Loan

So you’ve decided that short-term financing is the best option for your new construction or upcoming investment. But, you’ve never applied for a commercial bridge loan before—no worries let’s go over the basics.

Applying for a commercial bridge loan is not necessarily any different than applying for any other kind of commercial loan. In other words, you still need the right documentation and a lender that understands your particular business needs or market. Thus, if this is not your first commercial loan, which it more than likely is not, you’re in luck. You do not have to lose sleep over narrowing down your short-term financing options.

With that being said, it may be more beneficial for you to focus on why a commercial bridge loan is right for you next project. For instance, say you already have an investment property or two underneath your belt and you are looking to make a few upgrades or improvements. If this scenario sounds familiar to you, then great! This is exactly the time for a short-term financing. Generally, you can be approved for this particular loan if your new construction will take some time but will not exceed three or more years depending on your specific market( hint: construction that takes longer than three years, in general, is not a little upgrade). In fact, non-residential bridge loans can be for a small time period of say two weeks or you if you go with a more traditional lender you may find bridge loans that range from 45 to 60 days.

Ultimately, when you start talking about years’ worth of upgrades you may want to rethink your need for short-term financing. However, it is important to note that you may be able to find a lender that offers what is known as bridge-to-permanent programs. These particular kinds of programs can make the transition from short-term financing to long-term financing more seamless (for a price of course).

Is a Bridge-to-Perm Loan a Win-win Solution?

Yes, in many ways a bridge-to-perm loan is a win-win solution, especially if you are not necessarily interested in taking the time to secure more financing or possibly work with another lender all together. The fact is it is often a lot easier to stay with the lender or bank you know. Thus, if you are currently working with a lender or bank that offers such programs, it would definitely be in your best interest to check out a bridge-to-perm loan programs or two.

Not to be confused with a Mini-Perm loan

As a side note, it is also important to understand that a bridge loan, a bridge-to-perm loans and a mini-perm loan are different from one another in what they ultimately offer. At this point, you probably are clear on the first two kinds of loans and what they can do for your commercial venture. Thus, the last thing to cover is what a mini-perm loan offers. A mini-perm is still a first mortgage on an investment property for mainly construction, but the terms of the loan differ i.e. typically this is a bank loan that covers a two to three years period and it can either be an interest only loan or an amortized loan.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

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.

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Wednesday, March 14, 2018

Reviewing the Types of Alternative Commercial Loans

Why traditional commercial loans might not be right for you… and how to find the perfect loan to achieve business success. Level 4 Funding shows you how.

Sunday, October 1, 2017

Understanding REO Commercial Mortgage Texas

Purchasing a commercial property can be complicated. But what does it mean for your commercial mortgage Texas when you find the perfect property is an REO?

Know the Market

Understand the Process

Qualification for Hard Money Commercial Loans Texas

Conventional commercial loans Texas can be hard to qualify for. But a hard money lender offers a much more stream lined and speedy loan process.

What Makes Hard Money Lending Different

It is a Viable Option

4 Tips for Securing SBA Commercial Loans Texas

SBA commercial loans Texas offer some great benefits for borrowers but the application process can be long and tedious. Give yourself the edge by following these tips when you are applying.

Be Ready to Relate Your Story

Don’t Be Afraid to Shop Around

What Lenders Look for When Granting Commercial Loans Texas

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

Proven Track Record

Overall Credit Worthiness

How a Private Lender Can Help You Get Your Commercial Loans Texas

If you are hoping to get approved for commercial loans Texas, you may benefit from the expertise of a private lender. They often do not have as high of or as many expectations as a conventional lender such as a bank and don’t have as many difficult requirements, either.

You can still be eligible for commercial loans Texas if you go through a private lender.

All in all, working with the right private lender can make getting commercial loans Texas a very smooth and streamlined process.

Alternative Ways to Obtain Commercial Loans Texas Through a Broker

In a down economy or if your credit is poor, there are still opportunities to get approval for commercial loans Texas. Sometimes working with an alternative lender or going through a broker is your best bet in these circumstances.

Talk to a broker to figure out is a hard money loan is right for your needs.

Getting the loan you need should not be a stressful scenario.

Friday, June 24, 2016

Commercial Hard money Lenders: Lending a Helping Hand with Commercial Loans

How to find your Hard Money Lenders

Requirements and Regulations

Thursday, June 23, 2016

Applying For A Commercial Bridge Loan

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