The Ins and Outs of Getting a Commercial Mortgage Texas

Figuring out the process for obtaining a commercial mortgage Texas is not as difficult as it sounds. With a few tips and some research along the way, you can be successful in getting the loan you need for your business.

A commercial mortgage Texas can be sought be businesses for many reasons and purposes. Thought these types of loans are the most complex, so proper research and due diligence will take to you a long way to ensure you understand what you need to do to be successful in obtaining the loan. There are also some things you can avoid doing so you don’t fall into the pitfall of getting your loan application rejected.

First, it’s important to find the right lender to work with. Look for one with professional experience with the loan you are looking to obtain and the type of business you conduct It’s also important to find a lender who will offer terms that work with your specific budget. Being familiar with the terms of the loan and with commercial mortgage Texas in general, with help you as you seek the right lender. Even if you have worked with a bank or lender in the past, make sure that entity or individual is rightly suited for this specific situation.

It’s also important once you’ve chosen a lender to seek the counsel of a lawyer to review documents before you sign anything. If you work with a lawyer that has experience in commercial mortgage Texas, all the better. They can make sure the paperwork is in order, that you are getting what you are under the impression you are getting, and that all the terms are legal — and reasonable.

Making sure you can afford the terms of commercial mortgage Texas loan is very important.

It’s important to understand that you will be responsible for a monthly (or otherwise agreed upon) repayment schedule with you obtain a commercial mortgage Texas, so you need to make sure you have the ability to repay under the terms. Prior to making any agreements, review your business plan and your budget to ensure the terms of the loan won’t put your finances in a crunch. You may benefit for reducing some of your costs in other areas, increasing your product line or offering services in a new, bigger market to regain more capital.

As with anything in business, it's important to be as prepared as possible.

While you can’t predict the future, as a business owner, it’s important to make sure you are financially prepared to handle the “unexpected” pitfalls that are certain to happen in business along the way. Having cash via loan can sometimes make the difference in being able to handle these pitfalls with ease or having an unexpected bump in the road put your business in a bind. Responsible planning is a good for any business, and having your financial documentation in order can help ensure you continue to be successful in 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

Three Factors to Consider When Evaluating Commercial Loans

Commercial loans are a great way to help to grow your business but there are a few facts that you need to be sure to understand. Knowing exactly what it will cost you to borrow money is an important factor in deciding if you are making a wise business decision.

Whenever you are considering commercial loans, there are a few factors that you need to take into consideration. It can be very easy to research the process of applying for the loan and all of the requirements so that you have a good knowledge base. But then as you slog through the application process, it can become very stressful. You are supplying years of data and financial information simply to prove your creditworthiness and the character of the business. And the longer you wait the more you begin to worry that you will not get approved. So when the approval does finally come through, you are tempted to quickly sign the documents to get the loan. But you need to carefully evaluate the entire offer and terms.

Knowing if you are being offered a fixed rate loan or a variable rate is important for your future financial planning. The fixed rate will offer you a stable and consistent payment for the life of the loan. A variable rate loan will fluctuate as the market changes and can be very difficult to work into your budget if you have limited funds. The variable rate does offer the potential to save on your interest rate if the rate drops but it also hold the potential for an increase in your costs if the rate goes up. You need to understand and accept the potential risk if you are opting for a variable interest rate.

You also need to look very closely at the interest rate that you are going to be paying. Is it at or near the average rate that you were expecting? If there is a discrepancy then you need to speak to the lender to learn why. The rate should be determined based on the business’s current financial condition and stability as well as cash reserves and equity in other property or equipment. A rate change of even one or two points can be a large sum of money over the course of your loan.

Understanding the Fees

There are many fees that you might need to prepay on commercial loans. This can include a loan origination fee or a processing fee, legal fees to cover the contract creating by the lender and also fees for surveys and appraisals of any property involved in the loan. The most important part of this is that these fees in no way guarantee that you will be getting a loan. So you need to be willing to pay the administrative fees even before you submit your documentation.

Be Prepared

The best way to insure that you are not wasting any money is to be prepared. You need to understand the fee structure and also the requirements to qualify for the loan. Once you know that you will qualify then you can move forward feeling secure about your financial position and your ability to get the commercial loan that you are requesting.

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

Understanding Commercial Mortgage Loans

Understanding the process involved in obtaining a commercial mortgage loan and the requirements to qualify for the loan are important for a business owner. It can make what once seemed like a very intimidating process less complicated.

When you are considering a commercial mortgage, you need to first decide if you want to get a nonrecourse loan or a recourse loan. The difference is that with a nonrecourse loan the lender can only take back the property in the event of a default but with a recourse loan the lender can require you to pay additional money if the property value is no longer enough to cover the loan balance. Getting a nonrecourse loan offers you, the borrower, additional security that in the event of a default on your loan, you will not be forced to pay additional money that you might not have. It protects your personal assets such as your home, retirement account and other investments that you might have.

Next you will want to consider which type of terms you would favor for your loan. A fixed rate mortgage is very popular because the rate is set and you do not need to worry about future budgetary surprises. Adjustable rate or variable rate mortgages sometimes offer a better interest rate but you are risking a rate increase which could be very unexpected. This can make it difficult to budget for the future and can cause you added financial stress when the interest rate increases.

The final type of mortgage term is called a balloon mortgage. This is more unique than the first two types in its repayment schedule. With this mortgage you only pay the interest each month but no principle. You can pay extra towards the principle but it is not required. But at the end of the loan term you are required to make a single payment, the balloon payment, for the remaining balance of the loan. This can leave you with a huge payment due at the end of your loan. Most borrowers are forced to refinance their mortgage balance when the term is completed to make the balloon payment. But the benefit is that you have enjoyed very low payments throughout the term of the loan.

Getting Your Loan

Finding a commercial mortgage loan can take some time but there are many lenders that you can work with. It is important to shop around for the best rates and terms to meet your current and future needs as a business. So invest the time to find the best lender for you.

Make a Great First Impression

When you are applying for the loan remember that the lender is judging your businesses ability to repay the loan as well as to be successful in your field of business. Taking the time to have your business and personal financial information prepared is critical. This will show the lender that you are very professional, that you are taking the loan process very seriously and that you are prepared both for the application process but also the process of repaying the loan. Making a great first impression will be very beneficial for a successful loan application process.

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

Comparing Commercial Mortgage Terms

Understanding the terms involved in a commercial mortgage is critical. These terms will help you to select the loan that best meets your current needs and your needs for the future.

Most business owners first and biggest concern when shopping for a commercial mortgage is the interest rate. This is one of the biggest factors in how much you are going to pay to borrow the money that you are requesting. As a borrower, you can look at the interest as the cost of getting a loan. And also understand that most businesses are never in a position to purchase a commercial property without getting a loan. It is the business equivalent of a home mortgage. It is also the way that the lender is going to make money from the deal.

Another important factor to consider is an adjustable rate versus a fixed rate commercial mortgage. A fixed interest rate is one that is set at the time of the loan creation and it remains constant for the entire term of the loan. This provides stability and makes it very easy to budget for future loan payments. A variable or adjustable rate is one that can fluctuate from month to month based on the prime rate and other factors in the economy and business world. In most cases the variable rate starts out lower than a fixed rate but the fluctuation can cause it to end up being much higher. Overall a variable rate is more of a gamble than a fixed rate and can be much more difficult to work into a long term budget.

Finding a term, or time frame, for the repayment of the loan is also very important. A shorter term means that the monthly payments will be larger than if you were to elect for a longer term. You will want to find a balance between the amount that you can afford to pay each month and how much interest you are willing to pay for a longer term.

Banks Make Money from Interest

Knowing that the bank is in business to make money, it makes sense that they are counting on you paying interest for a certain period of time, the term of the loan. If you choose to pay the loan off early then the bank is not getting paid as much interest and they are not making as much money. To offset that potential loss of interest and revenue, many lenders will insert an early payoff penalty clause into your loan. In some cases it is a percentage of the interest that you don’t pay due to the decrease in the term or in other cases it is a flat fee that you must pay. Knowing if there is such a clause will help you decide which loan offers the best terms to meet your needs.

Evaluate All of the Terms Carefully

When you are evaluating terms on a commercial mortgage, it is important to understand all of the fees as well as the repayment process. All of this information tells you how much you will truly be paying for the money that you are borrowing and also how long you will have to repay the money.

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 for Getting the best terms on your Commercial Mortgage

Before getting a Texas Commercial Mortgage know your credit score, have a large down payment on hand and have specific knowledge about the property you want to finance.

Knowing your credit score and taking steps to improve it is a vital to secure the best terms on your commercial mortgage. Ensure your score is as high as possible before beginning the application process. Once you know your credit score take concrete steps to improve it. Dispute errors and pay off outstanding debts. Your credit score will have a major impact on the terms of any mortgage you receive. Todd Huetner ,President of Huetner Capital claims “( A score) below 740, (and) it can start to cost you additional money for the same interest rate.” Fees could potentially range from a quarter of a percent to two percent of the total loan amount. If you cant raise your credit score to 740 you may have need to accept a higher interest rate on your mortgage. Another strategy is to seek out other investors in order to boost your credit profile.

You will likely have to make a substantial down payment on any commercial mortgage. Mortgage insurance doesn't cover investment properties. Therefore having a down payment, usually ranging from 20-25 percent of the properties total value is often necessary. A second mortgage is a possible way to raise the money needed for a down payment, but this is not an ideal strategy. You may need to get creative, cashing out old life insurance policies, using equity lines of credit or taking out private personal loans in order to secure the necessary down payment

Having a good credit profile and having a large down payment on hand

is vital to secure the best terms on any commercial mortgage.

But it is also vital that you know the property you want to finance.

The specific property, it’s location and it’s history will likely have an impact on the terms of your mortgage. Lenders prefer centrally located properties in urban or suburban areas. The lender will want to know if the property has existing tenants and what the terms of their leases are. The longer the term of these leases, the better your situation will be. Having long term tenants ensures consistent revenue and may help you negotiate better terms on any mortgage you apply for. Have knowledge about the historic occupancy rates of the property and a detailed understanding of the previous owners income. If you can establish that the property you want to finance is historically profitable, then your mortgage is considered less risky potentially and this could lead to lower interest rates

Factor in the need to make a large down payment and consider how this will affect you in the long run.

If the location doesn't have existing tenants it is important ask yourself if you can you pay the mortgage until you find businesses to occupy the space. In addition to having a substantial down payment lenders will often want potential borrowers to have six months of savings in reserve. To get the best terms on a traditional mortgage you will need an excellent score, have a large down payment and have substantial savings. Depending on your situation you may not meet these requirements and may want to consider other financing options. Nevertheless having an understanding of these facts, will likely help you leverage better terms on any Texas Commercial Mortgage you apply for.

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

EntRotten Credit? Ideas to improve your business credit score to get the commercial loan in Texas you needer a post title

Your business credit score is a vital factor impacting your ability to secure a commercial loan in Texas. Learn some strategies to improve your business credit score.

Your business credit score can be more important than your personal credit score when it comes to qualifying for a business loan. According to the Federal Reserve, 45 percent of small business borrowers were denied loans because of their credit score. Having a low or even non-existent business credit score will put you into a bad position, forcing you to pay higher interest rates and accept less favorable payment terms. Learn some steps to build your business credit score and strategies to help you establish your credit.

It is vital that you regularly check that your information is current with all reporting agencies. Each business credit reporting agency uses a different strategy to determine your score, so check your score with all three major agencies ( Dun and Bradstreet, Equifax and Experian), at least quarterly. Carefully review your credit report, takes steps to correct any errors and consistently update the information each agency takes into consideration. That way you can ensure that whichever score a potential lender takes into account, your business credit score will be accurate.

There also certain steps you may not be aware of that can help you improve or establish a good business credit score. You should ensure that your vendors consistently report your payments to credit reporting agencies. Paying your vendors on or ahead of time is an excellent way to improve your score. Even if your vendors don't report to an agency regularly you can still cite them as a trade reference on your credit report. Similarly you should ensure that your lenders actually report your payments to credit agencies. This is vital, as you want your on-time payments to be reflected in your score.

Some other ways to raise your business credit score

The strategies outlined above are meant to help you consider issues you may not have been aware of. Knowing that each reporting agency calculates your score differently and that your payments to vendors (not just lenders) are reflected in your score are distinct factors taken to take into account with a business credit score. But strategies that improve your personal credit score are also applicable. Obviously you want to pay your debts on, or ahead of time in order to maintain your score. Credit utilization is also a factor, so you may consider getting a business credit card to help you establish your score. However keep the balance of these cards at 20 to 30 percent of the credit limit.

Your business credit score will impact the type of commercial loan you can obtain

Your business credit score will determine how much you pay in interest and the terms of any loans you may take out. It is important therefore that you keep your information up to date with all major credit bureaus, document your vendor relationships and ensure that your lenders actively report to credit bureaus.

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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Eager To Get Your First Commercial Mortgage? Here's What You Need!

As significant as the decision to go into business is, deciding to expand is even bigger. Not only are you taking on more responsibility, but you will need to take on a loan secured by your existing commercial property—or a commercial mortgage.

You have already done the hard part. A few years ago, you came up with a winning business idea, developed a business plan, obtained a loan, and opened your business. There were some growing pains along the way, but you powered through them.

Business is now going so well that you think it might be time to expand your operations. Maybe it is time to make your current place bigger or open a new office in another city. Whatever you want to do, there is one thing you are going to need—money.

Time to go to the bank and take out your first commercial mortgage, a loan secured by commercial property. There is just one question that has to be asked: How do you do it?

Step One: Talk To A Lender.

Before you start the process, it would be smart to find out what it entails. If you know a lender, make an appointment and talk to him or her. Find out what it would take to get approved for a mortgage in your area and what kind of interest rate you can get. This way if you don’t meet any of the requirements you don’t waste time and know where you have to be before you try again.

Step Two: Scope Out What You Want To Buy

After talking to a lender, you should have some idea of what you can get approved for. Talk to a realtor and ask them to point in the direction of locations you can afford that will meet your needs. They should also be able to tell you whether the seller is flexible on the price.

Before you move onto the next step, make sure you have your first choice in mind.

Step Three: Choose a Commercial Mortgage Lender.

If you already don’t have a commercial mortgage lender in mind, pick one out. Shop around a little to find who will offer the best rates and terms as well as the most money. Don’t rush the decision because it will affect how much you will end up having to pay back.

Step Four: Make An Offer

You know the location you want and how much you can get. Time to make an offer to the seller. Since you already have approval from a lender, you will be a more attractive candidate.

Step Five: Negotiate The Final Deal

As you negotiate with the seller, be sure and talk to your lender every step of the way. The quicker they are aware of things, the better. That way, if there is going to be an issue, they can inform you of it sooner.

Step Six: Time to Close on Your Commercial Mortgage

Once you have the deal done and approved, sign your commercial mortgage papers and get to work!

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

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.

Commercial Real Estate Loans: Who Can Give Them?

Who Can Approve Commercial Real Estate Loans?

At one point in time, banks, relatives, and loan sharks were the only options when you needed a loan. Nowadays, that is not the case. There are several options available to people looking for commercial real estate loans.

Opening your own business can be a dream come true. No longer will you depend on the success of a company to keep the paychecks coming in. The success of the company is going to rely on you. No more blaming the boss—because the boss is you!

If you think you have a can’t miss idea in mind and have the desire and determination to see it through, the first thing you will need to do once you develop a business plan is to seek out a commercial real estate loan. So—where do you start?

Where To Go For Commercial Real Estate Loans

Most commercial real estate loans are made by commercial banks, but they can be had elsewhere:

Credit Unions: A credit union is a considered a financial cooperative that is owned by its members and controlled by an elected board. The purpose behind them is to provide members with competitive credit rates and other financial services—including commercial real estate loans.

There are currently more than 6200 credit unions with over 21,000 branches serving 100 million members in the United States.

Commercial Hard Money Lender: If business is bad or if you have poor credit, you can still get a commercial real estate loan from a private individual, mortgage company, federal bank, or an SBA lender. Terms can vary, and borrowers will need to secure the loan with collateral or an asset of value. Interest rates tend to be higher to compensate lenders for taking on the greater risk.

Life Insurance Companies: for smaller loans, businesses will typically go to a commercial bank, but for a larger, long-term (+10 years) commercial real estate loans, life insurance companies have become popular options. Companies using them will have to use something like an office building or shopping mall to secure the loan. They tend to be conservative when it comes to approving loans.

Commercial Mortgage Backed Security Lenders (Conduit Lenders): these facilities lend money secured by some form of collateral, typically a mortgage on a piece of commercial property. They will usually have fixed interest rates and for a term of 10-years, but are considered more complex and volatile.

 How Do I Find a Lender To Meet My Commercial Real Estate Loan Needs?

If you are ready to take the plunge to find a lender who gives commercial real estate loans, look no further than Level 4 Funding. Our dedicated team of commercial specialists know commercial real estate. We work in multiple states and multiple industries. With our connection, we are almost guaranteed to be able to help you find a loan product that meets your needs.

Call our office today to talk to one of our professionals about commercial real estate loans and you. You will be glad you called!

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

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.

Commercial Real Estate Loans: Which Loan Is Right For You?

There are a multitude of commercial real estate loans. Are you sure you found the right loan for your business venture?

If you haven’t done your research yet, it may behoove you to know that there are several different types of commercial real estate loans. However, our focus will be on joint venture loans, participating mortgages and your standard real estate purchase loans. These particular commercial loans tend to be the most common choice when it comes to business ventures. Thus, with that being said, let’s go over what each of these loans can do for you and your next business venture.

For starters, a joint venture loan is what you want when all parties (generally two partners) are willing to share equally in the losses and profits of the property. Moreover, this particular commercial loan is extremely beneficial to those parties that cannot or may not be able to qualify for financing separately. A real estate purchase loan, on the other hand, requires one party or rather one borrower with excellent to near perfect credit along with the saving to back it up. Additionally, when it comes to collateral, in general, lenders tend to expect more with these purchase loans.

Lastly, participating mortgages, in essence, are when your joint partner is actually your lender. In other words, the lender receives the standard monthly payment plus interest, but because the lender is also a partner they ultimately share in the commercial property’s proceeds or income. This third option is definitely something to look into if you have potential tenants with financial stability and long-term goals.

How to Decide What Commercial Real Estate Loans You NEED!

So, now that we’ve gone over some of the commercial loan basics, it’s time to see what works best with your business plan and overall goals. Of course, additional research is always key to finding out which type of commercial loan will ultimately work best. But, nevertheless, when it comes to picking and choosing between the above-mentioned commercial real estate loans clearly the best course of action is to sit down and go over your credit score, your available capital or rather collateral and what your long-term purpose is for your future commercial property. Obviously, if you do not qualify on your own a joint venture loan would be in your best interest or you may even consider a participating mortgage, especially if you are interested in an office park. Ultimately, If your credit score is well into the 700s and you’ve got extra savings just laying around well then you have no reason to fear the all mighty real estate purchase loan.

Is Rotten Credit a Factor?

If you are like most business savvy people and do not have the credit scores that dreams are made of that’s perfectly okay. The reality is you still have other options, even more than we’ve covered. So, do not let rotten credit keep you from reaching your dreams or from taking your business venture to the next level. Remember, your goal is to pick a commercial real estate loan that works for you!

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

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.