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Showing posts with label texas commercial real estate. Show all posts
Showing posts with label texas commercial real estate. Show all posts

Thursday, November 2, 2017

Data Centers are Booming as a Texas Commercial Real Estate Investment

how to get rid of a timeshare  19Data centers are in strong demand as technological advances emphasize cloud providers. These centers continue to look for cities with lower energy costs and available real estate, and have found Texas commercial real estate and land to be favorable.

According to D Magazine, data center demand is booming in North Texas. This is due, in part, to the city’s expenditure on its power grid. Downtown power lines are buried which causes less concern when large storms pass through. These types of businesses also have access to multiple power generation stations so that if one goes out, they have at least two backups. In addition, Dallas offers relatively low energy costs. Provision Data Services recently took over a 12-story building in downtown Dallas.

Dallas is said to be behind only one other location in terms of its data center market and that is northern Virginia. It’s hard to imagine, but they have even surpassed Silicon Valley. So what does a data center need and how can you cash in on this Texas commercial real estate investment strategy? A data center stores data and its power is measured in megawatts. The amount of storage they supply is based on the number of servers that they can run which is defined in terms of power. Why the sudden increase in data centers? Ironically, because of the Cloud.

Because of the increasing use of the Cloud, companies need what data centers provide—secure space. AllianceTexas, a private developer, is cashing in on this demand and is currently a strong contender as one of the top data center developers. The AllianceTexas data center contains a 150-acre Facebook data center that cost the mega social media star $1 billion. It is powered by a 200-megawatt wind farm and has additional acreage available for more data centers in the future.

Getting in on Data Centers

Data centers are a relatively new Texas commercial real estate investment strategy. Though they have been popular in the REIT sector for some time, they are now gaining attention with private equity and public institutional investors. According to the National Real Estate Investor, “Digital Bridge Holdings was formed in 2013 with more than $6 billion in equity and debt capital to invest in data centers.” In the REIT sector, the first quarter of 2017 showed a gain of 10.41 percent with data centers. In 2016, data center REITS posted a gain of 26.41 percent. As this sector grows, competition may end up being fierce in those parts of the country with lower cost energy sources.

Demand for smart Texas commercial real estate data centers is on the rise and so are merger and acquisitions. As those in the field become larger and more experienced, newcomers may find it difficult to penetrate the sector.

The Internet of Things continues to change the players and the structure. With data center REITs boasting an ROI in the 10 to 15 percent range, investors will continue to view these centers as strong investment opportunities. Pressure continues to find solutions for those that live and work outside hub markets. As promising new cloud technology emerges, major cloud providers will need to triple their infrastructure by 2020.

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
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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

Texas Commercial Real Estate Continues to be in High Demand

cid_87129CA4-8997-4497-93EA-0E8446CC772ABig purchases are continuing in Texas commercial real estate with demand outpacing supply. Learn the basics of starting out in this investment strategy.

Texas commercial real estate developments have continued to be on the uptick, though sales are not expected to reach the highs seen last year. The largest sale of 2016 was the State Farm Insurance regional headquarters in Richardson, Texas which went for a whopping $825 million. Some real estate agents are suggesting that there would be more sales this year if there were more commercial buildings to sell, but demand continues to outpace supply. Here, then, are a few of the big purchases that occurred in 2017.

The Dallas/Fort Worth area saw more than $400 million in Texas commercial real estate office building sales—the most of any city in the Lone Star State. Other top commercial property sales in this same area include the Liberty Mutual Insurance’s twin-tower office complex in Plano’s campus which sold for $360 million. The 230,000 sq ft office tower and 100,000 sq ft of retail space known as Turtle Creek Village sold for $123 million. With these types of figures and the high demand, many are considering branching out into the commercial sector.

For those just starting out in Texas commercial real estate, you probably already know the potential benefits such as a steady cash flow, multiple streams of income and increasing wealth and security. Other benefits to consider are longer lease options than residential properties which provide reliable monthly income. In addition to monthly rent, some commercial real estate requires a triple net lease in which the tenant pays property insurance, maintenance and real estate taxes.

Doing your Homework

Before diving in head first, you will want to perform due diligence. This requires knowing the markets and researching the various types of properties such as multifamily, office, industrial, mixed-use, warehouses and retail. Consider the location and understand the neighborhood as well as the current supply and demand. Analyze comps in order to determine current market value. If you’re not quite up to speed on this process, get a good real estate agent to join your team. Calculate the net operating income—revenue minus operation costs such as insurance, utilities, maintenance and taxes— as well as the cap rate. The capitalization rate is the ratio of Net Operation Income to property asset value or cost. As an example: A property listed for $1 million which generates a net operation income of $100,000 would yield a 10 percent cap rate. This figure is used to compare similar properties and to look at historical trends to determine the direction of valuations.

If you’re wondering just what you’re getting into, consider working with a mentor for a bit. Know your own strengths and then fill in any missing expertise with team members that are qualified and that you can trust such as contractors or Realtors.

When it’s time to obtain the capital that you need for your project, call us at Level 4 Funding. We specialize in private hard money loans that often fund in days instead of weeks. We offer flexible terms from 3 to 60 months and have developed a fast and easy approval process. We loan on up to 85 percent of the as-is-value and 100 percent of the rehab costs, and have become the go-to for many investors, contractors and developers who reach out to us when it’s time to fund their next project and add one more property to their portfolio. Who knows? Maybe one day you’ll be making a bid on the next multimillion dollar office complex.

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
clip_image002clip_image004clip_image006clip_image008
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

Building your Texas Commercial Real Estate Portfolio

Banner_imgBuilding your Texas commercial real estate portfolio can lead to tremendous wealth or increasing stress and financial hardships. Here, then, are a few tips to help you fall into the first category.

You probably have a friend that made it big in the world of real estate investment. Or, maybe that’s had a friend—it’s difficult to catch up with each other when he’s off on yet another around-the-world excursion or Caribbean island hopping cruise. But you can almost always be guaranteed that no matter how easy his life may appear now, there was a time when his nose was to the grindstone and properties that broke even where as numerous as those that made a nice ROI. He learned a lot along the way—if you’re successful as a Texas commercial real estate investor, you have to. Here, then, are a few tips he might share with you if he wasn’t so darn busy jet-setting.

Know Thy Market. This is probably the number one rule when it comes to real estate investment strategies. It’s similar to digital marketing and the number one rule of knowing who your target client is—it’s difficult to know what to pitch if you don’t know who you’re pitching to. To this end, know the demographics. Is this a town of families with young children or up-and-coming professionals? How has the market and rentals vacillated as far as pricing and demand over the years? What percentage of the homes in the area are owned and how many are rented? What is the occupancy and rate rent for the multifamily units? You can save yourself a lot of headaches and start growing your portfolio the right way by understanding the market you’re getting into. Key components include strong job growth, low vacancy rates, a growing population, and affordability. If the thought of researching these important considerations has you looking longingly at the great outdoors, consider getting a real estate agent on your team who can do the dirty work for you and knows the ins and outs of that end of the business.

Budget and Plan. While you would think these two factors would be first on the list when considering developing or purchasing a rental property, you’d be surprised at how often they fall by the wayside. It could be due to the tug of your heartstrings as you look longingly at the property you know you can renovate and turn from a broken down heap of a once-was to a country cabin trimmed in pine with flower boxes overflowing with petunias and a comfortable porch that gleams in the sun. It’s just a shame that when all the numbers are finally crunched, you can’t seem to sell it for the amount you require to make a profit. You outpriced yourself by putting too much money into the property—so much so that the current market cannot sustain it. Before plunking down your recently Texas commercial real estate loaned money, make sure to have the home inspected and, if you won’t be doing the work yourself, get some bids from the local general contractors when laying out the budget.

Additional Considerations when Building your Texas Commercial Real Estate Portfolio

What’s your profit margin and are you looking for cash flow from a rental or a rapid ROI from fixing and flipping? And just as important, if not more so, is the type of funding you secure for the property. Is there a penalty for early payoff? What are your terms and exit strategies?

At Level 4 Funding, we offer construction loans, bridge loans and private hard money loans, all designed to get you the funds you need when you need them so that you can start your project with little worries.

We work with hundreds of private hard money lenders in order to find the right funding for your project at the best possible rate. Call us today 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
clip_image002clip_image004clip_image006clip_image008
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

Wednesday, November 1, 2017

In the World of Texas Commercial Real Estate--Austin has been named America’s Number One Non-Gateway City

4page_img2-bigTexas commercial real estate investors are turning their attention to non-gateway cities. Austin has just been named the number one non-gateway city for Texas commercial real estate investors.

A gateway city is defined as a primary arrival and departure point into a country such as an airport or a seaport. In terms of commercial real estate, it usually defines the big and the bold—and is represented by cities such as San Francisco and New York. But these larger than life cities are currently facing some challenges due to over-supply and low yields. When the subprime mortgage crisis changed the face of the nation, real estate investors first returned to those markets that yielded the best ROI and had strong demand. Because of this, these types of markets are becoming oversaturated and investors are turning their attention to non-gateway cities.

Non-gateway cities that seem to be the hot spots for commercial real estate investing include Phoenix, Denver, Portland—Oregon, that is—Charlotte, Raleigh, Nashville and Atlanta. According to the global law firm DLA Piper’s State of the Market Survey, Austin recently came out as the top non-gateway city in America for Texas commercial real estate investing—quite an achievement for a town whose population falls under 1 million. It does have all the attributes that investors look for including a strong job market, growing population, educated demographics and/or a strong industrial sector. Now could very well be the time to get into this burgeoning non-gateway market while it is till attractively priced and supply has not overshot demand.

According to the Austin Board of Realtors, “Central Texas housing market sees record-breaking 2017 summer selling season.” The sales of single-family homes in the city of Austin jumped over 6 percent year-over-year. And in the five-county area, home sales topped $1 billion in a single month. The median price continues to rise as well and came in at approximately $361,000 in the city of Austin in August and $300,000 in all five counties. Currently, there does not appear to be an increase in supply to the extent that it has started affecting prices, leaving investors confident in a high yield that is difficult to obtain in some of the gateway cities.

Hot Texas Commercial Real Estate Investments in Austin

So just which markets are investors turning to? As evidenced by the numbers, single family homes seem to be a lucrative venture. Multifamily units also seem to be a hot market and as more and more businesses continue to make Austin their home, the need for these types of properties should continue to ensure optimum occupancy and good rental rates. After all, people always need a place to live which makes these types of investments fairly stable if purchased in the right areas. And, while investments in retail have been a little bit rocky lately, secondary markets still seem to offer relative value due to job growth and a lower cost of living than the gateway cities.

Private hard money lenders offer short-term loans to Texas commercial real estate investors for these types of projects.

If you’re looking to purchase a property for a quick fix-and-flip or for a rehab and hold, seeking funding from a private hard money lender is often a good choice for real estate investors. This is primarily because the time to funding is much shorter than a traditional bank, getting you the capital you need to start your renovation or purchase that ideal property that just came on the market. At Level 4 Funding we can often provide you with the capital you need in less than a week.

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
clip_image002clip_image004clip_image006clip_image008
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 15, 2017

The “Pros” of Short Term Commercial Real Estate Financin


3page_img1To grow any business to the next level, it’s important to have the financial backing in place to be order to afford expenditures of expansion. Short term commercial real estate financing can take your company to next level but first you’ll need to understand what will be required of you to make sure you are eligible for this type of loan.

Short term commercial real estate financing can be just the solution to the problem of coming up short on cash. Unlike conventional financing options that have five or ten year repayment terms, the repayment schedule of a short term is typically much shorter — likely between three and six months. This type of financing is also usually approved easier than traditional long-term loans and the payment restructure can be made in not only smaller, but also more frequent payments – whether daily or weekly – versus a monthly lump sum. When securing this type of financing its important to figure into your budget the repayment.

Another “pro” of short term commercial real estate financing is that you can get the cash you need relatively fast. This is important when your company is in a tight spot and it’s also a good way for new companies to establish some business credit, which can be beneficial, and help them improve their chances of getting approved, if they need to apply for a larger conventional long-term loan later on. The ability to show a lender that you have had, and paid off, previously loans, helps your eligibility.

Short term financing is great for new companies and businesses with not so great credit history that are working on rebuilding their credit scores. These types of loan application processes don’t typically require a high minimum credit score for approval, which conventional lenders and banks usually do. However, if you are able to get approved for this type of loan and are able to restore your credit score by repaying the loan as outlined in the loan agreement, this can make other loan applications you may apply for later on look more desirable.

With short term commercial real estate financing, you don’t have to wait too long to get the money you need.

After applying for the loan, going through any additional necessary steps of approval, and finally, actually getting approved, you can receive the cash in as little as a day. For companies that are really in need of cash very quickly, this type of loan can really save the day!

As with any upside, there are some downsides, too. There are a few “cons” that are involved with this type of short term financing.

While these loans can be very helpful for new businesses and companies that are experiencing some growing pains and need cash fast, there are a few things to be aware of. These loans are associated with much higher percentage rates of these than the average APR associated with conventional long term financing. This is because the repayment window is much shorter. The APR is higher comparative to the length of the loan schedule, usually between three and six months. To estimate and convert the APR, add the finance charge plus the interest rate. Typically, lender fees will also be required for this type of financing.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

Monday, October 2, 2017

How a Texas Commercial Real Estate Loan Differs from a Residential Loan


3page_img4-bigObtaining a Texas commercial real estate loan is a very different process than applying for a residential loan. Consider these tips when searching for funding for your next project.

Texas commercial real estate loans are capital that is obtained for business purposes, whether renovating an existing home to sell or rent, building an apartment or developing office space. These types of loans are typically secured by collateral or liens on the commercial property. How institutions and lenders determine if one is qualified is a much different process than a traditional home mortgage that requires bank statements, recent pay stubs, prior tax returns and your credit report.

When obtaining a loan for commercial use, the lender is first and foremost interested in the property or the project. If it’s an existing property, they will want to see photos of the inside and outside, operating history, cash flow and current schedule of rents. The net operating income (NOI) must be at least 25 to 45 percent over the commercial mortgage payment. Another way that lenders state this is that the debt service coverage ratio must exceed 1.25 to 1.45. The requirements are very different depending on the type of lender of which there are many including traditional banks and credit unions, insurance companies, Small Business Administration, pension funds, government agencies, CMBS lenders and private hard money lenders.

While individuals generally obtain home mortgages—corporations, partnerships and trusts are often formed in order to obtain Texas commercial real estate loans and develop projects. There are both non-recourse and recourse loans. A non-recourse loan means that the only “recourse” the lender has should the borrower default is to take the property. A recourse loan means that the borrower is personally responsible and the lender has the right to try and collect any balance owed even after taking the property back. Another consideration that is often different between these two types of loans is the prepayment penalty which often accompanies a commercial mortgage.

Loan-to-Value and Debt-to-Income Ratios

Recently, Fannie Mae and Freddie Mac increased their debt-to-income ratio limit from 45 to 50 percent of pretax income, making it easier to qualify for these types of loans. While standard requirements for a home mortgage, they also come into play for commercial mortgages if the borrower is considered a secondary source of payment such as in a recourse loan. The loan-to-value is another important underwriting ratio that differs from home and commercial loans. It represents the value of the loan against the value of the property, determining how much equity the borrower requires. It is the amount of the loan divided by the purchase price. Commercial loans generally require an LTV of 65 to 80 percent while home loans will sometimes allow up to 100 percent LTV.

Consider a private hard money lender for your next Texas commercial real estate loan.

At Level 4 Funding, we work with hundreds of investors that offer private hard money loans. These types of loans are based predominantly on collateral and offer quick funding as well as interest-only payments and no prepayment penalties. Call us for a no-obligation quote today.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

Four Common Mistakes Among First-Time Texas Commercial Real Estate Investors


Commercial-Buildings-smIf you’re just delving into the lucrative investment strategy known as real estate, there is much to learn from those that have come before you. These, then, are the tried and true—the what not to do as you aim and take fire at your first Texas commercial real estate investment.

One of the most common errors first-time investors experience is what is known among the established set as “eyes bigger than their stomach.” Instead of starting small and getting their feet wet, many first time investors start with a major overhaul or a multifamily property instead of a simple rehab or rental. While real estate investing is about the numbers and the bottom line, it’s also about experience, which leads us to the other major faux pas among first-time Texas commercial real estate investors—not sticking with what they know. If you’re a contractor, you’ve got a great head start among those investors or fix-and-flippers whose experience has been derived from watching HGTV. But even you, my friend, who understands timetables and costs, can get in over your head. Team up with other experts such as a real estate agent who knows the markets or a mentor who can lead you down the path of profitable CRE.

Mistake number three is all about the money and not having enough capital reserves when the unexpected arises—and nine times out of ten, you will get a surprise. From water damage and rotting wood to bad wiring, keeping some funds set aside for these occurrences will keep you from having to search for funds mid-stream, never a good scenario.

Surprises are less likely to occur when you have a good team in place which leads to mistake number four—trying to do it all yourself. If you’re not a real estate agent, consider getting one on your team that knows the market and can suggest what upgrades are worth the price and which ones will price the home out of the market. If you’re not a contractor, find one that has your back, that is excellent at what they do and knows how to bid with precision, and that you can trust explicitly.

Location – Location – Location

The small business mantra—location, location, location—applies to Texas commercial real estate investments as well. It’s important that you understand the market—is it a growing community with a good job market? How is the school district? Is your target tenant or buyer a family, college student, or professional? This needs to be decided before you start your renovation because it will determine, to a large degree, the design.

Consider a private hard money lender for your first Texas commercial real estate project.

At Level 4 Funding, we provide hard money asset-based loans. These types of loans are quick to funding and do not require the stringent credit scores that traditional lenders are bound by. We offer competitive interest rates and terms as long as 60 months. We can also set you up with your next bridge or construction loan and have worked with many a developer to supply all of their funding needs for multiple projects.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

For Texas Commercial Real Estate Investors—Check out Irving / Las Colinas


p1_img4Dallas has been on the mark in terms of job growth and affordability, traits that Texas commercial real estate investors search for when looking for their next project. Las Colinas, located in the Dallas suburb of Irving, is bringing in corporations and needed multifamily units at a tremendous rate.

The Texas commercial real estate developers who have already delved into this lucrative market, probably already know about the growing corporate hot spot known as Irving. In particular, Las Colinas, the upscale area in this Dallas suburb that seems to be attracting corporations and encouraging corporate relocations. Its location is part of the draw—located between Dallas and Fort Worth and close to DFW International Airport and DART. Irving is also home to several universities, providing, for those incoming corporations, an educated workforce. Another calling card is simply that the town has made it their mission.

There are several steps that this area has taken in hopes of drawing in big business. This includes offering rich incentives to corporations looking to move and the creation of the Toyota Music Factory to add to its entertainment sector. This entertainment destination consists of an indoor concert hall, outdoor amphitheater, retail, restaurants and a movie theater. According to an article in Bisnow, Parmenter Southwest Region Senior Vice President Josh Hedderich said, “The combination of amenities, affordability and access to the metro sealed the deal in a recent lease his firm negotiated.”

Las Colinas is home to more than 2,000 companies including ExxonMobil, Kimberly-Clark, AT&T, Citigroup and General Motors Financial. Rumor also has it that they are vying for the next headquarters for Amazon—a move that will be providing some fortunate city with 50,000 jobs. About the only criteria they do not fit that Amazon has deemed necessary is its population which doesn’t quite make the million mark. It does, however, rest in the arms of Dallas, a city of close to 4.6 million. As the jobs, people and corporations arrive, this town of 85,000-plus is continuing to see an increasing demand for multifamily units.

Multifamily Unit Development in Las Colinas

Alexan Las Colinas, a 307 multifamily unit, was completed at the end of 2016 and features garden courtyards, a pool, and amenities such as a bike shop, wine tasting lounge and virtual golf. JPI, one of the top Texas commercial real estate developers in the multifamily unit segment in this area just purchased another development site in Las Colinas’ growing Urban Center. It also has two new apartment developments on nearby properties. Last year, JPI had over 3,100 units under construction.

Private hard money lenders are often the go-to for developers looking for capital for this segment of Texas commercial real estate.

Private hard money lenders can offer rapid funding for developers needing to make a quick bid on a property that just hit the market, one of the common reasons that real estate investors obtain these types of loans. At Level 4 Funding, we provide funding for multifamily projects up to $50,000,000 with an LTV up to 90 percent. We offer a quick response and competitive rates. Give us a call for a no-obligation quote.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
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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

Financing with Texas Commercial Mortgage-Backed Securities


4page_img2Texas commercial mortgage-backed securities are a choice of funding for real estate developers. Here are the facts concerning this type of commercial real estate loan.

Texas commercial mortgage-backed securities (CMBS) are fixed rate bonds that represent an investment in a portfolio of varying property types and sizes, and that are backed by commercial real estate mortgages. Generally, the loan-to-value is 60 to 70 percent with a 10-year loan term, interest-only payments, and a balloon payment at the time of maturity. When they came on the market in the 1990s, they proved very useful to commercial real estate developers due to the improved loan availability and rates.

As of May 26, 2017, $27 billion in commercial mortgage-backed securities have been issued—down 6.6 percent from the previous year. The reduction is due, in part, to the risk-retention regulations that require the issuer to hold 5 percent of the securities. These regulations favor bigger banks, leaving many of the smaller lenders to observe from the sidelines. Another factor is based on the cyclical nature of things and the growing concern that the market has reached the summit and is heading for a decline.

In 2016, banks made up most of the capital providers—a little over 50 percent of investors. Fannie Mac and Freddie May came in at 18 percent of debt investors while life insurance companies made up 11 percent of the group. The remaining were securitized debt holders such as CMBS. What’s interesting to note is the dramatic drop in CMBS lending, peaking at $229 billion in 2007 and dropping off to $76 billion in 2016. This drop off has been blamed on rising fears of saturation as well as the mounds of loans that were issued in 2005 to 2007 and that are now maturing. The numbers, however, suggest that there is little cause for concern as the $65.6 billion in debt that reached maturity during the first six months of 2017 only showed a 6.4 percent delinquent rate

Obtaining your next Texas Commercial Mortgage

Texas Commercial mortgage-backed securities can be a good choice for longer-term acquisitions; however, the prepayment penalties often associated with these types of loans can serve as a deterrent. In addition, the new requirements have meant that obtaining these types of loans can be more difficult and time to funding longer as underwriting has tightened its belt. Loans are also based on LTP or loan-to-purchase as compared to LTV or loan-to-value which may require additional equity. Modification and additional fees such as insurance review fees can add up. These types of loans have certainly served their purpose and helped many a developer obtain the needed capital. Just be sure to add in all the varying factors when laying out a budget and consider alternative options.

Consider obtaining capital from a private hard money lender.

At Level 4 Funding we work with hundreds of private investors, one who might just be interested in your next project. Our private hard money loans provide quick access to capital, terms up to 60 months and competitive rates. Call us for a complimentary quote.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
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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