The Real Deal On Commercial Bridge Loans

When you are looking into obtaining a loan from a lender you have many options at your disposal. Many people go the route of the bank, however, you do have hard money loans and commercial bridge loans, also.

From banks to life insurance companies, there are many different routes you can take to get a loan for your business. Most of the time people starting out in the commercial real estate business think the only way they can get a loan is through a bank. Banks are great places to go, however, it might take a while before you are approved for the loan you want. The process can take several weeks to complete and even then you are not guaranteed a loan at the end of the process.

Along with time constraints, you may not be approved for the loan if your credit report is not favorable in the eyes of the lender. Needless to say, if you have a couple of red flags on your credit report you might have to shop around for more than one bank to pitch your business plan. Some banks even go as far as doing a character check on some applicants. You may think this is not so bad, but you might have done some unbecoming things in college which may come back to the surface in your professional career.

Never fear hard money loans and commercial loans are here

So where can you go if you have these problems, then? The easy answer you can go to a private lender that specializes in either hard money loans or commercial bridge loans. You can use these loans to get the property that you want fairly quickly. In fact, a lot of investors starting out that do not have a ton of liquid assets can use this route to begin their career. Generally, it is a little easier to get either a hard money loan or commercial bridge loan.

What makes commercial bridge loans and hard money loans better?

Quite frankly they are both better when it comes to your credit report. Most lenders do not care about your credit report. When it comes to hard money loans most of the time the lender wants to make sure you have some form of collateral that you can offer. This means to be qualified for the loan 

itself, you have to possess something of equal or greater value that could potentially be auctioned off.

This happens in the event you cannot pay your loan back or you do not refinance it. Often people that are in the real estate flipping business go for a hard money loan; since they need to get financing quickly on properties. A commercial bridge loan is essentially the same type of process as a hard money loan, however, you usually apply for one while you are in between another transaction.

Say you have a home that you are in the process of fixing up and selling. However, another home becomes available on the market that you think would be a good buy. Applying for a bridge loan would be a good idea just to hold you over until the deal you have with your buyer is done. Hard money loans and commercial bridge loans great for these types of investments since they only last a few months to a couple of years, as well.

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.

How to Make Money With Commercial Real Estate

When you purchase a new property you expect it to be able to turn around a profit. In this article you will find out different strategies to earn additional income with your commercial real estate.

Commercial real estate is a hot commodity among investors. Quite frankly the possibilities are endless. You could have one location that is for your personal business. Another that you rent out to a tenant. Or one just for storage. It is all up to you when it comes to what you want to do with it. Fixing and flipping properties when done right is a very profitable, as well.

It's the little things that matter when it comes to commercial real estate

Taking the time out to make little repairs of cosmetic enhancements can make a vast difference in the amount of revenue that you end up making. Commercial real estate has hundreds of different variables that you can take advantage to bring in the best clientele. Many people make their money back if they take on a lot of the responsibility of managing their properties themselves. Why hire someone or a group of people to do something that can be done by you? You keep money in your pocket and in turn you can reinvest in something else.

 A great way to make money off of commercial real estate is to rent it out to multiple tenants. Say you have a property with roughly 2,400 square feet, instead of having one large business you could split it and have two businesses within the space. This is called a co-working space. Many of these types of businesses are popping up around the country. Depending on your assets you could buy a large piece of property and have two or three small companies renting space. Along with that, you can also give freelancers a payment plan in which you charge them to use the space. Judging on the different types of benefits and perks you have will also bring in more clients.

You can also do this with a home. Instead of having one family living in the house you have; instead, you can rent out the rooms and charge more than you would regularly with one person. By doing this you can make more money to pay off expenses that may come along renting out a space. For example, you may have to take out a commercial real estate loan to help cover the cost. If you were to rent off a home piece by piece you could possibly pay your loan off quicker.

What if I want to sell my commercial real estate property?

If you want to sell your commercial real estate you then should. As we stated before you have the power to do so. Judging on how must you put into your property the more you can possibly get for your money.  Say you bought a property below market value that does not need a lot of enhancements or repairs. You can sell it higher than market value. Or if you have a piece of commercial real estate with a business using it you can dissolve their tenure and sell it to them if they want the space.

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.

How to Get a Commercial Loan With Bad Credit

You want to purchase office space or a nice tenement in an upcoming area but you have a 320 credit score. This article will show you how to get a commercial loan even if you have a bad credit score.

Let’s face it debt and Americans go hand in hand. Most of us are trying to come out from under some form of debt. In a 2015 study, the U.S. Census Bureau concluded at least 38.1% of households in America have some form of debt. In the last quarter of 2015, the dollar amount of credit card debt in the U.S. was around $733 billion. In regards to mortgage debt, the amount was a staggering $8.25 trillion.

Needless to say, a few of us have a little debt in our name. But is that supposed to stop you from being able to by that nice home for your New England bed and breakfast? No. Everyone should be able to be an entrepreneur in this day and age. You can still get a commercial loan with bad credit there are just a few more things that you have to go through before you get the loan that you need.

Before you apply for a commercial loan plan ahead

First and foremost, you want to make sure you have a clear and concise business plan. You should be able to walk into your lender’s office and be able to give them the pros of giving you a commercial loan for your business. You want to make sure you give your lender a clear and in-depth plan of action. Show them the goals you want to accomplish with this business. Provide them with the tactics you will use to bring customers or tenants to the space you want to buy. Make sure you, yourself, know what you want to do with your business.

You could also make contact with your creditors. Trying to make payments on your debt can have a good impact on your credit score. As well all know this will not happen overnight. But making an attempt to rectify the situation looks really good in the eyes your lender. You may have to pay higher rates or addition fees, but with your commercial loan, you are one step closer to your property.

Where can I go to get a commercial loan if I have all of that?

Do not fret even though you may have bad credit you still have come options that you have at your disposal. There are some banks that will work with you however your options are kind of slim. An option that a lot of investors with bad credit look into is borrowing from hard money lenders. Most of the time hard money lenders do not worry about your credit score as long as you have a form of collateral. If for some reason you cannot pay your loan back, then the collateral used will be auctioned off for profit. The only drawback that you will most likely have is the higher interest rate that you will have to pay.

Here at Level 4 Funding we specialize in commercial loans for bad credit investors. You may end up paying a bit more interest but in the end it will be worth it to have the loan that you need to grow your business. Hopefully, this gives you the confidence to go and get your commercial loan for your news business.

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.

Is a Commercial Mortgage Broker a Good Idea?

Many people feel as though hiring a commercial mortgage broker may not be the right choice for them. Why hire someone else we you could do it yourself, right? This article is going to give you some insight on this valuable asset.

The process of finding commercial real estate can be very strenuous at times. When most people want to invest in a new property two thoughts usually run through their mind. “Should I hire a commercial mortgage broker to help me,” or “could I forgo a broker and do everything on my own?” You do tend to save a little bit more money when you do not use a broker, but there are advantages to having someone in your corner.

Having a commercial mortgage broker on your side helps

The biggest advantage a commercial mortgage broker has is experience. You do want to make sure that you are shopping around for the right broker. Make sure that they have a substantial amount of experience under their belt. This gives you the confidence that you are getting the best for the money you are spending. Using a broker gives you access to tons of connections and resources, as well.

Most reputable commercial mortgage brokers have great relationships with various banks and mortgage lenders. This takes a lot of pressure off investors looking for the right lender. Most people are busy which is very understandable. It usually takes several weeks to be approved for a loan it is a good idea to have someone that can check in and give you feedback. Instead of having to find time to wade through tons of features and rate plans, you have someone who will do it for you.

As we all know if you do not have knowledge in something you should ask an expert. That is what you are spending your money on. Someone that can correctly calculate the interest rate for you. Someone that is willing to sieve through all the intricacies of an agreement before you decide to commit with a lender. Hiring a commercial mortgage broker could mean a lot fewer setbacks and headaches at the end of the process.

 As stated before, a commercial mortgage broker’s main appeal is the fact that they are able to help you stop from making a bad decision. Many people that may consider taking on the process themselves may not take all the different fees into consideration. Anywhere from credit report fees to title search fees can be added on top of your regular payments. By having a commercial mortgage broker, you could potentially have some of these fees waived.

Commercial mortgage brokers really don’t do all of that, do they?

Believe it or not, they do. There are hundreds of different thing that could possibly go wrong when going through this process. Commercial mortgage brokers are there to help you with everything that you may have an issue with. Whether it is trying to find the right lender that fits your needs or acting as the liaison between all of the people that you talk to. 

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.

Is Having Commercial Real Estate A Viable Option?

We live in a digital era where a couple of keystrokes are much quicker than going to a store. Will your business profit from having commercial real estate?

For the last couple of years, the market has seen a boom of entrepreneurs and various startup companies. According to data from the Kauffman Index, there has been a steady rise of startups since 2011. With constant upgrades and new digital merchant software on the internet already, is it a good idea to have commercial real estate for your business?

In a perfect world, we would all have our own businesses. Stores on the main street in a bustling downtown area. As great as this may sound not all entrepreneurs need to have commercial real estate. Of course, there are certain businesses that you need to go to bakeries, restaurants, etc. But most of the new companies that are here now are best represented on a digital platform.

In fact, most companies that are in the market would greatly benefit without having commercial real estate. That means no monthly bills or rent. Having commercial real estate can also mean less money in your pocket. For some business owners taking out a loan on the property, they want to use. Depending on the type of the loan you may have to commit for the three to five years on a property that may or may not give you a return on your money.

Are there any advantages to having commercial real estate?

Short answer: of course there are. First and foremost, the feeling you get from owning a place that your business calls home is un-measurable. Having a physical place to call your shop or store gives you the confidence to go out and search for more customers. You build different connections that could not be made online. You also get that face to face interaction with your clientele; in turn, this helps your business thrive. Personal relationships are good for business. The relationships you build are for tomorrow, not for today.

Depending on your property you could potentially get a great appreciation of your assets. Things such as making the proper managerial decisions can help the value of your property increase exponentially.  Doing things like making renovations help your business grow in value over time. Whether it is replacing the sign or an awning, or you knock out a wall in your space to make it larger, every bit counts.

Maybe you want to rent out the space instead of using it for your own business. This means you have full control over the tenants you want using it. You also have the power to create rules based on what type of image you want to represent. Having investor control can also help with annual fees. For example, if you manage your commercial real estate you can charge a management fee that your tenant would have to pay for.

Having great commercial real estate also means great publicity

Publicity is also one of the biggest reasons you might consider have some commercial realestate. We are constantly bombarded with new ideas and businesses that try their best to catch the eye of potential clients. There is no telling how many different advertisements you see online a day for a new business. Having a storefront or even a small hole in the wall makes you tangible. Customers can go in and see the jewelry that you make. They can check to see if it fits them correctly. Customers can go into your boutique and feel the type of fabric that you have; they can be correctly measured for one of your designs they like. 

Alas, you have to judge based on your needs. Would you fair better on a digital platform, or can you benefit from having commercial real estate?

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.

The Real Deal When It Comes To Hard Money Loans

there are many different ways to get a loan for your new business. This article is going to give you the pros and cons of applying for hard money loans.

Hard money loans are a great option when you are thinking about borrowing money for your business or new property. Like most things it has its drawbacks. Hard money loans are great if you are denied a loan from a bank. While most loans usually take a long time to get approved, hard money loans are turned around quickly.

Hard money loans are classified as loans that are given by a private company. Traditional loans from banks take longer because they are interested in how you can repay the loan back. For example, if your credit score is not great it may take some convincing to receive your loan. The same goes for your job; if you are a freelancer, for example, a bank may not view your profession as reliable. 

When it comes to hard money loans, however, they really are not worried about that. Lenders are more interested in what you already have. Collateral is taken into consideration when you are applying for a loan from a private company. If you cannot pay your loan off, then your collateral is taken and sold off to cover your debt. The value of your collateral is taken into consideration more than your credit score or job.

Many people favor a hard money loan because of its short duration. Usually, these loans last one to five years. For those of you who are in the fix and flip business, this type of loan would be very beneficial to you. Say you find a property fix it up and then rent it out to a few tenants. After a short period of time, the money you receive from the property can be used to repay your loan.

Here is the crux of hard money loans

So far hard money loans have been the best option for someone to get the money they need quickly. Usually, lenders do not care too much about your credit status or how money you have. Getting approved all around much easier than going the traditional route. So what are the cons of a hard money loan? Well, the biggest one is the cost of the loan itself. As stated these loans are slated for a short amount of time. This means the interest rate that you have to pay is high than one from a bank. Usually, the APR is over 10%.

Also, your credit may be something you have to worry about. You may be thinking, “but you just said it may not matter.” In most cases it won’t, however, some lenders may pull your credit report to see if you have red flags. Most of the time this does not happen but you want to make sure you do your research with all the companies you are considering.

Bottom Line Are Hard Money Loans Worth It?

In short depending on your property and what you want to do with it, yes. If you see a great property that is in a great location that you believe can turn a great profit fast, this is something you want to do. Most properties that are in great locations are bought quickly if you do not have the liquid assets this is a great option for you. Always make sure to weigh the pros and cons of any loan that you are thinking of applying for.

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.

How to Qualify for A Commercial Real Estate Loan

In this brief write-up you will learn the basic ins and outs in regards to a commercial real estate loan. We will primarily cover the different institutions that are available to you; we will also cover different payment methods as well.

The transition from an online business to having a physical location is a very daunting task. One problem that many business owners run into besides finding the right location is finding the money they need. This article will help you with the basics of getting your loan.

You want to make sure you look in different places before you commit to an institution. Basically, when it comes down to it, you have four options; large banks, small community banks, life insurance companies and private hard money lenders.

When it comes to going the bank route, you have two options large banks--we’ll use the Bank of America as an example--or a smaller local bank in your city. Most bigger banks have a minimum and maximum loan amount. The Bank of America has a maximum of $2 million, but will make exceptions for higher amounts if certain criteria are met. Adversely if you are applying for a commercial real estate loan with a smaller bank you do not want to go that high. You should always do your research with the local bank in your city, and be sure to compare all the features thoroughly.

You have to weigh all of your options when looking for a commercial real estate loan

The other two options you have are life insurance agencies and private hard money lenders. Life insurance companies have pretty good rates, however, they tend to grant loans to businesses that are in good locations. Private hard money lenders outsource a lot of the money used from investors. This method of getting a loan is usually the fastest, however, the interest rates are a little higher than banks and life insurance companies.

Qualifying for and paying off your commercial real estate loan.

Now that you know where you could apply for a commercial real estate loan, you are probably asking yourself, what do I need to qualify? Having a plan on what you want to accomplish with your business is key. Make sure before you go into your consultation you have a concise and clear business plan. For some companies, a solid business plan will be enough to get you the loan that you are seeking.

So you have figured out what lender you are going to go with, and you have a clear plan on the business that you are trying to your potential lender. Your lender has taken an interest in your proposal and is looking to go forward with your commercialreal estate loan. The next thing you have to decide on is how you want to pay back your loan. You have two options when it comes to this: an interest rate reset or a balloon payment.

With an interest rate reset payment plan for the initial years of your loan you have a fixed interest rate. After that period is over the rate can decrease or increase depending on the economy. In regards to a balloon payment over a time period, the debt that you owe gradually reduces over time. After the initial years, you have to pay a lump sum of the remaining balance.

Now that you have the basics, you should feel confident in getting your first commercial real estate loan, giving your business a physical location.

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.