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Sunday, September 24, 2017

I’m Worried About Qualifying For A Texas Commercial Real Estate Loans – What Do I Do?

warehouse_rackIt is no secret that the Texas Commercial Real Estate Loans landscape has changed a significant amount in the last few years. Lenders have not only gotten more conservative (even non-traditional lenders), but there are also numerous regulations now in place.

If you are pursuing a Texas Commercial Real Estate Loans, you are right to be cautious. It is, after, a lot of money and you are depending on your ability to increase your profits in such a way as to be able to pay it back quickly. This does not mean, however, that it is not something that is achievable.

Qualifying for a Texas Commercial Real Estate Loans is not an easy process, but if you are already worried about whether or not you will qualify, then you are on the right track. Not to worry further, but to pay enough attention to detail to ensure your success. You will also have to be honest with yourself to make sure that you are putting your efforts in the right direction

The first thing to do is to take a good look at your financial situation. The first thing that you are going to want to examine is your credit. Traditionally, lenders look for a credit score of the borrower to be at 680 or higher. If you qualify for this, then you are already off to a great start. This means that you have the option of choosing from traditional and non-traditional lenders. If your credit score falls below this, all is not lost, but you are going to need to make up for lost ground in other areas and you are very unlikely to obtain a loan from a traditional lender.

The next thing that you must examine is your ability to repay the loan. From the standpoint of a small business, this means taking a good look at your cash flow. The bank doesn’t necessarily care about your profit, or what you think your profit might be, they care about whether or not you have enough cash flow to have a capacity to pay them back over the course of the loan. For the most part, the net operating incoming must be at least 25% higher than the proposed payment. If you are not able to sustain this type of cash flow, then you may need to explore other options.

Finally, you will need to examine the type of collateral that you might be required to put up to secure your Texas Commercial Real Estate Loans. The role of collateral has also changed significantly in the past decade, but lenders have changed their strategies due to the fact that many of them were left having to sustain huge losses after the real estate market plummeted. To reassure lenders that they are making a solid investment, collateral is used as a way to secure the loan. So you will need to examine your assets in comparison to the amount you are looking to borrow. Do your assets only cover 5% of the expense? 25%? More? No matter what it is, there are still options available, but you need to be realistic with the financial situation so that you can identify the correct avenue.

I have good credit, excellent cash flow and sufficient collateral, so what do I do next in my pursuit of a Texas Commercial Real Estate Loans?

Keep all of your paperwork in order and start looking! Finding the right lender for your loan is going to take some work and it will definitely take time. You might even want to consider hiring a broker to help you find the most amicable repayment schedule and terms for you.

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

How Do Texas Commercial Real Estate Loans Work?


2page_img1-bigIf you are looking into buying real estate for your small business, whether this is to expand your office space or to add properties to your real estate portfolio, then you are most likely seeking out a Texas Commercial Real Estate Loans. But before you begin looking for lenders, make sure that you understand exactly how these loans work.

Capitalizing on a real estate opportunity or improving your existing business space can often be a very stressful process. Not many small businesses have the capital on hand to take advantage of potential growth opportunities of this nature. This is exactly why Texas Commercial Real Estate Loans exists: to enable small businesses to make improvements or capitalize on real estate opportunities that will take them to the next level and increase their long-term profit potential.

Knowing how Texas Commercial Real Estate Loans work will help you to not only prepare yourself and your business for a potential loan, but will also help you to negotiate the best terms for you and the future of your business.

Technically, real estate loans for businesses are nothing more than a mortgage, as an individual would take out on their personal property. You are given a loan of a significant amount, agreed to be paid back over a certain period of time. This loan is secured by the value of the property that you are purchasing. If you default on your loan, the lender has the right to seize the property that the loan was used to purchase. This is a very standard practice and serves as a guarantee for the lender that the borrower will not just default, given the chance.

Also, just like a typical mortgage, the borrower is often required to front a down payment. For residential property, the percentage of payment varies and the same is true for a Texas Commercial Real Estate Loans. Typically, a small business owner can expect to have to put down approximately 25% of the value of the property for the loan.

Texas Commercial Loans also differ from a traditional mortgage in their repayment terms. A residential mortgage is often termed out over 30 years and amortized for that time period. A commercial property can have either short term or long term repayment terms. However, even a long term repayment schedule usually doesn’t go over 20 years. Again, the hope of the lender is that the infusion of capital for a small business will lead to a quick increase in profit potential so that the loan is able to be paid back even quicker.

How else are Texas Commercial Real Estate Loans different than a traditional mortgage?

One other feature of a Texas Commercial Real Estate Loans is that they are often paired with a balloon payment. This is a large payment that eliminates the remaining principal balance at the end of the term of the loan. Prior to this payment, you will have fixed payments that are of the same amount, amortized with interest. The payment schedule, however, is designed to have a certain amount left over at the end of the repayment period. That is where the balloon payment comes in. This is another structure that allows for businesses to build up momentum before having to dip into capital to make a large payment.

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

How To Know If You Should Use A Broker To Secure A Texas Commercial Loans


24684042Pursuing a Texas Commercial Loans can be a time consuming and frustrating process. Using a broker can help ease some of that frustration and free up your time to be able to focus on growing your business.

Using a broker to secure a hard money loan for your business might not be what you think. Traditionally, borrowers steer away from a broker because they want to avoid the perceived fees that come along with such services. But this might not always be the best choice.

Sure, many brokers will charge a small fee to do the leg work that a borrower will normally have to do for themselves, but they also have a great deal of experience hunting down and negotiating loans. Borrowers often have very little, if any at all, experience do this and might not have the ability to know when a loan is not going to be in their benefit. A broker will be able to identify when a Texas Commercial Loans is structured in a way to take advantage of the borrower or when the terms are unrealistic.

Another benefit of using a broker is that they are familiar with the agencies and personalities associated with Texas Commercial Loans in your area. They will know exactly who to talk to not only expedite the process but also to cut through the red tape and get you the best possible rates. These personal connections within the industry are something that no borrower could ever hope to achieve on their own.

In fact, many lenders appreciate the use of brokers, as it greatly cuts down on their work load as well. Lenders do not want to spend any more time on a loan than they absolutely have to. It is simply not cost effective. Lenders are looking to process as many loans as quickly as possible. That is what makes them the most money in the Texas Commercial Loans game. And this is where a broker can provide a tremendous advantage. Not only are they able to ease the burden and workload for the potential borrower, but they also make it easier for the lender. Brokers know the process and requirements much better than borrowers, so a broker requires much less hand holding than borrower. This translates to an easier process for the lender.

But don’t Texas Commercial Loans brokers cost money?


If you decide to go with a broker, it is better to look at the big picture. A broker might cost you money, yes. However, you have to look at what a broker will save you when it comes to a Texas Commercial Loans. First, a broker will undoubtedly save you time. You will have to provide all of the correct financials that are needed for the application process, but a broker will take it from there. They will be able to hunt down multiple offers for your loan in a fraction of the time. Brokers will also save you on stress. Part of the loan process is knowing where to go and who to talk to. Brokers have that knowledge on hand. You will no longer have to do that leg work. And finally, brokers are going to be more likely to secure you a better rate and terms. They work with lenders every day and are going to be saving the lenders time and energy as well. This could easily translate to more favorable terms for the borrower. So while it might cost you to use a broker, if you look at the big picture, in the long run, you might actually be saving money.

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

Texas Commercial Loans: Types of Hard Money Loans

80-960x631Even within the Texas Commercial Loans category of hard money, there are a variety of forms that loans can take. Knowing which is best for you and for which loans you are eligible will help you to maximize your hard money.

By now you likely know that it is difficult to get a hard money loan without some sort of security that is put forth by the borrower at the time of lending. While this can take many forms, the most highly accepted form of security is real estate. Lenders know that such an asset is not only not likely be quickly sold off, but it is also not likely to depreciate much over the course of the loan. This provides a great deal of stability.

With real estate as your basis for negotiation, there are a number of ways in which you can structure your Texas Commercial Loans. The first, and most likely for small business owners is the standard hard money loan. Essentially this a loan that is given to a business entity rather than a private individual. Although it might seem counter-intuitive, business entities are considered a higher risk borrower than private borrowers, as the business world is much more chaotic than many individual financial realities. These Texas Commercial Loans will often have a very short term (compared to traditional loans), which will most likely be a year at the most. This is acceptable to most businesses as they often use the loan to infuse the company with capital with the goal of ramping up profits, enabling them to quickly pay the loan back.

Another type of hard money loan is one in which the borrower does not deal directly with a lender. In cases like these, a broker will handle the loan. This might seem like an unnecessary cog in the wheel, but it can actually be very helpful. Usually, a broker will “shop around” so that you, as the borrower, do not have to. The drawback of this type of method is that the broker will charge a fee, in addition to the regular interest that you would be paying on the loan. The convenience, however, might be worth it to you.

If you are seeking out a Texas Commercial Loans to make property improvements, you are most likely looking for a fix and flip loan. This can be used for any type of property improvement, whether it be to an office building or a multi-family housing unit. Many borrowers use these types of Texas Commercial Loans to make drastic improvements on properties in preparation for an immediate sell. These borrowers will then use the profits from the property sale to repay the loan. This is, obviously, a great investment, if you are positive that the property will sell very quickly. If you are attempting to do a project of this nature with a hard money loan, ensure that there is no penalty for early repayment, as you will want to pay the loan back in full as soon as the sale is final to avoid interest charges.

How do I know which type of hard money Texas Commercial Loans is best for me?

It entirely depends on what you intend to do with it. If you are looking to infuse your business with capital to take ramp up sales, then a traditional loan is probably what you will need. However, if it is for the purposes of improvements to real estate to then sell, a fix and flip loan will work out wonderfully.


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

Tips and Tricks for Getting the Best Texas Commercial Loans


4page_img8If you are like many borrowers, by the time you get to the point of being accepted for a Texas Commercial Loans, you are tired. It has undoubtedly been a long process, but your job is not yet done!

Once you have an offer letter, the hard part of the process is over. However, there is still work to do. Now you need to make sure that the terms and rates are what you want them to be. The important thing here is to be realistic. No one will take you seriously if you are asking for outlandish rates and terms. Get a competitive offer or two so that you have a baseline when you begin negotiating with your bank of choice. When seeking out the best scenario for your Texas Commercial Loans, having more information is always a good thing.

Another tactic that has been proven over centuries of negotiation, but is often forgotten, especially by small business owners, is to never take the first offer. There are a variety of reasons why people forget this tactic, including being fatigued by the process or being in such a crunch on their timeline, but it is critical. Banks often add in a small cushion to their proposed pricing. This gives them some room for negotiation. If you are too eager to sign on the dotted line for your Texas Commercial Loans, there is no reason for the bank to reduce this cushion.

If you prove to your lender that you are not only savvy by having other offers on the table and show them that you are not too eager by immediately jumping at their first offer, you will have a tremendous amount of leverage in your negotiations with them. Another trick that will assist you in getting the best terms and rates for your loan is to work on a banking relationship with your lender that will include many different financial accounts.

By reinforcing to the bank that you are considering either keeping your existing accounts there or opening up new ones, it will not only signal to them that you are serious about fulfilling your payments of the loan, but they also might be able to come up with a better offer for you if it is packaged with other accounts. This is most often the case with small banks and credit unions, ironically. To a smaller, local bank, the revenue that is possible various loans to local small businesses is incredibly appealing. If you couple this with business accounts, credit card offerings and investing opportunities, this presents plenty of opportunities for a small local bank to get their cut while still offering you excellent terms.

In fact, it is often a good idea to let lenders know at the outset that you are considering moving your entire financial suite to the institution that houses your Texas Commercial Loans. You might even get favorable terms at the beginning and be able to negotiate them down even further.

How can I best convince a local bank that my other accounts are worth working with me for an appealing Texas Commercial Loans rate?

Bring documentation! Do you process a lot of credit cards? Bring the statements. Do you already have a business checking account or business credit card? Bring statements showing the level of activity. Local banks will see the profit potential for them and will most likely be easier to negotiate with when it comes to your loan rates.

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

Why Your Business Plan Is Essential To Your Texas Commercial Lending Strategy


1page_img2-bigIf there is one certain key to success in obtaining a loan, it is that the better organized and better prepared you are, the higher your chances of success. In the Texas Commercial Lending game, nothing conveys these ideas better than having a solid, well thought out business plan.

Having goals that are achievable, projections and benchmarks is not only the hallmark of a successful business, but it is also the indicator of a business owner who takes their roll seriously and is well organized. Even if you have been in business for many years, a solid business plan is something that you can display to partners, investors and lenders.

Not all aspects of a business plan are appealing to potential lenders. As a rule of thumb, lending agencies in the Texas Commercial Lending realm care very little about projections and other unsubstantiated business future promises. What lenders care about is whether or not that are going to be getting their loan back with interest. Whether your profits are high or low matter little to lenders, as long as you are able to pay back their share.

So how do lenders use a business plan to determine whether or not you’re a high risk in being granted a loan? There are a few different indicators that will be examined and you should make sure that all of these are addressed in your business plan.

First is collateral. Banks rest easier at night when a business owner has something at risk with a loan as well. It isn’t as though the bank wants the collateral if things were to go poorly with the loan, but rather that they believe that someone seeking Texas Commercial Lending will be less likely to renege on their financial responsibilities if it is going to cost something tangible to do so. Being clear about your assets in your business plan will help a potential lender know how much they can count on you seeing through your obligations.

Another aspect is cash flow. This is not the same as projected profits, but rather how you plan to pay your bills. Proving that you have the ability to pay back your loan is more than just anticipating how much you might make in the future. Lenders really like to see balance statements, income statements and account ledgers that show a long history of sufficient cash on hand to meet your debts. Again, the lender does not really care about what your overall profit margin is. That doesn’t really apply to their Texas Commercial Lending decision. They want to know if you are going to have the capability to pay them back.

Do banks care about any future projections when it comes to Texas Commercial Lending?

Actually yes. They don’t care about what you think you might earn, but they do care about how you think you might earn it. Having a concrete and measurable marketing plan is quite important to lenders. It shows them that you know your market and have thought through how you plan on implementing your product or idea. When you think about it, this makes sense. Banks simply want to know that you have a plan and intend to follow through on it. If nothing else, Texas Commercial Lending is centered in reliability.

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

Negotiations In Texas Commercial Lending : How Do You Get The Best Terms?

4page_img3Once you have settled on a lender and gone through the entire application process, there will come a time when you we be offered terms for your loan. But what do you do if these Texas Commercial Lending terms are not to your liking or not what you thought they were going to be?

It’s bound to happen. The loan officer that you have been working with is not able to deliver on the terms that you had wanted. The bank is not willing to make any movement on the terms because they are, in the eyes of the lender, competitive. But they are still not satisfactory for you. What can you do?

First, you need to understand that in the world of Texas Commercial Lending , institutions compete against each other for your business. Without you, the borrower, they would not exist and this gives you tremendous power. But in order to use this most effectively, you will need to do some leg work. The result, however, will be terms that are more to your liking.

The best way to maximize your power in Texas Commercial Lending and get the most out of your leverage is to force lenders to compete against each other. If you only have one offer from one bank, they have absolutely no reason to compete against themselves. Why would they give you better terms simply because you ask for it? Just because you are a loyal customer? While that might get you some nice perks, it will certainly not get you excellent terms.

So stack your deck by getting offers from competing banks. You don’t have to take them, but you could easily have multiple offers so that you are negotiating not only from a position of power, but also one of knowledge. The bank that you really want to do business with is unwilling to give you a 15-year term? See if you can get a competing bank to do so.

Walking in to a bank with a competing offer in hand will quickly change the tune of your desired letter. Now it isn’t just something that the borrow would like. It is now something that the borrower could receive, but from someone else. This will make it much easier for your loan officer to go to their superiors and seek better terms for you. After all, no one wants to see your business walk out, especially if you are trying to consolidate all of your accounts to one bank. So give your lenders a reason to work with you.

How many lenders are too many when obtaining competing offers in Texas Commercial Lending ?

A good number of applications is three. Not only do you not want to dilute your efforts too much, but it also takes a lot of work to go through the process of obtaining a Texas Commercial Loans. Doing that three times is going to be very time consuming for you. Stick to two or three, just enough to have different options but not so many that it gets out of control. By making lenders compete against each other, you can make Texas Commercial Lending work for you, instead of frustrating you.

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