Tuesday, November 14, 2017

What Lenders Require for Commercial Loans

Getting commercial loans requires more than just filling out an application. Knowing what lenders are seeking from a borrower will help you to understand the process and succeed when others fail.

Commercial loans are certainly more difficult to obtain than personal loans. And there are some very good reasons that lenders are being more selective about approving loan applications. Understanding what lenders are looking for and why they are selective will help you to meet the qualification criteria and present your business in a more favorable light.

All lenders are in business to make money and they only accomplish that when they select borrowers who will repay them with interest. So you can see why it is important for lenders to weed out the less than creditworthy applicants. That is also why lenders look more closely at commercial loans. The loans represent more risk due to the more volatile nature of a business’s finances. Sudden shifts in the economy rarely have huge impact of a consumers finances but they can have a significant impact on the financial health of a business or even an entire industry. So commercial lenders protect themselves by thoroughly scrutinizing any applications for commercial loans.

The other means of protection that lenders have is the collateral for the loan. This is normally the property that is being purchased with the loan money. Lenders want to be certain that the collateral value is substantially larger than the loan amount. This ensures that the lender will have recourse to recover their money if the borrower defaults on the loan.

Show the Lenders What They Want

Knowing that the lenders only real concern is that they can and will get their money back and hopefully the interest that they are charging, you need to demonstrate to them your ability to repay the loan. In many cases this can be accomplished by compiling three to five years of financial records, tax records and bank statements. You will let the lender review the documents and see that you have experienced steady growth and that you are profitable. You will also want to provide some added security for the lender. As the guarantor on the loan, you need to show your personal ability to assume the loan payments if need be. This will require submitting your personal financial documents to show net worth, tax records, bank statements and an asset schedule.

Paint the Right Picture

It is true that there can be some obstacles in your path when you are looking for commercial financing. But lenders do want to lend money, they just want to be assured that they are not throwing their money away. Understanding the motivation for all of the strict loan qualifications and the documentation that are required can actually help you to get approved for your loan. You simply need to position your business to look and be profitable and successful. Increase your revenue, decrease spending and build your cash reserve. Showing strong financial health will make commercial lenders eager to do business with you.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, November 13, 2017

Beware of Potentially Fraudulent Commercial Lenders

The process of obtaining a commercial mortgage is not as simple as one might think. Knowing a few bits of insider information will help you to manage your expectations and have more success when applying for a loan.

Beginning your search for the perfect commercial mortgage can be a bit of a disheartening experience. You quickly learn that the process is long and tedious at best and frustrating and disappointing at its worst. But having realistic expectations and a little bit of honest information about the process can be very helpful in relieving your anxiety and getting you the loan that you need. So listen to the promises of potential lenders and then temper their time estimates and other information with some well-known facts from industry professionals.

Time can be a critical factor when you are seeking a commercial mortgage. After all, you either have a need for a property or have found a property to fit your needs and you are ready to make the purchase. So the last thing that you want to learn is that another company or investor has bought the property out from under you. In an effort to be expedient and efficient you are polling lenders to see who can work within your tight time line. And the canned response will be around a month, tops. This statement is made with a smile and possible chuckle that almost certainly is revealing a bit of fabrication. The cold, hard truth is that processing a commercial loan can easily take over 45 days and many reach almost three months. Understand that the process is slow and you will not be able to change that fact.

Knowing that it can take up to a few months to complete the process, also understand that it can take weeks before you even get the nod that you are approved. The flip side of that is that you wait weeks to learn disappointing news and then you are forced to begin the process again with yet another lender. So when time is of the essence, you are wise to start the process with a few lenders and see who meets your timeline and who is actually willing to offer you a loan.

Saving Time and Money

Knowing that you are applying to several lenders for a single loan, it can be tempting to look for ways to save on costs and possibly speed up the process. Many borrowers want to pay out of pocket to have the property appraised and then submit that document to each lender. The idea is reasonable but in the end it is not cost efficient. By law, each lender must order an appraisal themselves so your appraisal and the fees are wasted.

Do Your Due Diligence

Begin the process of seeking a commercial mortgage with as much information as you can possibly gather. The time that you invest in learning the process and the technical jargon of the commercial loan industry will be rewarded with a great return on your investment. You will have realistic goals and timelines throughout the process as well as less stress.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Beware of Potentially Fraudulent Commercial Lenders

The commercial loan industry can be very intimidating to first time borrowers. Be sure that your lack of knowledge and experience does not make you a target for fake commercial lenders.

Sadly, every industry is plagued by fraudulent impersonators who are tarnishing the reputation of trained professionals in the field. And commercial lenders face this issue as often as any other group of professionals in a rather technical business. Because borrowers are often unfamiliar with the processes and standard operating procedures of commercial lending it is relatively easy for predators to operate on the fringe of the industry taking advantage of would be borrowers. Knowing what to look out for can save you both time and money.

Due diligence is a must when you are preparing to disclose a huge amount of personal and business financial information in the form of a loan application. Obviously, walking into a bank can eliminate this potential hazard. But many borrowers are now shopping for commercial loans online and that can open the door for many issues. It is critical that you research the party and the business that you believe you are working with for a loan application. Verifying the business as a legitimate lender will provide you with security and peace of mind. Anyone can create a rather impressive website now so make calls to the BBB and to the state authorities where the business is operating. Check the registered name and licensing to be sure that they are legitimate.

After your research is completed you will know that you have avoided one of the biggest moneymaking scams of the fake commercial lenders. They are not really interested in stealing your information. What they want is to steal an application fee from you. Fees can range from a few thousand dollars to tens of thousands of dollars so it is a good score for a scam artist. You submit an application and the fees and then never hear from the would-be lender again.

Huge Fees are a Warning Sign

If you are having difficulty getting a loan, also be weary of a lender who offers to all but promise that they can get you a loan if you are only willing to pay a substantial application fee. Unfortunately there are some lenders who are just dishonest enough to all but promise in writing a loan approval when they know that you will not qualify. They might claim to fund high risk borrowers but in fact they fund very fee and just collect huge application fees from the majority of their applicants.

Educate Yourself

If you are new to the commercial lending industry, then the best way to avoid being taken advantage of is to arm yourself with knowledge. Legitimate commercial lenders will answer questions, provide information and invest the time it takes to make sure that you are comfortable with the process. You can also read material from well-known lenders websites and consult with your local bank to learn more about the process and to protect your time and money.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips for Selecting Commercial Lenders

There are many factors to consider when you are searching for commercial lenders. In some cases certain lenders might be more willing to work with you than other lenders.

Seeking a commercial mortgage can be a stressful and overwhelming process. Many novice borrowers are simply searching for the first lender who offers a loan. But often that is not the best financial choice. Knowing which commercial lenders would be more open to working with you and also how to make yourself more appealing to those lenders can eliminate much of the stress of the process and reward you with much more favorable loan terms.

Selecting potential lenders who specialize in loans that are near the amount you desire is a good first step to narrowing down your choices. It is common knowledge in the industry that huge national banks are not often interested in chasing small loans. Not only can it take a very long time to get your application processed but you will also notice that the loan officer’s attention will be quickly swept away when a larger client or application comes in. But a smaller lender will be eager to work with first time borrowers and those who need smaller loans. Likewise, requesting a huge loan from a small local bank is likely to overwhelm them and they will not be able to efficiently process the application or possibly even meet the amount that you are requesting.

Seeking a lender who is close to the property that you are purchasing can also improve your approval chances. Commercial lenders must look at all potential situations including the worst case of a foreclosure. In the event that you default, the lender prefers to take possession of a local property. The logistics of maintaining and selling the property are must easier. In addition, lenders tend to be more willing to assume a greater risk on a local property that they can easily visit should there be an issue with the loan.

Create a Deposit Relationship

If national lenders are not willing to approve your loan request, then you still have the option of working with a smaller local bank. In this case, it is wise to request an appointment with the branch manager to discuss your options. At that time you can show verification of your current business and personal bank transactions and offer to move all of your accounts to their bank upon the completion of your loan approval.

Know What You Need and Who Offers It

You should view commercial lenders as you would any other service provider. You need to select your lender based on your needs and how well they can meet them. You would not hire a huge national cleaning company to come in and clean your 800 square foot office, it wouldn’t be cost effective and they likely would not worry about keeping you very happy. But a small cleaning firm would be happy to have your business and would strive to ensure that you remain satisfied. Filling your commercial mortgage needs is just like filling any other need. Selecting the vendor who offers the services you need will make the experience much more pleasant for everyone involved.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, November 11, 2017

Private Hard Money Lenders 100% of Rehab Cost and Up to 90% LTV Las Vegas Nevada

Looking for Private Hard Money Loans/Lenders in Las Vegas Nevada for you real estate investment, development or need funding fast.

Level 4 Funding LLC is a top Hard Money Lenders Commercial Lenders for Las Vegas Nevada.

We are brokers and can find you the best possible loans for your Commercial, Construction, Hard Money Loan in Las Vegas Nevada .

Over $40,000,000 Funded

Residential Hard Money Rates from 7.99% APR*

Commercial Loans Rates from LIBOR+350*

Fix & Flip 100% of Rehab and 90% LTV*

Investment - Fix&Flip - Bridge – Commercial
Business - Construction - Cash Out

Commercial, Residential, Office, Multi Family,
Warehouse, Storage Complex, Student Housing,
Raw Land, Construction

Yes we work state wide and have years of experience as Private Hard Money Lender for Las Vegas Nevada .

If you need a quick decision and a quick loan, we can deliver Low Rates and Great Terms on Private Hard Money.

We look for the best possible deal on rate and terms and

will provide you an underwriting decision

within 24 hours.

Level 4 Funding provides hard money loans to real estate investors and developers who need Hard Money Loan quickly in Las Vegas Nevada.

We are a direct private money lenders – this term is synonymous with “hard money lender” – hard money broker who looks at applications and finds an outside lender to provide funds for the Private Loan.

We lend statewide and have extensive experience in Las Vegas Nevada.

We can make decisions on your loan applications quickly and we underwrite loans in-house, cutting out the middleman and helping us to minimize the time and processing costs by creating as few steps in the Las Vegas Nevada Hard Money Loans Application process.

We can provide Hard Money Loans for Commercial, Residential, Office Multi Family, Warehouse, Storage Complex, Student Housing, Raw Land, Construction.

We offer:

Investment Property Financing for Commercial and Residential
Up to 90% LTV and 100% of Rehab costs.
Funding in as little as 24 hours
Rates as low as 7.9%* (8.4% APR)
No upfront prepaid fees in advance
Terms from 6-60 months*
No pre-payment penalties, no back-end points, no hidden fees*

As an asset-based lender, we are mostly concerned with the real estate used for the Private Hard Money Loans Las Vegas Nevada .

As a asset -based lender, we work with real estate investors in Las Vegas Nevada and other markets, making us ideal to work with thanks to our understanding of the state’s market as well as being easy to reach during hours that work for you.

Level 4 Funding Has the Experience in Las Vegas Nevada to Help You Today

We look for the best deal for you.

Our team is built to see the potential in a property and provide a financing solution that can bring value to your project and save you profit!

We have taken the time and care to understand Las Vegas Nevada Market unique real estate market to ensure that we can create a customized Private Hard Money Loan Las Vegas Nevada fit for any property or project in the area.

When Your Loan Can’t Wait and Need a Las Vegas Nevada Private Hard Money Loan

Level 4 Funding has assisted with financing a variety of investment properties.

we have the experience and knowledge to get you to the next stage of your project from purchasing a property to either hold onto while it appreciates in value or to turn it into a monthly cash flow asset in your portfolio, to fix and flips, to full scale residential subdivision construction,

We make asset-based lending a quick, simple and easy-to-apply-for process.

If you’re looking for a private loan, don’t wait –

start your application today. We look forward to working with you.

We do them all! Give us a quick call to discuss your situation and your project. We can provide you with an answer over the phone with no obligation or pre-paid fees in advance. If we can help we will, if not we can tell you the course of action you need to take to get your project funded. Yes we do them all, give us a call today for a Private Hard Money Lenders for AZ, CA, CO, FL, ID, OR TX and WA!

Give me a call at 888-582-0714 Nation Wide.

*Equal Housing Opportunity. This is not a Good Faith Estimate, and this is not a Guarantee to lend and should not be considered as such. Costs, rates, estimates and terms can only be determined after completion of a full application. Actual payments will vary based on your individual situation and current rates. APR for loans vary from 7.99 - 29.5% and is based on Credit Score, Down Payment, LTV, Income. Mortgage rates could change daily. To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts. Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961. To the extent this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice.

Friday, November 10, 2017

How to Get a Business Loan

Although the process is not always easy, it is far from impossible to get a business loan. Understanding the process will help you to find success in your first application.

Getting a business loan is not as easy as it used to be but that does not mean that you will not be able to get a loan to help you reach your goals. Understanding the process and being prepared can offer you a great deal of peace of mind as you work your way through the process. The first step in being prepared is beginning to seek a loan before you actually need it. Start by building relationships with commercial lenders, learning about the commercial loan industry and educating yourself on the process that you will need to follow when you apply for a loan. During your planning stage, you should be determining how much money you will be asking for and learning which lenders are servicing loan requests of that size.

The preparation stage is also when you need to evaluate your current financial health and apply it to the criteria that lenders are looking for in a borrower. You will need to have a credit score of at least 650 but 700 would look more favorable. Having a score closer to 800 will all but guarantee your business loan approval. Your personal debt to income ration should also not exceed 33%. Also understand that time in business is important. Two years old is still considered a fledgling business and represents more risk than a more established company.

As you begin to pare down your list of potential lenders, evaluate them as you would any other service provider. Selecting a lender who specializes in loans of a similar size and type is always wise. You will also want to consider the lenders proximity to you. A local lender is often willing to assume a slightly higher risk that one that you have found online or are working with remotely.

Complete the Documentation

There is a substantial amount of documentation required for any commercial loan. You will need to present 3 to 5 years of financial statements, bank statements and taxes. In addition you should also be ready to submit your personal financial information if your business is less established or has very few assets. All lenders are going to need copies of this basic information and having it complied and ready to present will eliminate a lot of your stress when completing applications.

Submit and Be Attentive

It is not uncommon for lenders to need additional documents or clarification on the documents that you submit for a business loan. You can ensure that the process remains on track by maintaining communication with the lenders as they are reviewing your application. A call or email once each week to inquire about the status of your application is not being demanding or pushy. It also provides the lender with the opportunity to ask any questions that may have arisen. Being prepared and knowing that the process takes a month or more to complete will allow you to relax once your applications are submitted.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Improve Your Chances for a Business Loan

Getting approved for a business loan is not as simple as many business owners think or wish it to be. But following a few tips can greatly increase your odds of getting the loan that you need.

The turbulent economic times of the past decade have made it more difficult for anyone to get a loan and especially businesses. Due to the fact that a business’s financial success or failure is more directly connected to the economy than the finances of a person, getting approved for a business loan has become more difficult. Changes in the economy and political climate can cause the business world to fluctuate quickly and drastically. So it is more important than ever that you make every effort to impress potential lenders in every phase of your application process.

Knowing that you are entering into a rather lengthy process, it is critical that you have a working knowledge of commercial loans and the processes and documents that you will be working with. Gathering information will allow you to prepare your documents as well as your frame of mind throughout the loan application and review. This is also a good time for you to check your credit score and address any issues that you might find. Having a score of at least 700 is pretty much a must and scoring closer to 800 will greatly improve your chances of getting the nod for a business loan.

Documentation and Detail

Understand that your lender is going to determine a lot about you and your business from reading your application and speaking to you for just a few minutes. Being able to use that precious time to create a professional image is critical for your loan approval. Having a detailed plan showing how you will use the money that you are borrowing, how it will help you to make money and how you plan to pay back the money are all important items to communicate to the lender. In addition, a professionally compiled packet of documents shows the lender that you have invested time and effort into creating the packet and that you are serious about your work and the loan that you are requesting.

Introduce Your Team

Growing any business takes time and a lot of work. Doing everything your self can feel efficient to you but others might not see it that way. Presenting your management team and professional advisors can also increase your chances of getting the business loan that you need. A truly wise person knows what they don’t know and is willing to surround himself with smart people who can help him in those areas. Having a mentor or advisor shows that you are smart enough to seek the advice of seasoned professionals. And including the experience of your management team in the loan application process allows the lenders to see that you have designated professionals to assist with all of the management aspects of your business. The strength of a team is always greater than that of an individual and will increase the odds of success for your business.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Featured Post

Tuesday, November 14, 2017

Getting commercial loans requires more than just filling out an application. Knowing what lenders are seeking from a borrower will help you to understand the process and succeed when others fail.

Show the Lenders What They Want

Paint the Right Picture

Monday, November 13, 2017

The process of obtaining a commercial mortgage is not as simple as one might think. Knowing a few bits of insider information will help you to manage your expectations and have more success when applying for a loan.

Saving Time and Money

Do Your Due Diligence

The commercial loan industry can be very intimidating to first time borrowers. Be sure that your lack of knowledge and experience does not make you a target for fake commercial lenders.

Huge Fees are a Warning Sign

Educate Yourself

There are many factors to consider when you are searching for commercial lenders. In some cases certain lenders might be more willing to work with you than other lenders.

Create a Deposit Relationship

Know What You Need and Who Offers It

Saturday, November 11, 2017

Looking for Private Hard Money Loans/Lenders in Las Vegas Nevada for you real estate investment, development or need funding fast.

Over $40,000,000 Funded

Residential Hard Money Rates from 7.99% APR*

Commercial Loans Rates from LIBOR+350*

Fix & Flip 100% of Rehab and 90% LTV*

Investment - Fix&Flip - Bridge – Commercial Business - Construction - Cash Out

Commercial, Residential, Office, Multi Family, Warehouse, Storage Complex, Student Housing, Raw Land, Construction

We lend statewide and have extensive experience in Las Vegas Nevada.

Level 4 Funding Has the Experience in Las Vegas Nevada to Help You Today

When Your Loan Can’t Wait and Need a Las Vegas Nevada Private Hard Money Loan

Friday, November 10, 2017

Although the process is not always easy, it is far from impossible to get a business loan. Understanding the process will help you to find success in your first application.

Complete the Documentation

Submit and Be Attentive

Getting approved for a business loan is not as simple as many business owners think or wish it to be. But following a few tips can greatly increase your odds of getting the loan that you need.

Documentation and Detail

Introduce Your Team

Investment - Fix&Flip - Bridge – Commercial
Business - Construction - Cash Out

Commercial, Residential, Office, Multi Family,
Warehouse, Storage Complex, Student Housing,
Raw Land, Construction