New York City is Eager to See what 2018 Has in Store for Commercial Real Estate Loans after Big Deals Happened in 2017

Even though the demand for commercial real estate loans wasn’t quite what we expected in 2017 in the big apple, there are high hopes for a successful 2018. Especially since there are a good number of real estate properties up for grabs in the New York City area and 2017 saw some big real estate deals.

About 10 years ago in 2007, New York City saw a boom in commercial real estate loans meaning that many of the due dates for these loans are coming up due. This has led to not that many new loans being take out in recent years. But things have changed. Bit over the last year with some large loans taking place in New York City in 2017.

The GM Building was the largest out of the commercial real estate loans that took place in the past year in New York City, at $2.3 billion dollars. The refinance deal was announced in April and the building went from a $1.6 billion-dollar debt package to a new $2.3 billion-dollar mortgage. The office tower in New York City also acquired a new interest rate of only 3.43 percent. This will save them around $9 million dollars annually and is the only loan in the city totaling over $2 billion dollars in 2017.

For $1.75 billion dollars, the building at 245 Park Avenue marks Manhattan’s biggest property sale in 2017. The commercial real estate loans were acquired by the HNA Group. The largest construction loan of the year was for $1.5 billion dollars for the property at 50 Hudson Yards.

New York City saw a good number of big dollar commercial real estate loans in the year and is hoping to see that same success in the coming year.

Another large loan that marked a staple on a positive 2017 in New York City is the 43-story office building at 280 Park Avenue for just a little over $1 billion dollars. The deal was closed in on by SL Green Realty and Vornado.

A strong growth in larger commercial real estate loans was due to the large dollar amounts of the loans across New York City.

The 53-story and 906,000 square foot building known as the Olympic Tower closed in on a loan in May totaling around $760 million dollars. These are just a few of the many high dollar loans that took place in 2017. Many in the industry and market are hoping that there will be even more of these loans taken out in the new year not only in New York City, but it a number of other large cities across the United States. This trend could lead to many great things including a booming economy for all.

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

Many Hope That Commercial Real Estate Loans Will Continue to Boom in 2018

Commercial real estate loans had an impressive 4th quarter in the Denver area and many are hoping that the success will continue into the new year. There has been a lot of momentum surrounding that market, especially at the end of the year, hitting an all-time high in the mile-high city of Colorado.

The strong job market throughout Denver has definitely helped the city’s growing economy in the past year. There has been a lot of growth in the Denver area leading to a demanding office and industrial market. Each quarter has continued to see steady growth with the 4^th quarter seeing the best numbers all year, and even in most recent times.

New jobs mean a great need for new space and means that new offices are needed across the city. The metro Denver area has seen a strong increase in commercial real estate loans and many in the industry hope that the momentum doesn’t slowdown in the new year. This has been one of the longest positive runs in recent years in Denver. The need for more space has led to less vacancy, which is almost impossible.

All of this growth is a good sign for the real estate market and is causing more goods to be bought leading to an all-around booming economy in Colorado. Not only are jobs in high demand, but so is space. Space for things like offices, restaurants, retail shops and especially industrial space.

A higher demand in commercial real estate loans will only continue to grow the economy throughout Denver

Retail space along with industrial space are some of the highest real estate spots in demand and if it continues to grow with no slowing down in sight, then 2018 will be a great year for the real estate market. Commercial real estate loans are at a high demand along with living spaces. In fact, living spaces has almost increased by nearly double digits in the past year.

The success of the Denver market and commercial real estate loans might just be the beginning of a strong economy across the rest of the country.

With the increase in not just loans, but also space in Denver, means there is also a greater need for lenders to deal with all of the commercial real estate loans. Since the market in the Denver area is only expected to continue to thrive, it is an ideal spot for those looking for a steady job in the real estate market. Many are hoping that Denver can be used as an example of what a strong real estate market can bring to the city and even the state.

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

Commercial Lenders Offer Advice on the Difference Between Personal Credit Scores and Business Credit Scores

When you own a business, you often start establishing a business credit score on top of your personal credit score. There happens to be many benefits of separating your personal credit score from your business credit score, especially when working with commercial lenders.

Once you get your first job, you start having a personal credit score under your belt. Jobs, credit cards and loans play a role in your personal credit score. Companies like Equifax and Experian are popular places that keep track of your personal credit score. You credit score ends up saying a lot about you to commercial lenders, like your ability to pay debt back.

Information that is usually included on your personal credit score include the number of credit accounts you have opened, like mortgages, credit cards, auto loans and more. Also, information like the amount owed on each of these accounts and how much you pay monthly on them. This is why it is important to make proper payments on time and avoid any late payments that may cause a delinquent mark on your credit score.

Personal credit scores range from 300 to 850 points, with a score of 680 or higher being considered an excellent score to most commercial lenders. Each agency look at scores a little differently, but on average, you should be striving for a score of around 680 or higher.

Commercial lenders will often times take a look at your business credit score over your personal credit score and that can be a good thing.

When a business issues another business credit, then that is when your business credit score really starts accumulating. This is often times the largest source of lending. The business credit bureaus are responsible for gathering information on your business and the scores range from 0 to 100 with 75 or more being considered excellent.

There are benefits to keeping your personal credit score and business credit score separate when applying for extra funding from commercial lenders.

Using your business credit score when dealing with commercial lenders can sometimes get you almost 10 times as much extra funding and can really help expand your business. This could get risky thought, especially if your business goes under. Also, keep in mind that if your business is sued, then your personal assets could be at risk. A helpful tip is to start early by setting up a business checking account at the beginning and also getting a separate legal entity. This helps keep your business assets separate from your personal assets, which is always a good thing.

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

Commercial Lenders Can Lend a Helping Hand to Solving Problems

If you are needing extra financing for your business, whether it be big or small, there are many benefits to working with commercial lenders. Just like when it comes to loan, there are many options out there, so take the time to find the right person to work with.

A bank loan might not be easy to obtain, so that is when working with commercial lenders come in. Income verification is usually needed when dealing with banks and if you are self-employed, that can sometimes be difficult. But when working with other sources for funding, they might not always require this, but other documentation and financial information will be taken into consideration for approval and won’t hold any of it against you.

Sometimes credit issues from the past can creep up and result in low credit scores. Financial issues from the past can hurt your chance when working with banks, but commercial lenders can be easier to work with because they will usually take the time to listen to the reasons for your low credit score and try to understand. This will give you a better chance at obtaining a low if you might not have the best credit history.

It isn’t uncommon for businesses to owe money to the IRS. This can make it really hard to get extra financing from a bank. Commercial lenders can help when this becomes an issue. They are willing to work with you if you are in debt to the IRS and will even try to help you crawl your way out.

Establishing the right relationship from the beginning with commercial lenders will benefit you and your business in many ways.

It can be very stressful dealing with someone else when it comes to your finances and sometimes obtaining extra funding is going to either make or break your business. Take the time to do the research to find the right person to work with and this will help your chances at getting a loan. Opening up about your financial struggles isn’t always easy, but can be a little easier when talking to the right person that will understand what you are saying.

Commercial lenders are the real deal when it comes to obtaining extra funding for your business.

There are a number of banks and lenders to choose from when it comes from loans. Just like there are several different options when it comes to choosing a loan. Each loan and lender come with different requirements and terms, so always make sure to read the fine print. And also keep in mind that if you aren’t dealing with banks, you might face higher interest rates. But this is the price you pay when the deal is risky and is a better option than being completely turned down.

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

How to Deal with Commercial Lending Documentation Issues

When it comes to commercial lending documentation, it is best to start the process off organized. The earlier the best, like as soon as you received all of the information from the lender.

The documentation needs to include all of the important information needed and needs to be balanced to make bother the borrower and lender happy during the commercial lending process. Customer service is always crucial, especially when it comes to loans. Detailed documentation will make the whole process much easier and ensure that everyone involved in satisfied.

But when it comes to making sure that you are getting detailed documentation, doesn’t mean you can lack in the customer service department. There are things that you should consider when it comes to your loan documentation. It is important to have a building relationship between the lender and customer. Dealing with financials can be tough and personal, so there needs to be enough respect between the two to be able to deal with the crucial financial questions and information that goes along with getting a proper credit analysis.

The entire application can be stressful, so make sure that the whole commercial lending process is clarified and everything is explained. Establishing a list that includes everything that you will need for proper documentation is a good start. To avoid slowing down the process, make sure you have all of the information you need for a complete and thorough application. Checklists can really come in handy so everyone is aware of the status on everything during the documentation process. This is an efficient and consistent way to double check that all of the information in the documents is detailed and complete. This might be one of the most important parts of the loan process because without the proper documentation, your application could come with some issues and even be denied.

Software can also lend a helping hand when it comes to completing the right documentation commercial lending.

Technology keeps improving and that means it can play a large role in preparing your documentation. Software can be a helpful tool when it comes to keep all of your information organized and easily accessible at your fingertips. There are a lot of options to choose from so that you do not have to rely on using spreadsheets and calculations to try and crunch all of the numbers by yourself. The commercial lending software offered can do the work for you by entering in the numbers needed and using an automation function to automatically come up with the right numbers. It is still important to understand the data, but when you aren’t an expert, this software can help.

Including the right documentation will raise your chances of experiencing a successful commercial lending process

You will be surprised how thorough and complete documentation will help your chances at getting approved for a loan. Not only does it give the information needed to lenders, but it also proves that you can be organized, which is a good trait to show to your lender.

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

What it takes to get a Commercial Real Estate Lenders Approval

Knowing what commercial real estate lenders are looking for on an application will be very helpful when you are ready to seek a loan. Some of the information could surprise you.

Getting your loan application approved by commercial real estate lenders requires more information and effort than most first time buyers expect. But the key to understanding this request and the amount of information which is requested comes from taking a look at the loan from a lenders perspective. Commercial real estate loans are often quite large and hold some inherent risk. The lender is simply trying to eliminate as much risk as possible by being restrictive and stringent about their lending policy. This allows them to make their money and well qualified businesses to make their real estate purchases. They use a system which is sometimes called the three C’s to evaluate loan applications.

Collateral is a big factor in commercial lending. All loans are secured by a lien on the commercial property being purchased. This allows the lender the right to take the property and sell it to pay off a loan in the event that the borrowers default on the loan. If you are requesting a loan which exceeds 80% of the value of the property being purchased, the lender might also request that you offer other property or items as additional collateral for the loan. In most cases the lender would like the loan to only be 80% or less of the property value but in some cases they will accept cross-collateralization.

Cash flow is also an important factor to commercial real estate lenders. They need to see that either the property itself generates enough income to cover the cost of the loan payments or they need to see that the business purchasing the property has sufficient cash flow to pay the loan. In addition, commercial real estate lenders like to know that there are cash reserves or other assets which can be easily liquidated should the economy change and cause a decrease in the cash flow needed to make the loan payments.

Your Personal Promise

There are some occasions when the business does not have enough credit to merit a commercial loan or it has questionable credit. In this case, a commercial real estate lender will require the borrower to personally guarantee the loan. To qualify for this you must have a 660 personal credit score or better, no bankruptcy in the last 7 years, no foreclosures or short sales in the past 3 year and no open tax liens or judgements. If you meet these criteria then your credit history and creditworthiness will be considered during the loan application.

Know What Lenders are Looking For

Commercial lenders are looking for a business which is in stable financial condition and has been for at least three years. The lender is also looking for the ability to repay the loan and to have a cash reserve in place if needed. Before you begin a loan application, you should carefully consider how well your business will fare when they are judged on the three C system.

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

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

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Understanding the Two Major Types of Commercial Loans

When you begin to explore commercial loans, it can appear that there are an unlimited number of options. But you will find that in reality there are two major types, recourse and non-recourse.

There are a myriad of different terms involved in commercial loans, but none should be as important to the borrower as determining if the loan is recourse or non-recourse. In almost every loan on a commercial property, the main collateral for the loan is the property itself. But commercial property value can and does fluctuate much more rapidly than residential property. In some cases a repossessed property is not worth the remaining balance on the loan. For this reason, lenders want to have additional security in the event of a default on the loan. With a recourse loan, the borrower guarantees full repayment of the loan amount due. In a non-recourse loan the lender agrees to settle for the value of the property as full repayment even if the property value is less than the balance due on the loan.

Borrowers should however temper their desire to protect themselves and their personal financial well-being with a non-recourse loan and the extreme flexibility that can be achieved with a recourse loan. As with most things in life, you get what you pay for, and added features and benefits cost more. So the personal financial protection of the non-recourse loan costs you in the form of higher interest rates. That only makes sense as the lender is assuming a greater risk of losing money if you default on the loan. In addition, lenders can also include stipulations about cash flow and maintenance schedules for the property on a non-recourse loan. This is simply another way that the lender is protecting their investment by ensuring that the building, their collateral, is being well maintained to protect the property value.

When to Choose Recourse Commercial Loans

A recourse loan offers borrowers many more options and flexibilities during the course of the loan as well as a lower interest rate. Because of the added security, lenders are more willing to accommodate borrowers. If you want flexibility to customize the loan structure and the payments then recourse is a good choice. You should also select a recourse loan if there is a chance that you will want to restructure after the closing of the loan. If the property that you are purchasing is under construction or is in a distressed condition, you will most likely also need to use a recourse loan as lenders are not willing to extend the greater risk non-recourse loan to a property with questionable value.

Who Should Select Non-Recourse Commercial Loans

If you are planning on keeping the property you are purchasing for the full term of the loan and do not foresee needing to change the loan or its terms for the lifetime of the loan then a non-recourse loan is a good choice. The non-recourse is also important if you are not willing to or able to risk your personal financial well-being on this business property investment. Understanding the main difference in these two types of loans will allow you to select the financial tool which best meets all of your needs.

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