What You Need To Know About Commercial Real Estate Loans Before You Apply For One

When you decide its time to apply for commercial real estate loans, you need to be as prepared as possible to ensure successful approval. Here are some tips to ensure you are ready to apply.

Prior to seeking a loan, there is a lot of work that needs to be done to prepare yourself for success. There is a lot of research to be done, and organizational “homework” that is required of you before you even fill out an application. It’s also a good idea to do some general research about the types of commercial real estate loans available and the ones that might be best for your particular situation. There are many options, both traditional and non-traditional. There are also some things that are kind of “a must” when it comes to securing a loan.

Immaculate credit is one of the first things traditional lenders such as banks will look at. This gives lenders a good idea of your business history and your business ethics — both of which can be discovered by researching your credit history. They are also going to want as much information as possible about the reasoning for the loan. If you are looking to obtain a property, you will want to supply photos, the current mortgage payment, day-to-day operations of the company, capital improvements that may be needed and any other information you have about the property or company. A strong and persuasive business plan with statistics and analytics is important as well.

If you don’t have perfect credit, a totally solid business plan or extensive business history or experience, you may have a hard time obtaining a loan through a conventional lending institution. However, that is no cause for concern. There are many non-conventional or untraditional lenders that can provide hard money or short-term loans for your particular needs and situation.

You need to understand the different types of lenders that provide commercial real estate loans.

All lenders are different — and thus have different requirements for your loan application. So don’t fear if you have already been rejected by a conventional lender. They are often the strictest and challenging to get approval from whereas other types of lenders may be a little more lenient. There are many options including government agencies like Fannie May or Freddie Mac, CMBS (transferred trust) lenders, SBA lenders that specialize in property and equipment, private money lenders and lenders that specialize in hard money and short term loans. Seek out the lender that is right for your needs.

You should understand the difference between recourse and non-recourse loans.

When it comes to loans, recourse means that as the borrower, you are responsible for the amount in the event of a default – and that includes any collateral that was involved. Non-recourse loan terms mean that if you aren’t able to make payments on the commercial real estate loans, the lender can obtain the collateral (which usually means the property). Regardless of the type of loan you seek, make sure you are aware of all the terms for the loan and repayment.

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

The Best Ways to Secure Commercial Loans

It’s not always easy to obtain commercial loans, especially if it’s your first time applying. However, with these tips you can easily and quickly get approved for your commercial loans in no time!

When it comes to securing commercial loans, there is a lot to understand and a lot of different options out there. You may be asking yourself how you can ensure you get approved for the loan you need — when you need it. Securing private money is one way to go about obtaining the funding you need. This is the route to take if you always have the funding you need or you can seek the assistance of a non-bank institution such as a personal investor for the funds you are requesting. Working with an investor can give you the flexibility to create your own terms when it comes to your financial documentation as well as your repayment schedule.

Another option is to seek funding from the seller – i.e. if you are looking to obtain a building or company, the seller of the company has the option to provide you with funding to make the purchase of the building or company, etc. This is another non-traditional bank option that will still requirement documentation of the agreement to protect both parties and also should spell out the repayment schedule for the commercial loans in no uncertain terms.

It’s also important to be aware of some of the risks of securing commercial seller financing. Sometimes an arrangement like this can results in very high interest rates that make paying back and off the loan quite difficult. Before agreeing to this type of loan agreement, it’s crucial to ensure you’re in agreement with the terms and that they are reasonable enough to make it a win-win situation for both parties. When it comes to seeking a private investor, it’s also a good ideas to do all your checks and balances to make sure the investor and you come to agreeable and reasonable terms and that all parties are held accountable for their end of the partnership.
Having your finances in order before seeking out lending options is a good idea.

The more prepared you are prior to searching for financing lenders, the easier time you will have going through the application and approval processes. Prepare your business plan, get your financial documents in order, have your credit score accessible and make sure you are prepared to share any collateral that you may need to put down to secure the loan.

Things to know when selecting to leverage a business line of credit as commercial loans options.

Leveraging a business line of credit is another option to consider when looking to secure financing for your business or company. This is a good way to establish creditability and secure funding. So before you seek a loan, remember that you have lots of options beyond the trying to get approval from a traditional or conventional financial lending outlet.

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

There are Many Benefits to Becoming Familiar with the Basics of Commercial Lending

Not all of us are looking to become professional lenders and may not ever need to know anything about commercial lending, but if you are in the market for extra funding for your business, it is important to know the basics.

Obtaining extra funds for your business through a loan isn’t always easy. That is why the more you know about the foundation and the process of commercial lending, the better. Working with lenders can be a struggle and the more confident you are, the easier the whole process will be, from beginning to end.

There is a lot of evaluating that takes places when it comes to commercial lending. Credit is extremely important and your personal credit score along with any business credit score will be looked at heavily. Your credit scores say a lot about you and your business, especially your ability to paying back debt.

Your character is also often times looked at closely under a microscope. Just like with most things, especially in the business world, your character is going to weigh heavily on your loan offer. This is shown by how you have performed in the past with regards to your business and decision making. This is also where your personal credit score and business credit score will be looked at.

Commercial lending isn’t taken lightly and you will get more with an impressive credit score and background.

Along with your personal credit score and your business credit score, your other personal and business financial statements are evaluated. And it is important to include as much information as possible as it is will come in handy when commercial lending is needed. The more financial information you can supply, the better and the higher chances of approval. This is why being prepared at the very beginning of the process can help you avoid any denials.

The terms and conditions of commercial lending can play a role in approving or denying your extra funding request.

When applying for a loan, you want to make sure that you are strong in your request, but also flexible. Specific conditions might be brought up and the more you can come to terms with your lender and meet them in the middle to make all parties hapy, the better the entire situation will be. This is another way of proving your character to your lender. All lenders are looking for is proof that you will be able to repay back your loan in a timely manner. The more you can prove your ability to do so by providing excellent credit scores, detailed financial statements and a reputable character to go along with it, the better the outcome will be.

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 Looking for Another Successful Year in New York City and Hope to Spread Across the Nation

The real estate market is expected to boom in 2018 and that means many commercial lenders are looking forward to another busy and successful year, especially in the New York City area. The past year was pretty promising and many are hoping that the momentum will continue through the new year.

Wells Fargo ended the current year on a good note and is expecting 2018 to shape up to be just as successful. The first 9 months of 2017 was especially great for Wells Fargo with them generating over $4 billion dollars in commercial real estate in New York City alone. They generated over $1 billion dollars in just the 3^rd quarter alone. Being located in San Francisco, they are hoping that the success in New York City spreads to other parts of the United States.

Other commercial lenders have also seen a steady year in the real estate market with optimistic plans for the new year. Based in Arkansas, the Bank of Ozarks are looking to duplicate the success they saw in 2017. They say a $1.5 billion-dollar year. Also, looking for another strong year is Goldman Sachs. They raked in almost $2 billion dollars this year, almost doubling what they totaled in 2016.

Commercial lenders in New York City saw a terrific 2017, even though they weren’t quite expecting to have such a good year and they are hoping that will carry into 2018. Especially with the 4^th quarter of 2017 being one of the strongest, many in the market are hoping the momentum will carry them to at least three strong quarters in 2018. The New York Community Bank really saw an increase in loans in New York City. This was refreshing since previous years haven’t been so promising. This happens to be one of the largest sources for funding in the city and is known as a signature bank, so it can definitely stay on the right track for another successful year.

The first quarter of 2018 will really set the pace for commercial lenders for the rest of the year.

Commercial lenders are really looking forward to start of the new year after finishing off a great 4^th quarter and end to the year. The market might continue to thrive, but will see a little change, hopefully only for the better for the first two quarters of 2018. There might be less momentum at the end of the year, but isn’t expecting to see too much of a negative shift.

The forecast for the commercial lenders looks bright, nothing is ever guaranteed, especially in the real estate market, but not bringing any negativity to the forecast.

Of course, you never know what to expect when it comes to real estate or the economy. But many are hoping that there will not be too many changes in the beginning of the year and that the economy will only continue to grow.

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

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