Learn To Be A Fix & Flip Investor

Wednesday, January 17, 2018

What You Need to Know About the Requirements for Commercial Lending

There are many requirements for commercial lending that are helpful to know when you are seeking a loan. Level 4 Funding breaks down the ins and outs of these requirements for you.

Getting commercial lending for your business can be an extremely helpful boost to starting your new business or growing your existing company. You can use additional funding for improvements, marketing needs or even a second location. This is a huge advantage to get ahead of your competition or become desirable to a new customer base. However, as you prepare to grow you need to be prepared to get the loan first.

One of the biggest requirements from a traditional lender is your business credit score and history. Credit should be in the 700s, but if you don’t have perfect credit, all hope is not lost. You may need to think outside the box when it comes to the type of lender you seek out, however. For example, private lenders, hard money lenders and short-term lenders may be your best bet. If you have some time before you need the loan, you can work on improving your credit score to try your hand at getting a traditional loan from a bank.

Not only your business credit, but your personal credit will be investigated so its important that it is up to snuff as well. You will need to share personal financial information such as annual income, credit score, loan history and more. You will need to have documentation of a lot of information such as past bank statements. The larger the loan, the more important this information becomes, so it's a good idea to have all your ducks in a row prior to applying for a loan. If you have both stellar business credit and personal credit – congratulations! You are ahead of the game and your loan process with commercial lending should be smooth sailing.

How to avoid the disadvantages and pitfalls of getting a loan.

One of the pitfalls in obtaining a loan is more business or personal credit. Beyond taking the lengthy process of improving it over time, you can also secure a loan in other ways such as using collateral like your home or personal vehicle. There is a risk when you use collateral to secure a loan, however, so be prepared to take that risk.

The benefits of commercial lending for your business.

When you seek a loan, you can propel your business to the next level or get your new business off the ground. Having the boost of additional funding can make all the difference. Working with a professional loan officer can be very advantageous because they are well versed in all the requirements you will need – all the documentation, business plan information and more that will make the application process much smoother and simpler, ultimately leading to the success of your business growth and development. So make sure you find the right professional lender for you to ensure you have the best advantages.

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

Tips and Tricks for Finding the Right Commercial Lenders

Your commercial lenders can make the loan application process smooth and easy, or it can be a long challenging road. It all depends on the lender so Level 4 Funding offers ways to ensure you find the right one.

When it comes to selecting commercial lenders to work with, the process can seem overwhelming and a little intimidating. But it shouldn’t be. The lender you chose should try to create the very best scenario for you and a win-win solution for you both. While traditional lending institutions can be challenging to obtain a loan from, that does not mean you are destined to “go it alone” or put your business dreams on the backburner until the economic climate is exactly perfect.

Finding commercial lenders that are willing to work with you and believe in your vision is not impossible. It can be time consuming to meet with and narrow down the right one, however. It’s time well spent, however. Once you find the right lender to work with you, the benefits are endless.

To get started, meet with people that you already work it – such as your local bank where you already have a financial relationship and probably know and trust people. While traditional banks can be more difficult to obtain a loan from, it’s still a very viable option. If you already work with them and have money with their institution, they are more likely to offer you a fair deal. So it doesn’t hurt to start there.

If that option doesn't work out, there are other opportunities for commercial lenders.

The truth is, it’s very uncommon to submit a loan package and get approved by the very first lender. You may even have to submit your application up to 50 times. So there is no reason to lose hope. You also want to make sure your needs are aligned with the type of institution you are submitting to. For example, if you require a large loan, you may find little success with a small bank or credit union. You can look to online marketplace lenders or other options such as private lenders or hard money lenders.

Looking local can be a great move.

If you have a reasonable loan size amount, look to local lenders. They will already be familiar with the local economic environment and may be versed in your nice or specialty. In fact, it’s a great idea to look for a local lender that has past experience with a loan like your own that you are looking to obtain. Once you find the right lender, you can start with the pre-approval process, get all your documentation and business plan ready for presentation, and continue the process to loan approval!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Ensure Eligibility for Commercial Loans

Can you really increase our chances of getting approved for *commercial loans**? Indeed there are many ways to improve your odds and Level 4 Funding tells you how.*

Commercial loans are important for so many reasons and though they are some of the most complex types of loans, with the right research and “homework,” you can make some real headway to understanding what you need to do to be successful in getting the loan. There are also some things you do to increase your chances of getting approval and ensuring you don’t get rejected, which is more common than you think so if at first you don’t succeed, try and try again!

Finding the right lender is key. Search for a lender with professional experience in the type of loan you are looking to obtain; it’s also nice if they have experience with loans in your specific industry. You want to make sure the lender is one you can trust to advise you on your specific instances as the process can be lengthy and complicated — so trust is an important part of finding the right lender. Start with a lender you may have worked with in the past, but if they aren’t familiar with your needs, it might be a good idea to seek an experts for you kind of commercial loans needs.

Having a lawyer on your side can also help ensure your loan approval success. They can review and advise on documents to ensure everything is in order. If they have experience in your type of loan, that’s even better. Just as with a lender, it’s important that you have a lawyer you can trust to make sure you understand the agreement and everything that you are responsible for.

You’ll want to make sure you can afford the terms in the agreement.

Providing proof or collateral provides lenders with the peace of mind that you’ll be able to make your loan payments or in the case that you aren’t, they will be able to recoup their loses via your collateral. This is certain a way to increase your approval chances.

Having good credit is critical – but it’s not everything.

A few more ways to up your changes of approval include being organized and prepared – knowing what you want and being prepared to show the lender how to intend to make profit back is just as important as those 700+ credit scores. Sometimes it’s just about finding the right lender that really believes in your business dream and truly wants to help you make it possible. Having a plan “B” in place, having all your financial documentation and even having some down payment are also ways to increase your chances. Remember, it’s very common that first time loanees get rejected and that doesn’t mean all hope is lost. There are so many options when seeking commercial loans that you can get creative and find alternative ways to get the finances you need to fuel your dreams! So go for it!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, January 16, 2018

The Benefits and Advantages of Working with Commercial Lenders

There are many pros to working with professional and experienced commercial lenders. However, every lender has a different specialty so it’s important to understand their expertise before deciding to work with any particular lender.

It’s much easier to work with skilled commercial lenders when its time to obtain a loan. They can benefit you in many ways and assist with specific needs and questions you may have as you go through the process. However, it’s important that you are working with a lender that understands and specializes in your market or niche to make sure that they can best benefit your specific needs.

It’s also a good idea to flesh out your specific needs before meeting with commercial lenders so you can ensure you can properly express your needs. If you are looking to obtain funding via a local credit union or non-traditional lender versus a conventional lending institution like a bank, you’ll want to understand that the processes and requirements will be different. One of the benefits of a credit union is they are fairly stable through economic ups and downs, so they are more likely to lend a higher amount than a bank that has more rigid lending requirements. Credit unions are also more likely to take a chance on a first time borrower, new business or small business.

Another benefit of seeking a loan through credit union commercial lenders is that they typically have lower fees and rates that are more reasonable than conventional banks, hard money lenders or short-term loans. Because credit unions are in a different category than conventional lending institutions, and actually considered non-profit organizations, it is more like using a private lending to obtain funding. This is beneficial to you because they are able to offer better benefits.

Commercial lenders can be the experts you need to help you streamline your approval process.

These professionals are well versed in the application process and they know exactly what is required from the borrower (aka you) in order to ensure eligibility. So it’s very beneficial to utilize a lender in your specific niche to help you get the most “bang for your buck.” Working with a local credit union is also beneficial because these experts understand the market you are in and can help your business based on that knowledge.

How to get the most “bang for your buck” when it comes to your commercial loan.

Doing your research before you meet with lenders is a good idea. Be as prepared are you can prior to meeting with any type of lender by having your documentation in order, being prepared to showcase the collateral you have and prepare a solid business plan that details your intention for your business. Being prepared can be very beneficial in the loan approval process as well. Once you have all your ducks in a row, you may find eligibility to be a lot easier and smoother, especially with the help of the right type of lender for you and your business.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What You Need to Know When Seeking Commercial Real Estate Lenders

Before signing on the dotted line, it’s important to know that there is more to getting a loan than simply getting approval from commercial real estate lenders. Level 4 Funding offers tips on what you should know when considering obtaining a loan.

Most people become a little anxious when it comes to getting approved for a loan — so much so that simply not getting rejected is the thing they focus on the most. It’s important to understand that one rejection is not the end. Not all commercial real estate lenders are created equal and some institutions are much more rigid as far as approval requirements than others. So just because you don’t get approved from one institution doesn’t mean another won’t approve your application.

It’s also important to know that finding the right commercial real estate lenders is not the most crucial decision you will make during your business. As you may have heard when it comes to real estate — location, location, location are the “three most important things.” Finding the right spot for your company and in the right area to get the foot traffic you need to make your business successful is a decision not to be rushed into or taken lightly.

It’s also important to have the right partners in business. So choose wisely when it comes to your commercial real estate lenders. They are going to be a crucial part of how your loan goes, the amount you will owe each month and more, so before simply going with the lender that will approve your application, make sure you check into their background, credibility and see if they will share references too. It’s important to dig as much as you need to so you feel comfortable with your lender decision.

Find out what kind of loan you want and what is best for your company.

It’s also a good idea to research loan types and know exactly what you need. There are many different options for all kinds of needs including bridge loans, short and long term, hard money, private lenders and more. You have all kinds of options when it comes to your lender specialty and type of loan, so you should not feel boxed in to any one kind of loan if you feel something else would better suit your needs.

The earlier you are pre-approved, the easier the process will be when it’s time to find a location and a lender.

Another tip is that pre-approval is one of the best ways to keep the loan process moving forward smoothly and quickly. When you know how much funding you have to work with, this can narrow down your choices when it comes to that all-important location. Once you have that piece of information, it will also be easier to narrow down the type of loan you need and the type of lender who can be most beneficial to you, and create a win-win solution for you both.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Explaining a Bridge in the World of Commercial Real Estate Loans

There are numerous terms in the industry and when trying to obtain commercial real estate loans you might here the term “bridge.” Level 4 Funding explains what a bridge loan is.

Bridge loans can be just the thing you need to secure funding to keep an investment moving forward. These types of commercial real estate loans are actually fairly new in gaining popularity, as people typically did not use them when it was easier to obtain traditional loans. However, as loans have been increasingly difficult to acquire and good credit it harder and harder to maintain, bridge loans have become more popular. However, due to that rising popularity, they have also become associated with scams.

To avoid being scammed, you want to fully understand the ins and outs of bridge loans when you are seeking out commercial real estate loans so you know what you are getting into. Doing as much research as possible can help you pinpoint exactly what your needs are and if a bridge loan is the thing for you. Some of the biggest scams are a “bait and switch” loan scam, the upfront free loan scam and identity theft loan scam. Some legitimate lenders will require upfront payment, so it can be tricky to sleuth out a scam. Make sure you pay attention to the details and do your homework. Make sure the intricacies match up – such as email addresses and other contact information.

The bait-and-switch scam is not necessarily about whether the lender is legitimate, but whether the loan itself is. Once again, paying attention to the minute details and ensuring that you are not being taken advantage of when it comes to your loan scenario. If you go into a situation depending too much on a lender to guide you through the process, you could be taken advantage of. Make sure you do your homework and ask a lot of questions so you seem like you are in the know.

Don’t jump into anything too quickly.

Although trying to obtain bridge commercial real estate loans can be intimidating and you may be tempted to jump at the first opportunity you are offered, take caution. It’s important to read through all the documentation and know exactly what you are “signing up for” – because once you sign the dotted line, you are responsible for whatever terms are within the contract. So be sure to read the fine print.

Trust your instincts.

Regardless of the situation, if something sounds too good to be true, it typically is. You should follow your gut when it comes to how you feel about your lender upon meeting and the terms of the contract. If it all seems to swing only in your favor, that may be a red flag. Yes, lenders are there to help you get the best deal – but they are there to make money too. If you have concerns, call a company you can trust — Level 4 Funding is here to answer your questions and offer the best service possible.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, January 15, 2018

How to Make Lenders of Commercial Real Estate Loans Want to Approve Your Loan

When it comes time to apply for commercial real estate loans, you can appear much more desirable to lenders by having certain characteristics. If you follow this advice, you will have lenders in the palm of your hand — and have the pick of the loan you want!

For the most part, reputable lenders want to work with reputable business owners that are in need of financing. It can be a win-win situation for both parties involved. Especially if you are a business owner that has all their financial ducks in a row, so to speak. You don’t have to have a spotless credit history — though that is a very good start. But there are also some other things that make you desirable in the eyes of lenders.

Being prepared is good advice for pretty much every area of life — and particularly when it comes to commercial real estate loans. You should do your due diligence to make sure you understand what kind of loan you are looking to obtain, you have your financial documentation in order, you have prepared a business plan that outlines your needs, showcases your marketing strategy, and proves to the lender how you intend to make money and are able to pay back the loan.

Being honest is another great trait that lenders find very desirable. While you are not expected to be perfect, it’s important to be authentic. Trying to hide the truth about any past credit or financial discrepancy is bound to come out eventually. It’s best to be upfront and honest from the get-go. Lenders typically understand that not everyone has a squeaky-clean business record. But it’s important to show that you understand you made a mistake, learned from it and will not repeat said mistake again.

Being proactive when it comes to securing a loan may improve your chances of eligibility for commercial real estate loans.

Another way to be prepared is to put some thought and effort into loan collateral. If you are going to be using collateral as a down payment, be prepared to showcase that. This is an important element of the eligibility of the application, and helps with loan-to-value requirements as well.

The lender for your commercial loans is on your side — and wants a successful application process for a win-win situation.

While it may be intimidating to obtain commercial real estate loans, the real truth is reputable lenders are on your side. They want your application to be successful because it can benefit you both. Level 4 Funding can help walk you through your application whether it’s your first time or you’ve received loans before. Level 4 Funding is dedicated to service and is often much more flexible and lenient in terms than conventional lending institutions such as banks that have to go through a lot of red tape for every application. Call Level 4 Funding today and let them help you with all your loan questions and needs.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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Wednesday, January 17, 2018

What You Need to Know About the Requirements for Commercial Lending

There are many requirements for commercial lending that are helpful to know when you are seeking a loan. Level 4 Funding breaks down the ins and outs of these requirements for you.

How to avoid the disadvantages and pitfalls of getting a loan.

The benefits of commercial lending for your business.