Learn To Be A Fix & Flip Investor

Friday, January 19, 2018

Tips for Obtaining Commercial Lending for The First Time

If you are seeking commercial lending for the first time, you may have a lot of questions or feel overwhelmed with all the choices. Level 4 Funding can help answer your questions and set you on the right path to getting approved for your first time loan.

Just because you are seeking lending for the first time, does not mean you have to go it alone. It’s very helpful and beneficial to have an experienced professional on your side to help navigate the complex and sometimes downright confusion waters of commercial lending.

This is a big step for your company or business, and obtaining an investment property is one of the biggest choices you’ll make as a business owner. When you are preparing to obtain property, there is a lot that goes on. First, you’ll want to make sure you have a current and accurate credit report. Credit scores are an important part of the process so you want to make sure you have an accurate representation of your scores and history. Take some time to review your history so you know where you stand. Take care of any issues you can, but don’t close out any pre-existing accounts yet.

You will also want to find out how much you are eligible to be pre-approved for. This can be very important when it comes to shopping for the right investment property. You don’t want to waste your time looking for properties that are out of your budget. Being in a position to put down at least 20 percent down is another big advantage toward having your loan application accepted. You can also inquire about owner financing as an option.

Once you have your affairs in order, it’s time to move full steam ahead.

You have put yourself in a desirable position one you’ve checked and reviewed your credit score and history, sorted out any credit issues, gotten pre-approval. Now it’s time to review your commercial lending options and find the right lender and loan for you. Keep in mind that as a first-time borrower, it may be more difficult to obtain a traditional loan from a conventional source.

Keep your options — and your mind — open.

Even if you have prepared as much as possible, a conventional loan for your first time loan might not be in the cards. That’s okay. There is nothing wrong with seeking alternative lending options and oftentimes this is exactly what you need to get off the ground, establish great credit history so you are in a solid position for your next commercial lending situation. But take it one step at a time and make sure you get the right lender and loan for the first time. Be sure to ask a lot of questions, as a first-time borrower, you will need as much guidance as possible. It’s important that the lender you choose will take the time to go through the process with you with patience and expertise.

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

Thursday, January 18, 2018

Reviewing Your Commercial Lending Options

There are countless options and decisions to make when it comes to obtaining commercial lending. It may seem overwhelming and challenging, but if you take a step back and review all your options, it gets easier.

Starting a business or expanding your current company can be an exciting and sometimes difficult time. So making decisions towards your commercial lending options should not add to that stress. After all, lenders are here to help you get the best loan for your needs, with the best terms. It can be a win-win situation for you both so it’s always a good idea to work with a professional that you trust. First, here are some things you should review.

Your credit score – both personal and in business – matter. Regardless of some people that say it’s not important, it is to some degree. For example, for traditional lending institutions like banks, credit score and history are taken into serious consideration. For more alternative style lenders, such as a hard money loan or private lender, credit score might not be as crucial. However, it’s important to get your current credit score, know where you stand and be prepared to explain any “dings” of unfavorable marks on your history.

Another thing to consider or review is how long you have been in business. Many conventional lenders may be hesitant to work with a first-time borrower or a brand new start up. They are less likely to take big risks, so they are going to want you to be able to prove your business success strategies via past experience. Proof of revenue is also a factor you should review and be prepared to prove to your commercial lending professional. However, once again, alternative lenders may be more lenient when it comes to these factors and may not require you to have proof or an extended business history.

If you don't have any of these things, there is still one more thing that can ensure successful loan approval.

Having the collateral to back up the loan is like an “insurance policy” for the commercial lending outlet. Regardless of whether you have a super high credit score, extended business history or proof of revenue, collateral such as your home or personal vehicle can be just the thing a lender needs to review before your loan can be approved.

Be open to alternative options.

Not everyone has a perfect credit score – in fact most people don’t. So there is no need to stress about a 700+ score or a squeaky-clean history. You can still obtain a loan but you have to be open to non-traditional lending options. If you want to get your business up and running or to expand it to the next level, review all your options and have an open mid when it comes to non-conventional options. Seek out some various choices and then review them all to see which you think will be right for you and your business. Only you can decide what is ultimately right for you and what time of loan will be best for you.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Importance of Finding Experienced Commercial Lenders

When its time to get a loan, working with skilled and professional commercial lenders makes all the difference. Level 4 Funding shares all the reasons why you should chose experience when seeking a loan.

Not just in the world of commercial real estate, but in any case, experience makes a world of difference. Yes, there is something to be said for a new and fresh perspective. However, when it comes to commercial lending, having experience is super important… especially when it comes to something as important as getting a loan. When you are looking to start a business or grow your existing company, experience is key for commercial lenders.

When you decide to get a loan, you need to do all your research to make sure you find the right lender with not just experience – but experience in the field that you are in. Find out if the lender has dealt with loans for the same type of nice or specialty as you need. This is crucial in ensuring they have the specific experience you desire. This will make the process much easier and smoother if they have gone down this path before — and know how to pave it for you, so to speak.

While it may seem like a good idea to just go with the lender that offers the best rates, this can be a mistake. While good rates are of course very desirable, especially when it comes to paying back your loan, you also want to make sure your lender is steering you down the right path. The old saying, “You get what you pay for,” does have merit, especially in this case. So be wary of a deal that appears “too good to be true.” Experienced lenders have negotiating skills and will do what it takes to get the job done right.

Consider the little and local guy.

While there are many online marketplace lenders and large national chains that may be able to offer a large loan, there is something to be said for the personal experience offered by a smaller, local company. A lender that is local has the experience on the local market, and also has more invested in your loan — much like it is your dream to own your own company, small commercial lenders are living their dreams by owning companies to help people like you get the loans they need. With a large national chain, you also risk working with a “newbie” that does not have a lot of experience yet.

Look at other factors besides experience.

Experience is a huge factor — but it’s not the only one. You should get a good feel for the lender you are ultimately going to be working with and dealing with for years to come by way of your loan. It’s important to trust them and have a good working relationship with them. It’s also a good idea to check references, pay attention to things like customer service with other people on the team and other factors that will ultimately make your experience better… or worse.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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.

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

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Friday, January 19, 2018

Tips for Obtaining Commercial Lending for The First Time

If you are seeking commercial lending for the first time, you may have a lot of questions or feel overwhelmed with all the choices. Level 4 Funding can help answer your questions and set you on the right path to getting approved for your first time loan.

Once you have your affairs in order, it’s time to move full steam ahead.

Keep your options — and your mind — open.

Thursday, January 18, 2018