Commercial Real Estate Loans and Lenders: What You Need To Know

Selecting the right lender for your commercial real estateloans is never easy. But with a few key questions you can narrow down your options and ultimately choose the right lender for you.

Find the right lender for any commercial real estate loan is a big deal. It’s a big deal because these particular kinds of loans are truly not your everyday kind of loans. In other words, most lenders have ample experience in residential loans as everyone needs a home. But, of course, not everyone needs a business or an investment property and to each its own. Nevertheless, the point is that the majority of big lenders are better versed in all things residential.  Therefore, it is your best interest to find a lender that has a substantial amount of experience with commercial real estate loans.

Well, at this point, you may be wondering, just how exactly are you going find a lender that specializes or rather has the right amount of commercial loans underneath their belt? The trick is to ask the right questions. Asking the right questions may sound like a simple solution to ensure the future financial security of your company or business venture, but, the truth is it’s all in the details.

For instance, you may find a lender that has extensive experience with commercial real estate loans, which is great. But, stop and ask yourself, does this lender know my market.  In other words, your potential lender has extensive experience with commercial or rather non-residential loans, but in what market? You see details, they matter. Thus, with that being said, let’s go over a few more key questions that will help you find the right lender for you and your specific market.

Helping to Narrow Down Your Lenders

Once you determine if there are lenders that have the right experience in your particular market, it’s on to the tougher questions such as how much capital does your potential lender have?  This matters because you do not want to be just another number to your lender i.e. you want a lender you can work with who remembers your name and your business idea. 

Additionally, you should ask your potential lender about their borrower requirements and commercial loan services offered. Know what’s expected of you as a borrower (how much collateral do you need, what’s the policy on late payments, etc.) and what you can expect of your lender (Are revolving lines of credit available? Are there multiple locations and are they FDIC insured? ) is what it’s all about. Moreover, if you like what you hear you are that much closer to your future lender.

Risk Less with Commercial Real Estate Loans

Lastly, if you are a small business make sure that you are in the best the position financial before you decide on a lender for your non-residential loan. It may sound repetitive, but, for you to be seen as less of a risk to your lender and for your commercial property to truly be profitable for you, it helps to be financially stable or to have investors that are financially stable.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
Dennis@level4funding.com
www.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.