Learn To Be A Fix and Flip Investor: How to work with a Commercial Lender

Friday, February 3, 2017

How to work with a Commercial Lender

Dealing with Commercial real estate lenders can be beneficial for a variety of reasons. However, what really matters when it comes commercial real estate lenders is your end-goal with your commercial financing.
Securing commercial financing clearly starts with doing proper research on potential commercial real estate lenders. After doing your due diligence and narrowing down your lender options next comes the fun part of assembling your loan application package and hopefully getting approved. But, you may be wondering what comes next? In other words, you have the commercial financing and you move forward with your business venture, but what are the real benefits you will incur?
Well, these are both great questions that even your detailed business plan may have overlooked or rather only touched upon lightly. Therefore, let us go over what a commercial loan and acquired property really mean for your business. For instance, your commercial property becomes more than just a building or multi-family housing that you own. In fact, in many ways, you are now an investor, which means that your property has the potential provide an additional source of income on a regular basis ( leasing out the property is generally the most common way that a commercial property provides an additional income stream.). Moreover, your commercial property provides an excellent appreciation of asset value.
Furthermore, your commercial property or venture can help your current business grow by being a significant source of equity. A prime example of increased equity is when you are interested in obtaining more financing; your commercial property can help you obtain more without spending more. What is more, besides being a source equity, income, and appreciation of asset value, your commercial property can help you do even more with your business in terms. As briefly mentioned, finding the right lender for your commercial venture can open other business doors if you will. The wrong lender, on the other hand, may not put you in the position you need to be in order to repeat these down-the-line benefits. Thus, as you can see this first step is crucial to your bottom-line and end-goal.

Dreams come true with the Right Commercial Real Estate Lender

So, now that you know what is remotely possible with your commercial property or investment, let us take a step back and discuss how you can find the right lender for you. Of course, doing your own research cannot be stressed enough, but it is important to remember that when doing your lender research that you also need to be thinking ahead. In this instance, thinking ahead means comparing and contrasting loan types as well as thinking about your long-term goals with said property.

Commercial Real Estate Lenders - A Win-Win Solution

Ultimately, the best thing you can do to ensure that you find the right lender and are able to use your commercial venture in a beneficial way, it helps to reach out to your top five lenders. In doing so, you will be able to figure out the true potential of your future property as well as find out which lender understand your niche and your financing needs.

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.