It is not an easy process to acquire a Texas Commercial Real Estate Loans from a lender. It is time consuming, stressful and, often times, confusing. There are some common mistakes that lots of potential borrowers make that you can avoid.
When you are applying for a loan to purchase real estate to enhance your business revenue, you want to make the process as easy as possible. While it is well known that you are going to need to organized, prepared and spend a significant amount of time in order to get ready for your loan application, there are also a number of things that you might inadvertently do that will hurt your chances of success. Here are some common mistakes that people make when applying for a Texas Commercial Real Estate Loans.
Not getting adequate legal consultation – Perhaps you think that you might be able to handle all of the paperwork and contracts on your own or perhaps you already have a lawyer that is less than stellar, but to whom you feel loyalty. In either situation, you need to make sure that you are getting the best legal advice that is available. You must remember that a Texas Commercial Real Estate Loans involves a lot of money, time and future planning on your part. Do you not want the absolute best as an advisor? It might cost a little more at the time, but excellent legal advice pays for itself many times over.
Failing to negotiate – This is key. It is never a good idea to take the first offer. Even if it is your only offer. Your lender will have no reason to lower the rate or fees if you do not try to negotiate. In fact, this becomes even more powerful if you are able to secure multiple offers, which you can then play off of each other. Lenders will not compete against themselves, so give them a reason to pursue your business by making them believe that you could walk at any time to go after something better. By doing this, you will gain the best terms possible.
Not having a firm grasp on your accounting – If this is not one of your strong suits, hire an excellent CPA. Again, while it might cost at the outset, the amount of money that you will save in the long run is going to be well worth the price. Business owners who stumble during the Texas Commercial Real Estate Loans process usually do so because they do not have a firm handle on their balance sheets and income statements. Not only do they not know how much their business is worth, but they also have no idea as to the month to month cash flow. This is a huge liability for a bank that is looking at a borrower. If a borrower does not have a grasp of their own financial well-being, how like is it that they will pay attention to the details of a loan?
Are there any other tips for a borrower who is pursuing a Texas Commercial Real Estate Loans?
Check with government agencies. Often times, they have resources, if not direct funding for those who are looking to build a revenue generating real estate business. Know that the application process might take more time, but you are likely to get a fair rate. If nothing else, they can point you in the right direction. When it comes to Texas Commercial Real Estate Loans, the more you know about potential options, the more educated you can be going into the process.
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.
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