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.
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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