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Showing posts with label commercial real estate lender. Show all posts
Showing posts with label commercial real estate lender. Show all posts

Monday, January 22, 2018

Finding Commercial Real Estate Lenders

Handsome young man looking confidentlyWhile doomsayers have claimed that the multifamily sector has hit its peak and 2018 should start seeing a decline in rents and demand, others are suggesting that the overall trend of the previous years should continue. If the “class half-full” segment of the population is correct, now may be the time to find a commercial real estate lender and finance that multifamily property.

A member of the optimist club, Greg Willet, chief economist for RealPage Inc., was quoted in the National Real Estate Investor, “Overall, we expect that same stability to hold in 2018, with occupancy and rent growth anticipated to basically mirror 2017’s statistics.”

Apartments are going up at a 10-year high—nearly 100,000 per quarter—and yet the occupancy averaged right around 95.6 percent with rates growing at 2.4 percent. Some markets, however, are tough to break in to—specifically the large metro areas. There are, however, sub-markets that may be the place to start for developers that are just getting their feet wet in this arena. This spillover effect seems to be witnessing higher demand and therefore rents in areas such as Tacoma, WA, Lake Nona, FL and Oakland, CA.

Another market to keep your eye on are suburban Class B and C apartments as renters become unable to afford the Class A units. And just what is a multifamily unit? It is a property that has five or more dwellings.

The Biggest Challenge: Finding a commercial real estate lender for your Apartment Building

Currently, the two big lenders—Freddie Mac and Fannie Mae—are financing multifamily units. That, however, could change in the future as speculation continues if they will curtail or even eliminate this segment of their lending portfolio. They have, however, focused on low-income housing needs including smaller properties and the manufactured home communities.

Most commercial real estate lenders for larger properties require higher qualifications. Know your figures and come to the lending table prepared with short and long-term costs and rental estimates.

The 50 percent rule is a good place to start and means that 50 percent of a real estate investment’s income should be spent on expenses and not the mortgage. In addition, you’ll want to know your credit score, income, and have the last two year’s personal and business tax returns on hand. Commercial real estate lenders will want to see two years’ operating statements including net operating income, debt service coverage, and loan-to-value ratio. They will also look to your experience as an owner or manager of a multifamily unit and to the money that you can put down. The good news: Not all lenders abide by these stringent underwriting qualifications. For borrowers that need more flexibility, a hard money lender may be the best choice. At Level 4 Funding, we work with hundreds of private lenders. Because of this, we can offer a loan value up to 90 percent with flexible terms from 3 to 60 months, fixed rates from 7.99 percent APR, and commercial LIBOR+350. Call us today to see if we have the funds you need to purchase your multifamily unit tomorrow.

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
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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

Commercial Real Estate Lenders

2page_img4-bigShopping malls are turning into mixed-use developments and online shopping has increased the demand for distribution centers. Investors in this segment are looking for commercial real estate lenders that are familiar with this segment of CRE.

We’ve all seen the boarded-up shopping malls with empty parking lots and decaying signs. And so have commercial real estate lenders. Sears, J.C. Penney, Macy’s, CVS and RadioShack have all reported bankruptcies and store closures, leaving lenders looking for a different venue, or at least a different take on an old classic. Shopping malls have become mixed-use developments that include housing, boutiques, outside concert venues and chef-driven restaurants. And maybe a golf course or two.

The truth is that several of the major delinquent loans are backed by shopping centers. According to REBusinessonline, “Major loans that have fallen past maturity in the past year include several that are backed by shopping centers formerly owned by the Westfield Corporation that were later sold to other REITs.”

This includes the $240 million Westfield Centro Portfolio, the $140 million Westfield Chesterfield and the $110 million Westfield Shoppingtown Independence. Rouse Properties purchased Independence Mall after a few years of foreclosure proceedings. Their goal is to create an “open-air retail destination” with a focus on upscale dining and a grocery market as an anchor. This shopping center giant has been in a restructuring mode since 2014 and just recently announced its sale to a French company. Unibail-Rodamco will reportedly pay $15.7 billion to take over Westfield Corp. It will operate as a REIT in France, the Netherlands, the United Kingdom, and the U.S. Its uncertain if Westfield’s previous plans to seek approval to flatten the Promenade Mall in Woodland Hills, CA and build residences, offices, boutiques, restaurants, hotels and a concert venue is still on target, though chances are the French global property leader will have a similar remodeling plan in mind.

From Retail to Warehouses

Some have blamed the demise in retail and shopping centers on the online giants such as Amazon. But this expanding trail that leads from brick and mortar to mouse and keyboard has left an interesting opportunity for commercial real estate lenders and investors—industrial warehouse and distribution centers. According to American Banker, e-commerce sales are expected to reach $700 billion by 2022. And all those online purchases need a home. While most distribution centers are built on demand, there is a growing number of commercial lenders shelling out the bucks for speculative centers—centers that are selling just as fast as they can be built. In fact, with increasing demand, building in this sector is booming, vacancies are at an almost record low, and rents are rising. Mini-distribution hubs are on the rise as well. Atlanta, Dallas-Fort Worth and Chicago all made the top five in the amount of construction space geared for new warehouse and distribution centers.

Those in the business are looking for commercial real estate lenders who understand the business.

Level 4 Funding has been in the industrial/warehouse segment for over 20 years. We work with over 200 private investors and understand the sectors that they specialize in. With this type of rolodex, we can get you the loan you need at the best possible rate. Closing can occur in as little as a few days, giving you the money you need to purchase that next warehouse, build a distribution center, or develop a mixed-use supercenter in record time. Call us for a no-obligation quote.

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
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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

Wednesday, January 17, 2018

How to Ensure Eligibility for Commercial Loans

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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!

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
clip_image002clip_image004clip_image006clip_image008
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

Tuesday, January 16, 2018

What You Need to Know When Seeking Commercial Real Estate Lenders

Timeshare exit team  25Before 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
clip_image002clip_image004clip_image006clip_image008
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

Wednesday, January 10, 2018

What it takes to get a Commercial Real Estate Lenders Approval

3page_img3-bigKnowing what commercial real estate lenders are looking for on an application will be very helpful when you are ready to seek a loan. Some of the information could surprise you.

Getting your loan application approved by commercial real estate lenders requires more information and effort than most first time buyers expect. But the key to understanding this request and the amount of information which is requested comes from taking a look at the loan from a lenders perspective. Commercial real estate loans are often quite large and hold some inherent risk. The lender is simply trying to eliminate as much risk as possible by being restrictive and stringent about their lending policy. This allows them to make their money and well qualified businesses to make their real estate purchases. They use a system which is sometimes called the three C’s to evaluate loan applications.

Collateral is a big factor in commercial lending. All loans are secured by a lien on the commercial property being purchased. This allows the lender the right to take the property and sell it to pay off a loan in the event that the borrowers default on the loan. If you are requesting a loan which exceeds 80% of the value of the property being purchased, the lender might also request that you offer other property or items as additional collateral for the loan. In most cases the lender would like the loan to only be 80% or less of the property value but in some cases they will accept cross-collateralization.

Cash flow is also an important factor to commercial real estate lenders. They need to see that either the property itself generates enough income to cover the cost of the loan payments or they need to see that the business purchasing the property has sufficient cash flow to pay the loan. In addition, commercial real estate lenders like to know that there are cash reserves or other assets which can be easily liquidated should the economy change and cause a decrease in the cash flow needed to make the loan payments.

Your Personal Promise

There are some occasions when the business does not have enough credit to merit a commercial loan or it has questionable credit. In this case, a commercial real estate lender will require the borrower to personally guarantee the loan. To qualify for this you must have a 660 personal credit score or better, no bankruptcy in the last 7 years, no foreclosures or short sales in the past 3 year and no open tax liens or judgements. If you meet these criteria then your credit history and creditworthiness will be considered during the loan application.

Know What Lenders are Looking For

Commercial lenders are looking for a business which is in stable financial condition and has been for at least three years. The lender is also looking for the ability to repay the loan and to have a cash reserve in place if needed. Before you begin a loan application, you should carefully consider how well your business will fare when they are judged on the three C system.

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
clip_image002clip_image004clip_image006clip_image008
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

Wednesday, December 6, 2017

How to Find the Right Commercial Real Estate Lenders for Your Loan

timeshare resales  14When you are looking at commercial real estate lenders to fund your loan, there are certain things you should look for and certain things you should know. Here’s what to look for when you need a loan.

“Shopping” for commercial real estate lenders can be a little daunting, and sometimes even challenging. But there are steps you can take to narrow down your search and make sure you find the right lender to fund your business or investment. Traditional lending institutions like banks are very difficult to obtain loans from, even in the best of circumstances and greatest economic climate. But don’t hesitate to look to other alternative lending institutions to fund your loan.

It’s important to find a lender that believes in your dream and truly wants to invest in you and making your dreams come true. If you already have a bank with which you have a close relationship, you may be surprised that this is the best place to start to see if these commercial real estate lenders will fund your loan. They will usually be able to negotiate a very fair deal, and it’s already an institution that you work with so you already have a trustworthy relationship.

If your loan is not accepted via your bank, you still have many options for commercial real estate lenders that will be willing to take on your loan and still work with you to get a fair and loan that works for your needs.

Start with a local search in your area.

Whether you look to another local bank, a credit union or a private lender, you still have plenty of options right in your own backyard. Do some research online for local lenders to see what information you can find. Try to learn as much as you can about the lender prior to meeting, and see what their requirements are to so you can be prepared for your first meeting. Alternative lenders may offer other loan options besides a traditional long-term long. There are many other loan options and sometimes these alternative loans are much easier to get approved for – so it’s a win-win solution.

Once you’ve found the lender you trust and who believes in you and your business venture, it’s time to get going!

Gather all your documents such as financial statements, credit report, business plan, collateral proof and anything else your lender needs to up the chances of your eligibility for a successful loan application process. Once you have all your ducks in a row, the process can go forth much more smoothly and easily. There is some preparation that you will need to do but you will be so much happier knowing you have everything ready when you need it.

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
clip_image002clip_image004clip_image006clip_image008
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

Tuesday, November 28, 2017

Different Types of Commercial Real Estate Lenders

cropped-iStock_000000487050Small-1024x275There are several different types of commercial real estate lenders that are providing capital for all of those multifamily units, office buildings, warehouses, distribution centers and multi-use shopping centers that are sprouting up across the nation. Here are a few that borrowers in the commercial real estate industry are turning to.

Commercial banks are, by far, the most commonly used commercial real estate lender. Their commercial loans usually range anywhere from $150,000 to over $50 million, and they acquire borrowers to have very good credit scores along with a low debt-to-income ratio and enough money in the bank to cover expenses for a definitive length of time. Various banks may have preferences in commercial lending projects such as construction, multifamily units or large-scale developers.

Life Insurance Companies like to invest all the money coming in from all those policy payments in real estate; however, they only invest in low-risk projects with a loan-to-value ratio right around 50 percent and with borrowers that have both high credit scores, low debt-to-income ratio and have a stockpile of money in the bank. Basically, if you don’t have 50 percent to put down on the proposed project or your credit score has taken a hit, look to another commercial real estate lender.

Commercial mortgage-backed security (CMBS) lenders prefer large commercial loans on properties such as multifamily, office, industrial and retail. These lenders package loans together into a security which is then sold to investors in the form of bonds, and they are the second-largest source of commercial real estate debt. They tend to have a 10-year lifespan, at which point the debt matures and refinancing is required. Real Estate Investment Trusts (REITs) are for experienced borrowers with big projects needing large loan amounts. According to National Real Estate Investor, Crowdfunded REITs are gaining momentum with Fundrise, the first firm to launch a crowdfunded REIT, raising $90 million in less than a year.

Private Hard Money Lenders

This type of commercial real estate lender provides short-term quick capital. There are investors that specialize in various projects such as multifamily, industrial, office space, multi-use and even hospitality. Rates can be higher than a traditional bank loan, but they are not bound to the same stringent underwriting standards. These lenders supply funds based on the collateral or hard-asset of the project. In some instances, you can also use collateral from another source such as your personal home or another business. They do not place as much emphasis on credit scores and debt-to-income ratios. Their funding is fairly rapid and many offer an average loan-to-value ratio in the 75 percent area.

At Level 4 Funding, we specialize in private hard money loans for commercial projects.

We fund private hard money loans for all types of commercial endeavors. As hard money loan mortgage brokers, we work with both banks and private investors and can often find the capital you require when you’ve been turned down by other institutions. Call us to enquire about our many options and to see if we can provide the capital you need. We are upfront and honest and, if lending is a problem, we can share with you the steps you need to take in order to get your project funded.

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
clip_image002clip_image004clip_image006clip_image008
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

Monday, November 20, 2017

Commercial Real Estate Lenders

Handsome young man looking confidentlyCommercial real estate lenders come in many shapes and sizes. It is important to know the types of lenders that are available so that you can make the correct choice for who to work with for your real estate development funding needs.

Not all commercial real estate lenders are created equal. There are many different types that serve many different kinds of borrowers. They all have distinct requirements, timelines and terms, each offering their own specific benefits and drawbacks. Depending on your need as a borrower, certain enders may not be what you are looking for. Because of this, it is important to know the various types.

Banks – Perhaps the most recognizable and common, banks are very versatile commercial real estate lenders. They often have easy access to a great deal of funding. One of the strengths of using a bank for a commercial loan is that local banks are usually heavily invested in their local communities and seek to support small businesses. The problem with banks is that the application process is often quite extensive and takes a significant amount of time.

Life Insurance Companies – Obtaining a loan through a life insurance company is only available to those who are extremely well qualified because of their credit score. They offer the best terms and rates, but they are very difficult to obtain. With terms that often range for up to 30 years, these loans are an excellent bargain for a property investor who is highly qualified and has low risk.

Bond Market – These are often referred to as commercial mortgage-backed securities and are directly tied to other commercial real estate loans. They are handled by independent agencies, who minimize risk by sectioning off the loans. Lenders are then able to determine their level of risk by choosing which loans to obtain. For the most part, these loans are fairly stable and are a very common solution for borrowers that are not able to obtain loans from the more traditional outlets.

Debt Funds – Popular amongst commercial real estate lenders who specialize in construction, these loans are typically taken out by investing against other loans. There is often a higher rate, as the risk is greater, but for those who know what they are doing this is an excellent source of funding.

Government Entities – While the government does not specifically give out loans, they do assist traditional lenders by offering securities in order to drop rates and make it easier for lenders. However, this does not mean that these loans are easy to obtain. They must often meet strict requirements and apply only to certain aspects of commercial real estate investing. One such area is multi-family housing units.

With so many commercial real estate lenders, how will I know which is right for me?

It will depend entirely on the type of loan that you are looking for, the qualifications that you have and what you plan on doing with the loan. Knowing your goals and knowing your resources will help you narrow down which commercial real estate lenders will work best for you.

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
clip_image002clip_image004clip_image006clip_image008
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

Friday, November 17, 2017

Important Things to Consider When Working with Commercial Real Estate Lenders

Call I Seo PhoenixThere are many commercial real estate lenders to choose from, but not all of them are going to be the right fit for you and your needs. If you are looking for a successful process when applying for a real estate loan, then try to focus on some of these factors that are going to play a role.

Applying for a commercial real estate loan can be a stressful process which is why it is important to find the right person to work with. The relationship with commercial real estate lenders can make the whole loan process much easier. It really comes down to trust and communication. You want and really need to work with someone that you can trust and that will communicate with you fully throughout the entire loan process, from the beginning of the application to closing.

Remember, you always have options so don’t just settle for anyone that is going to approve your loan. It could take some time to research and find the right fit for you, but in the end, it will be well worth the extra efforts. Some commercial real estate lenders specialize in certain types of loans and properties, so work with one that offers the light loan for you and is experienced in that specific area for the best results.

Another factor to consider is the interest rate. Of course, don’t make a decision based on interest rate alone, but do take the interest rate, along with other fess and agreements terms into consideration. These factors are going to play a large role in finding the right loan and person to work with regarding your financial needs.

Referrals are a helpful way to find the right commercial real estate lenders

It is a big step to decide to work with commercial real estate lenders. Just like when banks are reviewing your small business for loan approval, you are actually reviewing these lenders back, but before even starting the process. Character is going to be a big factor, so listen to others that you trust who have gone through this process. Working with the right fit can make all the difference in the world and recommendations can make the search easier and can be a good idea.

Commercial real estate lenders are there when you need a helping hand

Applying for a real estate loan can be a mixture of emotions, excitement, fear and stress. The entire process from starting the application to getting approved to the actual close can take a lot of time and is dreaded by many. But when you find the right commercial real estate lenders to work with, that will be there the answer all of your questions and concerns, then the process won’t be that bad. Find someone that you trust, communicates effectively and will help you with all of your financial needs.

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
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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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