Learn To Be A Fix & Flip Investor: commercial real estate lenders

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

Saturday, September 30, 2017

Texas Commercial Real Estate: Texas cities compete for Amazons new headquarters.

Amazon recently announced plans to build a second headquarters. The Texas commercial real estate market has shown robust growth for many years, will the states growing economy is enough to attract Amazons new headquarters?

Amazon has a long list of benchmarks before any city can be considered for its new headquarters. The metro area must have a population that exceeds 1 million. Any prospective location must have on site mass transit, be within 45 minutes of an international airport and have immediate access to a major highway or arterial road. Amazon also wants prospective cities to have a vibrant student population and excellent educational institutions. A number of metros in Texas meet Amazons guidelines, but Dallas and Austin stand out among the crowd as the most likely locations for Amazons new headquarters in the state.

Dallas has a number of distinct advantages among Texas cities in the competition for the new Amazon headquarters. The Dallas Regional Chamber and the Mayor have already taken concrete steps and are already scouting locations for the proposed headquarters. Only San Francisco exceeds Dallas in terms of high tech talent. The University of North Texas at Denton is already a major recruitment base for Amazon, offering the nation’s only digital retail degree. Dallas talent base, low-cost of living and excellent infrastructure are sure to be positive factors Amazon will consider before it makes its decision.

Austin is also on the short list of candidates for the new headquarters. The city offers a burgeoning student population, with more than 425,000 college students residing in the immediate area. Other tech-giants have found the region favorable. Apple, Google, Facebook and Samsung already have established their offices in the city. Amazon may consider the proximity to Whole-Foods Headquarters as the biggest attraction for building its new headquarters in Austin. Amazon just bought the grocery chain and the opportunity to have two headquarters in one city makes Austin very likely to win the bidding war for the new headquarters.

Other Texas cities are also competing for the Amazon headquarters. Demonstrating just how robust Texas’ commercial real estate market actually is.

Apart from Dallas and Austin, other Texas cities are throwing their hats in the ring. 10 Amazon fulfillment centers, with 10,000 employees are located in the Fort-Worth Area. The cities recent airport expansion enables cargo transport to Asia, a real benefit Amazon may consider. Houston has also expressed interest in the new headquarters. Houston has plenty of centrally located and vacant office space available. But the city, even with a significant student population, doesn't have a strong tech-scene when compared to Dallas. San Antonio is also making a bid, but the city may not have sufficient space downtown and the airport lacks some of the capacity Amazon has requested.

Texas’ commercial real estate market is one of the strongest in the nation. But how will Texas fare against other states?

Cities in Texas of course want the prestige of being chosen for the new Amazon Headquarters, as well as the potential economic benefits Amazon promises. But Texas isn't the only state or area being considered. Cities in Texas are still in competition with potentially more prestigious cities like San Francisco, Boston or New York. Amazon executives have already put Boston at the top of the list, according to Bloomberg. However Boston and other densely populated cities may be too expensive for many low level Amazon employees. Texas and cities like Austin and Dallas stand out due to their low cost of living and their business friendly environments.

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

Thursday, September 28, 2017

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

After experiencing the devastation of Hurricane Harvey, some good news comes to the area. The city of Houston is eager to see the changes that will be made to one of their most popular and well-known office buildings in downtown Houston thanks to Holliday Fenoglio Fowler approving a commercial real estate loan in Texas
Located in the heart of downtown’s Houston Theatre District, one of the most recognizable buildings in the Houston skyline and even across the globe is going to be getting a new look, all financed by a commercial real estate loan in Texas funded by Holliday Fenoglio Fowler. The architectural icon is at 700 Louisiana in Houston’s central business district.
The 1.2 million square-foot office is 56 stories and was designed by Phillip Johnson and John Burgee. The building currently homes many law and financial services firms that benefit the Houston community greatly. Luckily, Hurricane Harvey had little impact on the business operations of the building, with all of the businesses in the building is back to their daily activities.
The borrower of the commercial real estate loan in Texas, M-M Properties worked closely with Holliday Fenoglio Fowler in a very detailed process to get the refinancing rolling. The impact of refinancing the well-known building is going to give it a higher property value by sprucing up the lobby and more.
Privately held real estate investment firm gets help with commercial real estate loan in Texas
With M-M Property having their headquarters based in Houston, they know how hard the area was hit by Hurricane Harvey. The property management company is hoping that this is a positive event happening after such a devastating time. M-M Property is an experienced, privately held real estate firm that is located in the heart of Houston.
The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.
After Houston was hit hard by Hurricane Harvey, Holliday Fenoglio Fowler is excited to see the changes that will be made during the renovations to bring the area back to the way it was before the storm rocked the area, causing 18 counties in the state to be declared disaster areas. Holliday Fenoglio Fowlers has 24 offices across the country and is a leader in commercial real estate loans in Texas and throughout the United States along with offering many other financial and marketing services.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, September 24, 2017

Tips for Getting Commercial Real Estate Loans

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.
You would think that lenders would be eager to grant commercial real estate loans due to the large dollar amount and the potential to make a great deal on interest. But in most cases, it is tougher than you would expect to complete the application process and qualify for the loan. But using a few proven tips can help to eliminate much of the pain associated with the process.
The first step that you need to take even before you have found the property that you are buying is getting your application packet in order. You will want to have this task done before you really begin to shop for a property because the preparation can take some time and you don’t want to lose out on a great property while you are digging through paperwork. You will need current financials as well as a few years of historical financials, tax returns for the past 3-5 years, rental schedules, leases, copies of sales contracts and AR statements, bank statements and asset and liability statements. Having these documents in order will help to expedite the application process for any commercial real estate loans.
Once you have found the property that you want, be sure that you do the research and know what the actual market value of the property is. This could be different than the asking price but understand that the lender is only interested in the market value. That is the value that the property will hold as collateral on the loan that you are asking for and that is what the lender is really interested in. Also understand that you will be required to make a down payment of around 30% of the market value. If you are willing to pay more than market value for the property then you will also need to pay the seller the delta between the market value and the asking price.
Prepare a Structure Diagram and Asset and Liability Statement
Having a complete structure diagram will help to save valuable time when the lender is evaluating your business. It gives them a clear picture of your business, what you do and how you accomplish it. This can save many weeks of questions when they are trying to evaluate your creditworthiness and the overall stability of your business. The asset and liability statement will be the document which will explain your financial stability in a nut shell. These two documents can greatly simplify the lenders discovery process prior to approving your loan.
Hire a Professional
Most business owners have no idea how much documentation is required to apply for commercial real estate loans. And once they begin the process they quickly become overwhelmed. You hire a lawyer to handle legal matters and an IT professional to design your network so it only makes sense to hire a professional broker to assist you with purchasing a property. It will not only eliminate much of the stress but it can also eliminate a lot of time that would be wasted resubmitting your application packet if there are errors or missing documents.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Basics of Commercial Real Estate Loans

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.
Owning a successful business is a rewarding accomplishment and one that might be leading you to consider purchasing a commercial property for your business. But you need to know more about the process and the requirements before you begin to invest your valuable time in searching for a property. The application process is not as simple or fast as a personal mortgage process and the documentation required can be much more in depth. But once you understand the eligibility and requirements you will be better able to make your decision about purchasing a commercial property.
Commercial real estate loans are secured by liens on the property that you are purchasing. The lien gives the lender the right to take the property from you if you do not make the payments that are outlined in your loan documents. This protects the lenders investment in the event that your business fails, the economy disrupts your business or any other issue that could cause you to default on the loan. But because commercial property value can fluctuate more than residential property, the lender requires that you make a large down payment on the property. This is a way of creating instant equity which is good for both you and the lender. It reduces the amount that you are borrowing and therefore reduces the amount of interest that you are going to pay. And it also helps the lender to know that if you default on your loan, then they have a better chance of recovering all of their investment even if the property value has dropped since you purchased it.
Commercial real estate loan terms are also a bit different. They are normally in two terms. The first is intermediate and is for three years or less and the long term is from 5 years to 20 years. There is also a balloon loan that is an option. In this case the loan payments are mostly just covering the interest and at the end of the term you owe a final payment that covers the balance of the loan. In most cases the payment is very large and the borrower is forced to refinance the loan to cover the final payment.
Know Your Interest Rate
Because a business’s financial stability is more tied to the economy than that of an individual, lending money to a business is, in general, considered to be more of a risk. For that reason, commercial loans tend to have a higher interest rate and additional fees that must be paid. Be sure that you are carefully examining all of the fees and interest that you are agreeing to pay before you sign the loan agreement.
Research Your Options for Lenders
Knowing about the commercial real estate loans process is only half of the research that you need to complete. You will also want to learn about all of your options for lenders. Commercial banks, credit unions, mortgage lenders and the Small Business Administration are all good options to explore when you are ready to apply for a commercial real estate loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, September 20, 2017

How to Evade Texas Commercial Mortgage Pitfalls

There are a number of common mistakes that many people make when it comes to a Texas Commercial Mortgage. But with some advice, there are ways you can avoid making these mistakes.
First and most importantly, don’t always focus just on the interest rate! The lowest interest rate doesn’t always mean it is the best option. Amortization is also very important. Always keep in mind that the longer the amortization, the lower the payment. This will help give you more time to pay off the Texas Commercial Mortgage. Not only should you compare the interest rate and amortization terms, you should also compare all of the terms and any extra fees.
It is beneficial to be prepared and have a plan. Lacking a clear goal for the property could really hurt you in the end. It is better to already have a plan in place before accepting any opportunities that come your way. Just because it is a good opportunity, doesn’t mean you should automatically take it. Looking ahead to the future and using forecasts, figure out if there is going to be a profit and increase to your revenue in the end. It is a smart idea to consult a professional if you are unsure or have any questions. This will help prevent any misunderstandings before advancing on.
But don’t just speak to an expert, really put some serious thought and time into considering any type of agreement. A Texas Commercial Mortgage needs to make sense on all grounds and be something that is going to be beneficial to your business. Make sure that your investment is going to supply a profit. Sometimes what you think is a good idea, might turn out to not be the case. If you keep getting denied, you need to listen to why and maybe reconsider some things. There is obviously a reason you keep getting denied, so take the time and effort to reevaluate your plan. Also, keep in mind that if the only approval offers that you are getting are coming with high numbers, then the investment might not be in your best interest.
How to Compare Texas Commercial Mortgages
With so many different opportunities out there, it is important to take the time to do plenty of research to compare all of your different options. Shop around for the best deal and compare all of the terms and fees along with the interest rate and other factors. There are many parts to a Texas Commercial Mortgage and you want to make sure you are taking into consideration all of them. And remember to not jump into anything and make a decision right away.
Look for the real deal, but when the right Texas Commercial Mortgage option comes around, go for it!
While conducting your research, you might come across a Texas Commercial Mortgage agreement that you simply cannot pass up. If it comes with everything you are looking for, and you have spent the time to look at your other options, then go for it! Be happy and satisfied with your decision and take it before you lose the opportunity.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, February 3, 2017

Things To Consider When Reviewing Commercial Real Estate Lenders

There is more to finding the right commercial real estate lenders than whether they will approve you. When considering the available commercial real estate lenders at your disposal there are several things to consider which can help you figure out the right one for you.

Going into business is a pretty big decision and one that will involve you having to make several big, important decisions along the way before you ever open up. One of the biggest, of course, is your location. The wrong one can doom you to failure before your business ever gets off the ground.

So, when choosing your location, it helps to have the right people involved in the process. But with all the commercial real estate lender available, how do you go about choosing the right one for you?

What To Consider When Reviewing Commercial Real Estate Lenders

On the surface, it may seem like deciding which lender to go with is easy—go with whoever will approve you. But if you do that, there is a very real chance you’ll get stuck having to honor terms that are advantageous to the loaner and problematic for you.

The following are several things to keep in mind when you are looking for a lender:

- You Have Options: Don’t settle for the best of the worst. There is someone out there who is right for you. You may have to do some searching to find him/her. But you are better off putting in the leg work now rather than regretting not doing so later.

- Choose the Best Loan for Your Business: Not every loan is the same so make sure you understand exactly what you think you need and what the lender is offering.

- Get Pre-Approved As Soon As Possible: The quicker you know how much you have to work with, the faster you’ll find your space.

- Work With a Lender Focused On Your Immediate Needs: It is nice that they want to protect your future, but if you never make it out of the present, the future doesn’t matter.

- It’s Smarter to Make a Smaller Down Payment: In theory, this means you end up paying back more later, but when you are getting started there will be several expenses that will come up that you did not budget for. It’s better to have the money on hand and not need it than to need it and not have it.

- Look for a Lender with an Entrepreneurial Mindset: Anyone can learn how to review loans and talk terms, but it takes someone with an entrepreneurial mindset to truly understand what you want to do and why it’s important to you.

- Do Not Choose a Lender Based on Interest Rate Alone: No one wants to have to pay the lender more money, but there are so many other terms to consider that can be vital to your success.

- Get Referrals: No one will know a lender better than someone who has worked with them before. If someone is willing to recommend them, then they can’t be too bad.

Don’t Hesitate To Ask Or To Dig

The last thing you want to do in the early stages of your business venture is not feel good about whoever you choose from the commercial real estate lenders available to you. So be sure and question them about anything you want and use whatever tools you have on hand to discover what you need to know.

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.

Technorati Tags: commercial real estate lenders

Wednesday, February 1, 2017

Knowing The Different Types Of Commercial Real Estate Lenders

At one point in time, the only lender available to entrepreneurs was the bank, but not there are several types of commercial real estate lenders to choose from.

There was a moment in time when the only avenue one had to satisfy a need for a commercial loan was the bank or “that guy” your buddy knows that charges an insanely large interest rate and gets aggressive if you miss a payment. That is certainly not the case anymore as several different types of commercial real estate lenders have developed over the years and are now available to meet existing demand.

While it is nice to have options, depending on your intended purpose, one type of lender may be better suited to meet your needs than another. But to figure out which one is right for you, it helps to have a better understanding of your options.

Six Most Common Types Of Commercial Real Estate Lenders

Before you get started looking for a lender, you should review what the six most common ones are:

- Banks: An oldie but a goody, banks have been involved in commercial real estate loans for centuries and likely always will be. They tend to have a significant amount of capital at their disposal (thanks to their deposits) and will get involved in a variety of types of projects. When looking into banks, it is important to keep geography in mind. Local or regional banks are more likely to only approve loans for projects in their region or community. Nationwide chains are typically not too concerned with geography.

- Life Insurance Companies: if you think about it, it makes sense that they would be involved in the commercial real estate. They have millions of people paying premiums, so they have capital on hand. However, they can’t afford to take risky loans and tend to gravitate towards safe, long-term projects with reliable returns.

- Bond Market (commercial mortgage backed securities): These are loans backed by bonds that may be as safe as can be to some that entail a lot of risks, but hold the potential for greater reward. The market is monitored by independent rating agencies that provide bond buyers with the information they need about investments.

- Debt Fund: this is an investment opportunity that allows investors to get involved in lending and/or buying loans. Investopedia.com defines a debt fund as “an investment pool, such as a mutual fund or exchange-traded fund, in which core holdings are fixed income investments.” They are common among construction loans

- Government Sponsored Entities: The purpose of these is to achieve some sort of public purpose by having a government created and controlled entities get involved in private financial dealings. They are not direct lenders but allow other institutions to originate a loan and then assume it.

- Marketplace Lenders: This is simply an online lender that matches a borrower with the appropriate investors. Crowdfunding is a common type.

Which Type Is Best?

When figuring out which of the many commercial real estate lenders you should go with, it can help to understand where they came from. Of course, if you aren’t sure which is best, talk to a few and ask questions. The ones that want your business will answer as honestly as they can, even if it means possibly losing your business.

Technorati Tags: Commercial lenders,commercial lenders,commercial loans,commercial lending

Friday, July 8, 2016

Commercial Real Estate Property: Your Quick and Dirty Guide To Fixing and Flipping

The commercial real estate business can be very unforgiving, however, you can make it work for you. Before you start your new venture as a realtor there are a few things that you should do prior to inking your first deal.

The commercial real estate business can be very tough when you are just starting out. As with any craft, there are different things that you have to take into consideration. For example, the real estate business can go through a feast and famine period. The recession in the U.S. a few years ago is a perfect example of this. Before the recession hit a lot of investors were buying up property at low prices and trying to turn a profit by selling really high. After the market bubble burst there were not a lot of properties being sold.

There really is no way you can accurately predict the outcome of the economic climate. You can, however, adjust the way you approach your investments. Before you start you want to make sure you do a lot of research on the business. Make sure you talk to people who have been in this business for years. They usually have a myriad of trade tips that they have can vary. Anywhere from the best places to find a potential buy to dealing with a lender efficiently. Asking someone first is always better than spending a lot of time trying to educate yourself.

After educating yourself on the commercial real estate business you now have to apply your knowledge.

You have a mission that you want to accomplish, but you cannot complete your goal if you never take the plunge. Like most coaches say, “You can practice all you want, but now it’s time for the real game.” You want to start out by scoping the prospective places you may want to invest in. Spend time in different parts of your city; go as far as visiting surrounding cities to see if there are any commercial real estate properties that you would be interested in. You want to set a set a price of what you are willing to pay and the lowest price you are willing to sell your property for.

Where are the best places to look for commercial real estate opportunities?

One way you can find potential commercial real estate buys is by going through public records. Most of the time you will be able to find a couple of homes that are either being foreclosed by using public records. A lot of commercial real estate investors will also drive around looking for distressed and abandoned properties that need some refurbishments. This is called, “driving to dollars. After finding the right place, you want to make sure everything is up to code and the property is safe to live in or work in.

To find a potential buyer, you want to begin by asking around to see who is looking for a new home. Family members and friends are great options to begin with. Once you find a buyer make sure that you negotiate a fair price for both parties.

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

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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Saturday, September 30, 2017

Texas Commercial Real Estate: Texas cities compete for Amazons new headquarters.

Amazon recently announced plans to build a second headquarters. The Texas commercial real estate market has shown robust growth for many years, will the states growing economy is enough to attract Amazons new headquarters?

Other Texas cities are also competing for the Amazon headquarters. Demonstrating just how robust Texas’ commercial real estate market actually is.

Texas’ commercial real estate market is one of the strongest in the nation. But how will Texas fare against other states?

Thursday, September 28, 2017

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

Privately held real estate investment firm gets help with commercial real estate loan in Texas

The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.

Sunday, September 24, 2017

Tips for Getting Commercial Real Estate Loans

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.

Prepare a Structure Diagram and Asset and Liability Statement

Hire a Professional

Basics of Commercial Real Estate Loans

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.

Know Your Interest Rate

Research Your Options for Lenders

Wednesday, September 20, 2017

How to Evade Texas Commercial Mortgage Pitfalls

There are a number of common mistakes that many people make when it comes to a Texas Commercial Mortgage. But with some advice, there are ways you can avoid making these mistakes.

How to Compare Texas Commercial Mortgages

Look for the real deal, but when the right Texas Commercial Mortgage option comes around, go for it!

Friday, February 3, 2017

Things To Consider When Reviewing Commercial Real Estate Lenders

What To Consider When Reviewing Commercial Real Estate Lenders

Don’t Hesitate To Ask Or To Dig

Wednesday, February 1, 2017

Knowing The Different Types Of Commercial Real Estate Lenders

Six Most Common Types Of Commercial Real Estate Lenders

Friday, July 8, 2016

Commercial Real Estate Property: Your Quick and Dirty Guide To Fixing and Flipping

After educating yourself on the commercial real estate business you now have to apply your knowledge.

Where are the best places to look for commercial real estate opportunities?

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