Showing posts with label commercial real estate. Show all posts

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.

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

4 Tips for Getting Commercial Loans

Applying for commercial loans can be intimidating to say the least. But using these four tips can help to ensure the success of your loan application.
The process of securing commercial loans can be daunting. And for that reason it is critical that you be well prepared when you are getting ready to submit an application. The credit history of your business and possibly your personal credit history will be under scrutiny during the application process so be sure that you have everything in order on both credit reports. Verify that both credit reports are accurate and that you have no issues that appear on either the personal or business report. Also be sure that you have copies of your business and personal taxes for the past 3-5 years, your current bank statements, a current asset and liability statement and any lease or rental agreements ready to submit.
When you are preparing your request you will want to be sure to provide information to the lender about your business, the industry and the reason you are requesting the loan. In many cases your business plan will have outlines the projected growth of your business and this can help to explain your current position and how the loan is going to help your business grow. Think of your loan application as an introduction to you and your business. Be sure to make a good first impression on the lender.
Local banks are a great place to start your search for commercial loans. If your business is small or has not been profitable for the past three years then you are far less likely to be approved by a national lender. But a local bank will be more willing to learn about your business and consider taking a risk on you. Also speak to the local Small Business Administration office to learn which lenders might best suit your needs. The process of working through the SBA and a local lender might take longer but it could greatly improve your chances for a loan if you are willing to invest the time.
Look for Alternative Financing Options
Many small businesses are turning to alternative lenders to provide their commercial loans. These lenders have less strict requirements and that makes it much easier for a smaller or newer business to get approved. But be aware that along with the lower requirements comes greater risk for the lender. As a result, you might be faced with a higher interest rate or higher fee structure for your loan.
Have a Well Thought Out Plan
When you are requesting a loan you need to be ready to provide all of the information and documentation that the lender requests. Having the material ready shows the lender that you have invested your time and effort into planning and preparing for the process. It also demonstrates the responsibility that the lender wants to see when thinking about how you run your business and how you will make the payments on the loan. Making a strong and professional first impression will be a great way to start the relationship with your new lender.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Advice about Getting Commercial Real Estate Loans

Most business owners are not very familiar with the process of getting commercial real estate loans. But these pieces of advice can help you to manage your expectations and succeed when you are ready to apply for a loan.
When you find a great commercial property that you want to buy time becomes a huge factor in everything that you do. Your first question to most lenders is about how quickly they can get your application processed and get you the money that you are requesting. Tip number one is that the standard answer in the commercial real estate loans industry is 30-45 days to complete the process. But the truth is that in most cases it takes more like 60-90 days to get through the process. Some of that could be due to ill prepared borrowers who are missing documents and information on the application but part of it is also going to fall back on the lender and their processes. So be prepared to spend several months ironing out the processed of completing commercial real estate loans.
Rule number two is to keep your options open. You never want to rely on just a single resource for anything in your business and commercial real estate loans are no different. You need to have a backup plan for several reasons. In some cases the lender might have very strict qualifications that you might not meet. Another issue could be the time that it takes for a lender to process your application. And even after you have applied and been approved, you might find that you are not in favor of some of the terms that the lender has in their contract. Having several options allows you to carefully evaluate your options and make a selection that is best for you and not just for the lender.
Tip three is one that can save you some money. Don’t get talked into requesting an appraisal on a property yourself. If you think that it is going to save you time and money, you are wrong. You can’t submit an appraisal to multiple lenders and save money. By law the bank must request their own appraisal and they must also have an environmental study completed on the property.
Start Small but Don’t Be Afraid to Go Big
Starting with local banks and your local Small Business Administration office is smart. Local banks and smaller lenders are often willing to work very hard to beat out the competition for your business. But don’t forget to check out your options with some of the big lenders. Different lenders have different criteria for loan qualification as do lenders of different sizes.
Think Outside the Box
If your first application or two gets turned down, don’t give up. There are many different types of lenders out there. You might need to look into alternative lending options to start with and move to a more conventional lender in a few years. But take the knowledge and experience you have gained on the first few applications and keep looking for your perfect lender.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Differences between Residential Loans and Commercial Real Estate Loans

Most people assume that all mortgages are basically the same. But there are some very key differences between residential loans and commercial real estate loans.
Many business owners assume that when they are ready to buy a commercial property, the process will be much like when they applied for a personal home loan. The fact that it is a loan used to purchase property is the same but there are a few important differences that you need to fully understand before you begin to search for and apply for commercial real estate loans. The process is more in-depth and requires more documentation than a standard home loan. Knowing the process will help you to manage your expectations and be successful when seeking your loan.
The first difference is that your business entity might not have a financial history that is long enough to secure a loan. If that is the case then the lender is going to require the owners of the business to guarantee the loan. This is the lenders way of ensuring that there will be someone to repay the loan if the business fails or is unable to make the loan payments. If this is the case that your business is facing then you should be prepared to submit all of your personal financial records along with your business financials to the lender. If there are multiple business owners then each one should submit their personal documents. This can include historical tax documents, bank statements and an over view of any investment portfolios that the principals own personally.
The repayment schedule for commercial real estate loans can also be very different from personal mortgage payment schedules. A home loan is amortized, meaning that the debt is repaid over regular installment payments. The longer the loan is the lower the monthly payment but the higher the interest and the loan can range from 15 years to 30. A commercial loan is normally from 5 years to 20 years and the amortization period can be longer than the loan term. This means that the borrower is often faced with a final payment due at the end of the loan term. This is called a balloon payment and can often be quite substantial. Borrows most often must refinance the loan to pay the balloon payment on the initial commercial loan.
The Cost of Commercial Loans Can Be Very Different
Commercial loans represent a greater risk to the lender than a standard personal mortgage loan. Businesses are more at the mercy of the economy than consumers so there is a greater risk of defaulting on the loan. For this reason, lenders charge a higher interest rate on commercial loans. In addition there can be many additional fees that the borrower must pay. There can be an origination fee, legal fees, appraisal fees and even some annual fees that are paid for the life of the loan.
Do Your Homework and Be Prepared
Understanding the differences between your home mortgage and a loan for a commercial property is very important. It allows you to create realistic expectations for the process, it helps you in grasping the time frame that is required for the approval process and helps in understanding your full commitment to the loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, September 19, 2017

Texas Commercial Lending is on the Verge of Taking Over the Internet

Online Texas Commercial Lending is the real deal and becoming more popular each year. And with more places offering the online application process for loans, the completion only continues to heat up.
There are a number of benefits to applying for loans online. With so many Texas Commercial Lending options, it gives you a handful of different ones to choose from. Most of the time it is a very fast and easy process to apply online. And as time goes on and technology continues to improve, it is along going to get more efficient and you are going to see even more opportunities to find extra funding.
With the increase in third party options, more banks are stepping it up and offering the option to apply for loans online. But be aware that most banks come with a limit when applying online. But that is where some third-party options come in because some of them don’t have limits. If you are looking to apply for a higher loan amount, you might want to consider applying in-person for a better chance of approval. It is helpful to start off by doing plenty of research to see what requirements each lender has and which loan offers the best benefits for you.
This is one of the best benefits to online Texas Commercial Lending. Being able to easily shop around for the right loan for your business at any time of day or night is going to save you plenty of time so that you can focus more on making the decision. You can do a little bit of research here and there and do it on your own time. Most sites also have very helpful customer service to walk you through the process.
Some Benefits of In-Person Texas Commercial Lending Outweigh Online
Even though online Texas Commercial Lending is easy and convenient, it doesn’t quite replace the overall experience of dealing with applying for a loan in-person. Working one on one with someone experienced in the industry can add trust and establish a relationship that makes the experience more personal. When dealing with a professional, you have the opportunity to not only negotiate the interest rate, but other important figures like terms and extra fees. You have a better chance of getting exactly what you want instead of settling for the option offered via the Internet process.
Online Texas Commercial Lending can still be a win-win solution for all!
Online Texas Commercial Lending might not be as personal as applying in-person, but it really is a solution that everyone sees some benefits from. Customers have the chance to apply for a loan right at their fingertips and in a fast and easy way. For banks, online loans are very cost efficient. They don’t have to pay a banker the time they spend with customers and it is such a quick process that it is doesn’t take up a lot of additional resources. When it comes down to need a quick and low amount of money, applying for a loan online is a smart choice.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, September 18, 2017

Texas Commercial Lending Professionals To Deal With Cyber Threats In 2017

Commercial real estate professionals are at greater risk for cyber attacks than ever before. Increase your company’s security by expanding your knowledge.

Cybercrime is here to say. This can be said with confidence because of how much money that businesses globally are spending to secure their digital assets. According to the latest Cybersecurity Market Report released by Cybersecurity Ventures, worldwide spending on cybersecurity products is expected to be greater than $1 trillion over the five years between 2017-2021.
Many companies in the Texas Commercial Lending industries that have already taken a proactive approach to securing their company and their client from digital intrusions. Others have taken a less diligent approach to proofing their operations against cyber threats, making these companies are among the most vulnerable. Regardless of what approach your company has taken toward cybersecurity, there’s always time to correct the course. These tips will help commercial real estate companies back on the right track.

1. Don’t Underestimate The Threat - One of the many reasons that commercial real estate professionals fall prey to cybercrime tactics is because they believe that their operation is of no interest to a hacker. Alternatively, they may believe that the investments they have already made are sufficient to protect them from attacks. This naive approach belies the interconnected nature of the industry. Even if one of your colleagues or industry partners is at risk, there’s a good chance your company is at risk as well.

2. Understand Where Cyberattacks Start - One of the most difficult parts of protecting a commercial real estate firm from digital threats is covering every angle of attack. Data breaches can occur because hackers take a hard look at a company and decide to dig in and overcome their firewalls. On the same token, data breaches can occur because an employee working remotely accidentally loses their login credential at a coffee shop. A malicious virus stored on a client’s computer systems may even transfer over by way of email or a shared digital document. There are so many points of entry that without a dedicated team of specialists, your company must simply accept a certain degree of vulnerability.

3. Take Care When Financing Smart Buildings - If your company plans on financing a commercial real estate asset or building one from the ground up, special care must be taken around the installation of “smart” or Internet-of-Things technology. These devices, meant to interconnect a variety of consumer products via streamlined app functionality, offer value in that they can potentially make a workplace more efficient. They also represent a critical cybersecurity risk, as most smart products lack the necessary encryptions necessary to safely link them to the company’s network.

Ignoring Cyber Threats Won’t Make Them Go Away

Don’t put off securing your company from digital threats. The Texas Commercial Lending industry is competitive enough without setbacks caused by malicious hackers. It’s best to assume your company is a target, even if you don’t understand what hacker would be targeting.

Protecting real estate investments from hackers is easier when your lender has your back.

Lenders who are familiar with the nuances of smart technology are savvy enough to know you’ll need extra help securing your state-of-art building when you finance. If relevant, be sure to bring up your concerns about cybersecurity directly at the negotiating table.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, September 6, 2017

Borrower Beware: Pitfalls To Avoid With Your Commercial Real Estate Loan

Applying for a commercial real estate loan can be nerve-wracking under the best of circumstances, but many business owners make matters even worse by fumbling through the process. Learn from those that have made mistakes so you don’t have to make them yourself.

Even the savviest business people can be prone to making a mistake every now and again. In fact, many business owners will tell you that they frequently make mistakes, but that they do not make the same mistake twice. When it comes to something as momentous as obtaining a commercial real estate loan, even the slightest mistake could cost you in both time and money. How can you avoid making huge mistakes? By learning from the mistakes of others. Here are three pitfalls to be on the lookout for as you move forward with your commercial real estate loan.

Failing to have a solid business plan – This seems like a no brainer, but if you are seeking a loan and have not updated your business plan in a while, you should spend some time doing that before even filling out the application and preparing the rest of the paperwork. Make sure that your new and updated business plan includes the most recent financial figures and operational procedures. It also might be a good idea to include an addendum that addresses how being granted a loan will change the plan.

Having your accounting in order (and keeping it up to date) – Many small business owners simply hand their accounting off to professionals and then never pay attention to it again. While having a professional accountant is a very smart decision, completely ignoring the numbers is not. Many small business owners make the mistake of only noticing financials when something has gone wrong or when it is tax season. However, when considering a loan, it is extremely important to have a thorough understanding of cash flow and balance sheets. It is also important to stay on top of this information throughout the process. So, if you are thinking about expanding your operations with a loan, it is time to dive into the numbers and stay there.

Not shopping around for lenders – It is no secret that applying for commercial real estate loans is time consuming and stressful process, full of mountains of paperwork and endless conversations with lenders. But one mistake that many small business owners make is to settle for the first offer that is given to them. Sure, there is often a tremendous amount of relief because not only did you get the funding that you desired, but you also don’t have to worry about continuing the process. This is a mistake, however. Is the first loan the best deal for you? Are the terms to your liking? What about payment options? If you have no other offers to compare it to, there is no way of knowing if you are getting the best loan for your specific needs. So resist the urge to grab the first offer that comes your way. It might end up being the best one, but there is no way to know unless you have others by which to compare it.

How can I avoid making mistakes of my own when applying for commercial real estate loans?

The best way to be successful in obtaining the best commercial real estate loan for you and avoiding the pitfalls that many have stumbled into is to simply pay attention to detail. Be prepared to put in lots of work gathering documents, reading terms and negotiating. Do not cut corners and ask lots of questions!

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

Monday, July 11, 2016

Commercial Hard Money Lender: How You Can Make Them Eager To Sign YOU!

If you’re ready to apply for a loan with a commercial hard money lender, you may want to review the following advice. While you don’t have to be perfect, these characteristics may have a helping

hand in making your dreams come true. As experienced commercial hard money lenders, we try our very best to make the loan application process and approval easy for you at Level 4 Funding. However, there is a lot that you can do even prior to the start of the loan application process. Here’s the key–you don’t have to be perfect or have perfect credit history–you just have to have a plan for success!

BE PREPARED: Be sure to “come to the table” having done your homework. Spell everything out for your commercial hard money lender; making it easy for him or her. After all, they hold the key to your outcome of your future. From a business plan including a mapped-out marketing strategy to financial records including cash-flow statements– get everything organized, up-to-date, and ready to professionally present.

BE AUTHENTIC: Good credit or bad credit –commercial hard money lenders just need to know. Don’t “walk into” the loan application process without being ready to explain your history and state your case. Yes, it’s wonderful that you may have been able to consistently make payments during good and bad business times, but if the latter, just document your story and be ready to effectively explain and share it.

One Final Quality That May Help Determine Your Eligibility In Securing A Loan With A Commercial Hard Money Lender

So, you’re organized and forthright with your business plan and financials; in-hand. Take it one step further and get a little proactive before engaging with your commercial hard money lender. A final thought is loan collateral. If you have a down payment with respect to the potential purchase of property, be ready to know what it is and be ready to put it down. Anything you can offer helps looming loan-to-value requirements.

A Commercial Hard Money Lender Wants You To Be Successful–Being Prepared, Authentic, And Proactive Is Only Going To Help Your Chances For a Win-Win Solution!

Look to Level 4 Funding when applying for your first or next commercial mortgage loan. Our commercial hard money lenders are experienced and are here to help. We focus on speed of service and offer more flexibility than traditional banks. We want to work with you! If you happen to be prepared, authentic, and even a little proactive–it will only make things that much easier all-the-way-around!

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.

Commercial Hard Money Lender: Why They Are The Right Fit For You!

\Ready to move on with business, but your traditional bank loan officer may not be? A Commercial Hard Money Lender may just be the right solution for you. Find out why this is the real deal.

So, you’re ready to move on with business, but in need of a timely loan? Let’s go as far as to say that you’re ready to make your move and acquire that piece of commercial real estate, and are hard-up for funding? The good news is that you don’t have to be hard-up for hard money. A Commercial Hard Money Lender is a very viable, attainable option for you and here is why.

Commercial Hard Money Lenders are able to provide commercial hard money loans in a timely and efficient manner. They have the depth of understanding that the time to act on your piece of potential real estate is now, while others like yourself are competing with dueling bids. You simply may not have time for the traditional bank loan application approval process and funding that can sometimes take up to several weeks.

If you’re concerned about being denied a traditional bank loan or have currently been denied one, Commercial Hard Money Lenders are likely more willing to work with you than other banking institutions. While there are many reasons why you may have been denied a bank loan, a Commercial Hard Money Lender will often let your history of denial be just that, history. They deal with you in the “here and now”–meaning, equity invested and will the loan be repaid.

What Are Other Things To Consider When Contemplating Using A Commercial Hard Money Lender?

You understand that the commercial real estate opportunity of a lifetime could be passing you by as you wait and wait for a potential bank loan approval and related funding. In addition, you should know that Commercial Hard Money Lenders aren’t what they used to be. They are on the up-and-up, helping folks like you on a daily basis. Long gone are the days of risky loan practices and extraordinary interest rates. Today’s Commercial Hard Money Lender wants to work with you and see that you succeed! Your success is their success!

For A Successful Loan And Funding Process,

A Commercial Hard Money Lender Is Something For You To Research And Consider

At the end of the day, your goal to secure a potential commercial real estate property is a loan. Because Commercial Hard Money Lenders are willing to work with you, focusing on the value of the property and not on your history and credentials, researching and considering this type of lender may be just right for you. You will stand a much better chance of reaching your goal, so get started now!

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

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.

Featured Post

Sunday, September 24, 2017

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

Applying for commercial loans can be intimidating to say the least. But using these four tips can help to ensure the success of your loan application.

Look for Alternative Financing Options

Have a Well Thought Out Plan

Most business owners are not very familiar with the process of getting commercial real estate loans. But these pieces of advice can help you to manage your expectations and succeed when you are ready to apply for a loan.

Start Small but Don’t Be Afraid to Go Big

Think Outside the Box

Most people assume that all mortgages are basically the same. But there are some very key differences between residential loans and commercial real estate loans.

The Cost of Commercial Loans Can Be Very Different

Do Your Homework and Be Prepared

Tuesday, September 19, 2017

Online Texas Commercial Lending is the real deal and becoming more popular each year. And with more places offering the online application process for loans, the completion only continues to heat up.

Some Benefits of In-Person Texas Commercial Lending Outweigh Online

Online Texas Commercial Lending can still be a win-win solution for all!

Monday, September 18, 2017

Commercial real estate professionals are at greater risk for cyber attacks than ever before. Increase your company’s security by expanding your knowledge.

Ignoring Cyber Threats Won’t Make Them Go Away

Don’t put off securing your company from digital threats. The Texas Commercial Lending industry is competitive enough without setbacks caused by malicious hackers. It’s best to assume your company is a target, even if you don’t understand what hacker would be targeting.

Protecting real estate investments from hackers is easier when your lender has your back.

Wednesday, September 6, 2017

Monday, July 11, 2016

One Final Quality That May Help Determine Your Eligibility In Securing A Loan With A Commercial Hard Money Lender

A Commercial Hard Money Lender Wants You To Be Successful–Being Prepared, Authentic, And Proactive Is Only Going To Help Your Chances For a Win-Win Solution!

What Are Other Things To Consider When Contemplating Using A Commercial Hard Money Lender?

For A Successful Loan And Funding Process,

A Commercial Hard Money Lender Is Something For You To Research And Consider