Commercial Real Estate Loan Rates

Do you have an office building, a rehab, or a multi-unit apartment building? With commercial real estate loan rates at one of their lowest, now may be the right time to consider a loan for your next real estate investment.

If you are an owner or looking to purchase a commercial property, there’s good news to be had: Commercial loan rates remain at an all-time low. With the Federal Reserve promising four rate hikes this year, this may not be so in the future. For this reason, this may be the perfect time for you to purchase or refinance a commercial property. Level 4 Funding has the team that can help guide you through the process and help you feel like a well-informed purchaser. Let’s take a look at how commercial real estate loan rates work and the interest rates the different types of lenders charge.

If your Credit Score is 680, you’ve been in business in 2-plus years, and plan on occupying 51% of the building, you may qualify for a SBA 7 (a) loan. If your project is between $2 and $3 million dollars you may want to explore the opportunities for financing from insurance companies and conduit lenders.

Commercial Real Estate loans have lower interest rates because they are collateralized by the commercial property. There are four factors that affect the interest rates for the Commercial loan. They are:

1) The Business and Customer creditworthiness: Your rate will be determined by the credit score of the customer and business, the higher credit score the lower rate.

2) Is the commercial real estate loan fixed or variable? A fixed rate loan is a loan that has a fixed rate for the term of the loan. The variable rate loan is reset from 1 to 5 years and will be adjusted based on current rates. Most people will not qualify for fixed rates.

3) What is the term and size of the loan? Hard money lenders offer loans with higher rates and shorter terms while conventional lenders offer longer loans with lower rates.

4) Prevailing Market Rates: Interest rates move up and down based on the government bond market. Keep informed about the movement in the government bond market and how they will affect your rate.

The Lender Has the Biggest Impact on your Rate

1) SBA loans--rates run 4.75% to 9.25%, the 504 loans are best for loans over $1, 000,000 and come in three parts: 50% from the bank, 40% from the SBA and 10% from the borrower. You will need a credit score of 680+.

2) Hard Money Loans--Rate run 10% to 18% and covers about 20% of the market. The rates are high because the loan is not based on the credit worthiness of the borrower but the value of the property. The loan-to-value runs around 55% for many hard money lenders.

3) Other Lenders--Only a small amount of loans come from Insurance companies and Conduits.

Commercial loans can be structured in three ways: fully amortized loans, interest rates resets, and balloon payments.

You may want to purchase commercial Real Estate or refinance a commercial property. There are wide varieties available for high credit scores and lower credit scores. Call and counsel with Level 4 Funding to find what works best for you in your situation. We offer rates as low as 7.99 percent.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

How to Find Reputable Hard Money Lenders

When you need cash fast, it’s time for a loan. Fast cash loans are usually handled through private hard money lenders versus traditional banks – but not all lenders are created equal so need to know what to look for.

Hard money lenders can help you get cash in hand fast which can come in handy for real estate investors and small business owners alike. However, not all lenders are as honest and ethical as you'd hope they would be. So there are a few things you should keep in mind before seeking this kind of loan.

First, you need to understand what hard money loans are – short-term loans in which the borrower can generally get cash in hand very quickly, sometimes even in the same day of application approval. When you are looking for a lender, look for someone who specializes in these loans and even within the specific industry or niche that you need the money for. You want to make sure that the lender is licensed. It’s also a good idea to meet with them to ensure they are really going to negotiate the best terms for you. Obviously, they are in business to make money, too, but as a professional they should be looking out for your best interest.

You should also ask questions, such as what types of fees, rates and terms are associated with the loan. Make sure that there are no “hidden fees” that will be uncovered later. You want to be confident that the person that is going to find you the right loan is really intent on doing just that.

Be prepared with what you need to know about the loan – and hard money lenders.

Do your research about your lender but ask questions that you need to know when you meet – about his or her areas of expertise, background, project profiles and any other items you might want to know that will help reassure you that this is indeed the lender that will help you get the loan you need, when you need it.

Be prepared to share what your lender needs to know to be able to help you get the loan you need.

Your lender will need some information, too, to be able to best help you. So bring your business plan, be prepared with your update to date credit history and score information (though in some instances of these types of loans, those won’t be scrutinized as much as a traditional lender or bank might), any information about equity or collateral that are you prepared to put up in the event that you cannot repay the loan, and any other business or personal financials that the lender might need to make an educated decision on how he can best help you get the loan of your dreams. You should also be able to share information about the timeline of your project and be aware of the timeline of the repayment schedule of the loan and if there are any penalties for repaying the loan before the end of the terms.

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 loans,commercial lending,commercial mortgage

How Hard Money Lenders Can Help You Become a “Fix and Flip” Expert

When you start in any industry, you may need a little help or advice as you get familiar with the tricks and trades of the role. As a real estate investor that wants to “fix and flip” investment or foreclosure properties, hard money lenders can help you get started.

Real estate investing can earn you a pretty penny – but it also takes a few of those pennies to get off the ground. If you don’t have a lump sum of cash to put into this industry, you’re going to need a loan. Many foreclosures or auction properties require cash on the spot – if you don’t have it, you won’t get the property. Bottom line. So be prepare with cash in hand… a lender can help you with that part.

While there is definitely more to fix and flipping homes than people tend to believe due to the glamorize version of the job they see on “reality” shows on TV. If you are thinking about getting into the industry, make sure you know about the nitty gritty aspects of the work involved. Hard money lenders that are experienced in this industry can be the first to tell you that the “fix” portion of the job can entail a lot of fixing up and sometimes total renovation. There is no telling why a property was foreclosed on but sometimes it is subjected to a lot of damage before the homeowners move out … or after.

When you look for a property, hard money lenders will tell you that one of the most important things to look for (even more important than the amount of possible damage to the home) is location. “Location, location, location” are the three biggest things to look for when looking for a home. It is easier to sell a home in a nice neighborhood, one that is not directly on a major road, and other criteria that prospective home owners are looking for when purchasing their “dream home.”

When you get the property, make smart decisions when you start to upgrade.

Professional lenders will tell you that upgrades and remodels are important, but make sure they are budget friendly, and don’t “overshoot” the upgrade. You don’t want to be the worse home on the block, but you don’t want to be the very best either – as homes’ values are relatable to those surrounding them. Try to find a good reliable contractor that you trust to make the necessary and best upgrades for the money – and the ones that won’t depreciate down the line. Do the best you can but without losing money on improvements alone or you might not be able to recoup what you spent. And aren’t you doing this to make money?

Spend some quality time learning about this industry before diving in.

Lenders experienced in this industry can be a huge asset for you if you are just starting out “fixing and flipping.” Many have seen successes and failures in relation to what many people perceive as a fun and easy way to make money, based on reality TV. It definitely can be, but you have to be educated about your best moves. And starting with a hard money loan can be a great start.

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 loans,commercial lending,commercial mortgage

Hard Money Lenders Can Solve Your Commercial Loan Needs

When it comes to needing to secure financing for your business, hard money lenders are there to guide you through the process. They can help you find the loan you need and fast – read on to find out how.

When you think it might be impossible to get your loan approved in time to finance an investment property you have your eye on or get over a foreclosure property, it’s time to readjust your thinking. With the help of these professionals, you can get a loan fast and just when you need it for your business or investment.

You need to understand that there may be some challenges and situations that you will need to handle when working with lenders, and that there are some are work specifically in certain areas. For example, commercial hard money lenders work exclusively with one property type so you may end up working with lenders that focus more in property niches. If you’re looking for this type of loan, make sure the lender you choose deals with the specific market or property niche that you are in.

Property types that hard money lenders can typically assist with include foreclosures, fix-and-flip properties, short sales, construction loans and land loans. They can also help if you need to relocate your business in a very short amount of time, and when potential buyers’ credit applications are less than desirable.

Understand that hard money lenders are not conventional bank lenders.

With traditional bank loans, the application process is lengthy, sometimes difficult and there is a lot of “red tape” involved. If you’ve already applied for a traditional loan, or know that you won’t qualify for a loan from this type of lender, based on your credit score or history or other issue, then seeking an alternative is the answer.

Finding the right lender is an important first step in successfully obtaining financing.

When you’re in a position to know that you need this type of lender, you need to find the right one for you and your needs. You can start your search online, for lenders in your area that focus on the areas that you need to focus on based on your loan needs or business area. You might be pleasantly surprised by how much good information on reputable lenders that you can find in your initial research. You can also learn more about local lenders by attending seminars that are geared towards how to obtain hard money funding. By attending, you will have direct access to lenders in your area and can speak with them about your needs. They can give you important information about up to date regulations, requirements and answer questions that you may have. These seminars are a good way to network with like-minded people in your industry with needs similar to your own, which is a win-win solution. Once you have decided upon a lender that is right for you, you can make the process quicker by being prepared to prove the amount of equity you have, the collateral you are able to put up and your business plan for the property in question. It’s also a good idea to be prepared to prove how you will be able to pay off the loan.

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 loans,commercial lending,commercial mortgage

Who Are Hard Money Lenders and What Do They Do?

A hard money lender is an individual or group of people that invest in various projects based on the collateral or hard asset. These lenders often specialize in a specific type of property and, as private investors, they are not bound by the same regulations that traditional banks face.

A hard money lender provides capital for various types of projects. These include residential, multifamily, businesses, warehouses, industrial, office space and even the growing-in-popularity multi-use projects. Many will not, however, lend on owner-occupied residential properties in part due to the Dodd-Frank Act. Because these investors tend to prefer specific projects, a lender will often develop a working relationship with one lender and turn to them repeatedly for their funding needs.

Hard money lenders tend to provide short-term loans, though these can often be extended for up to five years. They offer the perfect funding scenario for those in the fix and flip business that are looking for quick capital to jump on a promising property when it hits the market, instead of having to wait for a traditional loan to come through—a difference in not just days, but weeks. They can get into the project, complete the rehab, find buyers, and then pay back the loan that usually does not have an early prepayment penalty.

Hard money lenders are also fairly popular among developers. These types of lenders can provide loans with monthly draw programs, perfect for the construction industry. They offer interest only payments for a set period of time while the construction process is proceeding. They will want to see your plan, budget, permits and exit strategy. Not all projects go as planned, sometimes leaving developer’s credit reports with some marks against them. A hard money lender will not place as much emphasis on this aspect of lending as a traditional lender. For those that have some credit issues, they may be the best, and only, option available.

Hard Money Loans offer Quick Financing and Approval

A loan approval is possible the same day that you apply, whereas a traditional bank can take at least a week or more. From that point forward, the underwriting process if fairly straightforward. They will want to know your asset and will place more importance on this collateral than on your credit score or creditworthiness. Because of this, funding can occur in less than a week whereas your bank or credit union can take more than a month.

At Level 4 Funding, we work with a variety of private hard money investors that provide capital for all different types of projects. Our loan-to-value ratios are some of the highest in the industry and we pride ourselves on speed of service. Many investors turn to us when they are looking for capital in order to purchase a foreclosed, bank-owned or short-sale property and time is of the essence. Call us today for a no-obligation quote. Our approval process and funding can occur in as little as 24 hours!

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 loans,commercial lending,commercial mortgage

3 Thinks You Need to do If are Flipping LUXURY HOMES

 

House flipping continues to expand across the United States and, more recently, extending even into to the luxury real estate market. While many investors enter the arena of luxury home buying believing that they will quickly turn a hefty profit, it is important to understand a few obstacles unique to the high-end real estate market.

Budgeting is Essential when Fix and Flipping

The luxury real estate market caters to meticulous buyers who are often unwilling to accept homes that do not completely meet their demands. Investors may find it takes longer trying to sell a high-end home than flipping low-cost properties. In fact, Attom Data estimates luxury real estate sells on average approximately 208 days after being listed on the market. This fact only emphasizes the need to take a cost-effective approach, and why budgeting plays a crucial role in luxury house flipping.

Investors who solely rely on a home selling within three months of its initial listing date may find themselves losing substantial equity if the property takes additional time to attract a buyer. This risk is especially true if the investor took out a hard-money loan to finance the deal, as each additional month means another costly interest payment. The extended time could cut into profits and cause the seller to barely break even if he or she is not prepared to weather such delays. Luxury house flippers should always be ready for the unexpected by employing budgets that provide plenty of breathing room.

Home Upgrade Details Matter

High-end buyers are not typically concerned with reduced home prices, and therefore, do not want to purchase cheaply renovated homes. Kitchen renovations must be fresh and modern, and every bathroom in the house should have an underlying theme that speaks to discerning buyers. Paying the extra money for an experienced designer is the best way to ensure prospective clients will be willing to pay top market price for a renovated home. Investors should factor the additional expense of a style developer into their budget. This extra attention to detail will help to properly plan the central aspects of the home and prevent costs from spilling over from your profit pool.

Luxury Flipping with the Right Financing

Home flippers looking to finance large portions of their projects use private lenders extensively. Hard-money loans are a type of short-term, high-interest financing that is convenient for house flippers. The loans typically close faster than traditional mortgages, and the loan amount can be based on the future value of the property. This feature works well for flippers who like to preserve their capital for additional upgrades, to provide a cushion for unforeseen circumstances, or use for the escrow deposit on their next project.

However, borrowing against a higher loan-to-value means investors must budget wisely and borrow responsibly when venturing into the world of luxury house flipping. Charging certain expenses to an established line of credit makes more sense than asking a lender for more high-interest money to pay for needed renovations. Establishing a solid foundation and staying on good terms with multiple lenders will increase the likelihood of quickly obtaining your next round of financing for future projects.

Regardless of which route investors choose to finance their renovation efforts, it is important to note that luxury house flipping is entirely different from conventional house flipping. High-end buyers are more demanding and want their property in turnkey condition before they close. Striking the right balance between quality, attention to detail, and design will pay dividends with a shorter listing, a smaller punch list, and improved chances of earning a profit windfall.

By Melissa Martorella, Esq. | Geraci Law Firm

 

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: private lenders,home flippers,hard money loan

Key Factors to Remember When Pursuing Commercial Lending Opportunities

It’s been a year since you decided to be your own boss. The year spent establishing your business venture after bidding adieu to a 9 to 6 routine. Now your mind is working overtime with all the ideas that may elevate your business and its revenue streams. Your market analytics shows a high demand for your product. However, you are unable to move ahead until you address the elephant named capital in the room. Consider the following advices before proceeding ahead:

Commercial lending is an open field

Commercial lending is not the prerogative of any particular financial institution. The majority of commercial banks, mutual companies, private lending businesses and hard money lenders offer a broad range of commercial loans, i.e. bridge loan, hard money loan, commercial real estate loans, joint venture loan, etc.

You have to peruse all the opportunities - what they offer and at what rate they offer - with due diligence to finalize upon the one closest to your commercial lending needs.

Business Credibility

Notwithstanding above, the lending opportunities are primarily linked with the overall health of your business. Before going on a lender finding spree, it’s highly admissible to take a good critical look at your business affairs. If they look credible to you, they will validate the strength and future viability of your business to your lender too!

Good Credibility = Many Options

Once you’ve ascertained that the credibility of your business is in good hands, don’t feel obliged to run to the bank straight away. They may charge less but will persuade you to apply for more than you need. Explore around, if your business credibility is built more on promise than returns then a hard money lender is a realistic commercial lending option.

Go Cyber

Lastly, in a world more connected than we realize, going online and browsing around is also endorsed to see the market offerings and to compare and analyze different commercial loans to find the one that fits your bill.

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 lending,commercial real estate loans,commercial real estate loan,hard money lender,hard money lenders,commercial loans,commercial loan

Is VR the future for real estate?

Virtual reality is slowly gaining a lot of steam in the tech world. While it is still in its early stages VR has started displaying its worth in many different sectors. Video games are not the only application that can benefit from the use of VR. For example, instead of subjecting people to the side effects of too many X-rays, what if there was a way a physician could scan someone and use VR to view their body? With innovation comes expansion and there is no reason the real estate market should not benefit from the use of virtual reality.

Think about the time residential hard money lenders could potentially save visiting homes or potentially save using this technology. For the lenders that like to do above average research on the properties, they are providing loans for VR will help them greatly. For example, instead of going to the two story on Maple St., they could opt for a 360 tour that immerses them as if they were actually there. If the lender wanted to look at blueprints for the property they could have a three-dimensional model in their headset.

Contractors could provide a more accurate estimate on the time and cost it could potentially take to complete a home. Instead of guessing what is wrong with your potential flip you could dig deeper into the design of the home. Maybe there is foundational damage that the naked eye cannot pick up.

Or the support beam that is in place is not rated to take the amount of weight the home is exerting on it. What if an investor lives in another state and needs someone to purchase the property on their behalf? Instead of traveling to see the home in person they could stream a walk through in real-time.

Virtual reality also helps cut down finances on the backend.

Say you are investing in a property that you want to flip for a profit within the year. With the use of VR, you would be able to calculate the time and expenses you may have. Now, we will add a loan from a residential hard money lender, you use that initial loan to purchase the home. It is relatively small and you have figured out how long it will take you to pay it back. Before we start construction on the property your contractor, with the aid of VR, found a mold problem in a bathroom.

Now, you know that you will most likely have to spend more time and money on the home. This gives you the ability to recalculate the amount of time that you need to pay your residential hard money lender. Instead of taking three months to pay the loan back it may take six.

VR has the ability to change the real estate industry

Technology is like the universe, ever expanding. With innovations in VR happening every single day real estate is next to reap the benefits of its applications. Whether you are a contractor, a home buyer, a residential hard money lender, or an investor you should definitely be doing your research on virtual

 

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: residental hard money lenders,residential hard money lender

How transparent of a residential hard money lender are you?

In the age of instant gratification, transparency is the key to being successful. As consumers, we want to be able to trust every single product that catches our eye. Will businesses always come off as trustworthy? Of course, not but it is the duty of the owner to be upfront with their business. For residential hard money lenders, this should be a top priority when you are conducting business.

After the housing bubble peaked many people were on guard about any potential lemons in the market. People are still purchasing home, but the numbers are not as they were in 2008. So, why has there been a decline in home buying? Frankly, it’s too expensive to pay for most Americans. Couple that with many people taking bad loans and investing in terrible properties no one wants to buy right now.

Potential homebuyers want to be able to trust the person that they may be investing with. The best way you can start earning people’s trust is through social media. No, you do not have to do a daily vlog like Casey Neistat, but you could offer differ tips and tricks that could help a potential investor. For example, a quick informational Instagram video will suffice for many people. As long as the information that you are presenting is in small bite size chunks people will follow.

Facebook is your friend if you are a residential hard money lender.

Facebook has begun dragging itself out of the mud in recent years by adding more user-friendly tools that will increase traffic and transparency. Give your customers updates on current trends that are happening in the real estate world. Take the time to research different properties around your immediate area to help homebuyers get the most for their money. Make sure you are actually talking to the people that leave you messages. We live in a tech-heavy world now and many people crave human to human communication. Automated mailing lists are not going to cut it anymore.

After you have replied to your messages try using Facebook Live to broadcast whatever you may be doing. You could hold a free fifteen-minute seminar each Friday; in it, could be a Q&A forum providing people with short answers to any questions they have. If you tend to be outside the office more you could also begin live video with Instagram or Periscope. Make yourself more available and start getting familiar with different types of social media.

All that aside you need to provide unwavering service.

When you look at the real estate market it is evident that residential hard money lenders are very common. Major cities could have up to a half-dozen. To stick out as a lender you communicate and handle all of your business effectively. To win in this climate you have to be able to connect with your clients on a deeper level.

Take the time out to get to know a few of your clients. Give them a few incentives that you know your competition cannot provide. Above all make sure that you come across as a real person.

 

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: residental hard money lenders,residential hard money lender