Learn To Be A Fix & Flip Investor

Thursday, June 30, 2016

Commercial Real Estate Loans: Who Can Give Them?

Who Can Approve Commercial Real Estate Loans?

At one point in time, banks, relatives, and loan sharks were the only options when you needed a loan. Nowadays, that is not the case. There are several options available to people looking for commercial real estate loans.

Opening your own business can be a dream come true. No longer will you depend on the success of a company to keep the paychecks coming in. The success of the company is going to rely on you. No more blaming the boss—because the boss is you!

If you think you have a can’t miss idea in mind and have the desire and determination to see it through, the first thing you will need to do once you develop a business plan is to seek out a commercial real estate loan. So—where do you start?

Where To Go For Commercial Real Estate Loans

Most commercial real estate loans are made by commercial banks, but they can be had elsewhere:

Credit Unions: A credit union is a considered a financial cooperative that is owned by its members and controlled by an elected board. The purpose behind them is to provide members with competitive credit rates and other financial services—including commercial real estate loans.

There are currently more than 6200 credit unions with over 21,000 branches serving 100 million members in the United States.

Commercial Hard Money Lender: If business is bad or if you have poor credit, you can still get a commercial real estate loan from a private individual, mortgage company, federal bank, or an SBA lender. Terms can vary, and borrowers will need to secure the loan with collateral or an asset of value. Interest rates tend to be higher to compensate lenders for taking on the greater risk.

Life Insurance Companies: for smaller loans, businesses will typically go to a commercial bank, but for a larger, long-term (+10 years) commercial real estate loans, life insurance companies have become popular options. Companies using them will have to use something like an office building or shopping mall to secure the loan. They tend to be conservative when it comes to approving loans.

Commercial Mortgage Backed Security Lenders (Conduit Lenders): these facilities lend money secured by some form of collateral, typically a mortgage on a piece of commercial property. They will usually have fixed interest rates and for a term of 10-years, but are considered more complex and volatile.

How Do I Find a Lender To Meet My Commercial Real Estate Loan Needs?

If you are ready to take the plunge to find a lender who gives commercial real estate loans, look no further than Level 4 Funding. Our dedicated team of commercial specialists know commercial real estate. We work in multiple states and multiple industries. With our connection, we are almost guaranteed to be able to help you find a loan product that meets your needs.

Call our office today to talk to one of our professionals about commercial real estate loans and you. You will be glad you called!

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 Real Estate Loans: What Products Are Right For You?

Everyone expects to need a commercial real estate loan when they open a business, but do they know what kind to get? Knowing the types of loans available can be helpful to know as you get started and just in case something happens.

Deciding you want to go into business for yourself is a pretty big deal. No longer will you have to answer to the beck and call of a superior. You will be the superior that everyone else answers to, brings problems to, and expects to have all the answers.

Not only will you need to have all the answers, but you will need to have money. Getting a business off the ground takes money; money that most people will get through commercial real estate loans from their bank.

Yes, there are different types of loans.

Understanding the Different Types of Commercial Real Estate Loans

There are different types of loans you can apply for through your bank. Each has various aspects that are necessary to know and understand:

Bridge Loans are short term loans borrowers can apply for when they need cash right now to cover expenses. They are typically short-term loans through private lenders who will require proof of income and an excellent credit score.

Real Estate Purchase Loans are the loans you take out to purchase your building, store, or office. These can come with fixed or adjustable rates, will require the borrower to have excellent credit and significant savings in a business and personal account. The commercial property itself will need to be used as collateral.

Hard Money Loans are for when an infusion of cash is needed sooner rather than later, often to save the business or keep it afloat. Since they are given when a business is in dire need, they often come with a higher interest rate to compensate the lender for taking on greater risk.

Joint Venture Loan are what want if you are going into business with a partner. They are common when neither party can receive approval on their own but by applying together, they can make a better case to the lender.

Participating Mortgage is a type of loan gives the lender a chance to enjoy the success of the business. When payments are due, the borrower will send a percentage of the income earned as well as payment. This kind of relationship is more common between lenders and long-term, financially stable borrowers.

How Does Knowing the Different Type Of Commercial Real Estate Loans Help You?

When you go into business, you will have a plan, and a few contingency plans to help you deal with whatever problems or issues that may arise. More often than not, challenges and problems will require some sort of financial commitment.

If you have the cash on hand—great, but if not, it can be nice to know there are different types of commercial real estate loans that may help you.

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.

Monday, June 27, 2016

Commercial Real Estate Loans: From Start Up To Small Business

Is it time to expand your growing business? Then, let’s go over all things commercial.

By now you know the benefits of starting your company can be two-fold—you get to be your own boss and you are following your dreams. Well, the good news is if you are in the market for commercial real estate loans than chances are you are doing something right. Generally, the first thing you need to know about commercial real estate loans is whether or not you are in the market for owner-occupied loan options or investment property loans.

Owner-occupied loan options typically refers to a loan for a commercial building that will have more than 51% of the space occupied by the owner (hint: since you are making the transition from startup to small business, owner-occupied loan options will often help keep the cost low due to the additional tenants). An investment property loan for a commercial building, multi-unit store front or office complex, on the other hand, can be used to buy or refinance. This particular type of commercial loan generally has higher rates and a balloon payment that tends to be due sooner rather than later. But, nevertheless, an investment loan is just that an investment. In other words, you would typically consider this loan option if you were not interested in occupying the property.

Generally, when making the transition from startup to small business, as previously mentioned, it is all about the owner-occupied loan options. Thus, with that being said, the next step in all things commercial is deciding if the benefits outweigh the costs (literally).

The Benefits of Owning Your Business Location

If you have already done a little bit of research then you are more than likely aware of the numerous benefits of owning commercial real estate such as the lucrative tax advantages, asset appreciation, leverage, high cash yield and of course a clear indication of overhead costs i.e. your business is essentially rent controlled. These benefits are even more lucrative for a startup or small business as owning your business location will allow you to create capital for a variety of business expenses as well as foster an image of progression and durability in your brand. The best way to purchase commercial space is with commercial real estate loans.

Of course, that’s not to say there are no disadvantages to owning your business location, especially when you are first starting out. Remember, commercial loans involve additional costs and fees, title work, appraisals as well as full documentation. In fact, many startups and small businesses simply may not be ready to take own the financial responsibility (various fees, depreciation, borrowing capacity, etc.) or the property management and maintenance that comes with commercial ownership. Consequently, it is always in your best interest to weight the pros and cons before you make your next venture.

If you are ready to take the next step with commercial real estate loans, call our office today!

Well if you decide commercial real estate loans are right for you. Then your next step is to reach out people that know the business. This means working with a real estate company that can not only meet your needs but one that ultimately understands your needs.

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.

Commercial Real Estate Loans: Which Loan Is Right For You?

There are a multitude of commercial real estate loans. Are you sure you found the right loan for your business venture?

If you haven’t done your research yet, it may behoove you to know that there are several different types of commercial real estate loans. However, our focus will be on joint venture loans, participating mortgages and your standard real estate purchase loans. These particular commercial loans tend to be the most common choice when it comes to business ventures. Thus, with that being said, let’s go over what each of these loans can do for you and your next business venture.

For starters, a joint venture loan is what you want when all parties (generally two partners) are willing to share equally in the losses and profits of the property. Moreover, this particular commercial loan is extremely beneficial to those parties that cannot or may not be able to qualify for financing separately. A real estate purchase loan, on the other hand, requires one party or rather one borrower with excellent to near perfect credit along with the saving to back it up. Additionally, when it comes to collateral, in general, lenders tend to expect more with these purchase loans.

Lastly, participating mortgages, in essence, are when your joint partner is actually your lender. In other words, the lender receives the standard monthly payment plus interest, but because the lender is also a partner they ultimately share in the commercial property’s proceeds or income. This third option is definitely something to look into if you have potential tenants with financial stability and long-term goals.

How to Decide What Commercial Real Estate Loans You NEED!

So, now that we’ve gone over some of the commercial loan basics, it’s time to see what works best with your business plan and overall goals. Of course, additional research is always key to finding out which type of commercial loan will ultimately work best. But, nevertheless, when it comes to picking and choosing between the above-mentioned commercial real estate loans clearly the best course of action is to sit down and go over your credit score, your available capital or rather collateral and what your long-term purpose is for your future commercial property. Obviously, if you do not qualify on your own a joint venture loan would be in your best interest or you may even consider a participating mortgage, especially if you are interested in an office park. Ultimately, If your credit score is well into the 700s and you’ve got extra savings just laying around well then you have no reason to fear the all mighty real estate purchase loan.

Is Rotten Credit a Factor?

If you are like most business savvy people and do not have the credit scores that dreams are made of that’s perfectly okay. The reality is you still have other options, even more than we’ve covered. So, do not let rotten credit keep you from reaching your dreams or from taking your business venture to the next level. Remember, your goal is to pick a commercial real estate loan that works for you!

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.

Friday, June 24, 2016

Commercial Real Estate Loans and Lenders: What You Need To Know

Selecting the right lender for your commercial real estateloans is never easy. But with a few key questions you can narrow down your options and ultimately choose the right lender for you.

Find the right lender for any commercial real estate loan is a big deal. It’s a big deal because these particular kinds of loans are truly not your everyday kind of loans. In other words, most lenders have ample experience in residential loans as everyone needs a home. But, of course, not everyone needs a business or an investment property and to each its own. Nevertheless, the point is that the majority of big lenders are better versed in all things residential. Therefore, it is your best interest to find a lender that has a substantial amount of experience with commercial real estate loans.

Well, at this point, you may be wondering, just how exactly are you going find a lender that specializes or rather has the right amount of commercial loans underneath their belt? The trick is to ask the right questions. Asking the right questions may sound like a simple solution to ensure the future financial security of your company or business venture, but, the truth is it’s all in the details.

For instance, you may find a lender that has extensive experience with commercial real estate loans, which is great. But, stop and ask yourself, does this lender know my market. In other words, your potential lender has extensive experience with commercial or rather non-residential loans, but in what market? You see details, they matter. Thus, with that being said, let’s go over a few more key questions that will help you find the right lender for you and your specific market.

Helping to Narrow Down Your Lenders

Once you determine if there are lenders that have the right experience in your particular market, it’s on to the tougher questions such as how much capital does your potential lender have? This matters because you do not want to be just another number to your lender i.e. you want a lender you can work with who remembers your name and your business idea.

Additionally, you should ask your potential lender about their borrower requirements and commercial loan services offered. Know what’s expected of you as a borrower (how much collateral do you need, what’s the policy on late payments, etc.) and what you can expect of your lender (Are revolving lines of credit available? Are there multiple locations and are they FDIC insured? ) is what it’s all about. Moreover, if you like what you hear you are that much closer to your future lender.

Risk Less with Commercial Real Estate Loans

Lastly, if you are a small business make sure that you are in the best the position financial before you decide on a lender for your non-residential loan. It may sound repetitive, but, for you to be seen as less of a risk to your lender and for your commercial property to truly be profitable for you, it helps to be financially stable or to have investors that are financially stable.

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.

Top 2 Reasons Why A Commercial Hard Money Lender Is Right 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.

1) 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.

2) 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.

Commercial Mortgages: How To Evaluate Your Eligibility

Before you consider commercial mortgages, it is important to know what you need to qualify for one. Lender requirements are often just the beginning.

Commercial mortgages i.e. non-residential mortgages are nothing to sneeze at. In other words, you’d be surprised how much of an impact commercial mortgages have on the overall financial future of companies. Consequently, when it comes time to enter the vast world of non-residential mortgages, it is extremely important to your eligibility. Of course, you may be asking yourself, aren’t non-residential mortgages loans similar to most mortgage loans? Well, obviously the answer to that question is no.

In general, non-residential mortgages are viewed as high-risk loans for most lenders, banks, and insurance companies. Due to this industry fact, most lenders or banks have several requirements that a borrower must meet. Moreover, if a borrower is unable to meet all the requirement set out by the lender or bank then there simply is no commercial mortgage in that borrower’s future. At first glance, this may should a little harsh, but as previously mentioned these particular mortgages have a direct impact on the future of the company, which means the borrower’s ability to meet their repayment terms often rest on these requirements.

At this point, you may be fearful of your lender’s requirements for commercial mortgages. But, you shouldn’t be. Your eligibility and your potential lender’s expectation do not have to be at odds if you know what you are up against.

Understanding Your Lender’s Expectations For Commercial Mortgages

Thus without further ado, these are the standard requirement for most commercial lenders—clear documented property value that is equal to the value of the mortgage, a steady net property cash flow and a named guarantor of income and assets.

A clear document property that is worth the mortgage is just another way to ensure that there is a loan-to-debt ratio that is acceptable. Typically, this means that a minimum of 75 percent for a non-residential loan.

A steady net property cash flow is just the long way of saying that your business income needs to be more than your carried debt—at least 20 percent more to be specific. Lastly, a guarantor of income and assets is a fancy title for, generally, the business owner. But, nevertheless, a guarantor of income and assets is someone who agrees to pay in the event of the business defaulting. With a guarantor, it is important to note that most lenders will require the standard financial documentation (credit history, personal income, other assets, etc.) to verify that the person left potentially holding the bag can, in fact, pay.

Avoid the Pitfalls of Commercial Mortgages

Now that you know what is required of you for a non-residential mortgage make sure you avoid the pitfalls along the way. This means plan, plan and plan some more. As a future commercial property owner you should always have a clear vision for that property, you should make it a point to shop around before choosing a lender, you should clearly care about the interest rate but make sure it isn’t the only thing you care about and finally make sure there is a true financial future in the property you seek. Taking the time to do all of the above will ultimately save you from unnecessary hardship.

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.

Commercial Mortgage: The Real Deal On Commercial Lenders

If you need a commercial mortgage, we have many options to fit your budget and needs. Read on to learn more about commercial lending and how it can help you grow your business.

The commercial real estate market is forever changing and if you do not take the time to keep up, you may be lost when it comes time to consider getting a commercial mortgage for your next endeavor. The truth is that more people than ever are creating new companies and running their own businesses. Moreover, many of these individuals have never had to borrow money for business—unless you’re counting student loans. But, all joking aside if this is your first-time “borrowing for business” you may be surprised at all the things you just didn’t know.

For starters, if you thought Fannie Mae or another governmental institution was going to be your new best friend think again. Though you can still count on these governmental mortgage institution for such commercial properties as multifamily housing, if you are not in the business of property management then you will more than likely not be dealing with old’ Fannie or Freddie. Thus, the majority of commercial mortgage loans are brought to you by banks, insurance companies and lenders. Here at Level 4 Funding, we have a specialized commercial mortgage team that can help with all of your commercial lending needs.

So, now that you know just who you are dealing with, let’s talk about what happens next. Typically, before you reach out to a lender, bank or insurance company for financial assistance with your commercial venture, you should be clear on just how you are going to meet your future repayment terms and you should be clear on how much you actually need to borrow. These are important things to be clear on because your future commercial mortgage more than likely will be a nonrecourse loan i.e. the bank or lender can take the property in the event of a default (generally if you owe more than the value of the property at time of default, your other assets cannot be seized with a nonrecourse loan.).

Things to consider when Borrowing for Business

Besides knowing how you are going to meet your repayment terms and how much money you actually need to borrow, there are a few other important factors to consider once you’ve set your sight one a few commercial lenders or banks and they include:

1. Reputation and convenience

2. Interest rates and available programs

Clearly, you want a mortgage that will meet your needs and without causing you hardship later down the road.

Refinancing Advice

Speaking of hardship later on, if you already have a mortgage but are interested in changing your business’s financial outlook, then you definitely should consider your possible commercial refinancing options. Remember you have several options that can help your business bottom line. For instance, you may have borrowed for business at a not-so-great interest rate; instead of kicking yourself while you are down why not take advantage of a lower rate or even switch to a fixed rate? Either of these commercial refinancing options are great ways to reduce total loans cost. Moreover, there are several other commercial refinancing options out there—all you have to do is ask your lender or broker for more details.

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.

Learn To Be A Fix & Flip Investor

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Thursday, June 30, 2016

Commercial Real Estate Loans: Who Can Give Them?

Who Can Approve Commercial Real Estate Loans?

Where To Go For Commercial Real Estate Loans

How Do I Find a Lender To Meet My Commercial Real Estate Loan Needs?

Commercial Real Estate Loans: What Products Are Right For You?

Understanding the Different Types of Commercial Real Estate Loans

How Does Knowing the Different Type Of Commercial Real Estate Loans Help You?

Monday, June 27, 2016

Commercial Real Estate Loans: From Start Up To Small Business

The Benefits of Owning Your Business Location

If you are ready to take the next step with commercial real estate loans, call our office today!

Commercial Real Estate Loans: Which Loan Is Right For You?