Learn To Be A Fix & Flip Investor

Friday, September 1, 2017

Dreams do Come True – Obtaining your First Commercial Real Estate Loan

Whether you’re interested in construction from the ground up, a quick fix and flip, or a long-term investment, real estate can be a very profitable investment strategy. Finding your first commercial real estate loan is often the first step in achieving this vision.

You may have been sitting on the sidelines for some time now, watching your friends purchase properties, rehab them, and then turn around and sell them for a profit. They’ve since left their 9 to 5 (or 8 to 7) jobs while maintaining a lifestyle that allows for weekends with the family and vacations in far off lands. This means of income has been growing in popularity thanks to reality TV and shows like HGTV’s Flip or Flop and Flip that House.

Keep in mind, reality TV shows are just that—TV shows. They are designed to entertain and that may require increasing the drama to the point of taking some of the reality out of those shows that claim to be “real life.” Investing in real estate requires knowing the state and federal regulations, having a deep understanding of the numbers game and accompanying budgets, and a base knowledge of the market and costs of rehab. It also requires patience.

Real estate investors often use hard money loans to fund their projects. This strategy works for several reasons including needing the funds quickly in order to acquire a property that has competing bids, insufficient income history or credit, or investors in need of a quick turn-around. They may want to take advantage of a short sale or foreclosure and do not have the time to wait around for a conventional loan.

Obtaining Your First Commercial Real Estate Loan

Obtaining your first commercial real estate loan is not as difficult as your may have been led to believe. For a hard money loan, you will need collateral and a plan that shows how you intend to pay off the loan, otherwise known as an exit strategy. In many instances, interest only payments are available for a select amount of time as you rehab your property or come up with the right tenants. Using a professional and time-tested real estate mortgage broker can help you achieve your desired outcome without having to find the many individual private money investors. They generally have a wealth of investors that they work with on a regular basis and know which ones will be suited for your type of business or project. They will have varying loan programs designed to meet specific needs.

Working with a mortgage broker gives you access to numerous private money investors and lending programs.

Your first step will be to complete a loan application. It’s important that you take the tact of full disclosure and do not leave anything to the broker’s imagination or leave out pertinent facts. They have done this countless times and can spot transgressions easily. Be up front about any potential issues you foresee. Knowing your “full story” gives them the ability to find the right investor for your project and the right commercial real estate loan for you. Mortgage brokers are professionals who have passed state and national tests and continue their education with yearly courses, and they will often know how to help you even when you think the obstacles are too immense to navigate.

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 loans,commercial lending,commercial mortgage

Documents Required for Obtaining Commercial Loans from Hard Money Lenders

While every hard money lender for commercial loans is unique, there are often similar requirements regarding documentation. Be prepared and follow the lender’s submission guidelines.

Hard money lenders do not operate under the same restrictions that traditional lenders are under. Because of this, they are able to fund commercial loans in relative ease and with little documentation. It is a hard-asset based lending strategy that uses collateral to ensure the loan. While some lenders require certain standards regarding credit and financing, others do not. The same holds true for documentation. Each lender has different application processes and varying documents depending on the type of loan. In general, the following are documents you will want to consider in your proposal.

Because this is an asset-based loan, private lenders are interested in seeing the asset—your property, inventory or equipment. To this end, take pictures of both the inside and outside and pay particular attention to areas that you are rehabbing. If this is a fix and flip, construction from the ground up, or rehab, be sure to get bids from sub-contractors. These will be included in your budget. If a rehab or fix and flip property, your scope of work should entail all improvements you are making and under specific categories such as electrical, framing, and plumbing. Make it easy for the lender to see your vision through your descriptions and by making it detailed and thorough.

Needless to say, you will need your purchase contract. Some request property financial and income/expense statements. And others will ask for a credit report. Hard money lenders are very unique in their needs. In some instances, what you say is as important as what you bring. Lenders for commercial loans want to know that you’ve done your homework and know what you are talking about. Demonstrate that you know and understand the project explicitly and explain why it is a good investment. You will definitely need an exit strategy—how do you plan on funding their payment at the end of the loan period.

The Difference

At Level 4 Funding, we do our best to make the process of obtaining a residential or commercial loan as easy and painless for you as possible. As mortgage brokers, we are experts in our field who have been in the business for twenty plus years. We keep paper work to a minimum. For instance, for a construction loan all that is required is your budget, plans and permits.

Level 4 Funding specializes in a fast and easy approval process with flexible terms.

We understand that commercial loans are often needed sooner than the month long process traditional loans can take before funding. Our application process is fast with a usual preapproval time in 24 hours and funding that can take as little as two days. Call us with the project you have in mind and we will let you know what specific documents we require. If this is your first go-around, don’t be shy about asking any questions. We all started somewhere.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Distilling the Myths of a Hard Money Commercial Loan

For some, hard money lending is surrounded by mystique and distortion. Learn the truth about obtaining a commercial loan

from a private investor or company.

Google hard money lenders and you will see a wealth of information about this commonly used, though often misunderstood avenue for obtaining a business, residential, or commercial loan. One example is the site that suggests the “hard” in hard money lending relates to the fact that its “hard” to get, while another states that it refers to higher than average interest rates. The truth: hard means that there is collateral involved, or a “hard” asset.

It’s truly hard to imagine, but mention the term hard money lender to someone just starting to use real estate as an investment strategy and looking for their first commercial loan, and they think you’re talking about back allies and less-than-stellar dealings. I say, they’ve been watching too much of the Sopranos. Let’s make this perfectly clear: a hard money lender is not a loan shark that carries around a Louisville Slugger. A private money lender is just that, an individual, business, or group of individuals that lend money. It’s that simple. The beauty of a private money lender is that, though regulated, they do not have to go through the same bureaucratic red tape as that of a bank.

Here’s another untrue statement found among the

pages of Google search. Hard money is the last-resort loan. Really?

Well, they will have to inform all the real estate investors, contractors, house flippers and home buyers that have benefitted tremendously from a private lender. Seriously. Hard money lenders look at your collateral, the project you have in mind, and your exit strategy or your plan to pay back the personal or commercial loan. They want you to succeed as much as you want to succeed. To this end, it’s important to be direct, honest and lay it all out on the table. Your presentation should include your business plan, projection and supporting background.

When to Turn to a Hard Money Loan

Investors, contractors and home buyers use hard money loans for a variety of ventures. They use it to put a bid down on a project and have cash in hand—an important attribute in a seller’s market. Contractors use it to for monthly draws during the construction process. Business owners use it for inventory, expansion, to lease new equipment, or for operations, and home buyers take advantage of bridge loans so that they can purchase a new home without having to sell their old home first or make a contingency offer. Some use it to get started on a project while they wait for more traditional loans to come through.

Individuals who obtain hard money loans are not desperate—they are smart business people who have learned the many benefits of working with a private investor instead of a lending institution.

At Level 4 Funding, we have worked years to develop a large number of investors in our portfolio. If you can dream it, we can often fund it. Call us to determine if a hard money loan is right for you.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Determining Which Commercial Real Estate Loans are Right for you: Crowdfunding versus Hard Money Lenders

These days, two frequently used types of funding for commercial real estate loans are hard money lenders and crowdfunding.

Find out which one is right of you and what the differences are.

Whether you are looking for capital for acquisitions, development or to start from the ground up, both of these loan types, crowdfunding and hard money lenders, are viable options. As a commercial real estate investor, you may have found that traditional loans are difficult to come by in this day of increasing regulations, or you may need to start a project immediately and don’t have the time to go through the mounds of paperwork and months it takes to process. Here, then, is a look into the two loan options that many in your position are turning to.

The two investment strategies involved with crowdfunding are debt and equity investments. In the first, a backer is investing in the commercial mortgage loan while in the second they receive an equity stake in the property. Originally, an investor was required to be accredited, which meant they had a minimum net worth of $1 million or an annual income of at least $200,000. But, as of October 2015, a ruling by the SEC opened the doors to non-accredited investors which have opened up the playing field.

The problem: While there are over 100 crowdfunding sites that offer commercial real estate loans to be found on the World Wide Web, not all are created equal. Some are fly-by-the-seat-of-their-pants operations, so be sure to do due diligence when investigating this option. Points to consider when checking out the various crowdfunding sites include: transparency, accountability, high-volume, specific to real estate and pre-funding options. You will be required to submit an application which often entails information regarding the project and a background and credit check, and then you will need to attract investors. You will, in most cases, be working with multiple investors and, if you do not raise the amount requested, the campaign may be scrapped and deposits returned, depending on the platform and if pre-funding is offered. A few of the many crowdfunding sites include Peer Street, Realty Shares and Patch of Land.

Hard Money Lenders

Using a hard money lender is very different to that of crowdfunding. First, there is only one lender, or a group of investors that work together, and they will use the borrower’s real estate as collateral. In order to determine the amount, the company uses a loan-to-value ratio (LTV). This determines the value of a loan against the value of the property and is determined by dividing the amount of the loan by the appraised value or purchase price of the property. Many hard money lenders offer a loan on 65 to 75 percent of the property value. Another difference involves the application process and time to loan. A hard money lender is more concerned with the value of the project than your credit report, and time to loan is often much quicker.

A hard money lender bases the amount and acceptance of a loan on the project and the real estate’s collateral value more than on a credit report.

At level 4 funding, we provide commercial real estate loans for most commercial real estate development projects including multi-family, industrial, warehouse and office. As hard money loan mortgage brokers, we work with many investors and banks and will find the best rate and program to meet your unique needs. In addition, we fund up to 90 percent LTV, offer very competitive rates and interest only payments. If starting from the ground up, construction loans are available for up to 24 months with monthly draw programs. Funding can be available in as little as 24 hours. Call us to discuss your project and determine if we are the right company to fulfill your commercial real estate loans and development needs.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Real Estate Trends in 2017

Commercial real estate trends in 2017 are proving to be profitable for investors despite the increasing challenge of securing competitive financing. Hard money loans are an alternative that many in the industry are turning to.

In the last quarter of 2016, multifamily moved ahead of office for property investments. It took 33.7 percent of the market share as compared to office’s close second of 30.4 percent. Retail, not surprisingly, was down to 13.2 percent, having seen better days before Amazon’s online invasion.

Multifamily’s number one spot is due, in part, to the increasing demand leading to lower vacancy rates and rent growth. The concern among some investors is whether the market can sustain its current rate of growth and at what point will growth become over-construction. Cities, in particular are seeing a multifamily construction boom. Because this potential oversupply is limited to dense urban developments, other markets do not seem to be at risk for over construction at this time. Commercial Lenders are taking location into account, favoring areas that are growing and showing strong employment opportunities.

Commercial real estate investors are finding securing competitive financing more challenging. Banks appear to be scaling back on high-leverage loans and borrowers are needing to work harder and have a track record and solid investment strategy in place. The inevitable rise in interest rates has caused a hesitancy to lock in rates and, according to an article in National Real Estate Investor, “Bank lenders—the traditional source of construction capital—are offering smaller loans compared to the cost of development, when they offer to lend at all.” The bottom line: With new regulations and capital requirements, commercial lenders are not as apt to make commercial real estate construction loans. This is when savvy investors turn to alternative lending for funding their projects.

Hard Money Lending

An experienced mortgage broker specializing in hard money loans will have hundreds of commercial real estate investors that they work with on a regular basis. Programs include multifamily building loans for rehab or new construction as well as bridge loans. These loans are asset-based and do not require extensive documentation. Collateral takes precedence over credit scores. Funding options include construction loans for up to 24 months with monthly draw programs, bridge loans that are designed to bridge the gap between final closing or long-term financing which are short-term 3 to 12 month loans, and longer term commercial loans that can be extended for up to five years.

If you believe you have the perfect opportunity to get into the growing segment of multifamily rentals,

don’t let lack of capital hold you back.

At Level 4 Funding we have the experience and the contacts to help you develop your real estate portfolio. We are licensed mortgage brokers and originators with extensive experience in commercial lending who believe in developing long-term relationships with our clients. We don’t want to just help you with this one investment, but with building your business to the level that it exceeds your wildest dreams.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Real Estate Loan Options

There are various types of commercial real estate loans that will help you get into this burgeoning sector of investment strategies. Learn about bridge loans, joint venture and hard money loans.

Commercial property is, simply put, property that produces income. It can be just about anything including, but not limited to, industrial, office, hospitality, medical and amusement. According to Statista, the value of total commercial construction starts in the United States amounted to 18.66 billion U.S. dollars—and that was just the first half of 2017. Yet only 8 percent of Americans own investment properties and only 7 percent of those investors put down more than 50 percent when purchasing properties. Here are just a few of the many ways you can access lenders in order to obtain your commercial real estate loan.

A bridge loan supplies needed cash, allowing an investor to keep their current asset while purchasing the next. It is commonly used to finance initial construction or put money down on a project while awaiting more traditional forms of lending. These are short-term loans, usually 3 to 12 months that provide immediate cash flow. Hard money lenders usually offer these types of “fast cash” loans. Hard money loans are also short-term loans, though they can often be extended for up to 5 years. They require collateral and lenders are more concerned with the value of the property than with the borrower’s credit score. They do require a business plan and an exit strategy.

Joint venture financing is, in essence, taking on a partner for a specific project. In this type of commercial real estate loan, parties share in costs, profits and losses. This type of loan can be complicated and requires understanding in the following areas: the type of entity the joint venture will be such as an LLC, the responsibilities of each party in the day-to-day operations, the equity stake each partner holds and an exit strategy. It’s important to understand that, ultimately, you are taking on a partner who will have a say in the development of your—and your investor’s—project.

Compatibility issues as well as differing opinions have derailed many a joint venture, making it important to establish trust and good lines of communication in the early stages. Many choose this option when expanding into new territory, and smaller projects may undertake a joint venture agreement in order to participate in larger projects and have access to their now partner’s technology or resources.

How to Determine the Best Commercial Real Estate Loan for Your Business

If you need a partner for their expertise and resources, a joint venture may be your best option. Make sure they compliment your skills and experience and have a good track record. If you need immediate funds to get your project started while you wait the month or more for traditional funding, a bridge loan may be your answer. For those real estate investors that require immediate financing, have a strategic business plan and exit plan in place, and for others looking to do a quick flip, a hard money loan may be your best choice. This is also a good alternative for those with credit issues.

“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did.”

—Mark Twain

If you’d like help determining the best type of loan for your next or first project, call us at Level 4 Funding. We are happy to share our years of experience and the knowledge we’ve gained in order to help you get stated in this type of investment strategy.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

A Win-Win Situation: Commercial Lending with a Private Hard Money Loan

Commercial lending with hard money loans, also known as private loans, offers several advantages over traditional loans. They base their loans on collateral as compared to credit scores, fund in as little as two days compared to more than a month, and can offer flexible terms.

In some instances, a business or real estate investor will not qualify for a traditional loan due to the stringent credit and capacity requirements of a bank. They do, however, have available collateral. A hard money lender can provide a win-win situation. The loan is acquired and the lender earns above-average returns.

In other instances, it is not concern about creditworthiness that leads real estate investors, contractors, businesses and home owners to search for personal and commercial lending through a hard money lender, but the time constraints that they are under. An investor may have found a property perfect for renovation or a quick fix and flip and needs to have cash in hand in order to fund the project before someone else beats them to it. A business may need immediate funds for equipment or operations and can’t wait the month or more than a traditional lender requires. A home owner may want to put money down on their new home before selling their old one in order to ensure their bid is not rejected due to a contingency sale.

Private lenders are not under the same regulatory scrutiny that banks are in regards to commercial lending. They do not have to fill the more stringent FDIC and government mandated lending requirements that conventional banks do. This gives them flexibility in lending and allows them to structure repayment in ways that will help the borrower succeed. In most instances, there are no prepayment fees as often seen in traditional financial institutions, giving the borrower the ability to pay off the loan early should their home sell in record time or their latest fix and flip take less time to rehab and a buyer is found in days instead of months. With one loan under their belt, they then go on to the find and fund their next project and a mutually beneficial “partnership” has formed.

Why Work with a Mortgage Broker?

When delving into the world of commercial lending, working with a hard money loan mortgage broker may be your best consideration. They generally work with a lot of investors and can often find a way to qualify you for a loan when other banks and lenders cannot. Stricter requirements and more education and experience are required for those who are licensed mortgage brokers as compared to that of mortgage banker, so it is best to seek the advice of the former when looking into this type of loan. In addition, choose one who has stood the test of time. Not only do they have more experience, they also have more contacts and investors that they can choose from to help you develop your project or succeed in your business.

Brokers are mortgage experts. They’ve worked with countless investors and know which loans are appropriate for different types of projects and properties.

At Level 4 Funding, we have a great team of professionals that can get you the right hard money loan for your needs at the best possible rate. Call us for a consultation and to discuss your unique project and needs.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

A Traditional Commercial Mortgage Lender versus a Commercial Hard Money Lender

A traditional commercial mortgage loan is not always easy to attain. Fortunately, there are alternatives, and one of those is funding through a commercial loan from a hard money lender.

Since the subprime mortgage crisis, obtaining a commercial mortgage loan has been difficult at best and impossible at worst. Though the noose is loosening, its grip can still be felt in increased regulations, restrictions and requirements that make it difficult for the best of businesses to qualify. These types of commercial loans include SBA 7(a), CDC / SBA 504 loan, and traditional mortgage. Most of these types of loans require an established business presence, a credit score in the 700 plus range and experience in similar types of projects. Fortunately, there are alternatives. And one of the alternatives many businesses and real estate investors are turning to is hard money loans.

Hard money commercial mortgage loans are not just for those breaking into the business or individuals with credit scores below the 700 mark, they are also good for borrowers who are competing with all-cash buyers and need to move fast on a specific bid or project. Hard money loans close in as little as a few days compared to the one to two months that an average traditional lender takes, and prequalification takes as little as 24 hours. In some instances, investors will obtain a hard money loan in order to begin a project and will refinance to a long-term commercial loan at a later date.

A hard money lender uses the property’s collateral to secure the loan and not the borrower’s financial position. They are short term loans but can be extended up to 5 years. Questions that you want to be sure to ask a hard money lender include:

· Is there an exit fee or prepayment penalties? Many contractors and investors want to pay off the loan once a sale or traditional refinanced loan is in place.

· What is the late fee on a late balloon payment? Plans don’t always go as intended.

· What type of loan program is best suited for my needs? If you project is a quick turn-around such as a fix and flip, you and your company may be better suited for a bridge loan. An experienced hard money lender will know what loan is best for what you have in mind.

What are Commercial Mortgage Loans used for?

As their name implies, these types of loans are used for commercial real estate properties. The various groups or types of buildings include multifamily, office, retail, industrial, hospitality, healthcare and miscellaneous such as storage. With increased demand resulting in higher rents and occupancy rates, multifamily units, the most common of which is an apartment, are a hot item among real estate investors in today’s market.

Be sure you are working with a lender that has your best interest at heart. This is a relationship you will want to maintain for years as you grow your portfolio.

At Level 4 Funding, we will not only help you close one deal, but grow your portfolio as well. We are invested in you as a client and want your success. Our rapid, streamlined approach helps keep you on track and your business on the path to success.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, August 29, 2017

Consider These 4 Factors When Expanding Your Business With Commercial Loans

Expanding your office or investing in new assets with a commercial loan should be huge wins for your company. The process can be complicated, so be sure to do your homework first.

As your company’s leadership begins to chart out a course for 2018, it is likely that talk will come up of expanding your business. With the help of a commercial real estate loan, your company would have funds to expand your footprint with a new location, renovate existing office space or invest in separate real estate assets as new sources of revenue. Having a project financed is no small logistical matter, however. Extensive planning and strategizing will be necessary to make the most of such an investment.

With this in mind, it makes sense to review a few of the important considerations that a company must make when expanding their business. A carefully planned expansion or development will ensure the investment begins to demonstrate a significant ROI as quickly as possible. Get a head start on your evaluation by using the following tips:

1. Develop A Vision: There’s no point in committing to a business expansion unless it’s part of a comprehensive strategy. Making infrastructural changes just to shake things up is an extremely risky move. That’s why it’s always important to consider how an expansion plays into the company’s broader financial goals.

2. Do Your Homework: Once your entire company is aligned behind a single expansion strategy, it’s time to figure out all the dirty details. Identify costs, anticipate potential snags in the development schedule and mock up loan terms that sync up with your company’s timetable. In addition to making it easier to find the right lender to finance your project, this familiarity with the process will provide your company with added leverage during negotiations.

3. Establish The Backup Plan: Even if you’ve come up with a foolproof plan for your business development project, there’s still plenty of chances that your expansion won’t go as planned. That’s why it’s prudent to consider alternative revenue streams or means of consolidating assets as a backup plan in case the expansion is not as successful as expected.

4. Find A Lender: Once your company has taken plenty of time to plot out its development project, it’s time to talk to a commercial lending professional. Your research should have provided you with some direction as to the type of loan terms you’ll need with your financing. Strongly consider online lenders in addition to traditional financial institutions.

The Right Commercial Loan Provider Understands Your Project

When comparing different commercial loan providers, you’re likely to find a few who offer comparable terms for your project. Go with the lender with more experience funding projects similar to yours. You’ll find that working with a lender that understand and supports your project is much more productive experience.

Your choice in commercial lender and loan terms will determine how quickly your investment needs to start producing a meaningful ROI.

Want more flexibility with regard to your project financing? Work with a lender that has experience financing unique projects. You can learn more about the types a projects a lender has funded by viewing their online portfolio.

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 Major Mid-Year Takeaways From Commercial Lending in 2017

The commercial lending industry is changing rapidly. This means new opportunities for online lenders to work directly with companies embarking on ambitious development projects.

So far, 2017 has been a positive year for the commercial real estate industry and, naturally, commercial real estate lending. The successes of the year’s first two quarters is especially remarkable considering the unprecedented growth that occurred in 2016. Despite the fact that commercial real estate experts continue to predict the market is nearing its peak, the industry continues to chug along with moderate yet surprisingly consistent growth.

Every boom peaks out and comes to an end, however. There’s still a chance that the first half of 2017 represented the final gasps of a market headed over the hill. Regardless, taking a closer look at the major developments in commercial lending reveal that the industry is going through major changes. There’s no saying if commercial lending will continue to rise in 2017, but it is clear that the industry is headed in new directions either way.

1. Q2 was a boon for the entire industry: The first half of 2017, especially the second quarter, was a major success. Data collected by the Mortgage Bankers Association reflected a 20% increase in loan origination compared to 2016, according to Scotsman Guide. Increased commercial lending in industrial, office and multifamily sectors were the primary drivers of this surge.

2. Traditional lenders like banks are expanding their horizons: Anticipating an inevitable shift in the market cycle, many traditional lenders have begun to consider a wider range of projects and customers in new industries. According to the Grand Rapids Real Estate Journal, 2017 saw more traditional lenders take on greater numbers of small business, medical, assisted-living, agricultural and hotel clients. Many lenders have also expanded their financial services to include asset and land financing as well.

What does that mean for your business? Even more options for finding the best financing option for your company’s next big project.

3. Experts split on the future of lending growth - Few argue about how rosy the first half of 2017 has been for the commercial real estate industry, but there’s plenty of dissent about how the rest of 2017 is likely to go. According to a report from Bloomberg, banking professionals have reacted to the Federal Reserve’s latest data positively, interpreting signs of accelerated commercial and industrial lending around the corner. Others saw signs of trouble for the rest of 2017, noting that loan demand began to soften by the end of Q2 2017.

Take Advantage Of This Stable Commercial Lending Market Demand Before It’s Too Late

What’s the best way for companies to respond to these takeaways? Act decisively. The industry is always changing, so look to leverage any advantage you see in the status quo before it disappears. Hesitating now could lead you to making a wasted investment down the road.

You can move forward on your next big real estate or development strategy with a quick loan from a trusted online lender

The right loan under the right terms allows your company to create its own golden opportunities. Get in touch with an experienced online lender today to learn more about your company’s option for a commercial mortgage.

Technorati Tags: commercial loans,commercial lending.commercial mortgage

Don’t Miss Out On What Online Commercial Real Estate Loans Can Offer Your Business

Getting your commercial real estate loans online could give your business a critical advantage. Don’t assume that financing terms decided by a bank have your best interests at heart.

Just fifteen years ago, the idea that your business might finance its next real estate move over the Internet was laughable to most. A decade and a half and multiple economic crises later, the landscape has changed significantly. Businesses have become far more receptive to getting capital through online channels, creating a sustainable market for a new generation of online lenders to finance commercial real estate loans.

Today, online lenders are more than just a backup plan for those that can’t get financing from a bank or another traditional institution. They can provide invaluable assistance when your business is in need of a commercial mortgage, operating funds or another form of financial assistance. They also offer their own unique advantages over banks and other traditional lenders. Take time to familiarize yourself with these special perks of working with an online lender for financing help.

Emergency Access To Business Capital - One of the major advantages of working with an online lender is that they make things easy for businesses who need financing immediately. They impose far fewer qualifications on borrowers than banks and offer a streamlined loan application process. If your company needs to act on a real estate move right away or doesn’t want to deal with the added logistics of going through a traditional financial institution, online lenders represent a convenient alternative.

New Credit Lines For Start Ups - One hurdle that small business owners overlook until it becomes a serious problem is that their business has yet to establish a strong credit history. Start ups with existing capital can work with an online lender to take on a commercial loan that fits into the company’s long-term financial goals while also providing opportunities for the borrower to build up their credit score.

Options For Borrowers In Credit Recovery - It’s unfortunate but true that businesses that get into credit trouble pay for their mistakes more than once. One of the ways that these companies bear an extra burden is via a low credit score. A recovering credit score makes a company less attractive as borrowers to banks and limits their ability to bounce back by successfully expanding their business. Online lenders are much more enthusiastic about working with customers that don’t necessarily have the most sterling credit history. This is an important opportunity for companies strategizing to overcome bankruptcy and other types of credit problems.

Review Your Online Financing Options Before Committing To A Bank

Just because you qualify for a commercial real estate loan from a bank doesn’t mean that offer is the best financing option on the table. It always pays to compare your options online and see where your company can get the loan that best furthers long-term business goals.

Compare your project to funded deals on an online lender’s portfolio to get an idea of what financing would look like for your business
An experienced online commercial real estate lender will host an extensive portfolio on his or her website. This information is a great place to start your research if you are considering a development project for your business.

Technorati Tags: commercial loans,commercial lending.commercial mortgage

Monday, August 28, 2017

4 Reasons To Prefer A Private Lender For Your Commercial Mortgage

Need a flexible financing option for your commercial mortgage? Private lenders don’t impose the same stifling requirements as traditional financial institutions.

The reasons that a company may take out a commercial mortgage are fairly typical across the board, revolving around plans to acquire, develop or refinance a real estate asset. The terms and conditions necessary to make this loan feasible for both parties, however, will differ greatly between projects. In fact, there are many projects that may turn off traditional lenders like banks and development firms. In cases like these, your company has an opportunity to work with a private lender to help finance a big real estate move.

There are a long list of reasons that a trusted and experienced private lender is an ideal source of financing for a commercial real estate acquisition or development. Look over the following advantages and strongly consider how working with a flexible private lender could create new opportunities for your business.

1. Your Company’s Revenue Streams Aren’t Guaranteed - Maybe your company’s revenue streams are highly seasonal or your company is succeeding on a contract-by-contract basis. This may be working out for your company, but this business style makes it difficult for a traditional lender to make predictions about your long-term success. Banks prefer going with a sure thing. Thankfully, private lenders are more willing to work with borrowers to make a deal.

2. Traditional Lenders Are Unfamiliar With Your Niche - When traditional lenders are unfamiliar with an industry, they may have less confidence in a company’s ability to pay back a loan. As a result, the mortgage terms that a niche business are offered may be less generous or favorable than those offered to a known entity. Most private lenders are free of these preconceived notions, making them an ideal financing partner for niche business owners.

3. Business Credit Is Still Recovering - It’s not uncommon for companies to hit the occasional roadblock that leads to a dip in their credit score. A one-time mistake or error in judgement shouldn’t prevent your company from getting the funds it needs to do business. Even if your company’s credit score is not at its best, private lenders are more willing to qualify borrowers that can demonstrate a way to pay back the loan in the future.

4. You’re Looking To Sell Quickly - Does your business have an opportunity to invest and flip a commercial property within few months? What about few weeks? In cases like these, working with a traditional lender can be difficult. Private lenders, on the other hand, often specialize in reasonable, short-term loans. Finding financing this way is a much quicker way to go, which may be necessary to pull the trigger on a time-sensitive investment.

Private Lenders Can Help Streamline Your Commercial Mortgage Process

Need to get to work on your company’s next development project immediately? Working with a private lender to finance your commercial mortgage allows you to avoid many of the tedious hoops required by traditional lenders.

The right private lender will offer you flexible terms that put your business in an advantageous position.

Don’t let a great commercial real estate opportunity pass your company by, even if you’re recovering from credit issues or short on existing capital. Find the right private lender that can open up new doors for your company.

Technorati Tags: commercial loans,commercial lending.commercial mortgage

How to Know If Your Business Qualifies For Private Commercial Loans

Private commercial loans are a lot more accessible than credit provided through a bank or other type of traditional lender. Even better, there’s a good chance your business won’t have to do much to qualify.

When it comes to running a business, sometimes it pays to prepare for the worst. You never know when an major accident or sudden problem with a lease might upend your business, forcing you to find a new location or close your doors for good. This scenario demonstrates why it’s so important to assess your company’s ability to qualify for a business-saving commercial loan. Even in cases where banks or other traditional lenders are less than willing to extend credit, private lenders can still make capital for real estate investments available to your business.

What minimum qualifications will your company be expected to meet in order to work with a private lender? That’s actually one of the major advantages of working with a private lender. These terms are defined by the lender, who can offer a great amount of flexibility to businesses when it comes to taking out a loan. That being said, the more of these following qualifications you can check off your list, the easier it will be to get a private lender to agree to loan terms that work for your business.

Get Your Documents Organized - Even if private lenders are more flexible about how they do business than a bank, these lenders still want to see proof that your business will be able to keep up with its payments. That’s why it makes sense to gather any income statements, bank statements, copies of your current lease and financial projections your business may have access to in one place. Having this information on hand will make it even easier to work with a private commercial lender.

Invest In Appraisal - The old adage says that businesses have to spend money to make money. In some cases, businesses are also required to spend money to borrow money. This can be the case when applying for real estate financing. The process will go even smoother if your company is willing to pay for an appraisal of the property. This analysis eases many lender concerns about ]financing and can help your company better understand the value of their potential new assets.

Create Detailed Development Plans - The more developed the strategy is for your commercial real estate project, the easier it is to sell a financial firm on the feasibility of lending you the money. Your company should already have an detailed plan for real estate investments, so sharing that information with a private lender should be no issue.

Why Select A Private Lender To Finance Your Company’s Commercial Real Estate Investment?

Banks and other traditional lenders have extremely strict policies and guidelines when it comes to selecting who they loan money to and under what terms. Even if you are able to qualify for a loan, it may very well be under terms that are actually detrimental to the success of your business. That’s why private lenders and the flexibilities they offer are such a valuable resource.

Don’t delay in finding out where you can get access to the commercial loans your company may need in the future
It pays to know who to reach out to when your business is in a bind. The faster you can find a solution to a cash flow or a real estate problem, the faster you can get back to serving your customers.

Technorati Tags: commercial loans,commercial lending.commercial mortgage

Featured Post

Friday, September 1, 2017

Whether you’re interested in construction from the ground up, a quick fix and flip, or a long-term investment, real estate can be a very profitable investment strategy. Finding your first commercial real estate loan is often the first step in achieving this vision.

Obtaining Your First Commercial Real Estate Loan

Working with a mortgage broker gives you access to numerous private money investors and lending programs.

While every hard money lender for commercial loans is unique, there are often similar requirements regarding documentation. Be prepared and follow the lender’s submission guidelines.

The Difference

Level 4 Funding specializes in a fast and easy approval process with flexible terms.

For some, hard money lending is surrounded by mystique and distortion. Learn the truth about obtaining a commercial loan

from a private investor or company.

Here’s another untrue statement found among the

pages of Google search. Hard money is the last-resort loan. Really?

When to Turn to a Hard Money Loan

Individuals who obtain hard money loans are not desperate—they are smart business people who have learned the many benefits of working with a private investor instead of a lending institution.

These days, two frequently used types of funding for commercial real estate loans are hard money lenders and crowdfunding.

Find out which one is right of you and what the differences are.

Hard Money Lenders

A hard money lender bases the amount and acceptance of a loan on the project and the real estate’s collateral value more than on a credit report.

Commercial real estate trends in 2017 are proving to be profitable for investors despite the increasing challenge of securing competitive financing. Hard money loans are an alternative that many in the industry are turning to.

If you believe you have the perfect opportunity to get into the growing segment of multifamily rentals,

don’t let lack of capital hold you back.

There are various types of commercial real estate loans that will help you get into this burgeoning sector of investment strategies. Learn about bridge loans, joint venture and hard money loans.

How to Determine the Best Commercial Real Estate Loan for Your Business

“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did.”

—Mark Twain

Commercial lending with hard money loans, also known as private loans, offers several advantages over traditional loans. They base their loans on collateral as compared to credit scores, fund in as little as two days compared to more than a month, and can offer flexible terms.

Why Work with a Mortgage Broker?

Brokers are mortgage experts. They’ve worked with countless investors and know which loans are appropriate for different types of projects and properties.

A traditional commercial mortgage loan is not always easy to attain. Fortunately, there are alternatives, and one of those is funding through a commercial loan from a hard money lender.

What are Commercial Mortgage Loans used for?

Be sure you are working with a lender that has your best interest at heart. This is a relationship you will want to maintain for years as you grow your portfolio.

Tuesday, August 29, 2017

Expanding your office or investing in new assets with a commercial loan should be huge wins for your company. The process can be complicated, so be sure to do your homework first.

The Right Commercial Loan Provider Understands Your Project

The commercial lending industry is changing rapidly. This means new opportunities for online lenders to work directly with companies embarking on ambitious development projects.

Take Advantage Of This Stable Commercial Lending Market Demand Before It’s Too Late

Getting your commercial real estate loans online could give your business a critical advantage. Don’t assume that financing terms decided by a bank have your best interests at heart.

Review Your Online Financing Options Before Committing To A Bank

Monday, August 28, 2017

Need a flexible financing option for your commercial mortgage? Private lenders don’t impose the same stifling requirements as traditional financial institutions.

Private Lenders Can Help Streamline Your Commercial Mortgage Process

Private commercial loans are a lot more accessible than credit provided through a bank or other type of traditional lender. Even better, there’s a good chance your business won’t have to do much to qualify.

Why Select A Private Lender To Finance Your Company’s Commercial Real Estate Investment?