Texas Commercial Mortgages Promote Going Green as a Real Estate Investment Model

As tenants become aware of the effects of the materials used in building on their health and well-being, many are turning to “green buildings” in order to minimize the impact. Multifamily units, single-family homes and office and retail developments are answering the need by becoming certified in WELL and LEED, and Texas commercial mortgages are becoming available for these types of properties.

The International WELL Building Institute has created an alignment with WELL and LEED in order to offer dual certification to those interested in building green projects. This streamlined approach has led to reduced documentation as well as less time and cost when obtaining certification. WELL focuses on creating healthy indoor spaces. There are seven areas that are incompassed and these include: light, air, water, fitness, nourishment, comfort and mind. LEED focuses on not only homes and buildings but communities as well with construction and operation that leads to a healthy environment.

According to EPA, indoor pollutants are two to five times higher than outside levels. This increased level of toxicity can lead to an increase in respiratory disease as well as autoimmune responses. In order to minimize these potential physical challenges, developers and investors are creating buildings and renovating existing sites that are built with green products and materials that are low emitters of indoor air contaminants such as volatile organic compounds. Materials are given time to “outgas” before tenants take residence. HVAC systems are in place that bring the outdoor air in and a ventilation system is created in order to keep moisture to a minimum. Natural lighting is considered when designing windows allowing for uniform daylight throughout rooms.

Developers are finding that these types of construction create a positive financial impact not only by increased demand but also by increasing tenant health. In Brooklyn, Blue Sea Development’s first LEED Platinum building—The Eltona in South Bronx—provides eco-friendly and affordable housing. One interesting side effect was that this building experienced a lower rent delinquency due to medical reasons than their other buildings. According to an article in Apartmentality, “Blue Sea hopes its latest project, Ocean Hill-Brownsville’s Prospect Plaza will provide a model for affordable housing, showing that healthier buildings lead to healthier residents and better financial outcomes for developers.” Lenders are taking notice, making Texas commercial mortgages for these types of properties available.

Green Building Incentives

In order to encourage green building, various incentives such as grants and tax incentives have been created on the regional and national level. Benefits also include programs that offer reduced Texas commercial mortgage rates for environmental purchases and gap financing.

At Level 4 Funding, we work with hundreds of private investors, many of whom are interested in green building projects for both residences and office buildings.

Level 4 Funding offers residential hard money rates from 7.99 percent. We also offer construction loans as well as Texas commercial mortgages, residential, office, multifamily, warehouse, storage complex, student housing and raw land loans. Our bridge loans offer short-term capital that provides a “bridge” for individuals and companies from one asset to the next. Because our loans are asset-based and do not rely on credit scores or credit worthiness to the same degree that traditional lenders are bound by, we can often provide funding in less than a week.

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

Risky Business: How To Minimize Risk With Your Commercial Real Estate Loan In Texas

The benefits of a successful real estate investment are many and varied. However, when you venture into property management with a commercial real estate loan, you are invariably taking on a great deal of risk as well. Managing the risks involved, especially in volatile markets like Texas, can greatly enhance your chances for success.

Commercial real estate and the investment in a commercial real estate loan can be very lucrative and rewarding experiences. However, there is a certain level of risk that an investor While commercial property investing can be risky in ways that are unforeseen to the first-time investor, there are ways to minimize the risk. But be warned. There is ALWAYS risk and you should be very wary of anyone who tries to tell you otherwise.

One of the biggest risks to commercial real estate loans and commercial property is the market as a whole. There are so many factors that play in to the success of a real estate market that it is virtually impossible to predict them all, however, a smart investor is going to stay up to speed on a variety of things that will indicate local economic strength. The strength of local businesses and multi-family housing units are a very good indicator of local economic strength and can give excellent insight into the demographic movements of specific areas. This is especially true when it comes to professionals in the leading industries of the region. In Texas specifically, the market can easily be judged based on the movement of professionals hired to work in the energy sector. As that industry goes, so does the majority of the market.

Another massive risk of a commercial property are structural improvements and construction. This might not seem like a risk at first, as many properties require improvements and renovations before they are able to be viable income generating properties, as well as ongoing improvements. Where this becomes a risk, however, is when costs and time are underestimated. This is a very common occurrence and is not something that many investors are equipped to deal with, especially when involving a commercial real estate loan that requires payment. It is safe to assume, with commercial construction, that very little will go according to the proposed timeline and you will have to adjust both your end date and your expectations.

Knowing these risks to my commercial property and commercial real estate loan, what is the best way to prepare myself?

Many of the risks of commercial investments can only be minimized by being properly prepared and well educated about the flows of the market. Those risks that are the largest are completely outside of the control of the investor. While this might be daunting and stressful, it is also incredibly rewarding, as such risks have a tendency to turn away those who are faint of heart. This leaves plenty of opportunities for those who are willing to take on some risk (calculated risk) for plenty of reward. When it comes to commercial real estate loans, nothing is a sure thing, but by educating yourself and protecting your property, you can minimize the lasting impact of an economic downturn.

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

What Should I Look For In A Commercial Broker To Help With My Commercial Mortgage In Texas?

You don’t have the time or energy to pursue a commercial mortgage on your own. You know that you need the expertise and assistance of a professional commercial broker, but you don’t know where to start. Here is what you should be looking for in a professional broker.

Finding a commercial broker is easy. Finding a commercial broker that will be a good fit for you is not nearly as easy. In Texas, there are many firms and independent brokers that would happily take your contract and not do nearly as much work as you would like them to do finding an excellent commercial mortgage.

Many mortgage brokers are a part of larger firms. This not only allows them to reach more lenders, but also to give them access to greater resources. Finding the right firm and the right broker within that firm can feel daunting, however, you can make this process easier if you follow some simple steps to ensure that you find the right broker.

First is to examine the qualifications of the broker. This might seem like a no brainer, but many brokers have qualifications in areas that are not in the specific area that you might need. If you need a commercial mortgage for a multifamily housing unit, it really doesn’t matter if a broker is highly qualified in retail space. That is not what you need. So, do not be impressed by a list of qualifications, but instead be selective about a broker who has qualifications that will fit your specific needs.

In addition to qualifications, a broker’s area of expertise is important. This does not mean that a broker who has no specialization will not work for you. But it is important to know what type of deals a broker does the most of. This will give you a good indication of where they are the most successful. If you can find a broker that has both qualifications and the experience of success with a commercial mortgage in your real estate emphasis, that is an excellent start.

You will also want to make sure that your broker stays on top of the ever-changing financial world of mortgages and real estate development. A quick way to assess this is to ask what they do themselves, or what their firm provides, for continuing education. A broker that does not continually improve is a broker that is falling behind on current trends in the market.

What is the best way to find a qualified, hardworking commercial mortgage broker in Texas?

Even if you make sure that you are careful in looking for a broker, take your time and ask lots of questions, there is no guarantee. The best way to find a high-quality mortgage broker is through a referral from a friend or business associate who has worked with one before. In fact, this is the way that most decent mortgage brokers grow their business: through referrals. They know that if they work hard, meet the needs of their clients and are able to put together a list of satisfactory commercial mortgage options that they will receive excellent word of mouth. If you encounter a mortgage broker that does not worry about what his clients say, this is most likely a person that you are not going to want to deal with.

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

Commercial Lending In Texas – Do I Need A Commercial Broker?

You have decided that you want to take advantage of some of the unique potential of the commercial lending market in Texas, but you are unsure of how to proceed. Maybe you like to do things for yourself and make it a learning process, or maybe you simply don’t have the time to do it yourself. If so, then you need to decide if it is in your best interest to hire a commercial broker.

Deciding whether or not to utilize a mortgage broker is a big decision and one that is entirely up to you as an individual and as a business owner. It is quite possible that a broker could make your commercial lending experience very easy, but there is also a chance that using one could cost you a significant amount of money.

When deciding whether you need a commercial broker or not, there are several things to consider. First, is the amount of time that you are willing to spend hunting down your own lenders. If this is a project that you would like to devote many hours to, on the phone and in person, speaking with lenders and setting up appointments, then using a commercial broker will not save you time. Maybe you even like this part of the process and do not mind spending the time to do it. However, if you do not want to spend the time to shop around to different banks and lending sources to track down the perfect commercial lending program for your needs, then hiring a commercial broker might be an excellent investment for you because of the time that you are bound to save.

Another deciding in factor is whether or not you are familiar with the commercial loan process in general. If this is your first time, it might not be a bad idea to get a recommendation from a colleague or mentor and work with a commercial broker. They will know much more than you do at this point. However, if you are experienced in this, and have a good handle on the process, then perhaps you don’t need one. If you have done many investments, then you might even have some preferred lenders to cut through some of the leg work.

If you have a unique situation, whether it be for qualifying, for the terms of the loan, or for something else, it also might be in your best interest to work with a commercial broker. Lenders want to get as many qualified loans out as possible and might not take the time necessary to hear your specific situation, unless you have a professional to advocate for you. Whether you decide to use a commercial broker or not is a decision only you can make, but there are many benefits to securing commercial lending in this manner.

What if I tried commercial lending in the past, but was not happy with the outcome?

If that is the case, that it is probably very important that you work with a broker if you are looking for another commercial loan. They will be able to find lenders to compare for you and you will have more choices than you did before. If you didn’t have a good experience the first time and you would like to try again, having a commercial broker as your advocate could drastically change your experience in commercial lending.

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

Commercial Lending In Texas – What Can I Expect From A Commercial Broker?

Entering into a commercial real estate venture can be an intimidating decision. Whether you are looking to purchase your first property or are simply trying to scale up from what you already have, going at it alone might seem like a noble challenge, but with so much money on the line, it is often wise to seek the help of a broker in commercial lending.

The market of funding sources for property investors has been expanding and it will continue to do so as new and creative ways of funding commercial mortgages keep emerging for small business owners. As an individual, it can be a huge work load to try to stay on top of all of these various options, while still maintaining a small business. This is where a commercial broker could be of tremendous help to a potential borrower. This is not to say that a borrower should not spend a great deal of time learning what they can, it is a lot of money, but brokers know the commercial lending landscape better than anyone, especially in local markets like the one emerging in Texas.

So what exactly does a commercial broker do and what can a lender expect out of one? Essentially, a good commercial broker will have lots of experience in a large variety commercial lending options. This can be any property from a strip mall, to an office building to a multifamily housing unit, although each individual broker will most likely have an area of specialty.

A huge benefit of working with a commercial broker is that they have connections with a variety of lenders. This gives them a great deal of flexibility when searching for the best possible loan for a borrower. While some brokers only specialize in certain regions, this can actually be a benefit, as they will be able to guide a potential borrower to very specific lenders for very specific properties.

Typically, a commercial broker will take a borrower through the entire process of securing commercial lending. Sometimes this might mean that they even assist a borrower after the loan has been approved, if there are additional requirements. A broker will review a borrower’s financial needs and qualifications and then being “shopping” for a potential lender. Brokers will also help with finding appraisers for the property. However, one of the greatest aspects of working with a broker is that when all of the appraising and paperwork is done, they will present the borrower with a list of options to choose from. Compiling such a list as a small business owner going at it on their own would take an extensive amount of time and would most likely be incomplete, as a borrower is not going to have the same type of relationship with lenders as the broker. The borrower then simply chooses which option is best and the process moves forward.

How are commercial brokers paid on commercial lending in Texas?

Typically, brokers are paid from a percentage of the final loan amount. This can be anywhere from 1% to 5%, traditionally. While some brokers have an upfront fee, many do not, which is very beneficial for borrowers. Brokers also usually depend on referrals, rather than active recruitment, so it is in their best interest to do everything that they can to help you secure the best commercial lending option possible for a borrower.

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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

How Will Changes in Real Estate Development Affect Commercial Real Estate Loans In Texas Post Hurricane Harvey?

Whether it be commercial properties to house offices, retail space to support small businesses or multi-family homes to address growing population density, commercial real estate loans in Texas have long been a source of income and expansion for small business owners. However, with the recent devastation of Hurricane Harvey, regulations might be implemented that could affect this landscape.

Whenever the idea of regulation, especially when it comes to sources of economic development, comes up, there is always a debate. Individuals from all over the spectrum weigh in on the benefits or drawbacks of such changes and the impact that they would have on the market and economy as a whole. However, with the massive repercussion that Hurricane Harvey has had on properties in Texas, it seems as though regulation is a foregone conclusion. This will most certainly impact commercial real estate loans.

One way that regulations might change the real estate industry after Hurricane Harvey is in zoning laws, especially in Houston. Prior to the latest disaster, there had been little in the way of zoning restrictions. Real estate development was given a free hand and the population and local economy was greatly enhanced. However, this did lead to significant losses with the flooding and other destruction from the hurricane.

Because of the unique landscape of Houston and the surrounding area, there are many residents that have been clamoring for increased regulation in zoning. Houston has been extremely fast growing in the past few years and this had led to many commercial real estate loans being used for rapid expansion into the surrounding plains, which have ultimately proven to be unsafe and right in the flood plain. This did, however, provide for lots of very economical development.

However, there is still a good deal of opposition to potentially more regulations. Opponents of these measures claim that there is little evidence to prove that the development cycle is actually to blame for the flooding. One solution that has been put forward is for the city itself to provide a more comprehensive drainage plan.

In either case, the resulting changes in commercial real estate that are bound to come out of this most recent disaster will certainly have an effect on the loans needed to develop, or re-develop, Houston and the surrounding area.

How will the fight over regulation specifically affect commercial real estate loans in Texas?

While this largely remains to be unseen, there are some trends that could be affected. For one, the application, appraisal and title process all have the potential of taking more time the more restrictions are in place. With any sort of regulation, government agencies usually get involved in the process and that is sure to bog down a commercial real estate loan. It remains to be seen how it will affect interest rates or terms, but with more agencies in the mix, it is a solid prediction that fees for closing, at the very least, will increase. If zoning regulations do go into effect, the availability of such loans (and properties in general) might also decline.

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

Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 3 – Hard Money Mortgage Application

Perhaps a traditional mortgage is not what you are looking for with your commercial investment, or maybe through the pre-qualification process, your lender has helped you determine that your needs are better served by a hard money loan. In either case, the process for a commercial mortgage in Texas is slightly different with this type of loan.

Typically, a hard money loan is a very short-term loan that will enable to borrower to quickly turn a profit and pay back the loan. If you are developing a property or are looking for a long-term building extension or business development of a commercial area, then this is not the type of loan that you are looking for. Many real estate developers use this type of commercial mortgage to quickly turn around a property and immediately put it back up for sale to turn a quick profit on the improvements made.

This is often referred to as a “fix and flip” loan and has been made famous by shows like “Property Brothers” and “Flip This House.” Often times, from a commercial standpoint, these properties are in depressed areas and often include multi-family housing units. With the recent devastation of Hurricane Harvey, this is actually going to be a growing area of need in Texas markets.

The tricky part of a hard money commercial loan is that it is based on the property appraisal that will be realized after the completion of the project. This is commonly termed as the After Repair Value or ARV.

Because of this unique factor, the application process of a commercial mortgage of this type begins with the assessment of what the property will be worth after the repairs are implemented. This means that the borrower will have to do a good deal of leg work before even knowing if the loan will be approved. Detailed specifications and an excellent business plan are necessary components for a hard money loan, as the entire value of the loan is going to be based on what the borrower intends to do with the property.

Once the plan has been approved and the ARV has been provided to a potential lender, the application process truly begins. Another element that a borrower can expect to encounter in this process is having to provide a detailed budget of how the repairs are going to be completed and their associated costs. This can usually be done by getting quotes from contractors who have worked on such projects before. In any case, this is critical step to help outline exactly how the loan is going to be used and to ensure that it is for the proper amount.

With the recent crisis in Texas, how can I use a commercial mortgage to my advantage?

Multi-family housing units in depressed and affected areas, especially in Houston, are going to be in high demand and investors are going to be needed to quickly turn those properties into buildings that are livable. Having the access to quick funds and experience developing properties with hard money will most certainly help you to make a commercial mortgage work in your favor.

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

The Dark Side Of Commercial Real Estate Loans In Texas – What are the Drawbacks Investing?

If investing in commercial real estate properties were easy and a sure thing, then everyone would be able to do it successfully. However, there is a tremendous amount of risk inherent in pursuing commercial real estate loans in Texas, considering the number of factors that are outside of the control of the investor.

There are most definitely opportunities present for anyone to get involved in commercial real estate. So why doesn’t everyone do it? Because for every reward, there is also a great deal of risk. Only those who are able to manage the risks, while capitalizing on the rewards are going to be successful in putting a commercial real estate loan to work for them with an investment property.

One of the biggest drawbacks of pursuing and following through with a commercial real estate loan and the property that will be acquired with it is the time that the owner is going to have to commit. With a commercial property, you are going to be dealing with many different leases of different time frames and terms, shared areas that are the responsibility of the owner, and an image to uphold. All of this takes a tremendous amount of time and energy. If a borrower has never owner commercial property before, the amount of time it takes for even the simplest of maintenance tasks is most likely to surprise.

Another hurdle that investors and owners will need to overcome with commercial property is the realization that it is impossible to do it all yourself. With the amount of maintenance, as well as their complexity, an owner is going to need commercially certified professionals. This often comes as a surprise to many owners who like to take care of things themselves. Not only does this establish a further layer of liability protection, but it will also save time. Just because you have the commercial real estate loan on the property does not mean that you should try to save on costs by lowering maintenance standards.

Commercial properties are also different than residential properties and this can be a drawback for investors that are not properly prepared for what that means as far as foot traffic is concerned. The reality is that the volume of people coming in and out of a commercial property is much greater than in a residential property. While this might seem like a no brainer, the implication is that the potential for damage to the property or to those who frequent it go up significantly. Everything from a minor accident in the parking lot to a significant injury to a patron has the potential to happen. This additional risk is often not realized by potential owners until it is too late.

Are there ways to mitigate the risks associated with my commercial real estate loan and commercial property in Texas?

Each state handles the issue of insurance differently, so it is critical to understand what the local laws are in regard to liability, maintenance fees and licensing. The last thing you want to have happen is to lose your livelihood and open yourself up to a lawsuit over something that you did not know was an issue. The best way to lower the risk and overcome these draw backs is to seek the advice and help of someone who has dealt in commercial real estate and commercial real estate loans before.

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

Securing A Commercial Mortgage in Texas – Preparing For Your Mortgage – Step 2 – Traditional Mortgage Application

With pre-qualification out of the way and a lender working with you to secure a commercial mortgage for income generating property in Texas, you are well on your way to making your dreams come true. However, the hard work is just beginning.

If your pre-qualification process was rigorous, then you are well on your way to completing the actual application for your loan. While it might have been frustrating at the time, you will no doubt be grateful for it as the process goes along. However, if you did not have to provide much documentation for your pre-qualification, then you are definitely going to have your work cut out for you. The application process for a commercial mortgage in Texas can be quite long and can confuse even the smartest of business people, so do not hesitate to ask plenty of questions of your loan officer.

If you did not have to provide documentation for your pre-qualification, you will have to gather financial documents to show not only your ability to pay back the mortgage, but also your history of how you have handled debt. This usually includes proof of income, tax documentation, other assets and business information. It also might include balance sheets, income statements and business plans, especially if the property is going to be used to house other businesses as rentals. Lenders are looking for security when they grant commercial mortgages and all of these things become factors not only in their decision to grant the loan, but also in the rate and terms that they are willing to offer.

With a traditional mortgage, there are a couple of things that need to be taken care of before the underwriting of the loan can actually begin. Before any movement can be made toward obtaining a loan, the title of the property and the title company that will be representing it must be chosen. It is up to the borrower to select the company that will be closing the loan (once it is underwritten) and will be providing title insurance. This helps to secure the commercial mortgage against title fraud and is absolutely necessary for lenders to be able to approve a loan. At this time, it is also decided whether the borrower will be covering title and insurance costs separately or as part of the mortgage, all rolled into one. Unless you have a very good reason to divide them, it is most likely in your best interest to lump them together.

What happens with a commercial mortgage in Texas after all of the paperwork has been processed and the underwriting process begins?

Once the underwriting process has begun (this could take up to 2 months), there will be a lot of waiting. But there are still things that will need to be done in order for the transaction to go smoothly. One such thing is for the borrower to get the property appraised by a third-party appraiser. This process is also very time consuming and can take up to 3 weeks to complete so it is best to start this early. In addition to this, you must be prepared to provide additional documentation, as needed, to the lender. It is very possible that they will need nothing else to secure your commercial mortgage, but if they do, it would be best to provide it quickly to not interrupt the process.

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.

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