Asking informed questions ensures you get the details you need to make strategic real estate investments. These questions also help establish a healthy report with your Texas Commercial Lending professional.
A bit of preparation is key to making any face-to-face business conversation more valuable for both parties involved. Be sure to take this approach when meeting with a Texas Commercial Lending professional. Financing a major investment in a commercial real estate asset is a major undertaking, and your company will want a firm understanding of the type of person they are trusting with their financing needs. Likewise, it helps lenders to locate ideal financing opportunities when the better understand the needs and goals of your company.
That’s why it’s valuable for your company to prepare a few questions before meeting with commercial lenders for the first time. This attention to detail will help get both parties on the same page and set the expectation that your company expects a high level of professionalism from its partners. The following examples provide a simple model for your own list of questions..
- Do you have recent experience with similar projects? Ideally, you selected your potential lenders based on the fact that their portfolio included projects that seemed similar in nature to your own. It still bears repeating the question. You’ll want to hear the lender explain in his or her own words how closely these portfolio items resembles your own project.
- If not, what types of projects do you specialize in? Just because your lender doesn’t specialize in your project time does not mean that their financial expertise can’t be put to good use for your company. Ask more about their experience in other industry, then ask about their average loan size. This line of questioning can also help you determine if lender is experienced enough to serve your company’s needs.
- What additional costs and fees are associated with the loan? Fees and other closing costs are par for the course when taking out a Texas Commercial Mortgage. That being said, your lender should be as upfront as possible about what these fees are. It never hurts to pressure them about conditional costs that may come up down the road as well.
- When can I expect my project to close? A few factors will determine how long this process will take. If your company and its legal team are slow to respond, for example, then the close time could be extended. However, the lender should provide assurances and a timeline of responsive service.
- How long can I lock in a rate? Once you discuss terms with a lender, you’ll want a guarantee the rate you discuss is the rate that gets put down on the paperwork. Be sure to ask about the conditions that must be met before a discussed rate is locked, as well as how before the rate lock expires.
Don’t Depend On Traditional Lenders To Provide The Best Terms
Remember that traditional financial institutions like banks and mortgage lenders are bound by numerous rules and regulations. Often the Texas Commercial Lending terms they offer to businesses are relatively inflexible. Thankfully, an increasing number of private lenders are offering more specialized loan terms.
A knowledgeable, experienced private lender will be happy to answer all of your questions and address each of your concerns.
Use the same strategies mentioned above to get to learn more about a private lender and how they can best support your company’s commercial real estate goals.
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.