Understanding the process for securing a commercial real estate loan Texas will help you to avoid wasting time and being declined. The process requires more than most business owners grasp or are prepared for.
Businesses can seek a loan for many uses but one of the largest loans that you might be seeking is also the most complex. Seeking a commercial real estate loan Texas is a process that needs to fully research and understood to ensure that you are successful in getting your loan and also that you get the best loan to suit your needs. Avoiding a few of the most common pitfalls along this journey can insure that you enjoy a successful application process and can purchase the property that your business needs. The first step in the process can be one of the most critical. You need to shop for the right lender who is offering terms that fit into your budget. This also means that you will need to be familiar with the terminology of commercial real estate loans to be able to accurately compare the terms being offered. It is also important to remember that even though you have an existing relationship with a bank, you will want to explore other options to seek what is currently available.
Your next selection can be equally as important as the lender that you select. As with any legal document, you will want to be certain to have a lawyer review the agreement prior to signing it. Selecting a lawyer with experience working in commercial real estate loans Texas is critical. This will insure that the loan paperwork is in order, that you are getting the deal that you asked for and that the terms are fair and legal.
Know What You Can Afford
You have obviously reviewed your business finances to be certain that you are ready to take on a commercial real estate loans Texas, but you need to have a strong plan in place. Your business plan is a good starting point as that was drafted as a guideline for the growth and progress of the business. But now you need to include how you are planning to pay off the debt of your new building. This might include reducing other costs and expenses, increasing your product line or offering products to a larger market. Not only will this help you to be certain that you can repay the loan but it will also help to give your lender confidence in your ability to make the payments.
Be Prepared On All Fronts
As a business owner, you are familiar with the stresses brought on by the ever changing business landscape. For this reason, you need to be very well prepared both financially and professionally. Having cash on hand for unexpected expenses or to cover the cost of the fees of your loan is important. This planning also demonstrates your financial responsibility to your lender. In addition, you need to have all of your financial documentation in order. This includes all of the profit and loss statements, bank statements and balance sheets current and available for the lender to review. It is also important that you have your personal finances in equally good order. These could be important if your business has little credit history or is only a few years old. Avoiding these common issues will make your application process much less stressful and will increase your chances for a loan with great terms.
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.