Monthly Archives: September 2017

Banks Known for Commercial Lending in Texas Reach a Mutual Termination Agreement That Benefits Both Parties

4page_img2Two top commercial lending in Texas banks have recently terminated their merger agreement that was established at the beginning of this year, on January 23rd. The mutual termination was needed for bother companies to continue to be successful on their own.

Hope Bancorp, Inc., the holding company for Bank of Hope had reached a merger agreement in January of 2017 with U & I Financial, which is the holding company for UniBank. Just last week, Globe Newswire reported that the two companies entered a mutual termination agreement.

Hope Bancorp, who specialize in commercial lending in Texas, had reported financial weaknesses after the 2016 audits of financial statements. Luckily, they have since made progress to improve and fix these issues in their own financial systems. As stated in the original merger agreement, because of the financial weaknesses found with Hope Bancorp, it has been agreed for the merger to not be complete.

The termination of the merger agreement includes that each party involved is responsible for their own costs and expenses that are associated with the termination transaction. However, this does exclude any fees or penalties that are caused by the actual termination between Hope Bancorp and U & I Financial.

Top commercial lending in Texas bank is eager to bounce back after financial instability

Hope of Bank happens to be the first and also only Korean bank in the country. They have $13.9 billion dollars in total assets and Kevin Kim serves as President and Chief Executive Operator. Kim has expressed his disappointment in the merger not going through, but he agrees this is the best decision for both parties involved. Bank of Hope currently has 64 branches across the United States, including some in Texas who specialize in commercial lending in Texas. They also specialize in other business banking products for small to medium size businesses.

Bank of Hope is trained in commercial lending in Texas and also lends a helping hand to the Small Business Administration

Hurricane Harvey hit the southeastern part of Texas hard just a few weeks ago and the entire area is trying to make progress and rebuild, especially those needing commercial lending in Texas. With the merger, not being completed between Hope Bancorp and U & I Financial, these two establishments are able to focus more of their efforts on helping the area rebuild after Hurricane Harvey damaged 18 counties in the state.

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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
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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

Danger your prized collection is a Hazard

Recently had a call from a borrower who wanted to refinance and pull out cash on their owner occupied home.

Home was ‘valued’ at 650,000 in north Scottsdale on an 5 Acre Lot.

Currently no loan on the home. Just need $350,000 for brothers medical bills. “We have excellent credit and steady income.”

This sounded too good to be true!

I did my preliminary questions and the borrower said: “have been trying to get a loan for quite some time now

Oh-oh, red flag.

Continued my questioning, and did not understand what the problem was.

Until I Google View the property.

And bingo-bango-bong, I could see what the problem was.

This perfect borrower had 100’s of old boats on the lot! In Arizona.

It was his hobby, and he was going to fix them up and sell them one day.

It look like a junk yard, not a home.

But I did not give up. I found a lender that ‘would work’ with the borrower and was able to close the loan.

Seems like his hobby of collelcting old boats was a problem but we were able to get him a loan.

Owner occupied private hard money loans are available. The rates start around 8% and go up. We were successful and this borrower qualified for a 30 year loan from a private lender.

Now all he has to worry about is fixing up those old boats and selling them. He thinks he is going to get it done some day. Hopefully before the flood.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

A Handful of Successful Banks Offering Commercial Lending in Texas Recognized by American Banker

3page_img2-bigEach year, American Banker are eager to report their list of the Best Places to Work for across America. Some of the top banks who happen to specialize in commercial lending in Texas were named on this year’s 2017 list.

The Lubbock-Avalanche Journal recently reported that several banks with commercial lending in Texas experience in the Lubbock area were on American Banker’s list as one of the American Banker’s Best Places to Work. First Capital Bank of Texas, Peoples Bank, American Bank of Commerce, City Bank, Happy State Bank, First United Bank and Vista Bank were all honored by American Banker.

Banks from all across America were evaluated on a number of different things that included workplace policies, workplace practices and also demographics. Employees were asked to conduct surveys relating to their experience working for the bank. It is important that other banks are encouraged to take note of the winning banks’ policies in hopes that they may be able to adopt similar policies that will help their bank and community thrive.

This year’s ranking happens to be the fifth year for American Banker’s Best Places to Work list. This year, a total of 75 banks from across America were put on the list for 2017. But western Texas happened to have the most banks recognized by American Banker compared to other parts of the country. Texas is home to many banks that offer commercial lending in Texas and the state happens to be a big capital for the market.

American Banker recognizes those with commercial lending in Texas experience to set standards.

For five years, American Banker has recognized the best banks to work for in hopes of promoting a culture of high performance along with positive experiences for all of those involved. American Banker hopes that others can learn from these notable banks that they can learn and adapt a similar culture to improve the experiences of their employees and customers.

Banks hope that being recognized means that they are the real deal in the commercial lending in Texas market.

Banks with commercial lending in Texas experience that were acknowledged were able to properly accommodate employees and all of their needs to feel more appreciated. On top of this, the banks also delivered exceptional customer service while maintaining positive relationships with not just their customers, but also their employees.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
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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

Banks Eager to Assist the Small Business Administration with Commercial Lending in Texas after Hurricane Harvey

3page_img1After Hurricane Harvey hit and severely damaged southeaster Texas, the Small Business Administration has stepped in the lend a helping hand. But local banks think that they should help to speed up the commercial lending in Texas process.

The Small Business Administration is helping small businesses with commercial lending in Texas to those who have been hit by Hurricane Harvey. The government organization offers support and disaster loans up to $2 millions to those impacted by natural disasters. The Small Business Administration has already processed close to 100 loans, totaling $8.5 million dollars.

Local banks usually do not assist with disaster funding because they are more of a financial risk compared to conventional lending. But many are currently in need of disaster commercial lending in Texas and many of the banks in the area that were hit hardest by the category 4 storm want to help the community without making a profit for it. Banks and lenders have first-hand seen the devastation that Hurricane Harvey brought, causing 18 counties in Texas to be declared disaster areas.

However, the Small Business Administration feels that disaster funding is unsuitable for banks and lenders. A law was placed in 2008 that directed the Small Business Administration to be in charge of disaster funding. The administration was established to help small businesses get back on their feet after being impacted by a natural disaster. This is why the Small Business Administration want to deal with disaster loans themselves.

With $19.4 billion backed by commercial lending in Texas were put at risk due to flooding, the Small Business Administration could actually benefit from any help they can get.

The idea of the Small Business Administration working with local banks and lenders would really help the community get back on their feet faster. It would be more effective to process the high number of applications for commercial lending in Texas, if there were more hands on deck. Many across the state of Texas will need assistance and if banks are willing to help, then it is a win-win solution for all involved.

Nearly three quarters of banks polled want to lend a helping hand with commercial lending in Texas after Hurricane Harvey

People in the area that was impacted by Hurricane Harvey know how much damaged was caused. This could be the reason why 70 percent of the 40 banks polled by the Coleman Report and reported by the American Banker said they would welcome the opportunity to help the Small Business administration with funding disaster loans to those in need after Hurricane Harvey hit.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

Recent Dispute Reaches a Settlement After Complaints Were Filed Over Commercial Loans in Texas

2page_img3-bigIt was recently reported that a dispute on the verge of a court date has been settled between lenders and a group of greenhouse operations, Color Star Growers. Not long after the company received a commercial loan in Texas, Color Star Growers shortly filed for bankruptcy, causing tensions between lenders and the company to rise.

Law 360 in Dallas reported the vague details regarding a fraud dispute totaling around $66 millions dollars. In a statement that was released by Regions Bank, who specializes in commercial loans in Texas, the banks say that they resolved all pending claims, even including counterclaims, with MCG Capital Corporation. A separate federal case between Regions Bank and Comerica Bank was also recently resolved, but details from that case was not reported.

The dispute between lenders and Color Star Growers stems from a federal and state litigation that totaled around $66 million in loans. Color Star Growers obtained a commercial loan in Texas, but just a short year later, they ended up filing for bankruptcy. This then led to accusations of Color Star Growers committing fraud.

Color Star Growers were accused by lenders of committing fraud by hiding their terrible financial woes. This of course then caused a claim to be issued between lenders and others, stating that Regions Bank actually knew about all of Color Star Growers’ financial inaccuracies, but didn’t end up informing the lenders of any of the financial issues.

Regions Bank denies complaints from lenders who issues commercial loans in Texas to Color Star Growers

Even though the lenders claim that Regions Bank actually had the knowledge of Color Star Growers’ financial issues, Regions Bank continuously denies that they knew anything about the financial issues and troubles that Color Star Growers were experiencing. Regions Bank also made sure that they stated that they did not see any documents that showed any financial issues to back up the claim that they were aware.

A little over a year after Color Star Growers received a commercial loan in Texas, the company went and filed for bankruptcy.

In 2012, Color Star Growers received a commercial loan in Texas from lenders and then was forced to file for bankruptcy at the end of the 2013 year. Lenders claim that Color Star Growers made an “enormous” overstatement of its actual inventory, which led to “fictitious” profits. The lenders stated that Color Star Growers had less than $7 million dollars in inventory, when they claimed that they had $17 million in inventory. The exact terms of the settlement were not disclosed in court documents.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

A Top Leader in Commercial Loans in Texas Benefits Growing Austin Community with New Office Location

2page_img2Guaranty Bank and Trust are lending a helping hand to those in need of commercial loans in Texas by expanding to the Austin market. The loan production office is expected to open very soon. After the loan office opens, then the bank plans to expand their services even more by getting approval to become a full-service bank.

Globe Newswire reports that the brand-new location of the Guaranty Bank and Trust in the heart of Austin will increase the number of commercial loans in Texas. The Austin area will be able to see many benefits from having their own Guaranty Bank and Trust location, which will service many commercial and consumer customers with a number of banking and financial needs.

Mr. Travis Brown has been named the new President of the new Austin location. Mr. Brown has over 12 years of commercial loans in Texas experience, especially throughout the area and city of Austin. He is known for having established a number of great relationships with many in the banking industry, like with local business owners and also many real estate investors. Mr. Brown also comes with an extensive background and knowledge in the banking industry.

A native to the city of Austin, Texas, Mr. Brown attended St. Edwards University, first earning a Bachelor’s Degree in Business Administration and Management. He then went on to receive his Master’s in Business Administration from the University of Texas located in Austin. The new president of Guaranty Bank and Trust’s office in Austin is thrilled to be part of an organization that happens to have the values and a mission that he truly believes in and which has been the foundation of the company’s success for more than 100 years.

Guaranty Bank and Trust is excited to add an experienced and knowledgeable leader in commercial loans in Texas to their team

With Mr. Brown bringing so much of his experience and knowledge with commercial loans in Texas, the Austin community, especially local businesses in the area, will be able to benefit greatly from the addition. The Chief Operating Officer of Guaranty Trust and Bank, who is also Chairman of the Board, Ty Abston, is looking forward to bringing Mr. Brown on board to his team to lead the new Austin location, especially because of all of Mr. Brown’s strong connections with those in the community.

When it comes to Commercial loans in Texas, Guaranty Bank and Trust are the real deal!

Guaranty Bank and Trust is well-known across the state of Texas, for providing their customers with financial products and services that include mortgage, trust and wealth management. Their ultimate goal is to build trusting relationships with their customers while providing excellent financial services and customer service. Guaranty Bank and Trust currently has 26 locations across 18 communities in Texas. They have loans totally $1.3 billion dollars.

Dennis-Dahlberg-Mortgage-Broker-1_th_thumb

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
clip_image002clip_image004clip_image006clip_image008

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

Banks Eager to Help the Small Business Administration with Commercial Loans in Texas

1page_img1The Small Business Administration is lending a helping hand to those impacted by Hurricane Harvey. But local banks are wanting to help the Small Business Administration speed up the process when it comes to approving commercial loans in Texas.

Many have been hit hard in Southeastern Texas by Hurricane Harvey. The category 4 storm brought record breaking rain causing massive flooding, with a total of 18 counties in the state being declared disaster areas. It could take months for the area to recover, so the Small Business Administration is stepping in to provide assistance, which includes approving commercial loans in Texas.

The Small Business Administration is a United States government agency that provides support and funding, including disaster loans, to small businesses who have been hit by natural disasters. Loans are given up to a total amount of $2 million dollars. Just last week, the Small Business Administration reported that they have processed a total of 95 loans so for, totaling $8.5 million dollars.

Due to Hurricane Harvey, the Small Business Administration has satellite offices setup in Houston, Port Arkansas and Rockport, making it a one stop location for businesses that are needing help after being hit by the hurricane. The Small Business Administration is there to serve those who have suffered property damage or economic loss. Local banks are wanting to help speed up the assistance, for example, help with approving more commercial loans in Texas. They feel that they can help the Small Business Administration be more efficient and effective since they have established relationships and know their customers.

The Small Business Administration could use a helping hand from local banks to approve more commercial loans in Texas to those in need.

The goal of the Small Business Administration is to approve loans within 21 days of the loan request. But with so many requests for commercial loans in Texas due to recent damage and economic loss caused by Hurricane Harvey, it is taking the Small Business Administration longer to process and approve some of these loans. Local banks in the area are willing to help with the process so they can assist even more people in the community.

When it comes to commercial loans in Texas, the Small Business Administration are there when you need them!

The Small Business Administration was designed to help small businesses get back on their feet after they have suffered from a natural disaster and they have been very effective in doing that. Just this past fiscal year, the Small Business Administration has approved over 25,000 disaster loans, adding up to a total of $1.4 billion dollars. The total of disaster loans issues and the total cost of support given by the Small Business Administration is expected to be even more for the 2017 fiscal year due to the devastation caused by Hurricane Harvey and Hurricane Irma.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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 Texas Commercial Real Estate Loans: Common Mistakes

newfront4It is not an easy process to acquire a Texas Commercial Real Estate Loans from a lender. It is time consuming, stressful and, often times, confusing. There are some common mistakes that lots of potential borrowers make that you can avoid.

When you are applying for a loan to purchase real estate to enhance your business revenue, you want to make the process as easy as possible. While it is well known that you are going to need to organized, prepared and spend a significant amount of time in order to get ready for your loan application, there are also a number of things that you might inadvertently do that will hurt your chances of success. Here are some common mistakes that people make when applying for a Texas Commercial Real Estate Loans.

Not getting adequate legal consultation – Perhaps you think that you might be able to handle all of the paperwork and contracts on your own or perhaps you already have a lawyer that is less than stellar, but to whom you feel loyalty. In either situation, you need to make sure that you are getting the best legal advice that is available. You must remember that a Texas Commercial Real Estate Loans involves a lot of money, time and future planning on your part. Do you not want the absolute best as an advisor? It might cost a little more at the time, but excellent legal advice pays for itself many times over.

Failing to negotiate – This is key. It is never a good idea to take the first offer. Even if it is your only offer. Your lender will have no reason to lower the rate or fees if you do not try to negotiate. In fact, this becomes even more powerful if you are able to secure multiple offers, which you can then play off of each other. Lenders will not compete against themselves, so give them a reason to pursue your business by making them believe that you could walk at any time to go after something better. By doing this, you will gain the best terms possible.

Not having a firm grasp on your accounting – If this is not one of your strong suits, hire an excellent CPA. Again, while it might cost at the outset, the amount of money that you will save in the long run is going to be well worth the price. Business owners who stumble during the Texas Commercial Real Estate Loans process usually do so because they do not have a firm handle on their balance sheets and income statements. Not only do they not know how much their business is worth, but they also have no idea as to the month to month cash flow. This is a huge liability for a bank that is looking at a borrower. If a borrower does not have a grasp of their own financial well-being, how like is it that they will pay attention to the details of a loan?

Are there any other tips for a borrower who is pursuing a Texas Commercial Real Estate Loans?

Check with government agencies. Often times, they have resources, if not direct funding for those who are looking to build a revenue generating real estate business. Know that the application process might take more time, but you are likely to get a fair rate. If nothing else, they can point you in the right direction. When it comes to Texas Commercial Real Estate Loans, the more you know about potential options, the more educated you can be going into the process.


Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

Disadvantages Of A Texas Commercial Mortgage: If This Is So Great, Why Doesn’t Everyone Do It?

fix flip hard money lender level 4 funding llcEven though Texas Commercial Mortgages are a great way to launch your real estate revenue stream, there are a number of drawbacks. None of these negatives are insurmountable, but it is better to know about them ahead of time.

In spite of all of the benefits of leveraging a loan to help you acquire commercial property that will generate revenue, there are some dangers to using a Texas Commercial Mortgage to begin building a real estate empire.

The first hurdle that you will discover upon making the decision to pursue a loan, is coming up with the down payment. While a typical loan covers the majority of the purchase of the property, lenders typically only cover roughly 80% of the total cost. This means that individuals or business owners must come up with the additional 20% as a down payment. Depending on your current revenue stream, this could be a difficult pill to swallow. If you are business owner, you must weigh the factors of whether or not this is a smart investment for a good deal of your cash flow. A borrower must also take into account the additional fees, assessments and charges that will come with securing a loan. These are also not covered by the bank and must be covered, out of pocket, by the borrower.

Another potential drawback to a Texas Commercial Mortgage is the interest rate. This is also an advantage, but it is important that a borrower understand what type of interest rate they are getting. With a fixed rate mortgage, the borrower is locked into a specific rate for the term of the loan, whether or not interest rates as a whole rise or fall. Paying attention to the market will help determine if it is a good time to lock in a rate. However, a variable rate mortgage can be very dangerous to a business owner. When a loan is as large as most are for commercial properties, a fluctuation of even one point could spell disaster. This is dangerous because the rates and market as a whole are completely outside of the control of a business owner.

The decline in property value is also another drawback that borrowers might face. Statistically, overall, the real estate market is on a steady increase. However, this is an average and does not necessarily apply to all properties. There is a chance that you could find yourself holding one of these properties that declines in value during your ownership. While this does have the possibility of affecting your future borrowing potential, it is nothing to panic over. There are a number of strategies to implement so that you do not lose your property by such a down turn.

What can I do to minimize the drawback of a Texas Commercial Mortgage?

The best way to minimize your risk as a borrower and maximize your potential is to stay informed, stay organized and stay focused. There are a number of factors in the success of your business that you can control, so do the best that you can to maximize those successes. If all is going well in the majority of your business, the ups and downs of the market will not have as great of an effect as you might fear. Texas Commercial Mortgages are not without risk, but if managed correctly, they can greatly enhance your revenue stream.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
clip_image002clip_image004clip_image006clip_image008

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

Using A Texas Commercial Mortgage To Generate Income: What Are The Advantages?

Handsome business man Generating a revenue stream from a commercial property is a great way to develop a passive income portfolio. However, it is not always easy to get started. So why should you use a Texas Commercial Mortgage to help you reach your real estate dreams?

Commercial real estate properties consist of two different types of income-generating property. The first is an office or retail space, where a business owner pays the landlord to rent space in order to do business. It is common for the land lord to have an office in their own building and property. The second method of generating income through real estate is by owning a multi-family housing unit, which is a general term for an apartment building or similar piece of property.

Getting started in this industry might not be easy, as the application process to obtain a Texas Commercial Mortgage is often long, time consuming and stressful, but the benefits can far out weight the hurdles. Here are a handful of reason why you could pursue a loan to help you acquire property.

The interest rates are comparatively low – Because a loan to purchase property is secured by the property itself (if the loan defaults, the bank becomes the owner of the property), this often times means that interest rates will be lower than with other types of lending. Banks do not need to charge as much because their risk is greatly reduced by having a physical asset as collateral.

Rental Income – Whether it be office space or residential living areas, you can supplement your Texas Commercial Mortgage payments by renting space out to tenants. Not only could this income quickly exceed your monthly payment, but as you build equity in your property, it can be an excellent source of income on a regular basis.

Capital Gains – One of the greatest kept secrets of the real estate industry is capital gains. After you get your feet under you in the real estate market and start buying and selling properties, you will discover the beauty of capital gains. Essentially, the way the tax laws are set up, if you make a profit on a real estate sale, you may immediately roll that profit into another property and not pay a single penny in tax on that income. By doing this, you can grow your real estate empire, with the help of loans, without being penalized in taxes. It simply doesn’t get any better than that.

Is there any way out of a Texas Commercial Mortgage?

While it might not be easy, there are plenty of ways that a borrower can bring a Texas Commercial Mortgage to an end. If you decide to sell the property, you can immediately use the profits to pay off the mortgage and use the rest as capital gains. But even if you go out of business, there are actually options provided by lenders for just such an occasion. Again, it isn’t easy, but it is most definitely possible. Just make sure that you fully understand the terms and rates of your loan so that you do not get stuck in a situation that makes it difficult to move on.

Dennis-Dahlberg-Mortgage-Broker-1_th

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
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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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