Tag Archives: commercial lending

3 Requirements to Succeed Using Hard Money Loans Arizona

Understanding these three basic requirements of hard money loans Arizona will help to ensure that you can secure your loan. In addition, these tips will greatly improve your potential of success.

Real estate investors who are not familiar with hard money loans Arizona often have many questions about the process and how to best use a hard money loan to its fullest potential. The first question is always about the collateral required to secure a hard money loan. Borrowers want to know how much they can borrow and how that number is determined. All of this financial information is a huge part of the first requirement of hard money loans Arizona. Having a sufficient down payment is critical to securing a hard money loan. Lenders are only going to offer between 65% and 75% of the purchase price of the property. The borrower is required to provide the remaining 25% to 35% in the form of a down payment. This assures the lender that the property will almost always remain more valuable than the outstanding balance of the loan.

In addition to the cash to purchase the property, the lender is going to want verification that the borrower has the cash reserves necessary to pay the costs associated with owning the property such as the monthly payments, the taxes and insurance. If the property is in need of repairs or renovations, the lender might also want to see that the borrower has the means to make the needed repairs to protect the property value.

Be Prepared with a Detailed Plan

Real estate experience is also an important consideration prior to funding hard money loans Arizona. The lender is going to need to understand the borrower’s previous experience in real estate investing to know that they are a good investment. This experience can be demonstrated through past successful investments as well as a clear and detailed plan for the current project. Items such as a detailed timeline, tasks to be completed, comparable property pricing in the area and a plan for marketing and selling the completed property will all show the lender that this project has a great potential for success due to the experience and professional management of the borrower.

Professionalism=Success

As with any business deal, professionalism is going to be critical to the final success of the project. Not having a clearly defined plan and the money to act on the plan is a sure sign that the project is doomed even before it gets started. But having a plan and a detailed process outlined to achieve the goals will show potential lenders that you are experienced and well prepared to start and successfully finish this project. Not only will this preparation go a long way in helping you secure the hard money loan but it will also help to make the project run more smoothly and remain on budget and on time. The effort you invest before the project begins is equally as critical to its success as any time and effort you invest during the project.

The Top Seven Questions to Ask Your Hard Money Lender

Hard money lenders are popular lending options when it comes to real estate investments, residential loans, and even capital needs for small businesses. Not all lenders are equal which means it’s important to come to the table with questions that can help you determine if this is the right lender for you.

Hard money lenders are, as the name implies, lenders that base loans on property, collateral or assets. In many instances, they are private lenders who can vary in their lending requirements and processes. Because of this, you will want to take the time to get to know them and what areas of lending they may specialize in. Here, then, are the top seven questions you should ask during your initial interview process. Choosing well is important not only to your current project, but to your future projects that are sure to follow.

What type of lending experience do you possess and what type of businesses or real estate segments do you specialize in? Some hard money lenders specialize in particular types of small businesses while others invest in various real estate properties. Of course, if you have stellar numbers that show increasing profitability and a well-thought out exit strategy, you may have multiple interested lenders. For your sake, obtaining a loan from someone familiar with your project type is highly recommended. Your success is, after all, their success. Leveraging your lender’s experience can help you succeed and give you the additional benefit of professional advice when needed. This leads us to the next question: Are you open to providing information and consultations if I have questions as the project proceeds?

You will also want to find out if they are direct hard money lenders or brokers that will obtain a hard money lender for you. Brokers that work with multiple lenders can often find the best deal for your specific needs which includes the fastest time to funding as well as the best rates. Just what is their interest rate, and do they charge points or processing fees? While these determine the cost of the loan, it should not be the only consideration. Time to funding as well as their experience level can be even more important points to keep in mind when choosing a lender.

Is there a prepayment penalty?

This is one of the most important questions to ask. Why? Because loans that are quick to fund and high risk can carry higher than average interest rates. If you are involved in a quick fix and flip property, you will want to get out as soon as the rehab is complete and a seller is found. And you’ll want to keep those extra profits that accompany a job well done instead of passing it on to your lender.

Make sure your lender does not charge a prepayment penalty.

At Level 4 Funding, we are brokers that specialize in finding the right lender for your particular project.

We do not charge prepayment penalties and offer fast and easy approval processes that can fund within days instead of weeks. Call us for a no-obligation quote.

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

Impact of Tax Cuts and Jobs Act on commercial real estate lending

Banner_imgCommercial real estate and commercial lending stand to benefit from specific changes under the Tax Cuts and Jobs Act. The full impact of these changes however remains ambiguous.

Specific changes that will benefit the owner’s commercial real estate include new deduction options both for investment in pass through companies and value-add projects. Perhaps most importantly the bill retains the carried interest provision.

Pass-through entities, more commonly known as LLCs or partnerships, own the majority of real estate and conduct the majority of real estate investment. Investors in pass throughs can now deduct up to 20% of their total investment in these groups under the new law. This change will encourage investment and expansion by these pass through entities, such as real estate trusts. Commercial real estate will no doubt benefit as a result of these new deduction options.

Commercial property owners also stand to benefit from new deduction options. Under the new law the cost of value add projects on nonresidential property can be deducted. Specifically the bill revises and expands Section 179 of IRS code. Under Section 179 the amount that can be deducted for value-add projects is effectively doubled, from 500,000 to $1 million. The types of expenses that can be deducted by commercial property owners has also been expanded under the new law. “Roofs; heating, ventilation, and air-conditioning property; fire protection and alarm systems; and security systems,” can now be expensed under the new law, according to Allistair Nevius of the Journal of Accountancy. In essence the new law will encourage commercial property owners to invest in and add value to their existing properties.

Commercial real estate lending and commercial real estate will benefit as the law retains the carried interest provision.

The carried interest provision allows returns on specific investments such as real estate to be taxed at a lower rate. Under the carried interest provision returns on investments can be taxed as capital gains rather than income. Hedge fund managers and real estate investors can continue to take advantage of the carried interest provision under the new law. However the new law does make some changes to carried interest provision. Specifically investors and investment groups must now retain investments for a period of three years In order to take advantage of the provision. Real estate investment is unlikely to be heavily impacted by this change, as these investments are usually held onto for longer periods.

The pace of commercial real estate transactions and commercial real estate lending could slow as a result of the specific changes to the carried interest provision.

“There is the possibility that it could reduce the number of CRE transactions that occur on an aggregate basis,” said Vince DeCrow of Origin Investments. “The reason for this is that the chunk of CRE investments that are typically held for less than 3 years, CRE developments for example, would then have comparably higher odds of changing hands at a slower relative pace once the construction is complete (if complete in less than 3 years).” New developments completed in less than three years are likely to be held on to by investors for longer periods, so that these investors can take advantage of the carried interest provision. With fewer new developments on the market the price of commercial real estate could rise as a result of the specific changes to the carried interest provision. The full impact of the new tax law on commercial real estate remains uncertain.

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

SBA lowers equity requirements for new commercial loans

Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-300x199As of January 1 the SBA announced it would lower equity requirements for new 7a loans. 7a borrowers will only need to finance 10 percent of future projects to qualify under the program.

The SBA 7a loan is the agency’s most popular lending program. The 7a loan provides 5 million dollars of capital to finance new projects, startups and business expansion. There are few restrictions on 7a proceeds when compared to the SBA 504 loan. 7a proceeds can be used to finance construction costs, business acquisition and can even be used to refinance existing debt. Lowering the equity requirement will help more small businesses finance expansion and acquisition projects over the course of the coming year.

Under the new requirements more borrowers will undoubtedly be able to qualify for an SBA 7a loan and the program is likely to continue to expand at a rapid pace. Even under the previous requirement of 25%,the 7a program has rapidly expanded in recent years. The SBA has backed 3 billion in new loans from the start of the fiscal year beginning last October, an 11% year-over-year increase. in 2017 the SBA backed a record 25.8 3 billion in new 7a loans. the lower requirement will no doubt help the agency break last year’s record for new loans.

Commercial loans related to business acquisition will increase under the new equity requirement, which matches demographic and economic trends.

“We have an aging ownership population. … The baby boomers are starting to reach their retirement years, so we’re seeing a lot of entrepreneurs who started successful companies looking for transition plans,” said Tom Pretty director of SBA lending at TD Bank. Pretty remarked that the lower equity requirement marks a “powerful change” in standard operating procedure at the agency. A recent survey of borrowers at TD Bank revealed a third of small business borrowers sought loans related to business acquisition, expansion and partner buyout. The lower equity requirement will help finance the sale of businesses owned by baby boomers, as this population continues to retire over the coming year.

The lower equity requirement will help boost commercial lending related to business acquisition.

Loans related to business expansion acquisition are considered risky by most banks. These loans usually involve little in the way of collateral on the part of borrowers and therefore most banks are unwilling to underwrite these loans. The lower qualifications under the 7a program will help more borrowers qualify for acquisition loans partially guaranteed by the government. This government guarantee will encourage more banks get involved in financing the deals in the future.

Entrepreneurs looking to finance partner buyouts, expansion plans, business acquisitions and other projects will no doubt turn to the SBA as a vital source of financing.The lower equity requirement means such borrowers will only need to provide ten percent up front in order to qualify under the program. The lower equity requirement will help small businesses receive sufficient capital in order to expand as they see fit.

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

2018 shaping up to be a good year for commercial lending

2page_img3-bigRising interest rates, business friendly environment in Washington and the strength of the economy will help bolster commercial lending in the coming year

Interest rates are expected to go up this year and banks could realize new profits from small business lending. Interest rates are expected to rise the as economy improves in spite of the recent change of leadership at the Fed. The Fed has slightly raised interest rates at least four times since 2015 and this trend is expected to continue in the coming year. Banks and borrowers to both realize benefits from rising interest rates. Higher rates incentivize small business lending by big banks and this means more small business borrowers could see their applications approved. As of last November,The Biz2Credit small business lending index showed approval rates were on the rise among every category of lender. Even big banks approved 25% of all new small business loan applications.

The Trump administration is expected to continue taking steps to ease financial regulations in the coming year and create a regulatory environment which is friendly for banks. The administration recently backed a resolution which would restrict class-action lawsuits against banks. The Treasury has also tentatively announced plans to ease restrictions on loan securitization by banks and to reduce the frequency of bank stress tests. The administration has also essentially neutered the Consumer Financial Protection Bureau. All of these steps taken by the administration to ease regulations will to make it both easier and more profitable for banks to issue new loans.

Commercial lending is being boosted by the strong economy and both banks and borrowers are finding new confidence.

As the economy continues to improve more small businesses feel increasingly confident about their ability to pay off new loans. The SBA indicates both regional and community banks are processing a record number of new loan applications. Moreover these applications are being approved at a higher rate than in the past. Small banks approved 49% of all new business loan applications in November of 2017. Online alternative lenders also approved more loans over the same time period and approved 56.9 percent of all applications. In particular more of these applications were from lower quality borrowers. Borrowers with higher credit profiles are now more willing to approach traditional banks, which eases the ability of smaller businesses to qualify for loans from alternative lenders. The strong economy encourages business expansion , business lending and improves the confidence of both banks and borrowers.

2018 could be a landmark year for commercial lending.

Banks could realize new profits from small business lending as a result of higher interest rates. The pro-business environment in Washington will encourage banks to issue and approved new loans. However the state of commercial lending will largely depend on the state of the economy. Confidence in the economy gives businesses confidence in their ability to take on new loans and banks confidence in the ability of businesses to repay these loans. Without this confidence in the economy credit could rapidly dry up as banks stop financing new loans and businesses stop borrowing.

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

Commercial Lending -The Numbers Commercial Lenders Look For

Call I Seo PhoenixWhen looking into commercial lending, having your numbers in place can make the difference between an approval or a rejection. Here are a few of the calculations lenders tend to look for.

Loan-to-value ratio (LTV) – This commonly used equation is defined as follows: The amount of the first mortgage / the value of the property x 100 percent. It is used to determine if the commercial property that will be used as collateral is worth more than the amount of the loan. Combined loan-to-value ratios simply means that there is more than one mortgage and the two will be combined. Most traditional commercial lending institutions, such as banks and credit unions, will limit their LTVs to about 70 percent, sometimes 75 percent. Business properties usually come in at around 65 percent. This means that you will need to find additional financing or have at your disposal anywhere from 35 to 25 percent of the total loan amount.

Debt-Service-Coverage Ratio (DSCR) – This ratio confirms that the property is making enough net operating income (NOI) that it can cover the proposed loan plus a little cushion. It is determined by dividing the NOI by the annual debt. The total debt service includes all principal and interest payments. A DSCR of 1.0 indicates that there is enough capital to cover the loan. Commercial lending institutions, however, like to see a little extra in the coffers and may require anywhere from a 1.10x to 1.20x debt service coverage ratio. An example of this would be a business that is netting $120,000 annually and is trying to obtain a loan that would create a debt of $100,000 per year. In this instance, their DSCR would be 1.20x.

Net-Worth-to-Loan-Size Ratio – This ratio is often used to determine the amount for construction loans. It is determined by dividing the net worth of the developer by the loan amount. Ideally, it comes in at 1.0, meaning that the builder or developer has a net worth that equals the amount of the construction loan. If one developer does not qualify, two or more contractors can combine their net worth in order to come up with the needed financing.

Banks and other lending institutions want to know that you stand to make enough profit that abandoning the project half-way through the construction phase is not warranted despite some unexpected costs and setbacks.

Profit Ratio – This ratio is also predominantly used in the construction industry. It determines what profit is expected once all T’s are crossed and I’s dotted and is a way to confirm that the developer is in it for the long run despite a few potential and always possible set-backs. It is the Developer’s Projected Profit divided by the Total Cost of the Construction Project x 100 percent. Commercial lending institutions look for this ratio to come in at 20 percent or more.

At Level 4 Funding, we provide easy-to-quality construction loans for up to 24 months with monthly draws.

Our APR starts at 9.5 percent with loans available for up to $50 million. What do we need to get you started? Simply bring in your budget, plans and permits.

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

Obtaining Commercial Lending

Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-300x199There are several reasons why individuals decide to take the plunge into investing in commercial real estate, and there is often one reason why they drag their feet—finding commercial lending. Let’s look at why CRE is an excellent choice for many and how alternative lenders are creating opportunities for first time investors.

A good return on investment (ROI) motivates many to get into CRE. Though returns dramatically vary, a general average lies in the 6 to 12 percent range. This is because rents, whether multifamily, office or industrial, either involve several units (resulting in multiple streams of income) or warrant much higher rents than a typical single-family home.

Commercial real estate offers more security in that vacancy rates tend to be lower and they are not as reliant on comparable sales when it comes to valuation. Leases for single-family homes are usually anywhere from six months to one year whereas commercial rentals can have terms that range from five to twenty years and longer.

Single family homes rarely come with a professional manager whereas managers and apartments go hand-in-hand. If you do not have space for a live-on-site manager, there are professional management companies that specialize in these types of buildings. If you find and start with the right tenants, a CRE investment may require very little hands-on management.

Location is Crucial with CRE

It does take a little more research on your part before delving into CRE. There are several distinct types of investments with each carrying their own pros and cons and due diligence list. Offices are best in a strong economy and in markets with a good labor pool to draw from and in-demand leasing space. Warehouses and distribution centers require centralized locations with easy access to key infrastructure. Maintaining high occupancy and rental rates in an apartment building are accomplished if the building is in a high-demand area as well as a strong job market. Buildings near collages are considered top investments, but even those require additional considerations such as high-turnover rates and the potential of increased vacancies during the summer months.

Funding is often the obstacle that keeps investors from moving forward into the CRE segment. At Level 4 Funding, we work with hundred of private investors, one of which may very well specialize in your segment of commercial lending and real estate.

Because traditional commercial lending requires a few years of financials and experience in the specific CRE market, getting started in the business can be challenging. It is also common for commercial lending institutions to require a down payment of 20 to 25 percent. Alternative lenders are not bound by the same restrictions. Because of this, they can offer find a way to fund a commercial real estate property when other sources have been unable to provide the needed capital. Call us and see if we have the capital you require to move forward with your dream. We offer hard money construction, bridge, office, warehouse and multifamily unit loans with terms from 3 to 60 months.

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

Tips for Obtaining Commercial Lending for The First Time

4page_img7-bigIf you are seeking commercial lending for the first time, you may have a lot of questions or feel overwhelmed with all the choices. Level 4 Funding can help answer your questions and set you on the right path to getting approved for your first time loan.

Just because you are seeking lending for the first time, does not mean you have to go it alone. It’s very helpful and beneficial to have an experienced professional on your side to help navigate the complex and sometimes downright confusion waters of commercial lending.

This is a big step for your company or business, and obtaining an investment property is one of the biggest choices you’ll make as a business owner. When you are preparing to obtain property, there is a lot that goes on. First, you’ll want to make sure you have a current and accurate credit report. Credit scores are an important part of the process so you want to make sure you have an accurate representation of your scores and history. Take some time to review your history so you know where you stand. Take care of any issues you can, but don’t close out any pre-existing accounts yet.

You will also want to find out how much you are eligible to be pre-approved for. This can be very important when it comes to shopping for the right investment property. You don’t want to waste your time looking for properties that are out of your budget. Being in a position to put down at least 20 percent down is another big advantage toward having your loan application accepted. You can also inquire about owner financing as an option.

Once you have your affairs in order, it’s time to move full steam ahead.

You have put yourself in a desirable position one you’ve checked and reviewed your credit score and history, sorted out any credit issues, gotten pre-approval. Now it’s time to review your commercial lending options and find the right lender and loan for you. Keep in mind that as a first-time borrower, it may be more difficult to obtain a traditional loan from a conventional source.

Keep your options — and your mind — open.

Even if you have prepared as much as possible, a conventional loan for your first time loan might not be in the cards. That’s okay. There is nothing wrong with seeking alternative lending options and oftentimes this is exactly what you need to get off the ground, establish great credit history so you are in a solid position for your next commercial lending situation. But take it one step at a time and make sure you get the right lender and loan for the first time. Be sure to ask a lot of questions, as a first-time borrower, you will need as much guidance as possible. It’s important that the lender you choose will take the time to go through the process with you with patience and expertise.

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

Reviewing Your Commercial Lending Options

search-smallThere are countless options and decisions to make when it comes to obtaining commercial lending. It may seem overwhelming and challenging, but if you take a step back and review all your options, it gets easier.

Starting a business or expanding your current company can be an exciting and sometimes difficult time. So making decisions towards your commercial lending options should not add to that stress. After all, lenders are here to help you get the best loan for your needs, with the best terms. It can be a win-win situation for you both so it’s always a good idea to work with a professional that you trust. First, here are some things you should review.

Your credit score – both personal and in business – matter. Regardless of some people that say it’s not important, it is to some degree. For example, for traditional lending institutions like banks, credit score and history are taken into serious consideration. For more alternative style lenders, such as a hard money loan or private lender, credit score might not be as crucial. However, it’s important to get your current credit score, know where you stand and be prepared to explain any “dings” of unfavorable marks on your history.

Another thing to consider or review is how long you have been in business. Many conventional lenders may be hesitant to work with a first-time borrower or a brand new start up. They are less likely to take big risks, so they are going to want you to be able to prove your business success strategies via past experience. Proof of revenue is also a factor you should review and be prepared to prove to your commercial lending professional. However, once again, alternative lenders may be more lenient when it comes to these factors and may not require you to have proof or an extended business history.

If you don’t have any of these things, there is still one more thing that can ensure successful loan approval.

Having the collateral to back up the loan is like an “insurance policy” for the commercial lending outlet. Regardless of whether you have a super high credit score, extended business history or proof of revenue, collateral such as your home or personal vehicle can be just the thing a lender needs to review before your loan can be approved.

Be open to alternative options.

Not everyone has a perfect credit score – in fact most people don’t. So there is no need to stress about a 700+ score or a squeaky-clean history. You can still obtain a loan but you have to be open to non-traditional lending options. If you want to get your business up and running or to expand it to the next level, review all your options and have an open mid when it comes to non-conventional options. Seek out some various choices and then review them all to see which you think will be right for you and your business. Only you can decide what is ultimately right for you and what time of loan will be best for you.

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

What You Need to Know About the Requirements for Commercial Lending

Timeshare Exit Team  3 There are many requirements for commercial lending that are helpful to know when you are seeking a loan. Level 4 Funding breaks down the ins and outs of these requirements for you.

Getting commercial lending for your business can be an extremely helpful boost to starting your new business or growing your existing company. You can use additional funding for improvements, marketing needs or even a second location. This is a huge advantage to get ahead of your competition or become desirable to a new customer base. However, as you prepare to grow you need to be prepared to get the loan first.

One of the biggest requirements from a traditional lender is your business credit score and history. Credit should be in the 700s, but if you don’t have perfect credit, all hope is not lost. You may need to think outside the box when it comes to the type of lender you seek out, however. For example, private lenders, hard money lenders and short-term lenders may be your best bet. If you have some time before you need the loan, you can work on improving your credit score to try your hand at getting a traditional loan from a bank.

Not only your business credit, but your personal credit will be investigated so its important that it is up to snuff as well. You will need to share personal financial information such as annual income, credit score, loan history and more. You will need to have documentation of a lot of information such as past bank statements. The larger the loan, the more important this information becomes, so it’s a good idea to have all your ducks in a row prior to applying for a loan. If you have both stellar business credit and personal credit – congratulations! You are ahead of the game and your loan process with commercial lending should be smooth sailing.

How to avoid the disadvantages and pitfalls of getting a loan.

One of the pitfalls in obtaining a loan is more business or personal credit. Beyond taking the lengthy process of improving it over time, you can also secure a loan in other ways such as using collateral like your home or personal vehicle. There is a risk when you use collateral to secure a loan, however, so be prepared to take that risk.

The benefits of commercial lending for your business.

When you seek a loan, you can propel your business to the next level or get your new business off the ground. Having the boost of additional funding can make all the difference. Working with a professional loan officer can be very advantageous because they are well versed in all the requirements you will need – all the documentation, business plan information and more that will make the application process much smoother and simpler, ultimately leading to the success of your business growth and development. So make sure you find the right professional lender for you to ensure you have the best advantages.

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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