Tag Archives: commercial loan Texas

What is Asset Based Commercial Lending Texas?

October 1, 2017Uncategorizedcommercial lending texas, commercial loan in texas, commercial loan Texas, commercial loans, commercial loans in texasbigdaddydennis

Asset based commercial lending Texas is growing in popularity. It is a newer alternative to the standard commercial real estate financing that has been in place for many decades.

The conventional commercial lending Texas process normally involves many steps. There is an analysis of the commercial property that must be completed to determine if it has the value to secure the loan. The borrowers must also provide a deposit to cover the loan processing and fees for discovery prior to being granting the loan. In addition, the borrower must submit a great deal of financial information to the lender to demonstrate their financial security and ability to repay the loan that they are requesting. And even though this does not look like a long list of tasks, the reality is that it can take six to twelve weeks for all of this to be completed. But asset based commercial lending Texas can offer a much shorter timeline.

Asset based commercial lending Texas can offer a shorter turnaround time because the lender is not looking as much at the value of the commercial property. In this case, the collateral is not the property being purchased but instead it is the company’s other assets such as accounts receivables, balance sheet assets such as inventory or equipment that is being used as the collateral. This eliminates a lot of the preparation time that a borrower devoted to preparing financial documents for a lender and also reduces the time that the lender must devote to evaluating the borrowers financial stability.

True Asset Based Lenders

In reality, a true asset based lender does not request any financial documentation from a borrower. And they are willing to accept any level of credit score or credit history that the borrower might have. What the lender does want to see is proof of ownership of the other assets that the borrower is using as collateral. In the case of inventory or equipment, the lender will want to be sure of the value of the items. This might require appraisals that the borrower will need to pay for. But the greatest benefit other than the lack of credit and financial information is the fast approval time. In many cases these loans can be processed in a fraction of the time that a conventional loan requires.

Who Are Asset Based Lenders

In many cases, an asset based lender is a private lender who is not restricted by federal lending regulations. This can work in the borrowers favor as the criteria to qualify can be much less strict. But it can also work against the borrower because the lender is not forced to comply with any interest guide lines. But if you need a commercial loan quickly or you have a questionable credit history, then asset based lenders are a great option. However, as with any loan from any lender, you will want to have the loan documents reviewed by your legal professional prior to signing them. This will ensure that you are in full agreement with all of the terms of the loan.

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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What Lenders Look for When Granting Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loan Texas, commercial loans for bad credit, commercial loans texas, texas commercial loan, texas commercial loansbigdaddydennis

It can be very challenging to secure commercial loans Texas. But knowing what lenders are looking for can help you to provide the best application possible.

When you are applying for commercial loans Texas, you will find that there are many documents that are being requested and many forms that you will need to complete. But all of that general information is only the beginning. Lenders each have their own set of criteria that they uses to make their final decision about writing commercial loans Texas or declining an applicant. Understanding this criteria can help you to craft a more effective application.

One important factor that lenders are looking for is that you and the business have the needed assets and financial reserves to survive any temporary downturn in your business. This can mean making it through a slow season or even through a period when clients are not paying bills on time. But what a lender needs to see is that you have the means to keep your business operating when there is a lull in your cash flow that is beyond your control. If the business has very limited assets then the lender will want to know that the owners are in a position to personally fund the company to bridge the short term issue.

Your ability to repay commercial loans Texas is what the lender is really trying to determine. They are accessing the risk that you represent and how confident that they are that you can make the payments on a regular and long term basis. This means that your cash flow needs to be strong and consistent. Demonstrating that you will easily be able to make your loan payments is critical to getting approved.

Proven Track Record

If your business is new and has no cash flow history or proven track record in the industry then you will need to demonstrate your personal ability. This is best achieved by showing your successes in the industry and in a management position at another company. Showing that you have experience managing and running a successful business will build confidence in your ability to launch and maintain a new company of your own.

Overall Credit Worthiness

All lenders have an image of the perfect client, but that might not exist in the real world. So lenders begin to compromise when they feel that a potential borrower is a solid individual. Showing that you have personally maintained good credit, that you have the means to offer financial support to the business if it is needed and that you understand the industry trends are all critical. This lets the lender know that you are prepared for changes in cash flow and that you have a plan in place to make it through those difficult times. It also shows that you are diligent in protecting your personal financial future and that will carry over to your business finances as well. Taking the time to understand what the lender is looking for from a borrower will help you to supply all of the needed information and will offer you a better chance at getting the loan that you have requested.

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Learn the Differences Between Short Term and Long Term Commercial Loans Texas

October 1, 2017Uncategorizedcommercial loan Texas, commercial loans, commercial loans in texas, commercial loans texasbigdaddydennis

When it comes to short and long term commercial loans Texas, there is a lot of terminology and “fine print” to understand. With these tips, you can understand the differences and determine which loan type would work best for you.

As a new business owner, you may not be versed in the jargon of loans, and that’s understandable. Which is why it’s helpful to work with a professional broker or lender who can help you learn about the nuances of each type of loan and which would be best for your company’s needs. When you understand the differences between short and long term loans, you can make an educated decision about the right type of loan for you.

Short-term commercial loans Texas can get you cash – fast. Sometimes you will get the cash “in hand” in as little as 24 hours after the loan is approved. If you are in a bind and need cash fast, this is typically the way to go. The application process can be complex and repayment terms are often required monthly or even multiple times a month. These loans might be available for a smaller amount of money than a long-term loan. However, it’s usually pretty easy for businesses to get approved and get the money they need fairly quickly. These loans can be obtained from alternative lending options versus conventional banks or lenders as this type of loan can be perceived as “high risk” for conventional banks and lenders.

Long-term loans are typically larger amounts and therefore a little more difficult to obtain. The good part about this type of loan is that repayment structure occurs in multi-year terms, over the course a long period of time, such as 10 years or longer. Interest builds up over time in the case of this type of loan so you may end up paying more in interest than with a short-term loan. However, you are more likely to get approval for a long-term loan with a conventional bank or lender.

How do I determine if a short term or long-term commercial loans Texas is better for my business?

Short term and long-term loans each have their own set of pros and cons. It’s really about deciding what is going to work best for your company based on your needs. If you need money quickly, a short term may be your solution. If you can go a more traditional route with a long term, you may be able to get a larger loan amount. Figure out your business needs and go from there.

What are the first steps I should take to obtain these types of loans?

When you are considering obtaining a commercial loans Texas, it’s important to be prepared with documentation needed to apply for the loan. It’s also a good idea to figure out how you intend to pay back the loan – in no uncertain terms. The bank or lender will need to ensure you have the ability to pay back the money you borrow. Short and long term loans are the two largest loan categories in commercial mortgage, and they can be very different. Talk to a lending expert, as they can help figure out the best strategy for your business’s needs.

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

September 28, 2017Uncategorizedcommercial hard money lenders, commercial hard money loans, commercial lending in texas, commercial loan in texas, commercial loan Texasbigdaddydennis

After 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.

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Beware of These 4 Mistakes When Seeking Commercial Loans Texas

September 20, 2017Uncategorizedcommercial loan, commercial loan Texasbigdaddydennis

There is a lot of information that you need to gather before beginning to process commercial loans Texas. Knowing these common mistakes can help you avoid pitfalls and get your application approved quickly.

When you are ready to investigate purchasing commercial property it is important to gather as much information as you can about commercial loans Texas. All too often, buyers wait to begin researching commercial loans Texas until they have found a property that meets their needs. As a result, they are in a hurry to find a lender and do not complete their due diligence. It is critical that you review many lenders loan terms and qualifications prior to applying for a loan. In some cases you might not meet the stringent criteria of a commercial lender or you might not know that there are many upfront fees that you will need to pay even before you know that you have been approved. Failing to complete the research can result in wasting money on application fees, lost time resubmitting documentation and even the loss of the property that you hoped to purchase as another buyer who already has funding has purchased it.

Another common error is not hiring an attorney who specializes in commercial loans Texas. This is a big transaction and one that will be legally binding once you sign the contract. Knowing the terms and clauses that you are agreeing to is critical. The only way to be sure that the contract is fair to you is to hire an experienced professional to review the document for you and work on your behalf during the negotiation process.

Having a Plan Is Critical

If you have borrowed money in the past then you are certain to have created a business plan. But if you have never needed a plan and have been simply growing as you needed to increase your services, then it is time to create a full business plan. This is the document that sets your goals for the future and defines how you are going to reach those goals. It is an important document to guide the business and to show potential lenders and investors the path that you will maneuver to grow your business. Applying early is important, but you need to be able to show the lender your plans for the money you are requesting. You need to demonstrate that you have a purpose for the purchase, that you have a specific size and location in mind and that you have the means to repay the loan. You can begin the plan with an excerpt from your business plan and then go into more detail about the property that you are seeking and how it will help to grow your business.

Avoid the Common Issues

Purchasing commercial property is a big commitment and one that you should plan very carefully for. The size of the investment and the risk that it represents to your businesses financial security is rather large. So planning for the loan, carefully selecting the lender and having all of your financial and business documents in order will help to make the process less stressful, less time consuming and much more rapid.

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

Hard Money Commercial Loans Texas

September 20, 2017Uncategorizedcommercial loan, commercial loan Texasbigdaddydennis

If you have located the perfect commercial property for your business but have not researched commercial loans Texas yet, then you will need a fast alternative to get funding. A hard money loan could be just what you need until you can secure conventional funding.

A hard money loan is simply a loan that is short term and the lender is an individual or private investor instead of a bank or other main stream lender. The loan is secured with the property that you are buying so that the lender has a means of recovering their investment if you default on the payment. The term of the loan is normally twelve months but it can be as long as 2 to 5 years. The borrower makes monthly payments on the loan which are normally all interest or interest and only a small amount of principal. At the end of the loan term there is a balloon payment that the lender must pay.

There are many reasons that hard money commercial loans Texas are popular with borrowers. The first is the fact that the biggest qualification for the loan is the value of the property. The lender is not looking at the borrower’s credit history, the financial condition of the business or even the industry that the company is involved in. The main criteria for getting the loan is that the property being used as collateral is worth more than the amount of the loan. In addition, the lender is not going to deny a loan due to a recent bankruptcy or other financial issue.

Another advantage of a hard money loan is the time that it takes to process. In many cases standard commercial loans Texas can take 60 to 90 days to complete the application process. But you can make a request from a hard money lender and normally have an answer in a few hours or a few days. This fast turnaround time can be very helpful if you have found a great deal on a property and need to act fast to make the deal. You will then have a year or more to complete your research and prepare to begin the application process for commercial loans Texas.

What Hard Money Can Be Used For

In general, hard money loans are much more flexible than conventional loans. The only caveat is that the property have a value greater than the loan amount that you are asking for. The lender is making a better interest rate on the hard money loan but they do want to be sure that the collateral property will hold its value. In many cases, you will need to make a decent down payment to create instant equity. This assures the lender that the property will always be worth more than you owe and foreclosing would allow them to recover their investment.

What a Hard Money Loan Will Cost You

You are going to be paying a slightly higher interest rate and you will also be paying points. But the exact rates will be determined by the lenders. If you are in an area of the country which has a large number of investors offering hard money loans then the rates should be very competitive. But in areas with few investors the rates could be higher. As with any potential loan, you will want to ask for a full fee schedule and list of any other charges that you might need to pay before you sign the loan agreement.

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Getting Approved for Commercial Loans Texas

September 20, 2017Uncategorizedcommercial loan, commercial loan Texasbigdaddydennis

Using commercial loans Texas is the most common means of purchasing a commercial property. But getting approved for the loan is not as simple as you might think.

When you are interested in buying a commercial property your first search on the internet should be commercial loans Texas. You will want to completely understand the requirements for getting approved as well as the amount of information that you will need to provide for the lender. Knowing this information can save you a lot of time and frustration as you enter into the world of commercial loans Texas.

One of the biggest factors in the amount of money you will be able to borrow is the actual value of the property that you want to purchase. An appraisal is needed to determine the value of the building and land that you will purchase. This is critical information for the lender as they need to be sure that the property value is greater than the amount of money that you are borrowing. And unlike a residential property, a commercial property value depends on the location, accessibility and size in addition to the condition of the property.

Another big factor in your approval for commercial loans Texas is your credit record. Due to the size of most commercial property loans, the financial requirements are more stringent than those for a residential loan. In addition to a strong payment history and good credit overall, lenders will want to see that you have a steady stream of revenue which will allow you to make the needed payments. Your profit and loss documents as well as your account receivable will be important to show that you can afford the loan that you are requesting.

Be Ready For a Big Down Payment

Along those same lines, you will need to be able to make a significant down payment on the property. There are a few reasons why a larger down payment is required. First, a commercial loan is much larger than a residential loan and that means it represents more risk to the lender. In addition, commercial property values tend to fluctuate more frequently than residential properties. The lender needs to be certain that the value of the property never drops below the remaining balance on your loan. Making a large down payment gives you instant equity in the property and provides the lender with added security as well.

Know Your Lenders Requirements

All of these factors are fairly common requirements across most commercial lenders. But you will want to speak to each potential lender to get a list of their criteria for granting a loan. In some cases your business might be too new or not have a substantial enough credit history to qualify for a loan. In that case, you will need to provide personal financial documentation and then a personal guarantee for the loan to be processed. Knowing what the lenders require will allow you to select the lenders who offer you the best potential outcome as well as the best terms to meet all of your financial needs.

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Preparing for Commercial Loans Texas

September 20, 2017Uncategorizedcommercial loan, commercial loan Texasbigdaddydennis

Preparing to apply for commercial loans Texas can be a long process. But it is one that will provide a great return on your investment.

Applying for commercial loans Texas is more complicated than most business owners think it is. There are many qualifications that you will need to meet and many documents that you will need to provide to demonstrate your creditworthiness and professionalism to the lender. Investing some time to prepare your documentation and to understand the criteria for approval will save you time and money when you find the perfect property to purchase.

One document that your lender will scrutinize is your balance sheet. Not only do they want to know that you have a good credit history and that you have remained current on other loans but they will also want to see the money that you have coming in each month. Cash flow is what is going to give you the ability to repay your loan and the lender will want to see a consistent income over a long period of time to know that you are a good risk.

As you prepare to apply for commercial loans Texas you will also want to find an experienced legal professional to assist you. In most cases hiring an attorney who specializes in commercial loans Texas will ensure that you can negotiate the best terms and rates for your loan and also that the documents are completed correctly. The money that you spend on legal assistance will be only a small amount in comparison to the money that your attorney will save you on fees and interest during the life of the loan.

Find the Right Lender to Meet Your Needs

You might think that you only need to approach your current bank when you are seeking a commercial loan but the truth is that you need to broaden your search. In some cases, your familiar banker will be the best choice but you have no way of knowing that without speaking to several lenders. Borrowing from a lender who is the right size to best meet your needs can be critical to the long term success of the business relationship. A smaller lender is more likely to offer you a small loan and a larger lender is a better resource for a larger loan. It is simply a matter of finding a lender who specializes in what you are looking for. When you match their services to your loan then the processes will be simpler and smooth and your service will be of a much better quality. In addition, you are likely to get approval much more quickly when using a lender who is accustomed to processing many loans of the same approximate dollar amount.

Have Your Ducks in a Row

Knowing that you are entering into a long process, it is always wise to have your documents and information in good order. Submitting multiple packets can greatly slow down the approval process and can also cause your entire application to be rejected. Knowing some of the common pitfalls of the loan application process and avoiding them can make getting your loan must faster and easier.

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Loan Officers Needed to Lend a Helping Hand Due to the Increase of Commercial Loans in Texas after Hurricane Harvey

September 20, 2017Uncategorizedcommercial loan Texasbigdaddydennis

Hurricane Harvey caused massive damage in many ways across the state, but it is also having a big impact on commercial loans in Texas. Due to an increase in applications for disaster loans, the Small Business Administration is looking for additional loan officers to assist in the temporary assignment.

The ABA Banking Journal reports that the Small Business Administration is the federal government’s primary source to help businesses, homeowners, renters, non-profit organizations and more to recover from disasters by assisting in processing disaster loans. With so many commercial loans in Texas being sought after, the Small Business Administration is offering temporary employment to experienced loan officers across the country to speed up the process.

Qualifying loan officers would need to take a leave of absence from their regular bank jobs to work a temporary assignment at the offices located in Fort Worth, Texas or Sacramento, California. Loan officers should be prepared to stay awhile, as the temporary assignment could last up to 130 days. But on the upside of things, all expenses will be covered including travel, lodging, meals, local transportation and all on top of a salary at current government rates.

The temporary assignment through the Small Business Administration will include the duties of loan officers to help review and recommend applications for commercial loans in Texas. Because of these duties, officers are expected to be experienced in lending and be extremely knowledgeable about all types of loans. Retired professionals are also eligible and encouraged to participate in the temporary assignment.

The Small Business Administration is helping commercial loans in Texas recover from the aftermath of Hurricane Harvey

The city of Houston and the surrounding areas took a devastating hit from Hurricane Harvey. The category 4 storm destroyed most of what was in its path. The storm set a record for most rainfall from a single storm. But the Small Business Association along with help from other local banks and other financial institutes are trying to help get the state of Texas back on its feet and as quickly as possible. The expansion of loan officers during this time will help businesses recover quicker and get back to doing their day to day business transactions. Many businesses will also see a decline in revenue due to not be able to operate for days or even weeks.

Commercial loans in Texas were already on the verge of trouble before Hurricane Harvey hit the state.

Well before Hurricane Harvey devastated parts of the state and brought record-breaking floods, commercial loans in Texas were already seeing issues. In fact, vacancy rates in some cities in Texas were the highest the state has seen since the year of 1994. With problems before Hurricane Harvey brewing and now the horrible aftermath from storm, it could take even more time for Texas to recover financially. But most financial institutes in the area are optimistic that the state will be able to recover rather quickly from the impact of Hurricane Harvey.

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Tips You Should Know Before Appling for Commercial Loans Texas

September 20, 2017Uncategorizedcommercial loan, commercial loan Texasbigdaddydennis

Purchasing a commercial property can offer many benefits. But you need to fully understand the process before you apply for commercial loans Texas.

Most consumers know that a commercial property loan is a little bit different than a residential loan but they are not really sure how the two differ. When you research commercial loans Texas you will learn that commercial mortgages charge higher interest rates and often there are more restrictions written into the loan agreement than in the case of a residential mortgage. But borrowers who are savvy know that using a broker who specializes in commercial loans Texas can offer some great benefits. Brokers have access to second tier lenders who are willing to offer more competitive interest rates and lowers fees. These commercial loans Texas can be almost as cost effective as a residential mortgage loan.

Most first time commercial loan borrowers also don’t realize that they are going to need to make a more substantial down payment that they would on a residential property purchase. In some cases you might be required to pay 30% to 40% down. This is because the value of commercial properties can fluctuate much more and even more rapidly than residential properties. Lenders want to be sure that there is always equity in the property as that assures them of a means to recover their money if you default on the loan.

Another surprise for many new borrowers is the term of a commercial loan. A residential mortgage is commonly 30 years but a commercial mortgage can be as short as five years. The longest commercial mortgage loans are 20 years but most lenders will only extend the loan to 15 years. This means that you should also be expecting a higher monthly payment due to the shorter time frame of the loan.

What to Know If You Plan to Lease Space

If you are planning to lease part of the space in your new commercial property then you will also want to learn about the most common commercial lease terms. These terms can be very beneficial to you as you are depending on the lease money to help repay your commercial mortgage. Unlike the standard one year lease on a residential property, commercial buildings often require a longer commitment from the tenant. The most common terms are 3 years and 5 years. In addition it is very common to offer a 3 or 5 year option to allow the tenant to extend their lease after the initial term has expired.

Know What to Expect in Fees

Commercial loans require property appraisals and environmental tests to make sure that the property is not contaminated. These fees are passed on to the buyer and so are many of the administrative fees. You can expect to pay an application processing fee which is due prior to processing. This fee and the appraisal fee are normally nonrefundable. If you are approved then you will be asked to pay a processing fee, legal fees and points in addition to the interest on the loan. Knowing what to expect and how the process works can help to eliminate some of the stress that you will experience the first time that you are applying for a commercial property loan.

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