It’s not always easy to obtain commercial loans, especially if it’s your first time applying. However, with these tips you can easily and quickly get approved for your commercial loans in no time!

When it comes to securing commercial loans, there is a lot to understand and a lot of different options out there. You may be asking yourself how you can ensure you get approved for the loan you need — when you need it. Securing private money is one way to go about obtaining the funding you need. This is the route to take if you always have the funding you need or you can seek the assistance of a non-bank institution such as a personal investor for the funds you are requesting. Working with an investor can give you the flexibility to create your own terms when it comes to your financial documentation as well as your repayment schedule.

Another option is to seek funding from the seller – i.e. if you are looking to obtain a building or company, the seller of the company has the option to provide you with funding to make the purchase of the building or company, etc. This is another non-traditional bank option that will still requirement documentation of the agreement to protect both parties and also should spell out the repayment schedule for the commercial loans in no uncertain terms.

It’s also important to be aware of some of the risks of securing commercial seller financing. Sometimes an arrangement like this can results in very high interest rates that make paying back and off the loan quite difficult. Before agreeing to this type of loan agreement, it’s crucial to ensure you’re in agreement with the terms and that they are reasonable enough to make it a win-win situation for both parties. When it comes to seeking a private investor, it’s also a good ideas to do all your checks and balances to make sure the investor and you come to agreeable and reasonable terms and that all parties are held accountable for their end of the partnership.
Having your finances in order before seeking out lending options is a good idea.

The more prepared you are prior to searching for financing lenders, the easier time you will have going through the application and approval processes. Prepare your business plan, get your financial documents in order, have your credit score accessible and make sure you are prepared to share any collateral that you may need to put down to secure the loan.

Things to know when selecting to leverage a business line of credit as commercial loans options.

Leveraging a business line of credit is another option to consider when looking to secure financing for your business or company. This is a good way to establish creditability and secure funding. So before you seek a loan, remember that you have lots of options beyond the trying to get approval from a traditional or conventional financial lending outlet.

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

When you begin to explore commercial loans, it can appear that there are an unlimited number of options. But you will find that in reality there are two major types, recourse and non-recourse.

There are a myriad of different terms involved in commercial loans, but none should be as important to the borrower as determining if the loan is recourse or non-recourse. In almost every loan on a commercial property, the main collateral for the loan is the property itself. But commercial property value can and does fluctuate much more rapidly than residential property. In some cases a repossessed property is not worth the remaining balance on the loan. For this reason, lenders want to have additional security in the event of a default on the loan. With a recourse loan, the borrower guarantees full repayment of the loan amount due. In a non-recourse loan the lender agrees to settle for the value of the property as full repayment even if the property value is less than the balance due on the loan.

Borrowers should however temper their desire to protect themselves and their personal financial well-being with a non-recourse loan and the extreme flexibility that can be achieved with a recourse loan. As with most things in life, you get what you pay for, and added features and benefits cost more. So the personal financial protection of the non-recourse loan costs you in the form of higher interest rates. That only makes sense as the lender is assuming a greater risk of losing money if you default on the loan. In addition, lenders can also include stipulations about cash flow and maintenance schedules for the property on a non-recourse loan. This is simply another way that the lender is protecting their investment by ensuring that the building, their collateral, is being well maintained to protect the property value.

When to Choose Recourse Commercial Loans

A recourse loan offers borrowers many more options and flexibilities during the course of the loan as well as a lower interest rate. Because of the added security, lenders are more willing to accommodate borrowers. If you want flexibility to customize the loan structure and the payments then recourse is a good choice. You should also select a recourse loan if there is a chance that you will want to restructure after the closing of the loan. If the property that you are purchasing is under construction or is in a distressed condition, you will most likely also need to use a recourse loan as lenders are not willing to extend the greater risk non-recourse loan to a property with questionable value.

Who Should Select Non-Recourse Commercial Loans

If you are planning on keeping the property you are purchasing for the full term of the loan and do not foresee needing to change the loan or its terms for the lifetime of the loan then a non-recourse loan is a good choice. The non-recourse is also important if you are not willing to or able to risk your personal financial well-being on this business property investment. Understanding the main difference in these two types of loans will allow you to select the financial tool which best meets all of your needs.

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

There are several different types of commercial loans available to borrowers. Selecting the best loan to meet your needs and the best lender is very important for the success of your business.

There are several different types of commercial loans available and each one is best suited for different needs. Understanding how these loans differ can help you to make a wise selection about which loan will best meet your current and long term needs. When you are evaluating commercial loans, think of your lender as a service provider and evaluate the product or loan just as you would any other service or product that you would be purchasing. Investing some time to learn about each loan can help to ensure your future success in the business world.

A bridge loan is a short term loan for around a year. This can be used for cash flow, to construct a building before refinancing or even to make a commercial real estate purchase quickly. These loans require very good credit and are normally provided by private lenders. Because the lender is a private entity, there are fewer rules regarding the terms and the processing and fulfillment times are substantially faster than conventional lenders.

Real estate purchase loans are much like fixed rate and adjustable rate loans and are typically only offered to borrowers with exceptional credit of 700 or more. The commercial property must be used as the collateral on the loan and the rate is determined by the loan to value ratio. Hard money loans are a form of loan which comes from a private lender and often has a very fast turnaround time but comes with a high interest rate. The property is also the collateral for these commercial loans. Often times a hard money loan is used as a last resort to try to save a property from foreclosure. Due to the high risk involved, the lenders can justify the very high interest rates and the borrowers are willing to pay them in an effort to save their property from foreclosure.

Determine Your Needs

Before you set out to get a commercial loan, you need to have a well-defined purpose for the funds as well as a financial plan to repay the loan. Having that information will help you to determine which type of loan will best suit your needs at the present and in the future. This information along with your credit history will also help you determine who will be your best candidates for lenders. Conventional lenders such as banks and mortgage companies are the option which would normally be the most cost effective if you have the necessary level of credit rating. If creditworthiness or length of credit history is an issue then a private lender might be your only option. If that is the cast, you should expect a higher than average interest rate. This is the price that you must incur to get a lender to take a greater risk on you as a borrower.

Invest Time First, Then Money

When you are preparing to make an important financial decision such as getting a commercial loan, it is critical to invest your time in research long before you invest your money in loan application fees and appraisals. Take the time to learn about all of your options and then shop for a lender who offers you the best rate and terms to meet your needs.

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

Time can be a critical factor in some commercial property purchases. But even when time is not a factor the purchase, your time is valuable and you want to close on commercial loans as quickly as you can.

Commercial loans require a great deal of time and information. Lenders need to verify the borrower’s ability to afford the loan and the payments before they are willing to assume the risk of funding the loan. And the only way for all of this investigation and discovery is to provide detailed documentation to the lender. If you are completing the application process for the first time or it is your first application to a new lender, then you should ask for a very detailed list of documents that the lender will require. This not only shows the lender that you are consciences but also that you are eager and willing to invest the time needed to get them their requested documents. Your lender is likely to work at the same speed at which you do when they make a request from you. Work quickly to set the bar high and have your loan completed in the shortest amount of time possible.

Most lenders have a complete list of the documents that they need to evaluate applications for commercial loans. Requesting that list early will allow you to invest the time necessary to assemble a complete and thorough loan application. Consider this document to be your official introduction to a new business partner. Be certain that it is complete, professional and free of errors. This is your one chance to make a good first impression and demonstrate your overall professionalism.

When submitting documents, be sure that your profit and loss sheets are well labeled and easily understood. Call out any one time expenses clearly so that there is no question of missing information. Included full copies of the past two years of tax returns for the business and for any owners. If anyone has filed for an extension, include a signed copy of that document as well. Also, be sure that any bank statements which have been requested are included in full. Do not omit blank pages.

About the Property

Including photos of the interior and exterior of the building can be very helpful, especially if the lender is not local. But even if you are using a local lender, the pictures are helpful and can offer a more complete view of the property. Also be sure that any health or safety issues are remedied prior to the lenders inspection. Most lenders want these particular issues repaired before the closing. Finally, if the property has current tenants, be sure to include valid copies of each lease in your documentation.

Do It Right the First Time

Lenders only make money when they are fulfilling commercial loans and earning interest. They are as eager to complete the application process as you are. Investing the time to present a complete and accurate set of documents along with your loan application is certain to make the approval process more rapid. In addition, it is the best way to create a strong first impression and foundation upon which to build a long term business relationship with your lender.

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

There is really no shortcut when you are seeking commercial loans. But following a tried and true process can help to expedite the response to your application.

Most borrowers fail to understand that a great deal of the success or failure of their commercial loan application rests on their amount of effort in preparation. There is a huge amount of research and due diligence that a borrower must invest in the process in order to be successful when applying for commercial loans. Understanding the loan application process, the desires of specific lenders and their loan approval criteria are all very important and should be researched long before you begin to search for a commercial property to purchase.

Many borrowers are in awe of commercial lenders and fail to see them as a business partner or vendor. They get too caught up in the “bank” aspect and feel as if they are being judged. The lender is making a judgement but only from the perspective that they want to verify that you can afford the loan. They are just making smart business decisions. In that vein, you should also be making smart decisions about who you are interested in borrowing from. There are many options for commercial loans which you should explore including large national banks, medium sized regional banks, a small local bank, a private lender or a mortgage company just to name a few. If you are not familiar with any major lenders or to gain information about your options, begin with a meeting at your current bank to learn about their commercial loan products.

Each lender is going to have a slightly different set of criteria for approving a loan. Learning these requirements can help you to determine which lenders you will actually apply to. Set up a few appointments to speak to loan officers to learn about the lenders and what they have to offer you. Be prepared to discuss your business, the reason you are requesting a loan and how you plan to meet the financial responsibility of repaying the loan. These conversations can glean some very helpful free advice for you from seasoned lending professionals.

Select Lenders Who Best Meet Your Needs

Not all lenders are going to be a great fit for you or even a fit at all. If you are looking for a small loan then a national bank might not be interested in your application. Likewise, if you are seeking a very large loan, then a small local bank might not be your best choice. Try to determine which lenders specialize in the type of commercial loans that you are seeking and then apply only to those lenders. There are costs involved in commercial loan applications as well as a commitment of time. Don’t waste either by applying to a lender who will not be interested in your business.

Make a Great First Impression

Other than a brief introductory meeting, your loan application will be your first contact with many lenders. This is your only opportunity to create a positive and professional first impression. Invest all of the time that you need to research your options and the criteria that each lender uses to evaluate loan applications. Only then should you begin to compile your documentation and complete the loan application. This dedication to completing a high quality loan application and documentation packet will pay great dividends when you learn that you have multiple loan offers at very competitive rates.

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

The holidays are quickly approaching up, but is your small business ready for the hectic season? If you aren’t quite prepared for the chaos that the holidays bring, don’t stress! Commercial loans can lend your business a helping hand.

Not only are the holidays a stressful time, but it is also the 4^th quarter and the end of the year, which can always put pressure on any business. Consider looking for financial assistance during this season. Commercial loans are offered by a number of lenders including the Small Business Administration so you will be able to choose from plenty of options to find the right one for your business needs.

Inventory if often a good reason to need extra financial help. Many businesses who sell goods usually see a spike in purchases during the holidays. So, you want to make sure that you have plenty of inventory for your customers to get through the busy season. Especially if you have seen a spike in business during this time of year in the past. Ordering more inventory ahead of time can cause you cut into your cash flow and take a pretty good chunk out of it. That can hurt your business so taking out a loan can help avoid this.

On top of extra inventory, you might need to get additional employees and help as well. Many businesses hire seasonal workers, but that also means adding more people to your payroll. You can have peace of mind hiring these new employees and not stress about finances by looking into commercial loans that can help with the extra costs on the payroll.

Commercial loans can also help pay for extra holiday efforts

Your business can spend a lot of money and time on marketing and this can increase during the holidays. Not only do you need to pay for extra and most likely more extravagant marketing campaigns, but you also need to pay for the extra work that it is going to cause. Since you won’t see the benefits right away from your marketing efforts, it is best to get the fund up front to help establish a marketing plan for the season. Your extra marketing will draw n more customers and create more revenue down the line, so the extra expense at first will pay off in the end.

Also, consider the idea of needing extra equipment during the holidays and get the financial help from commercial loans

With your business needing more inventory, more workers and drawing in more customers, you may need additional equipment during this time of year as well. Commercial loans can help pay for any extra equipment or supplies that are needed. This can be a big expense and it can help to spread the payments out over time instead of dipping into your cash flow to pay all at once.

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

The Small Business Administration is there to lend a helping a hand when you and your small business need them. But there are still things to consider when applying for commercial loans from the Small Business Administration.

If you are looking to financial a small business, the Small Business Administration is there to help you with loans. These commercial loans are often times offered with lower interest rates along with flexible terms since they are guaranteed by the federal agency. Because of this, you are able to start your business or make large financial changes to it without having to worry about falling into debt. Also, the Small Business Administration is there to help in the wake of any damages or losses from natural disasters.

With a loan from the Small Business Administration, you have the opportunity to find the lowest financing options for your small business. Remember, not everyone is going to qualify, but if you do, research and look for the best option for you. There are different types of options out there and some will be better for you to get on your feet than others.

Mostly banks are going to be the ones issuing commercial loans from the Small Business Administration. It is reported that with help from the Small Business Administration, they are able to guarantee up to 85 percent of loans that are $150,000 dollars or less. And guarantee up to 75 percent of loans that are over $150,000 dollars. In 2016, the Small Business Administration’s average loan amount was reported to be around $375,000 dollars. This can be a great option if you are looking to borrow to refinance your small business, open a new location or even remodel.

One of the many benefits of obtaining commercial loans through the Small Business Administration is the luxury of lower interest rates

Loan rates can vary, but the Small Business Administration are highly competitive when it comes to interest rates. Obviously, it will depend on the size of the loan, but most will see interest rates as low as 6.5 percent and usually always under 9 percent. These are great rates for any small business, whether you are just starting out or looking to refinance.

Be prepared to have documents ready that are prepared for the Small Business Administration to approve commercial loans

The Small Business Administration is going to require some documents to review from your small business before approval of commercial loans. To make the application process go smoother, have the following documents ready for review: a borrower information form, personal history statement, personal financial statement, 3 years of personal income tax returns, 3 years of business tax returns, a business license or certificate, business lease and your loan application history. The process can be quite intense, so the more prepared you are, the less stressful the entire process will be, from the start of the application, to the very end of closing.

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

Getting commercial loans requires more than just filling out an application. Knowing what lenders are seeking from a borrower will help you to understand the process and succeed when others fail.

Commercial loans are certainly more difficult to obtain than personal loans. And there are some very good reasons that lenders are being more selective about approving loan applications. Understanding what lenders are looking for and why they are selective will help you to meet the qualification criteria and present your business in a more favorable light.

All lenders are in business to make money and they only accomplish that when they select borrowers who will repay them with interest. So you can see why it is important for lenders to weed out the less than creditworthy applicants. That is also why lenders look more closely at commercial loans. The loans represent more risk due to the more volatile nature of a business’s finances. Sudden shifts in the economy rarely have huge impact of a consumers finances but they can have a significant impact on the financial health of a business or even an entire industry. So commercial lenders protect themselves by thoroughly scrutinizing any applications for commercial loans.

The other means of protection that lenders have is the collateral for the loan. This is normally the property that is being purchased with the loan money. Lenders want to be certain that the collateral value is substantially larger than the loan amount. This ensures that the lender will have recourse to recover their money if the borrower defaults on the loan.

Show the Lenders What They Want

Knowing that the lenders only real concern is that they can and will get their money back and hopefully the interest that they are charging, you need to demonstrate to them your ability to repay the loan. In many cases this can be accomplished by compiling three to five years of financial records, tax records and bank statements. You will let the lender review the documents and see that you have experienced steady growth and that you are profitable. You will also want to provide some added security for the lender. As the guarantor on the loan, you need to show your personal ability to assume the loan payments if need be. This will require submitting your personal financial documents to show net worth, tax records, bank statements and an asset schedule.

Paint the Right Picture

It is true that there can be some obstacles in your path when you are looking for commercial financing. But lenders do want to lend money, they just want to be assured that they are not throwing their money away. Understanding the motivation for all of the strict loan qualifications and the documentation that are required can actually help you to get approved for your loan. You simply need to position your business to look and be profitable and successful. Increase your revenue, decrease spending and build your cash reserve. Showing strong financial health will make commercial lenders eager to do business with 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

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