Tag Archives: commercial loans

Finding the right Alternative Lender for your Commercial Loan

You may be seeking an easier way to get a commercial loan through an Alternative Lender. But with the bewildering array of options out there, how do you find which one is right for you?

Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150Have you been trying to get financing from a traditional bank, only to be turned down after a rigorous and exhaustive application process? Non-bank institutions are offering innovative loans to those who don’t meet the higher standards of traditional banks. But any online search will quickly reveal a bewildering array of options in terms of alternative loans. How do you find the right one for your needs?

The main reason to seek a loan from an alternative lender is that such sources often don’t set the same high standards as traditional banks. But what types of loans do these groups offer and how do you know which one is right for you? Broadly speaking alternative lenders offer three types of unique loans, cash advances, micro-loans and invoice financing.

A cash advance loan involves the issuing of lump sum in exchange for a percentage of future sales (i.e. credit card transactions). These loans are easy to qualify for and are usually quickly approved, but this comes with the disadvantage of extremely high interest rates and frequent payments that could eat away at revenues. Micro-loans are the most similar to traditional bank loans, but are often for smaller amounts and with a much faster application process. However these loans often require an excellent credit score and a well-established business. Invoice-financing involves borrowing an amount of money against unpaid invoices. This is great if you have many outstanding invoices and need quick cash to cover the shortfall. However if your customers don’t pay their bills, then you are responsible for paying off the remaining balance along with any fees or interest. This is simply a broad overview of the types of loans alternative lenders offer, indeed there are many more, but you will always need to take into account the needs and structure of your business before seeking financing.

What should you consider when getting a commercial loan from an alternative lender?

Consider how your business operates, the consistency of your cash flow, what you need the money for and how quickly you need it. Referring to the three types of loans described above as examples: Seek a cash advance if you need money quickly, your business is relatively new or if your credit score is low. By contrast you may want to seek a micro-loan if your business is well-established and your credit looks good. This can be a faster way of getting a small amount of money at a relatively low cost. Invoice factoring may be ideal if you have many outstanding payments from your customers and need money quickly to plug the gap in your revenue stream.

Ask yourself the right questions before seeking financing an alternative lender

Finding the right loan is always about asking yourself the right questions and thoroughly examining your situation. There are many other types of loans which alternative lenders offer. But the three types of loans described above apply to specific situations. Consider your specific situation to determine the specific type of financing you need. Armed with this sense of purpose you will be better equipped to navigate through the many financing options available online.

Happy senior business man making his notes at workDennis 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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Evaluating Alternative Lenders: Are they the right source for a Texas Commercial Loan?

If you own a small business, are just starting your business or if your credit is less than excellent then non-bank alternative lenders might be a good source of financing.

Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-300x199Broadly speaking an alternative lender is any non-bank institution that gives loans to businesses. The internet offers a wide variety of financing options from these types of lenders, from the traditional term loans to more innovative loans like invoice-factoring and merchant cash advances. Below we discuss this growing industry and the general advantages and disadvantages involved in alternative lending. This will help you evaluate whether alternative lending is the best option for you.

Overall traditional banks are less willing to finance small businesses, so alternative lenders are becoming a go to source for smaller businesses to get the funding they need. Traditional banks see small businesses as equally risky investments that offer a smaller pay off. This tendency is reflected in the fact that traditional banks gave 72.5 billion dollars in financing to small businesses in 2006 versus just 44.7 billion in 2014. Small business owners still have to go through the same rigorous application process as their larger counterparts when getting loans from traditional banks, but they are more likely to be denied. By contrast, alternative lending is a booming industry, projected to provide 200 billion in financing by 2025. These types of lenders typically approve 61-65 percent of the applications they receive.

There are some noted advantages and of course disadvantages to getting a Texas Commercial Loan from an alternative lender. The most obvious advantage is the speed of the application process. It takes on average 25 hours to apply for traditional bank financing, not to mention the many weeks or months it may take to get approval. By contrast, alternative lenders are not nearly as regulated as traditional banks and many use software in order to approve your application quickly.

Alternative lenders also offer more flexible loans. For example you can borrow against outstanding invoices or purchase new equipment using the new equipment as collateral. Because the process is more streamlined, alternative lenders are willing to offer smaller loans that wouldn’t be economical for traditional banks. These and other factors make alternative lenders a great source of financing for smaller businesses, startups and business owners with bad credit.

Sounds great but what are the disadvantages?

The faster processing time and the higher rates of approval by alternative lenders means such loans are often more expensive and the terms of repayment can vary widely. Because these institutions process and approve loans faster, the loans they issue are considered riskier, resulting in higher interest rates. The loans issued are often for less money and the terms of payment may consistently eat away at your revenue streams. Some alternative loans require weekly or even daily payments ( for instance merchant cash advances take a percentage of your daily credit card transactions). Therefore if you are going to seek alternative financing it is important to plan ahead in order to find the least expensive loan on the terms that suit your needs.

Alternative lenders may be a good source for

a commercial loan depending on your situation.

The wide variety of alternative lenders and the many types of loans they offer mean that some of these advantages and disadvantages may or may not apply. Depending on your situation you may want to exhaust more traditional financing options before pursuing a loan from a non-bank institution. If you have a good credit score and have a well-established business, a loan from a traditional bank might better suit your needs. However if your just starting your business, need financing quickly, don’t have much in the way of collateral or if your credit score isn’t ideal, alternative loans can be a great way to secure the funding you need.

mark gowlovechDennis 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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Evaluating your options when finding a Commercial Mortgage

Securing a Texas commercial mortgage can be a daunting process. It is important for you as a borrower to understand the basic characteristics of the institutions that provide these loans.

Getting a mortgage to purchase commercial space can be a long process. Before you begin, know where you are applying and how the organization operates . Commercial banks, credit unions, conduits (i.e. Hedge funds) life insurance companies and hard money lenders are the most common originators of these types of mortgages. This article details the basic characteristics of these organizations so you can know where to apply and find the loan that is right for you.

Local commercial banks are more likely to lend to smaller businesses. They have specialized knowledge in the local commercial real-estate markets and have a vested interest in financing projects in their immediate area. Credit Unions are similar, but have only just recently become common providers for commercial loans. In either case before approaching a credit union or a local bank you should be aware of the conditions in your local real-estate market and thereby have a better understanding of the amount of money you need to borrow.

Conduits (hedge funds) are another common source of commercial financing. They securitize mortgages and sell them onto secondary markets. Therefore these groups are less likely to have an immediate interest the conditions of your local area. They finance expensive projects and usually the loans they issue are a minimum five million dollars. A distinct feature of loans issued by conduits is that they come with pre-payment penalties, as the loans they issue need to continuously generate income from your interest payments. Life insurance companies are similar, issuing mortgages to bolster their portfolios, they offer perhaps the lowest interest rates on their loans. However life insurance companies are perhaps the least likely to approve a commercial loan.

Hard money lenders widely vary, but usually charge the most in interest. However securing a loan from a hard money lender is often easier than getting a loan elsewhere. However the higher interest payments reflect a higher assumed risk on the part of the lender. Consider these organizations as a final resort should your application be denied elsewhere.

What does all this mean?

It is important to consider the characteristics of your business and to find an organization aligned with those characteristics when searching for the right mortgage provider. If you are a smaller business or organization you might want to go to your local commercial bank. If you are seeking to finance a larger project you should probably go to a “conduit,” or potentially a life insurance company in order to secure more funding. Hard-money lenders, charging the most in interest while providing the fastest approval process are probably the best option if you need to secure funding quickly, or if you cant secure funding from other sources.

Consider the scope of the project you are financing and find an institution of a similar size.

This is crucial, if you are seeking a smaller commercial Texas mortgage you don’t want to get bogged down in the slow impersonal process common to larger banks. However if you are seeking to finance a larger project you may need to go to a larger bank. Either way knowing the character of the institution where you are applying for your mortgage will help you find the loan that is right 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

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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Differences Between Residential and Commercial Mortgages Texas

What are the key differences between a commercial and residential mortgages Texaxs and how can they impact you as a small business owner? Learning these differences can help you develop a strategy to secure the financing you need.

Understanding the nuances of the commercial versus residential real-estate markets can give you as a business owner a better strategy and help you manage your expectations about the lending process. Commercial properties are valued differently and every commercial property is different. Unlike a house, where the value is determined using comparable sale methods, commercial properties are valued based on how much investors in the area are willing to pay for the potential income generated by the property. Therefore commercial lenders are not lending based solely on the value of the property, but on your ability as a business owner to generate income. Lenders know each business carries different amounts of risk. These factors impact the amount you’ll need to borrow for your mortgage, the time it takes to qualify and the way your mortgage is repaid.

Consider the context of the commercial property you are attempting to finance. Is it located in an office block? A strip-mall? Is it a big box anchor store? Whatever the case, each type of commercial property differs in its potential to generate income. Lenders will consider this, perhaps even more than your credit score, so it is important to have a well-thought out business plan detailing how you intend to make money in your new business. Additionally, know your area. Commercial lenders tend to make loans to finance properties in local markets where they know how much investors are willing to pay for commercial properties. Have a sense for how much comparable properties are selling for in your area to get a sense of how much you may need to borrow.

Financing a commercial property is considered riskier and this greatly affects the terms of the loan and the time it takes to qualify. When financing commercial properties lenders realize that they are lending to businesses and not individuals. They assume paying your residential mortgage will be your first priority. Therefore these types of mortgages are considered riskier. The loan terms are usually shorter and the interest charged is often higher. The greater risk assumed by the lender with commercial mortgages Texas means that lenders generally prefer a higher down payment on these types of loans. Consider re-financing your house to get additional money before applying. These types of mortgages are also highly specialized and the time it to qualify will vary depending on the property. C-loans recommends allowing yourself four months before you can expect your loan to be approved.

What does all this mean?

Understand that commercial real-estate is valued differently than residential real-estate. Know the type of property you are seeking to finance and be sure you understand the local real-estate market. Assume the terms of the loan will be less favorable, expect to pay a higher down payment and expect to wait a long time before your mortgage is approved. Knowing these key differences between residential mortgages and commercial mortgages Texas will give you a better understanding about the process.

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.

Applying For A Commercial Bridge Loan

So
you’ve determined that short-term financing is the most suitable choice on your new
development or upcoming funding. However, you’ve by no means utilized for a commercial bridge loan earlier than—no
worries let’s go over the fundamentals.
Applying for a commercial bridge loan will not be essentially any completely different than
making use of for some other sort of commercial loan. In different phrases, you continue to want
the suitable documentation and a lender that understands your explicit enterprise
wants or market. Thus, if this isn’t your first commercial loan, which it extra
than possible will not be, you’re in luck. You would not have to lose sleep over
narrowing down your short-term financing choices.
With that being stated, it might be extra
useful so that you can give attention to why a commercial bridge loan is best for you subsequent mission. For occasion, say you already
have an funding property or two beneath your belt and also you need to
make a couple of upgrades or enhancements. If this state of affairs sounds acquainted to you,
then nice! That is precisely the time for a short-term financing.
Usually,  you could be accepted for this
explicit loan in case your new development will take a while however is not going to
exceed three or extra years relying in your particular market( trace:
development that takes longer than three years, normally, will not be a bit of
improve).  The truth is, non-residential
bridge loans could be for a small time interval of say two weeks otherwise you should you go
with a extra conventional lender chances are you’ll discover bridge loans that vary from 45 to
60 days.
Finally, once you begin speaking about
years’ value of upgrades chances are you’ll need to rethink your want for short-term
financing. Nevertheless, it is very important word that you simply could possibly discover a
lender that provides what is called bridge-to-permanent applications. These
explicit sorts of applications could make the transition from short-term financing
to long-term financing extra seamless (for a worth in fact).
Is a
Bridge-to-Perm Loan a Win-win Answer?
 
Sure, in some ways a bridge-to-perm loan is
a win-win resolution, particularly if you’re not essentially enthusiastic about taking
the time to safe extra financing or presumably work with one other lender all
collectively. The very fact is it’s usually so much simpler to stick with the lender or financial institution
you realize. Thus, if you’re at present working with a lender or financial institution that provides
such applications, it could positively be in your finest curiosity to take a look at a
bridge-to-perm loan applications or two.
 
To not be confused with a Mini-Perm loan
 
As a facet word, it’s also vital to
perceive bridge loan, a bridge-to-perm loans and a mini-perm loan are
completely different from each other in what they in the end provide. At this level, you
most likely are clear on the primary two sorts of loans and what they’ll do for
your commercial enterprise. Thus, the very last thing to cowl is what a mini-perm loan
affords. A mini-perm remains to be a primary mortgage on an funding property for primarily
development, however the phrases of the loan differ i.e. usually this can be a financial institution
loan  that covers a  two to 3 years  interval and it may both be an curiosity solely
loan or an amortized loan.

 

 

Dennis Dahlberg Dealer/RI/CEO/MLO

Degree four Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:      (512) 516-1177 
Dennis@level4funding.com
www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Arizona | 78701    

 
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Face Book Active Rain Linked In

Concerning the creator: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He shortly realized concerning the superb funding alternatives supplied by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to concentrate on different funding for actual property traders who could have hassle getting a conventional financial institution loan. Dennis is enthusiastic about different funding sources and sharing his information with others to assist make their desires come true.
Dennis has been married to his fantastic spouse for 42 years. They’ve 2 stunning daughters 5 superb grandchildren. Dennis has been an Arizona resident for the previous 40 years.

 

 

The Pitfalls of a Commercial Mortgage

Discovering a new place in your new enterprise to name
house is a very thrilling factor. Most of the time, folks will forego renting and
get a commercial mortgage on the
property they need. However is that the best choice for you?
 
You lastly have the enterprise that you’ve got been
dreaming about for years. You will have a nice product that folks will
need. The advert marketing campaign that you’ve got carried out has been driving hundreds of clients
to your organization. Now all you want is someplace to place all the things. That is the place
a commercial mortgage could are available
helpful.
 
Having a place to have your corporation run out off
ought to be the aim for each small enterprise proprietor. When you wade by way of all
the looking out and debating and you discover the place you need to transfer your corporation,
what’s subsequent? At this level you now have two choices, both lease a area or go
head and make a down cost on it. That is the place commercial lenders come into
the image. Many small enterprise homeowners will usually select to take out a
mortgage on the area. Nevertheless, there are a couple of issues it’s possible you’ll run into
for those who take this route
.
Having a commercial mortgage means extra than simply proudly owning a property
 
For a lot of small enterprise homeowners, money will be very
tight the through the first phases of their enterprise. Commercial mortgage lenders solely loan out a partial quantity of the
property you’re buying. The different portion, of course, comes from you.
Often, that is quantity one-fifth of the fee of the property. This will not
sound that unhealthy, however you additionally need to consider your common enterprise prices.
Issues like, provides or commercial this additionally turns into a difficulty you probably have
a couple of worker. Adversely, for those who lease the property you need you
normally simply need to make a deposit of one month’s lease for the property.
 
Together with the common prices, you have already got as a
enterprise proprietor you possibly can doubtlessly tackle new ones. For instance, you’re the
proprietor of a property that serves as a boutique for garments. On a chilly day, the
pipes freeze and burst flooding your total showroom ground ruining a massive
portion of garments. You now are confronted with a myriad of points. It’s a must to name
a plumber to repair it of course. The garments you had are actually can’t be offered, and
now you need to shut you retailer to make repairs. Now you’re caught with all of the
payments and it’s possible you’ll lose clients for a interval of time.
 
Having a commercial mortgage on a property extra of a dedication
 
Say the one place you possibly can discover that was reasonably priced
was in an space not conducive to your corporation. For those who have been to decide on a commercial mortgage over renting you
are mainly locked into that property. Sure, you possibly can at all times promote it, however
with that, it consumes a lot of your time looking for a potential purchaser.
Additionally relying in the marketplace you’re in it may take months earlier than the deal is
finalized. You even have to tell your mortgage lender of your plans
all through the method as effectively.

 

 

Dennis Dahlberg Dealer/RI/CEO/MLO

Stage four Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:      (512) 516-1177 
Dennis@level4funding.com
www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Arizona | 78701    

 
 You Tube
Face Book Active Rain

 Linked In

Concerning the writer: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He shortly discovered concerning the superb funding alternatives supplied by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to concentrate on various funding for actual property buyers who could have bother getting a conventional financial institution loan. Dennis is obsessed with various funding sources and sharing his data with others to assist make their goals come true.
Dennis has been married to his fantastic spouse for 42 years. They’ve 2 lovely daughters 5 superb grandchildren. Dennis has been an Arizona resident for the previous 40 years.