Tag Archives: commercial loans

Tips for a Faster Closing on Commercial Loans

2page_img2-bigTime 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
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Process for Obtaining Commercial Loans

Handsome young man looking confidentlyThere 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
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How Commercial Loans can help Your Business Prepare for the Holidays

Arizona-Home-Loan-Mortgage-Broker-150x150The 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 4th 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
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Evaluate Commercial Loans from the Small Business Administration

4page_img1The 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
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What Lenders Require for Commercial Loans

Untitled-1Getting 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
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Loans In Texas – What You Need To Know About Working With the SBA-Part 4 – Selecting the Right Lender

1page_img1Once you have all of the paperwork in place and understand the process of obtaining a commercial loan in Texas through the Small Business Administration, you must now begin the process of figuring out which lender is going to serve your needs. Picking the correct lender is very important in making sure that your loan process runs smoothly.

While they might all seem the same on the surface, there are vast differences amongst lenders, especially when it comes to a loan through the Small Business Administration. In order to make your process as easy and stress-free as possible, you will want to find a skilled lender that not only have experience in commercial loans, but also one that has experience dealing with the various aspects of SBA loans.

One of the differentiating factors with a lender who is familiar in dealing with the Small Business Administration is whether or not they are a “Preferred” lender. This is important, as an approved lender (noted by the preferred status) has already cleared some of the basic requirements put forth by the SBA and this will greatly speed up the process for the borrower. If a lender is not preferred, they must initially submit the borrower’s credit application to the SBA directly. A preferred lender can skip this step.

Another factor that will help you pick the correct lender for your needs with your commercial loan through the Small Business Administration is whether or not they have a department that is dedicated solely to these types of loans. Will you receive specialized attention? Or will you just be another application that is thrown into the stack. Lenders that have dedicated personnel are going to make your loan process much smoother and will help you to feel at ease with the process.

Along with selecting the right institution, it is critical that you also select the right loan officer. This person is going to be working with you and will be critical to your success. If you do not get along with your loan officer, or do not feel they would do a good job, then that is a sign that your commercial loan process is not going to be as smooth as it should be. Your loan officer should not only be familiar with commercial lending in general, but also be familiar with Small Business Administration loans specifically.

What other questions should I ask a potential lender about my commercial loan in Texas through the SBA?

You will no doubt have many questions when trying to find a potential lender, as you well should. There are two basic questions that every lender should have answer to very quickly. In fact, they might even have printed documentation for you. The first is what sort of supporting documents this specific lender requires for the loan process. The second is how long this specific lender expects the commercial loan process to take. Good lenders will be able to give you concrete, precise answers.

.

Dennis-Dahlberg-Mortgage-Broker-1_th

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Loans In Texas – What You Need To Know About Working With the SBA-Part 3 – Getting Started

80-960x631So you have decided that obtaining a loan from the Small Business Administration is a route that you would like to take. And you have also determined that your small business is eligible, according to their guidelines. Here is what you need to do to prepare for an SBA commercial loan in Texas.

Congratulations on making it this far! The world of commercial lending can be an intimidating place, so the fact that a borrow starts to get their ducks in a row to apply for a loan is a huge step in the right direction, and is a giant leap forward in making business dreams come true.

But how does a potential borrower get started with a commercial loan? The first thing is to understand that the process does not happen overnight. It is going to take some time and that is okay. So just be patient. A borrower is going to spend a great deal of time organizing, gathering and sorting various financial documents.

So get organized. If you are not a numbers person, you might want to become one. If you have a professional accountant, now would be the time to begin to understand what exactly they do. If, however, you already have your nose in the books, then you are going to be just fine. If you understand how all of your accounts work, and how to access all of the information, you are already ahead of the game and will simply need to organize the information to present to a potential commercial loan application. In addition to this, know exactly how you will be using the loan and how it will benefit your business. This goes beyond simply crunching the numbers. A solid business plan, that is updated to include the expansion that will be possible with the commercial lending, might not be required by a lender, but it most certainly will not hurt to have in place before beginning the application process.

Also, pay attention to detail. It is far better to provide too much information than not enough. The SBA and the lender are going to determine if you are financially competent enough to not only be responsible with their money, but also if you are going to pay it back. If they have to pull information out of you, it does not bode well for you being fiscally capable of handling significant debt on your own. That is not an impression that you want to leave with potential lenders.

Finally, keep your financial records up to date. Not only does this apply to the application process, but also as the loan is current. You should try to fall no further behind than 60 days. If you are detail oriented and organized, this should not be a problem at all. No lender, who is looking to grant you a commercial loan, is going to make a decision based on financial information that is outdated.

What strategies can I use to ensure the highest degree of success with my commercial loan in Texas?

Plan to devote a great deal of time to this process. If you must, seek help, whether that be mentors or other small business owners who have gone through the process. Remember, you do not have to do this alone. There are plenty of others who have successfully obtained a commercial loan, but it does not come without a great deal effort.

Dennis-Dahlberg-Mortgage-Broker-1_th

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Loans In Texas – What You Need To Know About Working With the SBA-Part 2 – Eligibility

Arizona Home Loan Mortgage BrokerSeeking funding for any commercial enterprise, whether it be real estate or business expansion, can be a confusing endeavor. There are so many different options that it is hard to know where to begin or to determine which is the best for you. So how do you know if seeking a commercial loan through the Small Business Administration in Texas is right for you?

Knowing what you are getting into before you begin the application process with the Small Business Administration (SBA) is very important, as the application process for a commercial loan is very arduous. The good news is that, if all else fails, you can consult a lender and ask them questions about SBA loans.

One of the ways that the Small Business Administration is able to work with small business owners is by partnering with lenders. The SBA does not directly lend the funds to small businesses, but they work with banks and other lenders to not only find the correct fit for a small business, but also to underwrite a portion of the commercial loan. This takes away a great deal of the risk from the lenders and enables them to be more flexible in their offerings. Because the Federal government is taking on a portion of the risk, lenders are able to grant loans to small businesses and individuals that would otherwise not meet their criteria.

Because of this, however, lenders are the ones to set the interest rate and it might vary from lender to lender. While this can be confusing, if a borrower is organized and detailed oriented, this will not be a problem.

Even still, not all businesses are eligible for a loan through the Small Business Administration. Because of the risk that the government is undertaking, there are additional requirements from the SBA. Lenders might also have a list of requirements (even if they are lowered from a traditional loan). Some of the basic requirements from the Small Business Administration in lending commercial loans are: the business must be “for profit,” the business must be of a certain size, and the business must be able to show that they will be capable of paying back the loan. A much more subjective requirement is that the business must have “reasonable” equity from the owner or partners.

Not every business is able to obtain a loan from the Small Business Administration. For example, even if a small business meets all of the requirements but is a financial institution or a certain type of insurance provider, they are automatically ineligible for any loan through the SBA.

What if I still don’t know if I am eligible to receive a commercial loan from the SBA for my business ventures in Texas?

If you have looked at all of the requirements and still have some confusion about if you are eligible, the best thing to do is to simply ask. It would be an absolute waste of time to go through the extensive process of applying for a commercial loan through the SBA, only to find out that you were not eligible from the start.

Dennis-Dahlberg-Mortgage-Broker-1_th[2]

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Loans In Texas – What You Need To Know About Working With the SBA-Part 1 – Benefits

8080-768x513While there are many sources of commercial loans in booming economies, like that of Texas, many small business owners often turn to the Small Business Administration (SBA) for their lending needs. Even though many small business owners find lots of helps with the SBA, there is a lot to the process.

Dealing with the Small Business Administration is like dealing with any other government bureaucracy. The benefits might be very good for you, but wading through the endless amounts of red tape and paperwork can be discouraging to even the most stalwart of pursuers.

But why should a business owner pursue a commercial loan from the Small Business Administration anyway? Why is the SBA different than any other lender? There are actually a number of benefits that an SBA loan has over traditional lenders,

One of these benefits is that the cost of obtaining such a loan is usually lower than it would be by pursuing a similar loan through a bank or other traditional lender. This means that the borrower will have to put forward a smaller down payment (and some SBA loans actually include, or have provisions to include, the entire cost of the loan).

Another benefit that is incredibly appealing to many small businesses is that there are often lowered requirements in order to secure a loan. While many traditional lenders require sources of collateral or an excellent credit history in order to secure a commercial loan, the SBA, for the most part, does not require a borrower to have any collateral. In fact, the SBA often grants businesses loans based on cash flow, rather than credit history. This makes it an excellent source of funding for those business owners who have taken some financial hits in the past. If decent cash flow can be demonstrated, it is most likely that the SBA will be able to work with you to find funding.

Term lengths and interest rates are another appeal of the SBA to small business owners. The repayment terms are usually much longer than that of traditional lenders, with many commercial loans having a term of up to 25 years. That is a tremendously long period of time to pay a loan back in the world of commercial lending. In addition to a more agreeable timetable, the interest rates of loans from the SBA also has the potential (this is not always the case) to be lower than traditional sources and significantly lower than hard money loans. Longer terms and lower rates mean that small businesses can focus on growth, rather than debt.

How can I use the benefits to my advantage if I am looking for a commercial loan to expand my business in Texas?

If you are in a position where your small business needs access to capital, but you are either just starting out or have had some credit problems in the past, the Small Business Administration might be an excellent source of help with a commercial loan to help you achieve your business goals. This could even help you to take advantage of a great business opportunity with a commercial loan in Texas.

Dennis-Dahlberg-Mortgage-Broker-1_th

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Find the Right Commercial Lender for Your Business Loan Needs

4page_img3-bigWhen you determine that you are ready to obtain a loan for your company, it’s important that you do your research in all areas. One of the most important things to do it find a commercial lender that you feel confident will get the best loan terms for you.

The world of commercial loans can be complex and confusing. That’s why it’s all the more crucial to find a lender that will make your loan the priority. Your commercial lender has the power to negotiate better rates, terms, and repayment structures, and can point you in the right direction throughout the process of applying for a loan.

When you are seeking a loan for your company, there is no shortage of options. There are various types of loans that are specific to certain business needs, such as equipment financing, and there are even short term and long term loans that are defined by their loan amount and payback timeframe. If you are seeking your first loan, the waters can quickly get murky and you can easily become frustrated, and even make a hasty decision just because you are so weary from the process. Seeking the counsel of a commercial lender can help you avoid the pitfalls associated with applying for a first time loan.

Traditional banks can serve as a direct commercial lender when it comes to their commercial offerings, but working with conduit lenders is another option. This means a conduit lender can help approve a loan and maintain it for a specified amount of time. After that term, however, they can sell it to a third party agency that is security backed. This is typically done as a short-term investment called securitization. Loan payments are designed in this type of financing to avoid prepayment, which allows for a great deal of security.

Pretend you are interviewing an employee when you meet with a lender

Consider it an interview for the job of being your lender and advisor. When you talk to commercial lenders, make sure you ask plenty of questions about their area of expertise and if they have ever worked with a business similar to yours, with similar loan needs and budgetary restrictions. Getting testimonials is a good idea, too. Before seeking commercial lenders online, ask around – talk to other small business owners to see if they have pursued loans with the assistance of a lender and if they had a favorable experience. If you have a solid relationship with your bank, that is a good place to start as well.

Take heed: not every commercial lender will handle your loan application in the same way.

Sometimes there is no “hard and fast” way to tell if you have found the right lender for you. Some of it is about trust. Some of it may come down to customer service or a “feeling” that this person has your company’s best interest at heart. Regardless of how you proceed with your loan, make sure you are happy with all the terms before signing any documentation. It’s also a good idea to have an experience financial attorney look over the agreement to ensure there are no hidden fees or “fine print” that your lender failed to mention. All in all working with a lender should be a win-win situation.

Dennis-Dahlberg-Mortgage-Broker-1_th

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage