While doomsayers have claimed that the multifamily sector has hit its peak and 2018 should start seeing a decline in rents and demand, others are suggesting that the overall trend of the previous years should continue. If the “class half-full” segment of the population is correct, now may be the time to find a commercial real estate lender and finance that multifamily property.

A member of the optimist club, Greg Willet, chief economist for RealPage Inc., was quoted in the National Real Estate Investor, “Overall, we expect that same stability to hold in 2018, with occupancy and rent growth anticipated to basically mirror 2017’s statistics.”

Apartments are going up at a 10-year high—nearly 100,000 per quarter—and yet the occupancy averaged right around 95.6 percent with rates growing at 2.4 percent. Some markets, however, are tough to break in to—specifically the large metro areas. There are, however, sub-markets that may be the place to start for developers that are just getting their feet wet in this arena. This spillover effect seems to be witnessing higher demand and therefore rents in areas such as Tacoma, WA, Lake Nona, FL and Oakland, CA.

Another market to keep your eye on are suburban Class B and C apartments as renters become unable to afford the Class A units. And just what is a multifamily unit? It is a property that has five or more dwellings.

The Biggest Challenge: Finding a commercial real estate lender for your Apartment Building

Currently, the two big lenders—Freddie Mac and Fannie Mae—are financing multifamily units. That, however, could change in the future as speculation continues if they will curtail or even eliminate this segment of their lending portfolio. They have, however, focused on low-income housing needs including smaller properties and the manufactured home communities.

Most commercial real estate lenders for larger properties require higher qualifications. Know your figures and come to the lending table prepared with short and long-term costs and rental estimates.

The 50 percent rule is a good place to start and means that 50 percent of a real estate investment’s income should be spent on expenses and not the mortgage. In addition, you’ll want to know your credit score, income, and have the last two year’s personal and business tax returns on hand. Commercial real estate lenders will want to see two years’ operating statements including net operating income, debt service coverage, and loan-to-value ratio. They will also look to your experience as an owner or manager of a multifamily unit and to the money that you can put down. The good news: Not all lenders abide by these stringent underwriting qualifications. For borrowers that need more flexibility, a hard money lender may be the best choice. At Level 4 Funding, we work with hundreds of private lenders. Because of this, we can offer a loan value up to 90 percent with flexible terms from 3 to 60 months, fixed rates from 7.99 percent APR, and commercial LIBOR+350. Call us today to see if we have the funds you need to purchase your multifamily unit tomorrow.

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

Before signing on the dotted line, it’s important to know that there is more to getting a loan than simply getting approval from commercial real estate lenders. Level 4 Funding offers tips on what you should know when considering obtaining a loan.

Most people become a little anxious when it comes to getting approved for a loan — so much so that simply not getting rejected is the thing they focus on the most. It’s important to understand that one rejection is not the end. Not all commercial real estate lenders are created equal and some institutions are much more rigid as far as approval requirements than others. So just because you don’t get approved from one institution doesn’t mean another won’t approve your application.

It’s also important to know that finding the right commercial real estate lenders is not the most crucial decision you will make during your business. As you may have heard when it comes to real estate — location, location, location are the “three most important things.” Finding the right spot for your company and in the right area to get the foot traffic you need to make your business successful is a decision not to be rushed into or taken lightly.

It’s also important to have the right partners in business. So choose wisely when it comes to your commercial real estate lenders. They are going to be a crucial part of how your loan goes, the amount you will owe each month and more, so before simply going with the lender that will approve your application, make sure you check into their background, credibility and see if they will share references too. It’s important to dig as much as you need to so you feel comfortable with your lender decision.

Find out what kind of loan you want and what is best for your company.

It’s also a good idea to research loan types and know exactly what you need. There are many different options for all kinds of needs including bridge loans, short and long term, hard money, private lenders and more. You have all kinds of options when it comes to your lender specialty and type of loan, so you should not feel boxed in to any one kind of loan if you feel something else would better suit your needs.

The earlier you are pre-approved, the easier the process will be when it’s time to find a location and a lender.

Another tip is that pre-approval is one of the best ways to keep the loan process moving forward smoothly and quickly. When you know how much funding you have to work with, this can narrow down your choices when it comes to that all-important location. Once you have that piece of information, it will also be easier to narrow down the type of loan you need and the type of lender who can be most beneficial to you, and create a win-win solution for you both.

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 are looking at commercial real estate lenders to fund your loan, there are certain things you should look for and certain things you should know. Here’s what to look for when you need a loan.

“Shopping” for commercial real estate lenders can be a little daunting, and sometimes even challenging. But there are steps you can take to narrow down your search and make sure you find the right lender to fund your business or investment. Traditional lending institutions like banks are very difficult to obtain loans from, even in the best of circumstances and greatest economic climate. But don’t hesitate to look to other alternative lending institutions to fund your loan.

It’s important to find a lender that believes in your dream and truly wants to invest in you and making your dreams come true. If you already have a bank with which you have a close relationship, you may be surprised that this is the best place to start to see if these commercial real estate lenders will fund your loan. They will usually be able to negotiate a very fair deal, and it’s already an institution that you work with so you already have a trustworthy relationship.

If your loan is not accepted via your bank, you still have many options for commercial real estate lenders that will be willing to take on your loan and still work with you to get a fair and loan that works for your needs.

Start with a local search in your area.

Whether you look to another local bank, a credit union or a private lender, you still have plenty of options right in your own backyard. Do some research online for local lenders to see what information you can find. Try to learn as much as you can about the lender prior to meeting, and see what their requirements are to so you can be prepared for your first meeting. Alternative lenders may offer other loan options besides a traditional long-term long. There are many other loan options and sometimes these alternative loans are much easier to get approved for – so it’s a win-win solution.

Once you’ve found the lender you trust and who believes in you and your business venture, it’s time to get going!

Gather all your documents such as financial statements, credit report, business plan, collateral proof and anything else your lender needs to up the chances of your eligibility for a successful loan application process. Once you have all your ducks in a row, the process can go forth much more smoothly and easily. There is some preparation that you will need to do but you will be so much happier knowing you have everything ready when you need it.

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 real estate lenders that are providing capital for all of those multifamily units, office buildings, warehouses, distribution centers and multi-use shopping centers that are sprouting up across the nation. Here are a few that borrowers in the commercial real estate industry are turning to.

Commercial banks are, by far, the most commonly used commercial real estate lender. Their commercial loans usually range anywhere from $150,000 to over $50 million, and they acquire borrowers to have very good credit scores along with a low debt-to-income ratio and enough money in the bank to cover expenses for a definitive length of time. Various banks may have preferences in commercial lending projects such as construction, multifamily units or large-scale developers.

Life Insurance Companies like to invest all the money coming in from all those policy payments in real estate; however, they only invest in low-risk projects with a loan-to-value ratio right around 50 percent and with borrowers that have both high credit scores, low debt-to-income ratio and have a stockpile of money in the bank. Basically, if you don’t have 50 percent to put down on the proposed project or your credit score has taken a hit, look to another commercial real estate lender.

Commercial mortgage-backed security (CMBS) lenders prefer large commercial loans on properties such as multifamily, office, industrial and retail. These lenders package loans together into a security which is then sold to investors in the form of bonds, and they are the second-largest source of commercial real estate debt. They tend to have a 10-year lifespan, at which point the debt matures and refinancing is required. Real Estate Investment Trusts (REITs) are for experienced borrowers with big projects needing large loan amounts. According to National Real Estate Investor, Crowdfunded REITs are gaining momentum with Fundrise, the first firm to launch a crowdfunded REIT, raising $90 million in less than a year.

Private Hard Money Lenders

This type of commercial real estate lender provides short-term quick capital. There are investors that specialize in various projects such as multifamily, industrial, office space, multi-use and even hospitality. Rates can be higher than a traditional bank loan, but they are not bound to the same stringent underwriting standards. These lenders supply funds based on the collateral or hard-asset of the project. In some instances, you can also use collateral from another source such as your personal home or another business. They do not place as much emphasis on credit scores and debt-to-income ratios. Their funding is fairly rapid and many offer an average loan-to-value ratio in the 75 percent area.

At Level 4 Funding, we specialize in private hard money loans for commercial projects.

We fund private hard money loans for all types of commercial endeavors. As hard money loan mortgage brokers, we work with both banks and private investors and can often find the capital you require when you’ve been turned down by other institutions. Call us to enquire about our many options and to see if we can provide the capital you need. We are upfront and honest and, if lending is a problem, we can share with you the steps you need to take in order to get your project funded.

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 many commercial real estate lenders to choose from, but not all of them are going to be the right fit for you and your needs. If you are looking for a successful process when applying for a real estate loan, then try to focus on some of these factors that are going to play a role.

Applying for a commercial real estate loan can be a stressful process which is why it is important to find the right person to work with. The relationship with commercial real estate lenders can make the whole loan process much easier. It really comes down to trust and communication. You want and really need to work with someone that you can trust and that will communicate with you fully throughout the entire loan process, from the beginning of the application to closing.

Remember, you always have options so don’t just settle for anyone that is going to approve your loan. It could take some time to research and find the right fit for you, but in the end, it will be well worth the extra efforts. Some commercial real estate lenders specialize in certain types of loans and properties, so work with one that offers the light loan for you and is experienced in that specific area for the best results.

Another factor to consider is the interest rate. Of course, don’t make a decision based on interest rate alone, but do take the interest rate, along with other fess and agreements terms into consideration. These factors are going to play a large role in finding the right loan and person to work with regarding your financial needs.

Referrals are a helpful way to find the right commercial real estate lenders

It is a big step to decide to work with commercial real estate lenders. Just like when banks are reviewing your small business for loan approval, you are actually reviewing these lenders back, but before even starting the process. Character is going to be a big factor, so listen to others that you trust who have gone through this process. Working with the right fit can make all the difference in the world and recommendations can make the search easier and can be a good idea.

Commercial real estate lenders are there when you need a helping hand

Applying for a real estate loan can be a mixture of emotions, excitement, fear and stress. The entire process from starting the application to getting approved to the actual close can take a lot of time and is dreaded by many. But when you find the right commercial real estate lenders to work with, that will be there the answer all of your questions and concerns, then the process won’t be that bad. Find someone that you trust, communicates effectively and will help you with all of your financial 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