Tag Archives: commercial real estate lenders

Finding Commercial Real Estate Lenders

January 22, 2018Uncategorizedcommercial real estate lender, commercial real estate lendersbigdaddydennis

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

What You Need to Know When Seeking Commercial Real Estate Lenders

January 16, 2018Uncategorizedcommercial real estate lender, commercial real estate lendersbigdaddydennis

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Find the Right Commercial Real Estate Lenders for Your Loan

December 6, 2017Uncategorizedcommercial real estate lender, commercial real estate lendersbigdaddydennis

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

Different Types of Commercial Real Estate Lenders

November 28, 2017Uncategorizedcommercial real estate lender, commercial real estate lendersbigdaddydennis

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Important Things to Consider When Working with Commercial Real Estate Lenders

November 17, 2017Uncategorizedcommercial real estate lender, commercial real estate lendersbigdaddydennis

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Benefits of Preparing a Solid Business Plan Before Applying for Commercial Real Estate Loans Texas

October 1, 2017Uncategorizedcommercial real estate lenders, commercial real estate loans, commercial real estate loans in texas, commercial real estate loans texasbigdaddydennis

Don’t get discourage if you think it’s too difficult to get approval for commercial real estate loans Texas. One solid way to obtain approval is to have a good business plan that will help convince lenders to approve your loan.

There are many important criteria that banks and lenders look for when reviewing commercial real estate loans Texas. However, even without 700 + credit scores, you can be eligible for a loan if you have a very solid business plan. Discover some ways to build a strong business plan.

A good business plan starts with a summary. A summary consists of a solid statement for the outline of the plan. Within the summary, you should give the reader an idea of exactly what you want to do with your company, what you need to make that happen (i.e. the loan you are requesting) and how you will use the loan to make your company succeed. The summary should be the first thing after the title page of the business plan.

The second thing to include is an outline about your company and the industry in which you work. Banks and lenders may not understand the market or the direction of your company. So it’s best to assume they don’t know about your specific niche and give them the information they need to make a good decision (such as approving your loan!). Give some market specific information (such as why the products/service you intend to provide are in demand or in a growing market).

Thirdly, a market analysis is another important aspect of your business plan to obtain commercial real estate loans Texas. Banks are all about numbers — so you should be prepared to show them the hard numbers and the elements of how your company is positioned in the market for success. Include a detailed market strategy of your own, an analysis of other successful (or not so successful) businesses in your industry. You can leverage your company, and how you would do things differently, in this way.

Does a business plan really determine if you are able to get a loan or not?

Having a solid business plan is certainly one aspect that banks and lenders look at when reviewing a loan. However, it’s not the only thing. There are other factors such as your credit history, financial statements, and other items. But if you are able to provide proof and information about how you can manage your finances, develop business strategies to grow your business, this is a good way to get lenders and banks on your side.

Your business plan should be a presentation about your company, and serve as a strategy to convince banks or lenders to approve your loan.

Having a unique and solid business plan is very important when it comes to getting commercial real estate loans Texas approved. Spend some time on your business plan so that is expressly details exactly what your company plan is and how you will ensure that it is successful.

Using the proper tools to present your business plan is crucial. Presenting in a clean and easy way with real numbers, facts, and any hard data you have to “prove your case” can be beneficial to your commercial real estate loan approval.

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

Texas Commercial Real Estate: Texas cities compete for Amazons new headquarters.

September 30, 2017Uncategorizedcommercial real estate lenders, texas commercial loans, texas commercial real estate, texas commercial real estate loansbigdaddydennis

Amazon recently announced plans to build a second headquarters. The Texas commercial real estate market has shown robust growth for many years, will the states growing economy is enough to attract Amazons new headquarters?

Amazon has a long list of benchmarks before any city can be considered for its new headquarters. The metro area must have a population that exceeds 1 million. Any prospective location must have on site mass transit, be within 45 minutes of an international airport and have immediate access to a major highway or arterial road. Amazon also wants prospective cities to have a vibrant student population and excellent educational institutions. A number of metros in Texas meet Amazons guidelines, but Dallas and Austin stand out among the crowd as the most likely locations for Amazons new headquarters in the state.

Dallas has a number of distinct advantages among Texas cities in the competition for the new Amazon headquarters. The Dallas Regional Chamber and the Mayor have already taken concrete steps and are already scouting locations for the proposed headquarters. Only San Francisco exceeds Dallas in terms of high tech talent. The University of North Texas at Denton is already a major recruitment base for Amazon, offering the nation’s only digital retail degree. Dallas talent base, low-cost of living and excellent infrastructure are sure to be positive factors Amazon will consider before it makes its decision.

Austin is also on the short list of candidates for the new headquarters. The city offers a burgeoning student population, with more than 425,000 college students residing in the immediate area. Other tech-giants have found the region favorable. Apple, Google, Facebook and Samsung already have established their offices in the city. Amazon may consider the proximity to Whole-Foods Headquarters as the biggest attraction for building its new headquarters in Austin. Amazon just bought the grocery chain and the opportunity to have two headquarters in one city makes Austin very likely to win the bidding war for the new headquarters.

Other Texas cities are also competing for the Amazon headquarters. Demonstrating just how robust Texas’ commercial real estate market actually is.

Apart from Dallas and Austin, other Texas cities are throwing their hats in the ring. 10 Amazon fulfillment centers, with 10,000 employees are located in the Fort-Worth Area. The cities recent airport expansion enables cargo transport to Asia, a real benefit Amazon may consider. Houston has also expressed interest in the new headquarters. Houston has plenty of centrally located and vacant office space available. But the city, even with a significant student population, doesn’t have a strong tech-scene when compared to Dallas. San Antonio is also making a bid, but the city may not have sufficient space downtown and the airport lacks some of the capacity Amazon has requested.

Texas’ commercial real estate market is one of the strongest in the nation. But how will Texas fare against other states?

Cities in Texas of course want the prestige of being chosen for the new Amazon Headquarters, as well as the potential economic benefits Amazon promises. But Texas isn’t the only state or area being considered. Cities in Texas are still in competition with potentially more prestigious cities like San Francisco, Boston or New York. Amazon executives have already put Boston at the top of the list, according to Bloomberg. However Boston and other densely populated cities may be too expensive for many low level Amazon employees. Texas and cities like Austin and Dallas stand out due to their low cost of living and their business friendly environments.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

September 28, 2017Uncategorizedcommercial real estate lenders, commercial real estate loan, commercial real estate loan in texas, commercial real estate loans, commercial real estate loans in texasbigdaddydennis

After experiencing the devastation of Hurricane Harvey, some good news comes to the area. The city of Houston is eager to see the changes that will be made to one of their most popular and well-known office buildings in downtown Houston thanks to Holliday Fenoglio Fowler approving a commercial real estate loan in Texas

Located in the heart of downtown’s Houston Theatre District, one of the most recognizable buildings in the Houston skyline and even across the globe is going to be getting a new look, all financed by a commercial real estate loan in Texas funded by Holliday Fenoglio Fowler. The architectural icon is at 700 Louisiana in Houston’s central business district.

The 1.2 million square-foot office is 56 stories and was designed by Phillip Johnson and John Burgee. The building currently homes many law and financial services firms that benefit the Houston community greatly. Luckily, Hurricane Harvey had little impact on the business operations of the building, with all of the businesses in the building is back to their daily activities.

The borrower of the commercial real estate loan in Texas, M-M Properties worked closely with Holliday Fenoglio Fowler in a very detailed process to get the refinancing rolling. The impact of refinancing the well-known building is going to give it a higher property value by sprucing up the lobby and more.

Privately held real estate investment firm gets help with commercial real estate loan in Texas

With M-M Property having their headquarters based in Houston, they know how hard the area was hit by Hurricane Harvey. The property management company is hoping that this is a positive event happening after such a devastating time. M-M Property is an experienced, privately held real estate firm that is located in the heart of Houston.

The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.

After Houston was hit hard by Hurricane Harvey, Holliday Fenoglio Fowler is excited to see the changes that will be made during the renovations to bring the area back to the way it was before the storm rocked the area, causing 18 counties in the state to be declared disaster areas. Holliday Fenoglio Fowlers has 24 offices across the country and is a leader in commercial real estate loans in Texas and throughout the United States along with offering many other financial and marketing services.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips for Getting Commercial Real Estate Loans

September 25, 2017Uncategorizedcommercial real estate, commercial real estate lenders, commercial real estate loan, commercial real estate loansbigdaddydennis

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.

You would think that lenders would be eager to grant commercial real estate loans due to the large dollar amount and the potential to make a great deal on interest. But in most cases, it is tougher than you would expect to complete the application process and qualify for the loan. But using a few proven tips can help to eliminate much of the pain associated with the process.

The first step that you need to take even before you have found the property that you are buying is getting your application packet in order. You will want to have this task done before you really begin to shop for a property because the preparation can take some time and you don’t want to lose out on a great property while you are digging through paperwork. You will need current financials as well as a few years of historical financials, tax returns for the past 3-5 years, rental schedules, leases, copies of sales contracts and AR statements, bank statements and asset and liability statements. Having these documents in order will help to expedite the application process for any commercial real estate loans.

Once you have found the property that you want, be sure that you do the research and know what the actual market value of the property is. This could be different than the asking price but understand that the lender is only interested in the market value. That is the value that the property will hold as collateral on the loan that you are asking for and that is what the lender is really interested in. Also understand that you will be required to make a down payment of around 30% of the market value. If you are willing to pay more than market value for the property then you will also need to pay the seller the delta between the market value and the asking price.

Prepare a Structure Diagram and Asset and Liability Statement

Having a complete structure diagram will help to save valuable time when the lender is evaluating your business. It gives them a clear picture of your business, what you do and how you accomplish it. This can save many weeks of questions when they are trying to evaluate your creditworthiness and the overall stability of your business. The asset and liability statement will be the document which will explain your financial stability in a nut shell. These two documents can greatly simplify the lenders discovery process prior to approving your loan.

Hire a Professional

Most business owners have no idea how much documentation is required to apply for commercial real estate loans. And once they begin the process they quickly become overwhelmed. You hire a lawyer to handle legal matters and an IT professional to design your network so it only makes sense to hire a professional broker to assist you with purchasing a property. It will not only eliminate much of the stress but it can also eliminate a lot of time that would be wasted resubmitting your application packet if there are errors or missing documents.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Basics of Commercial Real Estate Loans

September 24, 2017Uncategorizedcommercial hard money lenders, commercial hard money loans, commercial real estate lenders, commercial real estate loan, commercial real estate loansbigdaddydennis

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.

Owning a successful business is a rewarding accomplishment and one that might be leading you to consider purchasing a commercial property for your business. But you need to know more about the process and the requirements before you begin to invest your valuable time in searching for a property. The application process is not as simple or fast as a personal mortgage process and the documentation required can be much more in depth. But once you understand the eligibility and requirements you will be better able to make your decision about purchasing a commercial property.

Commercial real estate loans are secured by liens on the property that you are purchasing. The lien gives the lender the right to take the property from you if you do not make the payments that are outlined in your loan documents. This protects the lenders investment in the event that your business fails, the economy disrupts your business or any other issue that could cause you to default on the loan. But because commercial property value can fluctuate more than residential property, the lender requires that you make a large down payment on the property. This is a way of creating instant equity which is good for both you and the lender. It reduces the amount that you are borrowing and therefore reduces the amount of interest that you are going to pay. And it also helps the lender to know that if you default on your loan, then they have a better chance of recovering all of their investment even if the property value has dropped since you purchased it.

Commercial real estate loan terms are also a bit different. They are normally in two terms. The first is intermediate and is for three years or less and the long term is from 5 years to 20 years. There is also a balloon loan that is an option. In this case the loan payments are mostly just covering the interest and at the end of the term you owe a final payment that covers the balance of the loan. In most cases the payment is very large and the borrower is forced to refinance the loan to cover the final payment.

Know Your Interest Rate

Because a business’s financial stability is more tied to the economy than that of an individual, lending money to a business is, in general, considered to be more of a risk. For that reason, commercial loans tend to have a higher interest rate and additional fees that must be paid. Be sure that you are carefully examining all of the fees and interest that you are agreeing to pay before you sign the loan agreement.

Research Your Options for Lenders

Knowing about the commercial real estate loans process is only half of the research that you need to complete. You will also want to learn about all of your options for lenders. Commercial banks, credit unions, mortgage lenders and the Small Business Administration are all good options to explore when you are ready to apply for a commercial real estate loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Level 4 Funding Private Hard Money

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Tag Archives: commercial real estate lenders

Finding Commercial Real Estate Lenders

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

What You Need to Know When Seeking Commercial Real Estate Lenders

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.

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

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

How to Find the Right Commercial Real Estate Lenders for Your Loan

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.

Start with a local search in your area.

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

Different Types of Commercial Real Estate Lenders

Private Hard Money Lenders

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

Important Things to Consider When Working with Commercial Real Estate Lenders

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.

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

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

The Benefits of Preparing a Solid Business Plan Before Applying for Commercial Real Estate Loans Texas

Don’t get discourage if you think it’s too difficult to get approval for commercial real estate loans Texas. One solid way to obtain approval is to have a good business plan that will help convince lenders to approve your loan.

Does a business plan really determine if you are able to get a loan or not?

Your business plan should be a presentation about your company, and serve as a strategy to convince banks or lenders to approve your loan.

Texas Commercial Real Estate: Texas cities compete for Amazons new headquarters.

Amazon recently announced plans to build a second headquarters. The Texas commercial real estate market has shown robust growth for many years, will the states growing economy is enough to attract Amazons new headquarters?

Other Texas cities are also competing for the Amazon headquarters. Demonstrating just how robust Texas’ commercial real estate market actually is.

Texas’ commercial real estate market is one of the strongest in the nation. But how will Texas fare against other states?

Commercial Real Estate Loan in Texas Used to Refinance One of the Most Well Known Buildings in the Heart of Houston

Privately held real estate investment firm gets help with commercial real estate loan in Texas

The commercial real estate loan in Texas lender is eager to see how the changes will improve the area’s value.

Tips for Getting Commercial Real Estate Loans

Commercial real estate loans are not as easy to acquire as you might think. But using a few tips can insure that you get approved and get a great rate.

Prepare a Structure Diagram and Asset and Liability Statement

Hire a Professional

Basics of Commercial Real Estate Loans

Understanding commercial real estate loans is the first step in deciding if you are ready to own a commercial property. Learning about the process will ensure that you know what to expect and how to prepare yourself and your business.

Know Your Interest Rate

Research Your Options for Lenders