Tag Archives: commercial real estate loans rates

Why You Should Review Hard Money Loans Options

Applying for and committing to the strict repayment schedule of hard money loans can be a big and complex process. This is why Level 4 Funding suggests reviewing your options carefully to ensure you find the right loan for your needs.

If you are starting a new business, expanding your business or simply wanting to make some improvements to your company without having the stress of being tight on cash, a hard money loans could be just the thing you need. However, there are many things to consider. One of your first options is going to be your lender.

Choosing the right lender will make all the difference when it comes to having a good or bad experience. When you’re starting a business or growing your current one, times can get very stressful — the last thing you want is to add more stress by not having a good loan experience. That starts with an experienced and professional lender that can help you get the best loan that suits your specific needs. Trusting your lender is essential for a smooth process.

Once you’ve selected the right lender for your hard money loans, it’s also important to review the loan agreement, including any “small print” that you may be tempted to skim past. Remember that once you sign the dotted line, you will be responsible for upholding your end of the bargain — including paying the loan back as scheduled and paying any “hidden fees.” Always read through the entire contact, and even be prepared to have your legal advisor review the document as well.

There is one more thing you should consider when reviewing your options.

Finally, you should review what you are prepared to put up as collateral. In the case of hard money loans, that is really the most important factor that will ultimately determine your approval… or not. While conventional lending institutions like banks will look at a number of factors when reviewing your application — such as your credit score and history, personal and business financial statements and more — that is not the case with alternative lenders, especially in the case of short-term loans. Alternative lenders are mostly looking solely at collateral, which can either be your personal home or vehicle or even the value of the property.

Having a successful loan will happen as long as you take the proper steps to review your loan.

It’s also important to remember that there are multiple options — not just when you are reviewing your loan, but with all the options that it takes to build, grow and improve a business. Having a loan can be very helpful, but if your application gets rejected at first, that is no reason to give up. In addition to being open to “alternative” options when it comes to loans and lenders, it’s important to keep an open mind and be optimism about seeking alternative ideas when it comes to other areas of your business, from grassroots marketing to out-of-the box locations.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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How Short Term Commercial Loans Can Help Your Business Dreams Come True

Can you really take your business to the next level? You can with the help of commercial loans to help you finance the next phase of your company, and Level 4 Funding explains how.

If you need cash fast to put a down payment on a property for a new location, for example, short-term commercial loans are the perfect option. Unlike conventional bank loans that typically have five- to ten-year terms, short-terms are defined by shorter repayment schedules that are designed to be paid off in between three months to three years. Usually these loans have higher approval rates than long-term loans, and can be paid in smaller daily or weekly payments versus a monthly lump sum. Ensure you can manage the daily or weekly payments prior to agreeing on the terms of this loan.

Short-term commercial loans are great for businesses because they are typically approved a lot quicker, which means you get cash in hand quicker in comparison to a conventional lender application and approval process. New businesses can get approved for these loans, which can actually make it easier for them to get approval for long-term or more traditional loans in the future. Prior loans — and proof of paying them off — give lenders peace of mind that you can pay off a loan.

Short-terms are also easier for new businesses to get approval or for companies that haven’t yet established a business credit history. Once credit history is established with a short-term loan that is another way to help future loan approvals from traditional banks. Usually lenders specializing in shot-term loans do not require a minimum on credit score as conventional lenders typically do, especially for long-term loans.

One of the best benefits of short-term commercial loans is that their approval time is fast – which means you can get your funding fast.

With these loans, businesses can receive their cash advance in just 24 hours, give or take. This is important for many reasons as a company is looking to expand, but it can also be just the thing a business needs if they are cash-tight and need to handle payroll or pay their vendors. Fast cash is one of the reasons short terms are so desirable for new and expanding businesses that are having growing pains or “tight” times.

It’s important to know that while there are many benefits to short terms, there are some disadvantages to be aware of, too.

While these short terms are very helpful to businesses, there are some drawbacks. For example, the annual percentage rate tends to be much higher with loans like this than the APR of conventional loans because the amount of time the loanee has to pay back the loan amount is much shorter. While there are very short reschedule periods of three to six months, it might be more reasonable to negotiate a (relatively) longer payment schedule up to three years. There are also lender fees and other costs that may be associated with short terms so it’s important to know what those are before you proceed.

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
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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 are Commercial Real Estate Loan Rates?

uparrowIf you are considering a commercial real estate purchase then you need to investigate commercial real estate loan rates. In addition you need to understand what can cause those rates to vary.

Over the course of 2017, the average commercial real estate loan rates have been between 5% and 6%. But that is not a number that you should base your estimates and calculation on if you are seeking a loan. There are many factors that can have an impact on the interest rate that you will be paying on your loan. Learning about these factors can offer you the opportunity to change some and at least expect the others.

The type of loan that you select will have an impact on the commercial real estate loan rates that you will be paying. The SBA 504 loan is currently offering one of the best interest rates at 4.1% to 4.4% and these will normally finance up to 90% of the property value. Fannie Mae and Freddie Mac loans are in the 3% to 5% range but this type of loan is only going to finance somewhere between 70% and 80% of the property cost. Traditional banks are offering rates that range from a low 3.5% up to 8% but with these rates comes the drawback of only covering around three quarters of the value of the property. Short term bridge loan interest rates are in the 9% to 13% range and the highest rates can be found, as expected on hard money loans and they are in excess of 10% and some are even reaching 20%.

What you can Control

You do have some control over the type of loan that you select but you are really forced to take the commercial real estate loan rates that are associated with that type. But there are other ways that you can have an impact on the rate that you will pay for a commercial loan. The first factor that you control is your credit score. Having a credit score of 650 to 700 will get you considered for a commercial loan but you will definitely not be getting the best possible interest rate. A score of 700 to 750 is most likely going to get you the loan that you want. But a score of 800 is going to get you the best rates that the lender can offer. So while you are mulling over commercial real estate loan rates, spend some time checking your credit score as well.

Make Yourself a Model Borrower

Investing some time to learn each lenders qualification criteria can also be helpful. Knowing the factors that are most important to each lender can allow you to tailor your application to meet those specific desires. If a local bank favors higher cash flow, then reduce spending and follow up on past due accounts to increase revenue. Some lenders might prefer that you act as a personal guarantor for the loan to get a better rate. Be certain that your personal financial affairs are in order and can allow you to take advantage of that factor. Look at getting a commercial loan like you would any other good or service and spend the time to shop for the best rate that you can find.

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
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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