Tag Archives: commercial real estate

Commercial real estate transactions and commercial real estate loans expected to rise in 2018

January 30, 2018Uncategorizedcommercial real estate, commercial real estate lendingbigdaddydennis

The sluggish pace of commercial real estate lending seen in the first half of last year is expected to improve in the coming year. Commercial real estate transactions are on the rise, but are likely to be tempered by new fears among investors.

The first half of last year was marked by new lows in terms of real estate transactions. By the midpoint of 2017 commercial real estate investment trusts have completed only $46.7 billion in sales, far below the 71 billion in sales the same trusts achieved over the same period in 2016. Investors were gripped with uncertainty about interest rates and the new political realities of the incoming administration. “The slowdown in transactions at the start of [2017] came with the jump in interest rates and the [uncertainties of the] election. As people have readjusted to the new order, deal flow has started to pick up,” said 10-X Chief economist, Peter Muio. As investors adjusted to these realities the total sales volume of commercial property rose by 15.6% over the second quarter of 2017. Transaction volumes are also expect to continue to increase over the coming year.

Buyers and sellers of commercial property also had varied expectations about the commercial real estate market at the beginning of last year. “The other challenge is the falloff in transaction activity due to the wide gap between seller and buyer pricing expectations,”said Muio. “This widening of the bid-ask spread was sourced over doubts over the continuation of the cycle on the buy-side, a rise in interest rates heading into the year and seller expectations for robust pricing increases. We believe this gap will begin to close in 2018, and it will do so due to sellers accepting the new paradigm.” In other words property owners held out for higher prices in the expectation of rising property values while real estate investors remained unwilling to pay these higher prices. Both sides are expected to continue adjusting their expectations as the year continues, which will make buying and selling easier.

As sales of commercial real estate increase, commercial real estate lending is likely to increase as well.

Investors have adapted the new realities of last year and both buyers and sellers of commercial real estate have new more realistic expectations in terms of pricing. These trends which helped boost commercial real-estate transactions last year are expected to continue into 2018. Analysts perceive a large amount of capital set aside specifically for investment in commercial real estate. “ After a year of slow activity we are hopeful that sales volumes will rise in 2018. One important reason for this is the large amount of capital targeting real estate,” said principle economist at Kushman and Wakefield, Ken McCarthy.”There is an estimated $152B in dry powder waiting to be deployed. And while investors were cautious in 2017, we anticipate the healthy economy at home and abroad [will] give investors more confidence, leading to stronger sales.” Analysts predict most of this money will be used for investment in multifamily and industrial real estate. Sales of office ,retail and hotels will continue to struggle in 2018.

Investors in commercial real estate face new uncertainties this year which makes the pace of commercial real estate lending hard to predict.

Commercial real estate transactions are unlikely to reach last year’s historic lows. The dramatic spike in sales, which began in the second half last year, is expected to wane as the year continues. investor face new uncertainties about an upcoming market correction and ambiguity remains about the impact of the recent Republican tax bill. as investors address these issues commercial real estate transactions are unlikely to rise dramatically over the coming year, but are expected to return to historic averages.

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

The Best Ways on How to Evaluate Commercial Real Estate Financing Options

October 17, 2017Uncategorizedcommercial real estate, commercial real estate financingbigdaddydennis

Before taking a dive into a big investment, it is a good idea to understand all of the difference between all of the different types of commercial real estate financing. Some of these types include office space, retail space and plenty of more properties.

Believe it or not, office spaces happen to be one of the most popular options to invest in. These buildings are broken up into three different classes and include single tenant offices and skyscrapers. If you’re thinking of looking into commercial real estate financing for an office space, make sure to do plenty of research so that you know you are making the right decision. You will be able to find plenty of information on the property you are interested in so that you can get a better idea if it is going to be a smart investment.

Retail buildings and industrial buildings are also popular types of commercial real estate properties. Since retail buildings can range anywhere between a tiny 5000 square-foot space to a larger 350,000 square-foot space, commercial real estate financing options can definitely range. Warehouses and other industrial buildings are more commonly involved with investment opportunities.

Another popular commercial property you can invest in our multifamily units like apartments and condominiums. These buildings compared to office buildings or even retail buildings are a little different when it comes to the lease terms. The terms for these units are usually much shorter, so always keep that in mind. Also, keep in mind that usually the best properties are going to be in high demand, so it is best to focus on factors like location and property value.

Commercial Real Estate Financing can come with many benefits if executed right

When it comes to commercial real estate financing, you need to first decide if you want to go at it as an individual or with entities. Entities like corporations, partnerships and developers are often where the majority of investments stem from. But with the right documents and providing impressive numbers, you will be able to complete the application process easily as an individual as well. With the right numbers and documentation, individuals can still receive approval.

When done successfully, commercial real estate financing can be a win-win solution for all involved

Before taking a leap into your next investment, you must remember to take a lot of things into consideration. You need to first decide if you want to go about it as an individual or with entities. Next, you also have to consider if you are going to use the finances for an office space, for multiple units or for another type of property. There are many different options you can choose from and it is best to just evaluate the entire agreement to make sure it is in line with your plans and long-term business goals.

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

Many Are Eager to See if Commercial Real Estate Financing Will Finally Bounce Back Towards the End of the Year

October 17, 2017Uncategorizedcommercial real estate, commercial real estate financingbigdaddydennis

With the third quarter coming to a close quickly, many are hoping that the start of the fourth quarter will bring a boost to commercial real estate financing. Due to a slow start at the beginning of the year, the market has not quite recovered and there are a number of reasons that the industry is seeking improvements.

The numbers for the third quarter will be reported soon, but if we take a look back at the second quarter numbers, the commercial real estate financing in New York actually saw a decline, but it was extremely masked by massive size loans that were for just a few number of commercial real estate properties in the Big Apple. And because of the large size of these loans, many people didn’t even really notice the decline.

For example, one of the largest commercial real estate financing deals in New York happened to be the renovation of the well-known General Motors Building. The building is located on famous Fifth Avenue and is now home to an Apple store, which makes it the technology company’s flagship Fifth Avenue location. The deal was completed over the summer in June with a $2.3 billion-dollar price tag for the loan.

In May, the property located at 245 Park Avenue received $1.2 million dollars in commercial real estate financing. These two loans, along with a couple of other also larger loans happen to be significantly larger than any of the other loans approved in the New York City area during that quarter. Meaning that the top five loans in the city in the second quarter went on to total 20% (that is 1/5^th!) of the total loan amount for the entire quarter.

Commercial real estate financing didn’t see successful numbers in the second-quarter, but it also didn’t see a drastic decline

The numbers for the second quarter in New York City technically fell flat according to Forbes. But some of the good news is that after seeing a 12% dip from the second quarter in 2015 to the second quarter in 2016, the market has actually stayed stable, not really seen a declining shift. But considering that the top five loans made up 20 percent of the total loans, the numbers actually do show a slight decline, but nothing too extreme.

High expectations are still set for commercial real estate financing for the rest of 2017

But these numbers shouldn’t get you too worried or discouraged! They don’t necessarily mean that a slump is on the way and will be a common trend. It just means that the market experienced a bad quarter, but can hopefully it can bounce back quickly. The market just need to continue to focus on moving forward, but with caution, and keeping in mind the large amount of loans that are being approved.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How Using Collateral Can Help You Secure Commercial Real Estate Financing

October 16, 2017Uncategorizedcommercial real estate, commercial real estate financingbigdaddydennis

As you start or grow your business, you may come upon a circumstance when you need to secure a loan to boost your business or cover some important expenses. When seeking commercial real estate financing, using collateral can help you get the right loan terms.

In the world of commercial loans, collateral refers to assets that serve as a guarantee to a lender in the instance that you cannot pay back your loan. In this case, the lender has the rights to obtain ownership of said collateral, whether it is a building, your company’s equipment or machinery or even your own car or house. While this sounds scary, collateral can put your loan amount into perspective, so you only loan against your assets. In this case, your commercial real estate financing will be calculated on a loan to value ratio, and the greater the value or your collateral, the higher loan amount you can borrow, in theory.

These assets are defined a certain way, so you can’t use certain things as collateral against your loan. There are also items of value you have that you may not even have considered as collateral. Typically collateral can be split into two categories – real and paper. “Real” assets refer to cars and homes, as mentioned above, but also watercraft and other vehicles. While buildings can serve as collateral, banks and lenders typically won’t consider plots of land.

The other category is “Paper” collateral, which includes stocks, bonds, investment funding and payment rights. When it comes to company stocks, take into account the current state of the market because if your stock drops, your lender has the right to sell off the assets that you used as collateral. You can also use your business’s revenue as collateral, however you will have to have a solid projection of your company’s business earnings over a set timeframe. Payment plans could be required from the lender for your commercial real estate financing loan in increments of monthly, quarterly, or even annually.

When you are applying for a loan – put your cards on the table… even your collateral.

When it comes to securing a loan, it all comes down to one basic thing — lenders need to know that you will be able to pay back the loan or that they will get something of value (aka your collateral) if you are not able to repay the loan. Ultimately, they can’t risk losing the money they lend you.

Your collateral can be just the thing lenders need to approve your loan!

Securing commercial real estate financing with collateral is a great way to get the loan you need for your growing business. As long as you intend to repay the loan within the specified terms agreed upon between you and the lender, there is no reason to fear putting up collateral when you need a loan. So when you are shopping for a loan, make sure to let your lender know what kind of collateral you have to back up your loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Avoid Making These Mistakes When Applying for Commercial Real Estate Financing

October 16, 2017Uncategorizedcommercial real estate, commercial real estate financing, commercial real estate loansbigdaddydennis

Sure, we all make mistakes, but some are bigger than others and can make a lasting impression on the future and success of your business. When it comes to securing commercial real estate financing, try to avoid making these mistakes.

There is a lot to learn about applying for a loan for your business, but you can get a head start by understanding a few of the pitfalls to avoid. One of the biggest mistakes is making a hasty decision when deciding upon the loan you need and the lender who can supply said loan. Take plenty of time to research the types of loans that are best for your business, and determine which is best for your business before leaping into the loan application process (online or otherwise).

If you’ve never applied for a loan before, it’s also a good idea to then seek a lender who is experienced in that type of loan as well as the industry of your company, can be a very important key in the success of your commercial real estate financing loan application process. They can advise you through the process, and help you negotiate better terms for your repayment schedule. It’s important that you get a good feeling about the lender you work with, and that you feel you can trust them with your business’s financial needs. Without their advice, you may end up wasting both time and money having to resubmit applications and documentation or even lose out on a desired property.

Another mistake is trying to go through the loan approval process without the professional counsel of an attorney that specializes in commercial real estate financing. A loan of this nature is a huge transaction, and a legally binding one at that, so it’s important that you understand all the fine print, hidden fees and jargon before putting your signature on the dotted line. An experienced attorney can help you navigate unfamiliar terms, conditions and clauses that you might not fully comprehend. To ensure the contract is just and reasonable, get an attorney.

There are also some things you can do to increase your eligibility and chances of getting your loan approved.

Having a solid business plan is crucial — you want to be able to prove the a bank or lender that your business will make money (so you can repay the loan). It’s also important to show a high FICO score and clean credit history. However, don’t worry if you have a new business or are still establishing business credit, you can still be successful at obtaining commercial real estate financing, though you may need to seek alternative lender options.

Don’t rush through the process and you will avoid making mistakes

Understanding that seeking a loan of this type is a major commitment and a decision that should not be taken lightly. A large loan is an investment and it can be risky if your business doesn’t make money right away or hits a rough spot and money gets tight. Take the time to make sure you get the best loan for your business and that you are comfortable with all the terms, especially repayment, to ensure the best success for your growing business.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How Commercial Real Estate Financing Can Be the Key to Managing Your Business Finances

October 15, 2017Uncategorizedcommercial real estate, commercial real estate financing, commercial real estate loan, commercial real estate loansbigdaddydennis

If your business needs cash to help get out of a rough slump or to continue to grow to the next level, short term commercial real estate financing can often help. By having an extra cushion of cash business owners can more easily manage their budgets and take risks when it comes to growing their businesses, and with these tips, your company’s finances will allow you to grow while also being able to pay back your loan.

It’s no secret that as a business owner, you shoulder a great deal of financial responsibility — not only to the growth of the company, but to your employees, vendors and suppliers, and more. Keeping a tight hold on your budget and managing your finances responsibly from the onset will help you in the long run. However, just because you can run “a tight ship” doesn’t mean your company wouldn’t benefit from the extra cushion of hard money from commercial real estate financing.

Even with a loan, it’s crucial to keep your monies organized. You should always keep your business and personal finances separate — no matter how big or small your business is or gets. That means securing a bank account as well as a credit card in the company’s name, not your own. This can help you stay organized when budgeting but also when it comes to filing taxes and establishing separate business credit. Establishing business credit becomes very helpful if you need to secure a long-term loan in the future.

Experts can help you not only with your commercial real estate financing, but with managing your budget as well. Just because you know what your customers’ needs are, doesn’t mean you are an expert at finances. Everyone has an area of expertise and if yours isn’t dollars, it’s a good idea to get help organizing and managing your budget. Whether that means hiring an accountant to handle billing and payroll, or seeing the help of “DIY” programs such as Excel or Quickbooks, utilize the tools and experts that are available to help make managing your finances easier on you — so you can refocus your efforts back onto the success of your growing business.

Do you research before seeking out and applying for commercial real estate financing.

If you take a good hard look at your budget prior to research and applying for loans, you might be surprised that there are some areas in which you can cut back your spending to loosen up the tight times. Being realistic about where you can scale back can help you determine how much you should apply for when seeking a loan. When the loan amount is dialed in to exactly how much you need and not too much more, than you don’t have to worry about getting wrapped up in a repayment schedule and high interest rates that you don’t even really need.

When you decide you are ready, consult the professionals.

Upon determining your desired loan amount, find a lender who will negotiate terms that will work for you so you are happy with the payment amount and it fits into your budget.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What You Need to Know About Working Capital Commercial Real Estate Financing

October 15, 2017Uncategorizedcommercial real estate, commercial real estate financing, commercial real estate loans, commercial real estate loans in texasbigdaddydennis

If you need cash fast to get through a rough spot in your business or to catapult your business to the next level, you may benefit from working capital commercial real estate financing. Before applying for this type of loan, find out the benefits, and drawbacks, of this loan so you can up your chances of being eligible to receive funding.

When you need a loan, you may hear the term “working capital.” While it sounds formal, it’s really just a term that means the cash that a lender can loan to a borrower. This working capital can be used for important company needs for continued business operations such as employee payroll, monthly utilities, paying invoices and rent. There is always the chance of a company getting tight on funds and in that instance, working capital commercial real estate financing can be very helpful. A loan like this can make sure you keep your business running through tight times, even if you are low on cash flow and don’t have the ability to liquefy any assets.

Working capital loans have multiple benefits. They usually don’t require a lengthy or complication application process or approval time. The application process is not as strict as conventional loan processes sometimes can be, so this speeds up the process as well. Also, once a business is approved for the finances, funding can be received very quickly. Usually, once approved, funds are available to the borrower within seven working days. Another benefit is that the company is not required to use the funds for a specified purpose, unlike conventional bank loans that sometime have restrictions on how borrowers can use the working capital funds. Finally, companies that have less than perfect credit scores or history are still eligible for this type of financing.

Along with the benefits of working capital commercial real estate financing, there are some downsides. Though credit report review and application approval may be a bit ore lenient than a conventional application process, you may be responsible for more collateral to secure the funding. These loans also have shorter terms, which usually equates to higher interest rates than traditional long-term loans that have longer repayment schedules.

If your business represents a niche market, you may find that working capital commercial real estate financing is the right loan for your company.

Even if your business is a bit “out of the box” for traditional lenders to approve your loan, with certain loans that don’t require the loan money to be used in a specific way, this is ideal for new companies and small businesses in need of cash. This financing can be very helpful for companies that need to purchase inventory, supplies, equipment or other business needs. But beyond that, even if the company does need to use the funding for other purposes, it’s not an issue.

When you are in need of working capital, find a lender that specializes in this type of loan.

There are many lenders that focus on this type of loan, and know how to help companies like yours get the loan approval you need. Do your homework prior to meeting with a lender to ensure they can help you get the kind of working capital loan you need to help your business grow and succeed.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The “Pros” of Short Term Commercial Real Estate Financin

October 15, 2017Uncategorizedcommercial real estate, commercial real estate financing, texas commercial real estatebigdaddydennis

To grow any business to the next level, it’s important to have the financial backing in place to be order to afford expenditures of expansion. Short term commercial real estate financing can take your company to next level but first you’ll need to understand what will be required of you to make sure you are eligible for this type of loan.

Short term commercial real estate financing can be just the solution to the problem of coming up short on cash. Unlike conventional financing options that have five or ten year repayment terms, the repayment schedule of a short term is typically much shorter — likely between three and six months. This type of financing is also usually approved easier than traditional long-term loans and the payment restructure can be made in not only smaller, but also more frequent payments – whether daily or weekly – versus a monthly lump sum. When securing this type of financing its important to figure into your budget the repayment.

Another “pro” of short term commercial real estate financing is that you can get the cash you need relatively fast. This is important when your company is in a tight spot and it’s also a good way for new companies to establish some business credit, which can be beneficial, and help them improve their chances of getting approved, if they need to apply for a larger conventional long-term loan later on. The ability to show a lender that you have had, and paid off, previously loans, helps your eligibility.

Short term financing is great for new companies and businesses with not so great credit history that are working on rebuilding their credit scores. These types of loan application processes don’t typically require a high minimum credit score for approval, which conventional lenders and banks usually do. However, if you are able to get approved for this type of loan and are able to restore your credit score by repaying the loan as outlined in the loan agreement, this can make other loan applications you may apply for later on look more desirable.

With short term commercial real estate financing, you don’t have to wait too long to get the money you need.

After applying for the loan, going through any additional necessary steps of approval, and finally, actually getting approved, you can receive the cash in as little as a day. For companies that are really in need of cash very quickly, this type of loan can really save the day!

As with any upside, there are some downsides, too. There are a few “cons” that are involved with this type of short term financing.

While these loans can be very helpful for new businesses and companies that are experiencing some growing pains and need cash fast, there are a few things to be aware of. These loans are associated with much higher percentage rates of these than the average APR associated with conventional long term financing. This is because the repayment window is much shorter. The APR is higher comparative to the length of the loan schedule, usually between three and six months. To estimate and convert the APR, add the finance charge plus the interest rate. Typically, lender fees will also be required for this type of financing.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Mortgages: CMBS lenders revise expectations about the impact of Dodd-Frank regulations

October 9, 2017Uncategorizedcommercial mortgage broker, commercial mortgage lender, commercial mortgages, commercial real estatebigdaddydennis

The second half of 2017 has seen a sharp increase in the sale of securities tied to commercial mortgages.

By the end of July the total value of CMBS loans stood at 47.4 billion dollars, a dramatic improvement from the same time last year when the value of CMBS deals was only 37.9 billion. Mortgage Alert predicts that if the rates of CMBS issuance hold steady then the value of securities issued this year will reach 77.6 billion dollars.

The beginning of the year saw virtually no new commercial mortgage bonds being approved. There were no CMBS loans issued in January and the total value of these loans was only 11.1 billion by the end of the first quarter. But August alone saw the approval of 335 CMBS loans. CBRE’s lending momentum index, which tracks the pace of loan closures, recently ticked up by 27 percent. September is on track to the biggest month for CMBS loans this year. Mortgage Alert claims there are 16 billion dollars of loans in the pipeline.

The CMBS market is obviously heating up. The number of CMBS loans approved in June, was the same as the number of loans approved over the entire first quarter. The mortgages that closed in June were valued at 12.5 billion dollars, twice the amount of any other month this year. The new mortgages so far have primarily been tied to mixed use office properties in New York, Los Angeles and Washington DC. Some notable CMBS mortgages include Vorando’s refinance deal for 330 Madison Avenue, a 500 million mortgage with a seven year term. Black Stone Group also recently acquired BioMed Realty trust and used CMBS securities to purchase 15 of the groups office buildings for 825 million dollars.

The providers of of commercial mortgage securities have adapted to the Dodd-Frank risk retention rules that came into effect this year.

CBRE’s Brian Stoffers said “ The recent surge in CMBS mortgages demonstrated that these lenders are becoming increasingly comfortable with the risk retention rules.” The rules stipulated that CMBS lenders maintain a 5 percent stake in every security they issue. Robert Grenda of Morningstar agrees claiming that early concerns about these risk retention rules have dissipated and that “underwriters have gotten comfortable,” while claiming the new rules haven’t significantly impacted the volume of CMBS loans. The recent surge in these types of loans seem to bear out these claims. Smaller players may have exited the CMBS market, but the remaining players have apparently boosted their lending efforts.

While CMBS lenders are issuing new loans at a greater rate, the total volume of commercial mortgage debt held by these lenders continues to decline.

While the second half of this year will prove better than the first for CMBS lenders, their share of mortgage debt in both the commercial and multi-family sectors fell by 2.4 percent, according to the Mortgage Brokers Association. Securities issued prior to the Great Recession are being paid off this year, and demand for new CMBS securities remains historically low. While CMBS lenders have adapted to the new regulations, it remains unclear whether the industry will ever recover its share of the market under the new risk retention rules.

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

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Tag Archives: commercial real estate

Commercial real estate transactions and commercial real estate loans expected to rise in 2018

The sluggish pace of commercial real estate lending seen in the first half of last year is expected to improve in the coming year. Commercial real estate transactions are on the rise, but are likely to be tempered by new fears among investors.

As sales of commercial real estate increase, commercial real estate lending is likely to increase as well.

Investors in commercial real estate face new uncertainties this year which makes the pace of commercial real estate lending hard to predict.

The Best Ways on How to Evaluate Commercial Real Estate Financing Options

Before taking a dive into a big investment, it is a good idea to understand all of the difference between all of the different types of commercial real estate financing. Some of these types include office space, retail space and plenty of more properties.

Commercial Real Estate Financing can come with many benefits if executed right

When done successfully, commercial real estate financing can be a win-win solution for all involved

Many Are Eager to See if Commercial Real Estate Financing Will Finally Bounce Back Towards the End of the Year

Commercial real estate financing didn’t see successful numbers in the second-quarter, but it also didn’t see a drastic decline

High expectations are still set for commercial real estate financing for the rest of 2017

How Using Collateral Can Help You Secure Commercial Real Estate Financing

As you start or grow your business, you may come upon a circumstance when you need to secure a loan to boost your business or cover some important expenses. When seeking commercial real estate financing, using collateral can help you get the right loan terms.

When you are applying for a loan – put your cards on the table… even your collateral.

Your collateral can be just the thing lenders need to approve your loan!

Avoid Making These Mistakes When Applying for Commercial Real Estate Financing

Sure, we all make mistakes, but some are bigger than others and can make a lasting impression on the future and success of your business. When it comes to securing commercial real estate financing, try to avoid making these mistakes.

There are also some things you can do to increase your eligibility and chances of getting your loan approved.

Don’t rush through the process and you will avoid making mistakes

How Commercial Real Estate Financing Can Be the Key to Managing Your Business Finances

Do you research before seeking out and applying for commercial real estate financing.

When you decide you are ready, consult the professionals.

What You Need to Know About Working Capital Commercial Real Estate Financing

If your business represents a niche market, you may find that working capital commercial real estate financing is the right loan for your company.

When you are in need of working capital, find a lender that specializes in this type of loan.

The “Pros” of Short Term Commercial Real Estate Financin

With short term commercial real estate financing, you don’t have to wait too long to get the money you need.

As with any upside, there are some downsides, too. There are a few “cons” that are involved with this type of short term financing.

Commercial Mortgages: CMBS lenders revise expectations about the impact of Dodd-Frank regulations

The second half of 2017 has seen a sharp increase in the sale of securities tied to commercial mortgages.

The providers of of commercial mortgage securities have adapted to the Dodd-Frank risk retention rules that came into effect this year.

While CMBS lenders are issuing new loans at a greater rate, the total volume of commercial mortgage debt held by these lenders continues to decline.

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