Nowadays, everything is done online, but the problem with that can be figuring out who is legitimate and who is a “Nigerian prince that needs your help moving a few million dollars”. For real estate investors, there is a way to determine which online commercial lender is right for them.
Millennials will likely never know what it was like to have to physically write checks to pay their bills or have to go through the process of having to find enough stamps for each envelope. They will not have to worry about whether they mailed the bill far enough in advance for it to be processed before the due date.
They just do it all online.
More and more can be done online; including investing in real estate. But when all you have is a computer screen and a set of facts provided by the lender, how can you tell which online commercial lender is right for you?
First off, when online, you will not just be evaluating a commercial lender online, but the real estate investment opportunity the lender is offering. So, when conducting an evaluation, both need to be taken into consideration.
Okay—so what factors do you need to take into account when evaluating them?
– Technology: a large part of what makes the opportunity unique is that it is online, but beyond posting pictures to a website, it is important to consider how the lender uses technology in regards to the investment opportunity. Is it just to post pictures on a website? Or is it used in a way that enhances the experience and makes the opportunity a little challenging to pass up?
– Expertise: this is pretty self-explanatory. Do you want to go into business with someone that is well-versed in commercial real estate or are you comfortable using an online commercial lender whose expertise lie in web design and social media instead? If the online lender does have experience in the industry, they will be better equipped to answer any questions you may have much better than your webmaster.
– What Is Being Offered: What types of investment opportunities is this online lender offering? Depending on the platform, the rate of return will vary with the amount of risk you are willing to accept. Some opportunities will allow you to get involved with a particular loan and allow you to evaluate each, individual opportunity. Others will be funds that work with a variety of properties and deals.
In the years to come, technology will likely continue to advance, making it possible for investors and commercial lenders to do even more online than they already do. As more and more is done online, it becomes vital that investors know and understand how to evaluate an opportunity properly.
If they don’t, they could find themselves hoping their Nigerian prince does need help getting his millions out of the country before the rebels seize it.
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.