For those thinking about going into business for themselves, the myths surrounding commercial loans can be daunting. But there is a way to get past them.
The small businessman is the backbone of the American economy. If it weren’t for the entrepreneurial spirit in many ventures that began as small, some of the largest corporations in the country wouldn’t exist today. They, like small business people of today, just had to look past the myths surrounding the commercial loans process and power through.
They had to get past the tough times and difficulties by persevering and never giving up. Easier said than done—right?
Seven Myths Surrounding Commercial Loans
The commercial loans process is not an easy one, but it Is far from being the monster it is often made out to be. But like any myth, once started it can be very hard to stop. The following are seven myths often associated with commercial loans:
• Getting approved for a loan is the hardest think you’ll ever do: It isn’t easy, but if you prepare for the process and do your homework it doesn’t have to be too bad.
• You have to have perfect credit: not necessarily. Traditional loan sources will want your credit to be pretty darn good, but there are several alternatives geared towards people with less-than-perfect credit.
• You have to use a bank: Absolutely not! There are several alternatives to applying for commercial loans these days.
• Working with banks sucks!: The process may take a while, but if you can afford to wait for your money, it is not a bad option at all.
• The more you ask for, the less likely you’ll get approved: Not necessarily. Whoever your lender is will want to know that your project can be completed properly and would likely prefer to give you a little more to do things right.
• You have to have a good business plan: At one point in time, your business plan was what was used to gauge your potential for success. But many lenders now consider that to be an outdated process. You still need one, but it is not going to be a deal breaker.
• The interest rate is the most important thing: While it is important, it is not considered by many to be the most important thing. There are several important factors involved as well as the interest rate.
Myths Of Commercial Loans Debunked!
Getting commercial loans is not meant to be easy—otherwise, everyone would get one. But the process isn’t as hard as it is made out to be. All you have to do is make sure you are prepared for the process, reply to any requests made by the lenders.
Whether you are trying to get one through a bank or an alternative source, It is key to be well prepared for the process. Being prepared for whatever they may throw at you can make the difference between getting approved and rejected.
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.