Imagine that your company is getting ready to expand its portfolio of assets and make a big investment into the commercial real estate industry. A strategic business plan for how to maximize the value of the site is ready to go. The building has been selected and potential tenants are already expressing interest in the location. The next step, finding financing for the project, should be the most straightforward part. In reality, however, this part of the Texas Commercial Lending process is just as complex as the rest.
Consider the catastrophe that would occur if your company’s Texas Commercial Loans wasn’t sufficient to cover the purchase and management of a commercial real estate asset?. Not only could this put several business strategy timelines in jeopardy, the misstep could expose the brand to embarrassment and ridicule. Thankfully, there are plenty of ways to make sure neither of these things happen. The following tips are helpful considerations to think over before deciding on a strategy for your next real estate project.
1. Secure Funds For Immediate Upgrades: One of the most common and critical mistakes that can be made when financing a commercial real estate project is assuming that loan funds can only be used against the cost of the building or land. These funds can also (and should) be used to finance upgrades to the facility. By dedicating funds toward making the building more efficient and productive, your company can immediately begin to enhance the asset’s value in preparation for later sale. Fresh building upgrades will also make it easier to attract tenants and visitors, jump-starting your asset’s ability to generate sustainable revenue.
2. Don’t Forget The Landlord: In the same way that companies can fail to account for maintenance costs when financing their real estate project, many also underestimate the logistical demands of a real estate asset. Someone will need to play the role of landlord, collecting rent and responding to the needs of tenants. This role could be solved internally, but chances are that a company would be better served investing in the talents of a building management professional.
3. Consider Multiple Properties: If your company’s plan is to use a Texas Commercial Loans to purchase a revenue-generating property, why stop with one? Using a mix of capital and financing, your company has the potential to purchase more properties than it might have through financing or capital alone. If a company wants to make a move into commercial real estate in a big way, and has a detailed plan for success, there’s no reason that leadership shouldn’t consider investing in multiple properties from the start.
If you’re working with an experienced, reputable lender, they’ll share much of the same information with your company. Texas Commercial Loans professionals can provide helpful insights into the industry that translate into priceless advantages for your company.
Make the most of your first financial property investment by
doing your homework and working with an expert.
Your business is wise to invest in commercial real estate. Taking the time to better understand the industry will ensure your investment yields the maximum ROI.
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.