How to Make Money With Commercial Real Estate
June 22, 2016The Pitfalls of a Commercial Mortgage
June 22, 2016
When you are looking into obtaining a loan from a
lender you have many options at your disposal. Many people go the route of the
bank, however, you do have hard money loans and commercial bridge loans, also.
From banks to life insurance companies, there are many
different routes you can take to get a loan for your business. Most of the time
people starting out in the commercial real estate business think the only way
they can get a loan is through a bank. Banks are great places to go, however,
it might take a while before you are approved for the loan you want. The
process can take several weeks to complete and even then you are not guaranteed
a loan at the end of the process.
different routes you can take to get a loan for your business. Most of the time
people starting out in the commercial real estate business think the only way
they can get a loan is through a bank. Banks are great places to go, however,
it might take a while before you are approved for the loan you want. The
process can take several weeks to complete and even then you are not guaranteed
a loan at the end of the process.
Along with time constraints, you may not be approved
for the loan if your credit report is not favorable in the eyes of the lender.
Needless to say, if you have a couple of red flags on your credit report you
might have to shop around for more than one bank to pitch your business plan.
Some banks even go as far as doing a character check on some applicants. You
may think this is not so bad, but you might have done some unbecoming things in
college which may come back to the surface in your professional career.
for the loan if your credit report is not favorable in the eyes of the lender.
Needless to say, if you have a couple of red flags on your credit report you
might have to shop around for more than one bank to pitch your business plan.
Some banks even go as far as doing a character check on some applicants. You
may think this is not so bad, but you might have done some unbecoming things in
college which may come back to the surface in your professional career.
Never fear hard money loans and commercial loans are here
So where can you go if you have these problems, then?
The easy answer you can go to a private lender that specializes in either hard
money loans or commercial bridge loans.
You can use these loans to get the property that you want fairly quickly. In
fact, a lot of investors starting out that do not have a ton of liquid assets
can use this route to begin their career. Generally, it is a little easier to
get either a hard money loan or commercial bridge loan.
What makes commercial bridge loans and hard money loans better?
Quite frankly they are both better when it comes to
your credit report. Most lenders do not care about your credit report. When it
comes to hard money loans most of the time the lender wants to make sure you
have some form of collateral that you can offer. This means to be qualified for
the loan
your credit report. Most lenders do not care about your credit report. When it
comes to hard money loans most of the time the lender wants to make sure you
have some form of collateral that you can offer. This means to be qualified for
the loan
itself, you have to possess something of equal or greater value that could potentially be auctioned off.
This
happens in the event you cannot pay your loan back or you do not refinance it.
Often people that are in the real estate flipping business go for a hard money
loan; since they need to get financing quickly on properties. A commercial bridge loan is essentially the
same type of process as a hard money loan, however, you usually apply for one
while you are in between another transaction.
happens in the event you cannot pay your loan back or you do not refinance it.
Often people that are in the real estate flipping business go for a hard money
loan; since they need to get financing quickly on properties. A commercial bridge loan is essentially the
same type of process as a hard money loan, however, you usually apply for one
while you are in between another transaction.
Say you have a home that you are in the process of
fixing up and selling. However, another home becomes available on the market that
you think would be a good buy. Applying for a bridge loan would be a good idea
just to hold you over until the deal you have with your buyer is done. Hard
money loans and commercial bridge loans
great for these types of investments since they only last a few months to a
couple of years, as well.
fixing up and selling. However, another home becomes available on the market that
you think would be a good buy. Applying for a bridge loan would be a good idea
just to hold you over until the deal you have with your buyer is done. Hard
money loans and commercial bridge loans
great for these types of investments since they only last a few months to a
couple of years, as well.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
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.