There is more to finding the right commercial real estate lenders than whether they will approve you. When considering the available commercial real estate lenders at your disposal there are several things to consider which can help you figure out the right one for you.
Going into business is a pretty big decision and one that will involve you having to make several big, important decisions along the way before you ever open up. One of the biggest, of course, is your location. The wrong one can doom you to failure before your business ever gets off the ground.
So, when choosing your location, it helps to have the right people involved in the process. But with all the commercial real estate lender available, how do you go about choosing the right one for you?
On the surface, it may seem like deciding which lender to go with is easy—go with whoever will approve you. But if you do that, there is a very real chance you’ll get stuck having to honor terms that are advantageous to the loaner and problematic for you.
The following are several things to keep in mind when you are looking for a lender:
– You Have Options: Don’t settle for the best of the worst. There is someone out there who is right for you. You may have to do some searching to find him/her. But you are better off putting in the leg work now rather than regretting not doing so later.
– Choose the Best Loan for Your Business: Not every loan is the same so make sure you understand exactly what you think you need and what the lender is offering.
– Get Pre-Approved As Soon As Possible: The quicker you know how much you have to work with, the faster you’ll find your space.
– Work With a Lender Focused On Your Immediate Needs: It is nice that they want to protect your future, but if you never make it out of the present, the future doesn’t matter.
– It’s Smarter to Make a Smaller Down Payment: In theory, this means you end up paying back more later, but when you are getting started there will be several expenses that will come up that you did not budget for. It’s better to have the money on hand and not need it than to need it and not have it.
– Look for a Lender with an Entrepreneurial Mindset: Anyone can learn how to review loans and talk terms, but it takes someone with an entrepreneurial mindset to truly understand what you want to do and why it’s important to you.
– Do Not Choose a Lender Based on Interest Rate Alone: No one wants to have to pay the lender more money, but there are so many other terms to consider that can be vital to your success.
– Get Referrals: No one will know a lender better than someone who has worked with them before. If someone is willing to recommend them, then they can’t be too bad.
The last thing you want to do in the early stages of your business venture is not feel good about whoever you choose from the commercial real estate lenders available to you. So be sure and question them about anything you want and use whatever tools you have on hand to discover what you need to know.
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.