Tips for Finding a Commercial Lender

When you are ready to buy a commercial property, your first research needs to be about which lenders in your area offer commercial loans. Selecting the right commercial lender can make your loan application process much more successful.

Finding the right commercial lender is really the same process that you would use to find any service provider for your business. You need to find a commercial lender who offers the services that best meet your needs and also one which you feel comfortable working with. There are a few items that you will want to keep in mind as you begin to seek out your perfect lender.

Your local bank can be a good first stop to determine if they offer commercial loans. It is always good to have a strong relationship with your banker so bringing him or her the opportunity for additional business is a good first step. You will also want to determine which other banks or lenders are working in your geographic area. Getting a loan from a local commercial lender is often less difficult than working with a remote lender.

As you create a longer list of lenders, you will want to begin to pare down the number to include only the lenders who offer and specialize in loans similar to the amount that you are looking for. You want to work with a lender who will be attentive to your needs and your business. And the best way to do that is to work with a lender who caters to your type of loan needs. You should also understand that not every lender will require the same qualifications so be prepared to check into each lenders criteria before you begin their application process. It is not unusual for a borrower to apply to several lenders when seeking a commercial loan.

Invest in Professional Documents

You don’t need to go out and find a person to create custom documents for your loan application package but you need to make it look like you did. Having a well laid out set of documents shows the lender that you have invested time and effort into the preparation and that you are serious about getting a commercial loan. It will also be a good first impression when you have all of the required documents submitting and filled out completely and correctly.

Items to Include

Each lender might have a few unique requests for documentation but as a general rule all of them will want to see information about the property that you are interested in purchasing. This should include the address, a brief description of the property, photos of the building and any appraisal information that you might have. You will also need to submit your bank statements for the past 6 months, P & L statements and also tax records for the past 3 years. In addition to your business documentation, be prepared to provide your personal financial information. This should be included for all of the company owners and should detail personal taxes, bank statements and documentation for any other properties that are owned. Having this information presented in an easy to read format will help to decrease the time that the lender wastes requesting additional documents and will get your loan approved more quickly.

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.

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