Understanding the Different Types of Commercial Real Estate Lenders

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Understanding the Different Types of Commercial Real Estate Lenders

Time-for-a-New-Home-Loan-From-Setabay-Home-Mortgage-952x1024There are many options when it comes to commercial real estate lenders. Level 4 Funding helps you understand the different types and the lender that is best for your business.

Today it’s much easier to obtain a loan in other ways than just applying for a loan from a bank. There are many alternative choices and commercial real estate lenders that make it easier for borrowers who have been rejected from a bank to still obtain the loan they need. Nowadays, there are many options and lenders that are ready and waiting to meet your needs.

It’s important to break down your specific needs because not all lenders have the same experience and some specialize in a specific market or niche. It’s important that the lender you go with understands your company or business’s specific needs. Once you understand your needs, it’s a good idea to understand the six main types of lenders.

Banks are a traditional lending option. They can be difficult to obtain a loan through because their red tape tends to be more rigid than other commercial real estate lenders. However, they are typically creditable sources, and going with a local bank ensures they understand your specific market. Life insurance companies are another option since they have large amounts of capital. However, like banks, they are typically not interested in big-risk lending and err on the side of conservative loans with very reliable return projections. The bond market, or commercial mortgage backed securities, is another option. These loans are backed by bonds and have the potential for great reward.

Some other options include a debt fund, which is an investment pool, like a mutual fund or exchange-trade fund that allows multiple investors to lend or buy loans. Government sponsored entities are another option in the instance of government created and controlled organizations handling private financial dealings. Finally, marketplace lenders are online lenders that match up borrowers with investors willing to take on their loan.

How to determine which loan type is best for your needs.

There are a number of ways you can go about this. You can ask questions, talk to people and see how their services align with your needs. This is the most direct way to go about it and you can also get a good feel for the organizations by speaking with their representatives. Trust your instincts and pay attention to things like customer service. For example, do they always answer the phone and take your calls or do you get sent to voicemail then have to wait an inappropriate amount of time for a return call.

Level 4 Funding can provide you with the service and loans to meet your needs.

As experienced commercial real estate lenders, we at Level 4 Funding are dedicated to serving your loan, getting the right loan for you and making sure the process is as smooth and easy as possible. Call us today and get your questions answered by one of our experts.

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
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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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