Setabay Private Hard Money Lender: bad credit commercial loan

Friday, July 8, 2016

Commercial Real Estate: How To Find Leads

When you are just starting out in the commercial real estate business you have to always keep your head on a swivel. There is always a property to be sold; always a flip to be made. You just have to go out and find it.

The commercial real estate business can be a crucible when you are just starting out. One of the biggest obstacles many beginners face is finding out where the next potential buy is. If you ask most professionals in the trade, they will tell you it is usually word of mouth that gets helps them find their prospective buy. Some will tell you looking through public records is the best way to find a new property. These are just a small few ways that you can go about finding your first buy, but you have many options if you look closely.

Word of mouth is possibly the best way to find out where the best prospects are for investing. The first place you could go to is your family. Most of the time they are best places to start. The commercial real estate business is about making and having connections. You want to make sure that you start making connections with people that are on the ground floor of the market that you want to corner. Having your ear to the street will give you a lot of leads when you are beginning.

Being a people person is a lot of the battle in the commercial real estate business; you have to be able to talk to different people without fear. Being extroverted is a great trait that you could use to your potential. Everyone likes someone that is personable. However, it is possible to be introverted.

Another way you could figure out where some potential properties is by mentioning to people that you are in the commercial real estate business. Just by giving people your business card or the link to your website in passing opens up many different doors.

Connections in the commercial real estate business are extremely important

This is the age of social media, with a swipe of a finger or a quick click of a mouse puts you in contact with millions of people. The same model can be applied to commercial real estate. If you are having trouble finding where the best lots are located or when the next foreclosure is happening a tweet could suffice. You could keep up with certain hashtags that involve your business such as #CRE. You could also send a massive email chain could also help you find some new clients. You also want to make sure that you keep up with the plethora of blogs and forums that are online. You usually will have some that could give you the rundown on a city you may want to start plotting investments.

When all else fails the commercial real estate business will always have something around you just have to go searching

Sometimes you just have to trust your gut and go cold searching for a property that you may be interested in. Many investors will drive around popular neighborhoods and cities looking for distressed or derelict properties that need a little refurbishment. This is called, “driving to dollars,” in the commercial real estate world. Depending on your experience this will be the first or last thing you do.

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

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.

Monday, June 20, 2016

How to Get a Commercial Loan with Bad Credit

You want to purchase office space or a nice tenement in an upcoming area but you have a 320 credit score. This article will show you how to get a commercial loan even if you have a bad credit score.

Let’s face it debt and Americans go hand in hand. Most of us are trying to come out from under some form of debt. In a 2015 study, the U.S. Census Bureau concluded at least 38.1% of households in America have some form of debt. In the last quarter of 2015, the dollar amount of credit card debt in the U.S. was around $733 billion. In regards to mortgage debt, the amount was a staggering $8.25 trillion.

Needless to say, a few of us have a little debt in our name. But is that supposed to stop you from being able to by that nice home for your New England bed and breakfast? No. Everyone should be able to be an entrepreneur in this day and age. You can still get a commercial loan with bad credit there are just a few more things that you have to go through before you get the loan that you need.

Before you apply for a commercial loan plan ahead

First and foremost, you want to make sure you have a clear and concise business plan. You should be able to walk into your lender’s office and be able to give them the pros of giving you a commercial loan for your business. You want to make sure you give your lender a clear and in-depth plan of action. Show them the goals you want to accomplish with this business. Provide them with the tactics you will use to bring customers or tenants to the space you want to buy. Make sure you, yourself, know what you want to do with your business.

You could also make contact with your creditors. Trying to make payments on your debt can have a good impact on your credit score. As well all know this will not happen overnight. But making an attempt to rectify the situation looks really good in the eyes your lender. You may have to pay higher rates or addition fees, but with your commercial loan, you are one step closer to your property.

Where can I go to get a commercial loan if I have all of that?

Do not fret even though you may have bad credit you still have come options that you have at your disposal. There are some banks that will work with you however your options are kind of slim. An option that a lot of investors with bad credit look into is borrowing from hard money lenders. Most of the time hard money lenders do not worry about your credit score as long as you have a form of collateral. If for some reason you cannot pay your loan back, then the collateral used will be auctioned off for profit. The only drawback that you will most likely have is the higher interest rate that you will have to pay.

Here at Level 4 Funding we specialize in commercial loans for bad credit investors. You may end up paying a bit more interest but in the end it will be worth it to have the loan that you need to grow your business. Hopefully, this gives you the confidence to go and get your commercial loan for your news business.