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Tuesday, September 19, 2017

Commercial Lending Texas: Getting Help from the SBA in Harvey’s aftermath

The Small Business Administration is issuing millions in emergency loans to small businesses impacted by Hurricane Harvey. What are the restrictions and how do you apply for this type of commercial loan?

The SBA is approving loans at an unprecedented rate in the aftermath of Hurricane Harvey. As part of the recent aid package passed by Congress, the SBA has received 450 million dollars to distribute as loans to those impacted by the storm. As of September 10^th, the agency has approved 100 million dollars in loans. 8.5 million of those dollars are directed to small businesses. An SBA disaster loan may be the best option to cover uninsured damage in the aftermath of Hurricane Harvey. Learn the restrictions of an SBA disaster loan and how to apply for one.

The SBA only approves emergency loans in areas considered directly impacted by a natural disaster. Ensure that your community is listed on the SBA website. These loans are issued directly by the SBA, so the fastest way to get approved is to apply directly on the website. Be expected to provide documentation including legal records relating to your business, detailed documentation of specific damages, tax records, profit and loss statements and lists of your current assets. The SBA may request further documentation throughout the process. After submitting the necessary documents, the agency will review your insurance coverage and determine whether you qualify for a disaster loan. In general the approval process takes 2 to 3 weeks. The SBA will may review both your personal and business credit scores. You may be required to offer principle in your business in order to guarantee the loan.

SBA disaster loans are meant to cover uninsured damages related to natural disasters including economic and physical damage. How the proceeds of the loan can be applied depends on the type of loan you apply for. The SBA issues both Physical Disaster Loans and Economic Injury Disaster Loans. Physical Disaster Loans can be applied to repairing or replacing real-estate, machinery, equipment, fixtures, inventory or to make leasehold improvements. SBA disaster loans are intended specifically for uninsured damages. However, if your property is covered by insurance an SBA loan may be applied to cover your mortgage obligations. Economic Injury Disaster Loans (EIDL) are intended as a stop gap for interruptions in cash-flow. An EIDL is meant to help businesses meet normal financial obligations which they no longer able to meet due to a disaster.

SBA disaster loans cannot exceed two million dollars. You may need to seek other types of commercial loans to repair damage to your property

The SBA can only give small businesses two million dollars in the form of disaster loans. This amount may not fully cover the damage to your business. If you suspect your damages exceed 2 million dollars, seek out additional options to help you recover.

Remember an SBA Disaster Loan is still a commercial loan.

An SBA disaster loan is an excellent option to rebuild and repair your business. But it is a loan, not a hand out. The agency considers your credit score prior to approving any disaster loan. If you suffer from poor credit, you may be denied. Another factor to consider is that you may not have the documentation needed by the SBA. You may have lost your business records as a result of the disaster. Consider whether you have a good credit profile and the necessary documentation before applying for an SBA disaster loan.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, September 14, 2017

Think Like A Lender To Get Your Commercial Real Estate Loan Approved

Getting inside a lender’s head allows borrowers to understand how to get their loan approved. Consider risk management to be a top priority.

Acquiring capital through a commercial real estate loan is typically one of the first step a company takes in making a major real estate investment. That being said, this part of the process can be extremely difficult and time-consuming, depending on how a company goes about applying for a loan. Whether your company has struggled to get loan terms that line up with your company’s timeline or are having trouble getting funding in the first place, putting yourself in the shoes of a lender can help you get closer to your mark.

The following considerations are a few of the top concerns a lender will consider when deciding whether or not to approve a loan request and work with a new client. The better you understand a lender’s expectations, the better you can tailor your loan application to meet these requirements.

● Am I confident this borrower will pay off the commercial real estate loan off? First and foremost, the borrower is going to want to understand how much the business is making, and how much your business expects to take in as a return on the money your business is borrowing. The lender’s top priority is to make a profit on lending out your company’s much needed capital.

● What does this borrower’s credit history say about their reliability? With a closer look at your company’s credit history, a lender can determine how well your organization has handled credit. The higher your score, the more comfortable a lender will be with loaning out larger amounts of money at more reasonable interest rates.

● How much of their own money is the borrower willing to put up? The more capital your company is willing to put up in the beginning, the more invested your organization appears in the project. Showing a lender that your company intends to see the project through to the end despite any obstacles helps to build the lender’s confidence.

● Can the borrower offer me collateral to ease my concerns? Collateral offers a “just in case” scenario to lenders in case the borrower’s loan becomes delinquent. When companies offer up their own collateral, lenders will be more willing to negotiate on other terms. As far as your business goes, collateral will have to be something valuable enough that the lender accepts it as a consolation prize for your organization backing out on the loan. It may take offering up land, stocks or other real estate assets for your company to get the money it needs from a lender.

The Easiest Way To Think Like A Lender Is Learn More About The Industry

By keeping up to date with industry news resources and the latest expert blogs, your company stays in the know about important trends that impact loan terms.

Pick the brain of a trusted private lender for even more tips on where the industry is headed.

Traditional lending institutions can’t always give your company necessary insights (or loan terms). That’s when it’s time to turn to the services of an experienced commercial real estate loan specialist.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Maximize Your Commercial Mortgage By Avoiding These Common Real Estate Investment Flubs

Real estate is full of promising opportunities. Avoid these rookie mistakes to ensure your company gets a full return on its commercial mortgage.

Once your business has developed a detailed, data-driven action plan, it’s time to pull the trigger on the company’s big commercial real estate move. It’s important to remember that small mistakes can greatly impact the end value of a major investment. The same goes for commercial real estate investments. If your company wants to get the full value back for a commercial mortgage, it pays to plan for common hurdles. The more prep work you do before hand, the greater the return on your group’s investment.

What’s the best way to make sure these little mistakes don’t cost you hundreds of thousands of dollars? Be informed and plan ahead. Don’t let the following common commercial real estate flubs chip away at the value of your investment.

● Don’t Assume Banks Have All The Answers - Traditional financial institutions hold a great wealth of information, but remember that they are also businesses competing for your dollar. Unless you have a pre-existing relationship with a bank, they are only obligated to tell you so much about the market and what types of commercial mortgages are available elsewhere. Furthermore, their risk-adverse nature can make banks less knowledge of niche or emerging industries.

● Avoid Investing On A Hunch - Going with your gut will serve you well in numerous business scenarios. A major decision concerning real estate investment is not one of them. Your company is much better off relying on data analytics and fresh impressions of recent deals. Having a detailed strategy in place also makes it easier to correct your approach if your project isn’t showing immediate results. Investing on a hunch puts your company back at square one if said investment doesn’t pay off immediately.

● Select Properties Only After Extensive Research - Where you invest deserves just as much thought as how you invest. To this end, your company must dedicate significant resources to evaluating and vetting a property before selecting it for development. Failure to do so puts your business at risk for managing a snowballing problems down the road. These types of systematic issues tend to develop when major details about a property are overlooked. Make sure specialized professionals look over every aspect of the property before making a decision.

● Maintain A Student Mentality - The best commercial real estate investors never stop learning. The property market is nothing if not dynamic. Those who assume the status quo’s best practices will keep working five or ten years from now have unrealistic expectations. That’s why it pays to keep learning about the market and stay abreast of recent trends even after you’ve committed capital to your investment.

Investing Your Commercial Mortgage With Expert Help Limits Your Company’s Risks

Need to get into the commercial real estate game sooner than later? There’s no substitute for experience. If your company doesn’t have that know-how internally, it pays to reach out to an practiced professional.

A vetted and capable lending professional can offer the helpful inside information you need to succeed.

Connect with a reliable private lender for access to capital and a better understanding of the market where your business is choosing to invest.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What To Look For In A Redevelopment Project Before Taking Out A Commercial Loan

Location is vital when picking out a building for redevelopment, but that’s just the start. There are several factors to consider before your company is prepared to take out a commercial loans.

Innovative redevelopment projects remain the closest thing the commercial real estate industry has to a sure bet at the moment. It’s not surprising why these properties are so valuable, considering the old real estate adage that encourages investors to pick up the crummiest house in a nice neighborhood. When the location and fundamental are sound, all it should take is a few tactical investments and smart marketing to turn a struggling Class B property into a Class A asset.

That’s why so many companies, likely yours included, have mused the possibility of taking out a Commercial Loans to invest into an office, industrial or multifamily redevelopment project. Look for the following qualities when evaluating potential targets for investment. The more ideal the property you choose is for redevelopment, the more you stand to make back on your investment.

● Versatile Marketing Potential - The most suitable candidates for redevelopment are those properties that have the greatest potential for a wide variety of projects. An office building that could be sectioned off into multiple, smaller offices, for example, offers more flexibility than a single-floor industrial facility. Focus your investments on properties that give your business the most paths to success.

● History Of Income Generation - Chances are that if you are looking at a property for redevelopment, the building’s current income generation is not ideal. That being said, it pays to look into the history of the facility. Was there a time where the property was performing well? What kind of customers used to frequent the businesses that rented space the building? A once successful establishment is much easier to turn around than one that never attracted business in the first place.

● Established Traffic Flow - Location, as always, in extremely pertinent to real estate transactions. In the case of redevelopment, learn as much as you can about the businesses surrounding a potential property asset. Their customers make up the traffic flow that is already present near your investment. If your company’s redevelopment strategy targets these consumers, your company is already in a good position to get back the full value of its commercial loan.

● Removable External Fixtures - First impressions are extremely important, especially when it comes to getting individuals to take a second look at a struggling property. You want the building’s exterior to broadcast quality, innovation and class. The easier it is to provide a facelift, the more likely you are to make a big splash with your redevelopment project. Properties with removable external features are ideal for redevelopment because they can be quickly replaced and refreshed with modern, eye-catching accents.

Cost-Effective Improvements Allow You To Fully Leverage Your Commercial Loan

The more you understand the types of consumers that frequent the spaces near your investment property, the more you can tailor your improvements to their needs and expectations. Being able to narrow in your approach to improvements will help reduce costs.

Clever redevelopment projects promise serious return for savvy investors

Ready to invest in a prime redevelopment opportunity? Your business can get the capital it needs right now by working an experienced private lender.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

4 Tips For Maximizing The Potential Of Your Commercial Real Estate Loan

Acquiring capital is just the first step. Use these pragmatic strategies to make sure your company unlocks the full value of a commercial real estate loan.

A commercial real estate loan can create a long list of new opportunities for your business. However, just qualifying for a loan and spending the added capital does not guarantee a significant return for your company. Plenty of thought and planning must go into the process if your company hopes to get the full return on its investment.

When a high level of thought and planning is put into the project, your organization stands to see priceless benefits. That's why the following tips are likely to come in handy. Develop a detailed investment strategy by using the following guidelines and ensure your company capital is well spent for the rest of the year.

1. Make decisions with the future in mind - Remember that trends in commercial real estate can be notoriously short lived. Afterall, great ideas seem less impressive once the entire industry has caught on. Your goal is to anticipate trends, not to just ride the wave. That.means your company will have to make it a priority to analyze the direction of the market, make judgement calls about trends and take risks to stay ahead of the curve. The commercial real estate industry requires investors to be intentional, committed and always ready to chase opportunities when the time is right.

2. Develop a plan for marketing the property in advance - One way to get back the full value of your commercial mortgage is to start the marketing process as early as possible. If your company has developed a detailed strategy for the project, then enough information should be available to start tracking down potential tenants. The more demand you can demonstrate for your project, the better negotiating position you’ll be in when you speak with a commercial lender.

3. Understand all your possible expenses - Your company won’t be able to leverage a commercial real estate loan if the project is blindsided by additional costs from the very beginning. That’s why it’s so important to plan around extra costs associated with a loan like lender fees, appraisal fees and origination fees. Taking extra time to look over loan terms and ask questions to experienced commercial lenders will help ensure that no costs fly under the radar.

4. Rely on data, not your instincts - It’s important that you avoid getting wrapped up in reactional investments, such as making a shift in the company’s commercial real estate strategy based on a hot take from a cable news pundit. The reality is that no one can accurately predict the market, just make educated guesses and rebound with confidence when they miss the mark. Stick to your data-backed, meticulous strategy if you want to see a substantial return on your investment.

Remember These Important Tips Before You Start Investing Your Commercial Real Estate Loan

The more prepared you are, the smoother your company’s experience will be when it comes to borrowing and investing.

Reliable market information and the insights of a professional can make all the difference.

Don’t be afraid to lean on somebody who knows the market. Local private lenders are a great resource for helping your company stay up to date on the latest market trends.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

3 Reasons To Prefer Hard Money Commercial Loans For Your Next Real Estate Investment

Don’t depend on banks to provide you with the best commercial loan. Your company may find that the ideal terms for their project are offered by a private lender.

Your company has numerous resources when it comes to acquiring capital for real estate investments. Traditional financial institutions, ranging from banks to trust funds, lend out money for real estate all the time. Unfortunately, these institutions are typically very rigid about who they lend money to, how much they lend and how rapidly the loan must be paid back. Thankfully, your company can instead choose to work with a convenient hard money lender as a reliable alternative.

This is just one of the many scenarios where a private money lender can offer unique advantages that support your company’s goals. Acting as a flexible source of capital, hard money loans can be leveraged to acquire all sorts of commercial real estate assets. That being said, it’s important to know all of the best scenarios for using a private money lender over other financial institutions.

1. Your Company Needs Capital Yesterday - There are times where access to funds previously available is cut off. In other instances, emergencies prop up and force companies to spend capital in order to put out a fire. Unfortunately, sometimes that operating cash was earmarked for something else. In cases where funds set aside for real estate investment are no longer available, a hard money Commercial Loans offers a quick solution. The process of applying for capital through a hard money lender is considerably more efficient than going through a traditional money lender.

2. Unique Opportunities Require Flexible Funding - Banks are businesses designed around making smart, predictable bets on borrowers. If the borrower is successful in paying back its loan (plus interest, of course) in a reasonable time, the bank sees this as a victory. That’s why big banks and other financial institutions have such strict guidelines when it comes to who they’ll provide a Commercial Loans to, how long and how quickly they expect the loan to be paid back. If your company doesn’t seem like a safe bet, you may be turned down for a loan. Banks may even be wary if you serve a niche market, especially if the market is unfamiliar to the financial institution.

3. Obstacles Call For Insights From A Seasoned Lender - When the market changes, so should your strategy. Creating a working relationship with a private lender provides you with a valuable ally. These professionals know better than anyone the current state of the market. After all, companies often turn to private lenders when traditional lenders turn them down. This insider knowledge can easily translate to helpful observations about the market if you have a positive relationships with your private lender.

Choose Hard Money Commercial Loans For Your Next Real Estate Project

Tired of dealing with the hassle and paperwork that comes with trying to borrow money from a bank? Consider the convenient alternative. Private lenders are available in your area.

Private hard money lenders make the financing process as straightforward as possible.

Don’t put off a big opportunity for lack of capital. An experienced private lender can ensure your company has the cash flow it needs to move forward.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

3 Key Considerations When Converting Commercial Into Residential With A Commercial Loan

Turning office buildings into living space is big business. Take advantage of the strong multifamily market by investing your commercial loan strategically in one of these promising projects.

High demand for residential property is a major force in today’s commercial real estate market. Several factors, including a large population of Millennials putting off home ownership, have created a huge need for residential space that is expected to continue growing. Building from the ground up is a huge investment, however, preventing many companies from cashing in on the strong multifamily market.

That’s why redevelopment projects have become so attractive. With the help of a commercial loans, your company can invest in converting existing property into a state-of-the-art multifamily asset. A carefully selected building and the right upgrades can make this redevelopment project quite profitable for your business as well. As you develop a strategy for redevelopment, be sure to ask yourselves these questions:

1. Do You Have Access To Quick Capital? You may qualify for the credit necessary to invest in a redevelopment project through traditional means, but that doesn’t mean you won’t want access to quick capital in the back of your pocket. Emergencies happen, deals fall through and chances are the redevelopment budget is going to get even bigger before the project is completed. You can offset these unexpected cash shortages with the help of a reliable private lender.

Hard money lenders offer flexible lending terms and a short turnaround once borrowers have submitted an application. Make sure your company knows where it can get access to rapid funds before committing to a redevelopment investment.

2. Could Mixed-Use Maximize Your Opportunities? In some cases, completely converting an office space into a residential property may not be the most effective redevelopment strategy. This is especially true if adjacent office buildings continue to succeed as income generating properties.

You may be able to better leverage the value of your Commercial Loans investment by converting only some of the building into residential space and updating the remaining office space with modern decorations. This mixed-use approach is more popular than ever, especially if the surrounding area is sustaining similar projects.

3. Will Local Authorities Facilitate Your Timeline? It’s not uncommon for local authorities to place holds on conversions, especially if local policies are already clear on the matter. Your next investment project could be stopped cold if the city prohibits commercial to residential conversions. In other cases, you’ll have to prove to the city that demand exists for the new residential or mixed-use property you plan to bring to the market. Doing research about local zoning and use conversion policies before zeroing in on a location will save your company from hours of extra work and backtracking.

Don’t Overlook These Key Considerations When Investing Your Commercial Loan

You’ll find many of the best redevelopment projects near areas that are already successful. Proximity to high-traffic areas is a key clue that your company is investing in the right project.

Analyzing a property for a quick turn-around is easier said than done. Rely on as much expert input as you can when making your investments.

Whether they are funding your initial investment or providing some much-needed emergency funds, private lenders will likely play a crucial role in your redevelopment plans.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

3 Tips For Getting Your Next Commercial Real Estate Loan Approved

It’s time to go back to the drawing board if your commercial real estate loan gets denied. These tips can help you turn that failure into a profitable success.

Your company is ambitious and looking to take advantage of a tempting real estate investment. The only problem? The business lacks the immediate capital and your most recent commercial real estate loan was denied. Don’t think that means your commercial real estate project is out of the picture. Your company has ample opportunity to rebound from this rejection. What’s the best way to proceed?

By understanding why your loan application was denied and identifying ways to change up your approach, your company is in a much better position to get an approval. Employ the following strategies to put the odds in your company’s favor:

1. Address Feedback From Previous Applications - Chances are that the lender that denied your application provided an explanation for why your loan wasn’t approved. Perhaps your company’s credit score was too low or the business’ credit history was not sufficiently diverse. Perhaps your company and the lender couldn’t agree to satisfactory terms. Either way, learning the lessons from the first application is critical toward getting the your next commercial real estate loan approved.

If your company is unable to effectively address these criticisms, then it’s important to develop a narrative explaining why these perceived weaknesses are irrelevant. Simply having a confident explanation for holes in your company’s loan application will improve your chances of getting approved.

2. Draft Multiple Promising Business Strategies - Regardless of why a lender reportedly denied your application, it almost always comes down to whether or not the lender was confident your company could successfully pay back the loan. With this in mind, it’s up to your business to do everything it can to convince a lender that they are likely to see a return on their investment. Business plans demonstrate to lenders that your company has defined path toward success.

Depending on other factors in your company’s credit history, this may not be sufficient. Devising multiple contingency plans, illustrating your ability to pay back the loan in multiple scenarios, may be enough to get your loan approved.

3. Consider A Private Commercial Lender - Instead of changing up your approach, why not just change up your lender? Traditional lending institutions like banks have plenty of capital to lend, but strict rules about who, how and when they lend it to borrowers. Working with a private lender promises more flexible options that better line up with your company’s timeline. Private hard money loans have their own advantages, so much so that it’s worth comparing your options even if you can get you loan approved by a traditional lender.

A Flexible Lender Will Help Your Company Create Success Through Real Estate

Start researching your lending options now if your company is preparing to make a major commercial real estate investment.

Don’t let your business miss out on an opportunity for lack of capital.

Local private hard money lenders are ready to facilitate your next commercial real estate investment. Reach out today to learn more about your options for rapid capital.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Use These 4 Tips To Determine If Your Commercial Mortgage Lender Is On The Level

Not properly vetting a commercial mortgage lender can quickly get your company into hot water. Research and careful evaluation separates true professionals from pretenders.

Any business deal can go under when a partner comes into the deal in bad faith. It is extremely important for your company to to research, evaluate and vet each professional you work with before moving forward on an expensive real estate project. This includes the person responsible for providing your company with the capital needed to fund the real estate investment in the first place.

For example, an unscrupulous lender may provide your company with advice that exposes the borrower to more risk while helping their own bottom line. In other scenarios, an incompetent lender may provide your company with bad information about the market, leading to your company making a critical error in investment strategy. Want some tips to make sure your company doesn’t get stuck working with a subpar lender? The following tips are a big help.

1. Trust Informal Interactions - A gut feeling goes a long way when it comes to evaluating a commercial mortgage lender. Let small interactions, like inappropriate tone in email or seemingly toxic internal communications, speak volumes. Better to judge a book by its cover than to discover that members of your commercial lending team have some serious personality problems.

2. Review Customer Feedback - Thanks to the Internet, consumers have more weapons in their pockets than ever before. The same goes for organizations searching for a top tier commercial real estate loan. Better Business Bureau and other online customer review portals clue you into the lending institutions your company is better off avoiding.

3. Pick Their Brain - Most lenders keep lots of information handy on their website or may try to guide customers via simplified handouts or presentations. A lender’s ability to regurgitate information, however, does not reflect his or her ability to problem solve on the fly or keep their cool in a high-pressure situation. That’s why it pays to push lenders out of their comfort zone. Ask them a few what-if scenarios and see how they respond. Those that respond with hesitation and half-answers are less likely to be the lender you’re looking to work with.

4. Shop Their Offer - Think a lender’s offer is too good to be true? Maybe you think the opposite and are convinced that you could get better terms from another financial partner. Put it to the test. There’s nothing that says you have to bite on every loan offer that’s given to you. Find out how long a lender will lock discussed loan terms and take the time to shop around. Consider lenders who appear aggressively resistant to the idea of you comparing terms as having already showed their hand.

Partnering With A Proven Lender Makes The Difference For A Commercial Mortgage
Members of your company will feel that much more confident about a major real estate investment when working with an experienced, trusted lender.

Any professional lender worth their salt will be happy to show off their experience via their portfolio.

Tired of managing personalities at a traditional lending institution like a bank? Consider a new approach by working with a friendly, helpful private lender to get your commercial mortgage.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Help Your Company Circumvent These Common Obstacles For New Commercial Mortgage Investors

Commercial real estate investments represent profitable opportunities for your company. Put your commercial mortgage to good use by avoiding these common investing errors.

While the industry is constantly changing, commercial real estate is demonstrating strong performance across all sectors (excluding industrial). That means there’s no shortage of opportunities for companies interested in owning or redeveloping a valuable real estate asset. If this is your company’s goal, it’s important to do as much of your homework beforehand as possible. Why the focus on prep work? That’s because there’s a long list of pitfalls lurking in wait for first-time investors.

If your company wants to fully leverage its commercial mortgage, the more planning you put in the better. This overview of common hurdles illustrates some of the easiest traps you could fall into your first time playing the commercial real estate game.

● Missing Important Property Details - A high degree of due diligence is an essential quality in any successful commercial real estate transaction. Failure to analyze every detail of a property before committing funds from you commercial mortgage can result in gross misappropriations of capital. That’s why it makes sense for your company to put sufficient manpower and resources into evaluating every last inch of a building before making an investment. Failure to do so could result in catastrophic consequences and huge costs down the road.

Additionally, it’s up to investors to research the surrounding area potential investment properties to the best of their ability. Understanding which local business are successful, why nearby property types are thriving and the type of regular foot traffic in the area provides massive advantage when analyzing the potential value of a real estate asset.

● Not Investigating Local Policy - Local authorities can throw all manner of monkey wrench into your company’s commercial real estate strategy. None of this is intentional, but it is critical that companies brush up on local and regional commercial real estate policies. For example, some cities have laws controlling the conversion of properties from one business type to another. Knowing this information beforehand would be extremely important if local policies prohibited such redevelopments.

Getting access to this information may be easier said than done. Your company may have to reach out to local authorities or invest manpower into reviewing the public records in-house. Regardless, the advantages of brushing up on local building policies is impossible to ignore.

● Ignoring Alternative Lending Options - If your company is new to commercial mortgages, it might seem like an obvious choice to approach a bank about funding your property investment. However, limiting your search to traditional lending institutions may prevent you from finding a loan that best meets the terms of your project.

Don’t Assume Banks Will Offer The Terms Your Business Needs
Banks are rigid in their lending, locked into offering certain terms to certain customers by corporate policies. If these terms conflict with the needs of your company, feel free to seek capital from another source.

Working with a local private lender has numerous benefits for first-time investors.

In addition to providing ideal loan terms and a quick application turnaround, private lenders can help introduce first time lenders to the nuances of putting a commercial mortgage to good use.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

A Closer Look At Construction Growth And Commercial Lending Opportunities In The Retail Space

The retail space has had better days, but that doesn’t mean the sector is exhausted of opportunities. Knowing what to expect from the sector will help improve your company’s commercial lending strategy.

It’s difficult to talk about commercial real estate opportunities in the retail sector without discussing the long-term impacts of ecommerce. Investments in retail industry have noticeably slowed, in no large part due to a nation of consumers becoming increasingly comfortable with doing their shopping online. That being said, it is silly to assume that the need for brick-and-mortar locations will completely evaporate. Recent moves by ecommerce giants like Amazon to re-enter the physical space seem to indicate that there will always be a need for a storefront.

That said, it’s up to investors to be diligent in scrutinizing retail properties before reaching out to commercial lending professional. Establish a clear path to success by reviewing and leveraging the latest trends in the retail sector. The following trend overviews can help your company get on track.

● Major Factors Influencing Commercial Retail Today - International commercial real estate firm JLL recently emphasized that three major factors act as the biggest influences on the retail sector. First and foremost, those businesses that are able to create an engaging and distinctive brand experience are the most successful at bringing in repeat customers. Another major trend is a greater dependency on analytics data to match business strategy to customer behavior. Finally, many of the most successful retailers across the country have invested in physical renovations to set themselves apart from the competition.

● Retail Construction Expected To Slow in 2018 - The American Institute of Architects recently released a forecast predicting commercial real estate construction for the rest of 2017 and 2018. According to the data, retail construction is expected to see a 10% increase throughout 2017. Next year, however, that growth is expected to shrink to 4.6%. Why did the AIA peg the retail sector as so vulnerable going forward? The organization also pointed to regional population shifts as a major factor in changes to retail construction. This is a great lead for companies looking for a metric to analyze opportunities in the retail sector.

● Expect More Disruption In The Future - Speaking at the RE Journal Retail + Mixed-Use Conference, Keith Lord of The Lord Companies emphasized that further market shifts are set to make the sector even more competitive. In particular, the increasing relevance of mobile-driven retail experiences is set to influence every level of how retail environments are designed and constructed. This observation is just one of many disruptors that industry experts are expected to commercial retail for years to come. Your company will need to pay special attention to these type of trends to avoid a risky retail investment.

Get To Know The Real Estate Market In Your Area Before Taking Out A Loan
You’ll find what you’re looking for with regard to commercial properties when your company dedicates ample time to the research. Working with a local professional can help make this process easier.

Speak with a private commercial lending professional to get your company up to speed on how retail is performing locally.

Don’t let the numbers discourage you if a promising retail opportunity presents itself.

Technorati Tags: commercial loans,commercial lending,commercial mortgage