Setabay Private Hard Money Lender: commercial hard money loans

Showing posts with label commercial hard money loans. Show all posts

Wednesday, September 20, 2017

Commercial Mortgages in Texas are Also Expected to See a Steep Impact from Hurricane Harvey

Bloomberg is estimating that around $8.9 billion dollars in commercial mortgages in Texas were hit hard by the devastating storms brought on from Hurricane Harvey. This is on top of businesses already suffering well before the storm made landfall, with issues in the real estate market and oil industry.

The commercial vacancy rate was the highest the Houston area has seen since 1994, nearing a mind-blowing 19 percent. On top of that, the area was also facing an oil slump and now they are stuck with damages caused by the record-breaking storm. Since Texas has a very relaxed approach to building codes, many of the buildings were not strong enough to withstand all of the rainfall and flooding that hit southeastern Texas.

Commercial mortgages in Texas may see a large loss from the storm, but nothing like residential mortgages. That is because most residential homes do not have insurance that covers flood damage. In fact, it is estimated that around 80 percent of the residential areas that were impacted by Hurricane Harvey does not have insurance coverage for flooding. There many also be a spike in loans to help people recover from these damages.

Hurricane Harvey is expected to only worsen the financial crisis that the Houston area was experiencing before they saw record rainfall from the category 4 storm that brought on massive flooding and causing quite a bit of damage to the area. The single storm that produced a national record of rainfall, could also rock the oil industry even more, causing commercial mortgages in Texas to suffer and require more time to rebuild.

Some lenders are optimistic when it comes to the recovery of commercial mortgages in Texas

Many are trying to forecast just how bad commercial mortgages in Texas were impacted by Hurricane Harvey. It can take some time to get the exact answer, but some are forecasting that the commercial market will be able to recover and maybe even faster than areas that were hit hard by previous hurricanes. This is very optimistic since the vacancy rate grew an outstanding 14 percent in just 3 years in the Houston area.

Commercial Mortgages in Texas will receive helping hand as they recover

Some good news for the area when it comes to commercial mortgages in Texas is the assistance they will be received from local banks and lenders. With the Houston area, already on the radar for many because of the slump they have seen in the real estate market, many banks and lenders are willing to work with those impacted by Hurricane Harvey. From allowing waived fees for late payments or even restructuring plans, many businesses will hopefully be able to recover with their help.

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,commercial lenders

Monday, August 28, 2017

Commercial Lending Stays Strong In 2017 Despite Potential Snags

Multiple industry trends have helped keep commercial lending strong this year. Learn more about these trends to see where your business can take advantage.

A number of factors have made the commercial real estate mortgage industry more dynamic in 2017 than ever before. More and more non-traditional lenders have entered the game, leveraging the latest integrated workplace technology to speed up the underwriting process and get an edge over established mortgage firms. As a result, commercial lending has stayed strong in 2017, even in spite of developments that might be expected to derail this consistent growth.

Lead by a major rise in commercial mortgage–backed securities, the commercial real estate mortgage industry performed especially well between March and June of this year. Urban Land, reporting data compiled by commercial real estate firm CBRE, said that commercial loan closings not only continued to rise between March and June but also finished 27% higher than the previous year.

Researchers from CBRE noted that pension funds, insurance companies, banks and other non-traditional lenders are actively investing in commercial mortgage-backed securities (CMBS). This diverse source of growth has been a major factor in helping the industry stay strong despite a myriad of potential problems.

The first potential snag that the lending market has seemingly overcome in 2017 is ongoing action by the Federal Reserve to raise interest rates that directly impact commercial real estate mortgages. Typically, interest rate hikes can discourage borrowers from taking loans or limit the amount of funds they choose to borrow.
According to Forbes, much of the potential issues have been offset by companies trending toward 5-7 year financing periods, allowing borrowers to refinance as their investment plays out. This flexibility is a strong incentive for borrowers to consider a commercial mortgage in spite of the increase in interest rates.

The National Association of Realtors also reported that large segment of 10-year commercial real estate mortgages, taken out between 2005-2007, were scheduled for refinancing between 2015-2017. Many experts suspected that this wave of refinanced loans would be detrimental to new loan growth this year. On the contrary, the number of transactions that have failed during the refinancing process have decreased over the past few years rather than spike. This unexpected stability has clearly been a major contributor to the strength of the lending market in 2017.

A Strong Commercial Lending Market Could Propel Your Business

More flexible lending conditions across the industry have undoubtedly played a role in sustaining a healthy lending market. Likewise, greater availability of short-term commercial loans have encouraged businesses to pursue new business opportunities. Any company that can leverage access to rapid capital or have long-term financial goals can directly benefit from market conditions in 2017.

Find out what you’ll need to take advantage of commercial lending opportunities

Want to make the most of the healthy lending market? You’ll be in a strong position to maximize a commercial mortgage by working with an experienced professional. By taking advantage of their expertise, your company stands to deploy a practical financial strategy in 2017 with the promise of a high ROI. Don’t miss out on this chance to pursue your company’s most ambitious business goals this year.

Technorati Tags: commercial loans,commercial lending.commercial mortgage

Thursday, July 21, 2016

Commercial Hard Money Lenders: What You Need To Ask

You’ve done the unthinkable and narrowed down your potential options for commercial hard money lenders. But, do you know just what to ask your future lender to make sure they are the right lender for you?

This may not be your first time looking for commercial hard money lenders and it may not even be your first time using these particular kinds of lenders. But, that doesn’t mean you can’t hone your hard money skills. In other words, you could very well be missing out on great commercial financing simply because you haven’t asked the right questions or even asked the top questions. With that being said, let’s go over what to say to these commercial hard money lenders once you get your foot in the door.

Of course, you always what to figure out what the process is for hard money loans and what your potential interest rate will be as well as what loan-to-value your potential lenders are looking for. But, these three specific things you really need to know before even meeting face-to-face with your potentials. Nevertheless, if these things are not on your list of questions they should definitely be in the top 5.

Other useful things to inquire about when dealing with hard money lenders include finding out what the actual term or timeframe for the loans, the costs for additional loan related matters (title policy, appraisal, insurance and so on), if a draw request is applicable i.e. can you receive money pay for repairs, if putting any money down is require, how much of impact your credit have and if you have the option to deferred interest after the term of the loan. Ultimately, these particular questions allow you and your lender to be on the same page regarding your commercial loan.

How to Evaluate Your Hard Money Lender?

Once you’ve gotten to the bottom of all the terms and requirements of your loan, it is important to evaluate your actual lender. Yes, some of the above-mentioned questions will give you a good sense of who you are about to do business with. But, you should also make sure that your lender is the right lender. This means finding out about your potential lender’s funds availability, getting good references from other borrowers as well as confirming that your lender is licensed, bonded and insured. These few steps will make sure that your lender is not only the right lender for you but also the best lender for your investment.

Commercial Hard Money Lenders who are there when you need them

Lastly, consistency matters i.e. you want a hard money lender that you can truly count on. Consequently, your potential hard money lender, in no shape or form, should be afraid to answer your questions or be unclear on any of the details regarding your loan. Remember, at the end of the day, you need a lender that will be there when you need them and not just financially. So, take your time in reviewing their responses. Moreover, take note your potential lender’s overall openness and/or willingness to help you succeed with your future investment.

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.

Friday, July 8, 2016

Commercial Real Estate: How To Buy With Little To No Money Down

Commercial real estate can be a very profitable business once you get started, however, it can be hard getting the money needed for your investment. In this article, you will be able to find out to get the property you want without little to no down payment.

Everything in this world costs money we all know that, but there are always going to be instances when you will not have all the money up front. If you want to purchase commercial real estate you still can! The “Great Recession,” halted a large portion of the home renovation business a while. However, the fix and flip business is making a steady comeback.

A lot of commercial real estate properties require a down payment. However, if you are just starting out you may not be able to afford that. Do not worry you have a few options at your disposal. One thing that you could do is apply for a loan. Seems very obvious believe us not many people do not think about this before they consider buying. Many commercial lenders are willing to lend you the amount you need to pay for the down payment.

In lieu of a loan from a commercial real estate lender, you could also split the cost of the property with a business partner. Sharing the expense of your new property will make it much easier to pay off the down payment. It also opens the door for new things you may want to do. For instance, instead of only being able to only spend $10,000 on repairs and enhancements, you could share all the expenses and turn a better profit in the long run.

You are not tied to going the liquid money way for the down payment on your commercial real estate property

If you do not want to go the hard cash route to pay for the down payment on your commercial real estate property you still have many options. Some more experienced investors know to have other things they could possibly trade or offer in place of money. For example, you could use collateral to pay the down payment. This can range anywhere from a car, motorcycle, watercraft or anything of value.

If you have the connections, you could potentially trade services, as well. Say you are a plumber and you are moonlighting as a real estate investor on the side you could offer your services on any changes they want to make to their new home.

You could also trade houses with the owner of the property you want to buy. This takes a little convincing and a lot of confidence on your part, but this is a great option if you already have a commercial real estate that you are willing to part with. You want to make sure the home or vacant space you want to trade has equal or greater value.

What if I do not have any commercial real estate property I want to trade?

In this event, you could ask the seller of the property to transfer their mortgage to you. This is a great way to quickly get the property that you want to buy. However, this only happens if the owner wants to get rid of the property quickly. While you are taking on a new mortgage depending on how well you refurbish the property you could pay the mortgage off fairly quickly.

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