Is a Commercial Mortgage Broker a Good Idea?

Many people feel as though hiring a commercial mortgage broker may not be the right choice for them. Why hire someone else we you could do it yourself, right? This article is going to give you some insight on this valuable asset.

The process of finding commercial real estate can be very strenuous at times. When most people want to invest in a new property two thoughts usually run through their mind. “Should I hire a commercial mortgage broker to help me,” or “could I forgo a broker and do everything on my own?” You do tend to save a little bit more money when you do not use a broker, but there are advantages to having someone in your corner.

Having a commercial mortgage broker on your side helps

The biggest advantage a commercial mortgage broker has is experience. You do want to make sure that you are shopping around for the right broker. Make sure that they have a substantial amount of experience under their belt. This gives you the confidence that you are getting the best for the money you are spending. Using a broker gives you access to tons of connections and resources, as well.

Most reputable commercial mortgage brokers have great relationships with various banks and mortgage lenders. This takes a lot of pressure off investors looking for the right lender. Most people are busy which is very understandable. It usually takes several weeks to be approved for a loan it is a good idea to have someone that can check in and give you feedback. Instead of having to find time to wade through tons of features and rate plans, you have someone who will do it for you.

As we all know if you do not have knowledge in something you should ask an expert. That is what you are spending your money on. Someone that can correctly calculate the interest rate for you. Someone that is willing to sieve through all the intricacies of an agreement before you decide to commit with a lender. Hiring a commercial mortgage broker could mean a lot fewer setbacks and headaches at the end of the process.

 As stated before, a commercial mortgage broker’s main appeal is the fact that they are able to help you stop from making a bad decision. Many people that may consider taking on the process themselves may not take all the different fees into consideration. Anywhere from credit report fees to title search fees can be added on top of your regular payments. By having a commercial mortgage broker, you could potentially have some of these fees waived.

Commercial mortgage brokers really don’t do all of that, do they?

Believe it or not, they do. There are hundreds of different thing that could possibly go wrong when going through this process. Commercial mortgage brokers are there to help you with everything that you may have an issue with. Whether it is trying to find the right lender that fits your needs or acting as the liaison between all of the people that you talk to. 

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

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.

Is Owning Commercial Real Estate a Good Idea?

We live in a digital era where a couple of keystrokes are much quicker than going to a store. Will your business profit from having commercial real estate?

For the last couple of years, the market has seen a boom of entrepreneurs and various startup companies. According to data from the Kauffman Index, there has been a steady rise of startups since 2011. With constant upgrades and new digital merchant software on the internet already, is it a good idea to have commercial real estate for your business?

In a perfect world, we would all have our own businesses. Stores on the main street in a bustling downtown area. As great as this may sound not all entrepreneurs need to have commercial real estate. Of course, there are certain businesses that you need to go to bakeries, restaurants, etc. But most of the new companies that are here now are best represented on a digital platform.

In fact, most companies that are in the market would greatly benefit without having commercial real estate. That means no monthly bills or rent. Having commercial real estate can also mean less money in your pocket. For some business owners taking out a loan on the property, they want to use. Depending on the type of the loan you may have to commit for the three to five years on a property that may or may not give you a return on your money.

Are there any advantages to having commercial real estate?

Short answer: of course there are. First and foremost, the feeling you get from owning a place that your business calls home is un-measurable. Having a physical place to call your shop or store gives you the confidence to go out and search for more customers. You build different connections that could not be made online. You also get that face to face interaction with your clientele; in turn, this helps your business thrive. Personal relationships are good for business. The relationships you build are for tomorrow, not for today.

Depending on your property you could potentially get a great appreciation of your assets. Things such as making the proper managerial decisions can help the value of your property increase exponentially.  Doing things like making renovations help your business grow in value over time. Whether it is replacing the sign or an awning, or you knock out a wall in your space to make it larger, every bit counts.

Maybe you want to rent out the space instead of using it for your own business. This means you have full control over the tenants you want using it. You also have the power to create rules based on what type of image you want to represent. Having investor control can also help with annual fees. For example, if you manage your commercial real estate you can charge a management fee that your tenant would have to pay for.

Having great commercial real estate also means great publicity

Publicity is also one of the biggest reasons you might consider have some commercial realestate. We are constantly bombarded with new ideas and businesses that try their best to catch the eye of potential clients. There is no telling how many different advertisements you see online a day for a new business. Having a storefront or even a small hole in the wall makes you tangible. Customers can go in and see the jewelry that you make. They can check to see if it fits them correctly. Customers can go into your boutique and feel the type of fabric that you have; they can be correctly measured for one of your designs they like. 

Alas, you have to judge based on your needs. Would you fair better on a digital platform, or can you benefit from having commercial real estate?

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

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.

How to Apply For and Pay Off Your Commercial Real Estate Loan

In this brief write-up you will learn the basic ins and outs in regards to a commercial real estate loan. We will primarily cover the different institutions that are available to you; we will also cover different payment methods as well.

The transition from an online business to having a physical location is a very daunting task. One problem that many business owners run into besides finding the right location is finding the money they need. This article will help you with the basics of getting your loan.

You want to make sure you look in different places before you commit to an institution. Basically, when it comes down to it, you have four options; large banks, small community banks, life insurance companies and private hard money lenders.

When it comes to going the bank route, you have two options large banks--we’ll use the Bank of America as an example--or a smaller local bank in your city. Most bigger banks have a minimum and maximum loan amount. The Bank of America has a maximum of $2 million, but will make exceptions for higher amounts if certain criteria are met. Adversely if you are applying for a commercial real estate loan with a smaller bank you do not want to go that high. You should always do your research with the local bank in your city, and be sure to compare all the features thoroughly.

You have to weigh all of your options when looking for a commercial real estate loan

The other two options you have are life insurance agencies and private hard money lenders. Life insurance companies have pretty good rates, however, they tend to grant loans to businesses that are in good locations. Private hard money lenders outsource a lot of the money used from investors. This method of getting a loan is usually the fastest, however, the interest rates are a little higher than banks and life insurance companies.

Qualifying and paying off your commercial real estate loan.

Now that you know where you could apply for a commercial real estate loan, you are probably asking yourself, what do I need to qualify? Having a plan on what you want to accomplish with your business is key. Make sure before you go into your consultation you have a concise and clear business plan. For some companies, a solid business plan will be enough to get you the loan that you are seeking.

So you have figured out what lender you are going to go with, and you have a clear plan on the business that you are trying to your potential lender. Your lender has taken an interest in your proposal and is looking to go forward with your commercialreal estate loan. The next thing you have to decide on is how you want to pay back your loan. You have two options when it comes to this: an interest rate reset or a balloon payment.

With an interest rate reset payment plan for the initial years of your loan you have a fixed interest rate. After that period is over the rate can decrease or increase depending on the economy. In regards to a balloon payment over a time period, the debt that you owe gradually reduces over time. After the initial years, you have to pay a lump sum of the remaining balance.

Now that you have the basics, you should feel confident in getting your first commercialreal estate loan, giving your business a physical location.

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.