Setabay Private Hard Money Lender

Friday, July 8, 2016

Commercial Real Estate: Fix and Flip Tips

The commercial real estate business has taken a lot of hits in recent years. Depending on the market or the city that you are working in you could go through a hundred different situations. Should you take on the business or you leave it to someone else?

From 2007 to 2009, the commercial real estate market took a huge hit due to the recession. While it is making a comeback it is still difficult to turn around a high yield. In 2007, the housing bubble burst to result in a $8 trillion loss. In turn, as we all know many people were laid off and consumer spending took a drastic decline.

Alas, the U.S. is a very resilient country and has come back very strong. The same can also be said for the commercial real estate business. Even with taking as big of a hit as it did the real estate business is slowly beginning to thrive again. That being said there still is a lot of work to do, and for some this field may not be the right choice.

One of the biggest roadblocks that investors run into is actually financing the property that they want to flip. When the bubble was increasing many lenders gave out no/low doc loans. Basically, potential buyers did not have to provide documentation of their income to the institution. After a while, the mortgages that were taken out were worth more than the value of the property and homeowners could not pay for them. Many first time home buyers and investors now have to deal with stringent credit standards that turn a lot of buyers away. A lot of lenders now are more cautious when it comes to lending a commercial real estate loan.

Financing the property is not the only thing you have worry about in the commercial real estate business.

When it comes to finding a vacant property or even finding someone that is willing to sell their home. When it comes to real estate right now the pickings are very slim. Finding the right property is a large part of the work that you have to put in. There are not many homes that are available for investors to attempt a flip.

Another problem that many investors have is finding the right cities that have an economy that is conducive for commercial real estate. A lot of the hot spots for flipping are in places like Los Angeles, Baltimore, Chicago and Detroit. It is not a requirement to be successful, but relocating your business could be a good idea.

With little options to choose from when it comes to property and vacant buildings competition is a very big part of the business now. If you are just starting out, you want to make sure that you are ready to battle at auctions. You have to be ready to jump on every possible buy that you feel as though you can make a profit on.

So should you join the commercial real estate business?

Short answer, if you can see yourself making a profit in the commercial real estate world then, yes. However, if you get in the business and find yourself barely breaking even or having a hard time finding buyers for a possible flip; you should try a new approach. You want to make sure you understand the market and how it works, as well. Go into partnership with another person to help you as well. Your connections are key in the commercial real estate business.

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.

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

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.

Commercial Real Estate Property: Your Quick and Dirty Guide To Fixing and Flipping

The commercial real estate business can be very unforgiving, however, you can make it work for you. Before you start your new venture as a realtor there are a few things that you should do prior to inking your first deal.

The commercial real estate business can be very tough when you are just starting out. As with any craft, there are different things that you have to take into consideration. For example, the real estate business can go through a feast and famine period. The recession in the U.S. a few years ago is a perfect example of this. Before the recession hit a lot of investors were buying up property at low prices and trying to turn a profit by selling really high. After the market bubble burst there were not a lot of properties being sold.

There really is no way you can accurately predict the outcome of the economic climate. You can, however, adjust the way you approach your investments. Before you start you want to make sure you do a lot of research on the business. Make sure you talk to people who have been in this business for years. They usually have a myriad of trade tips that they have can vary. Anywhere from the best places to find a potential buy to dealing with a lender efficiently. Asking someone first is always better than spending a lot of time trying to educate yourself.

After educating yourself on the commercial real estate business you now have to apply your knowledge.

You have a mission that you want to accomplish, but you cannot complete your goal if you never take the plunge. Like most coaches say, “You can practice all you want, but now it’s time for the real game.” You want to start out by scoping the prospective places you may want to invest in. Spend time in different parts of your city; go as far as visiting surrounding cities to see if there are any commercial real estate properties that you would be interested in. You want to set a set a price of what you are willing to pay and the lowest price you are willing to sell your property for.

Where are the best places to look for commercial real estate opportunities?

One way you can find potential commercial real estate buys is by going through public records. Most of the time you will be able to find a couple of homes that are either being foreclosed by using public records. A lot of commercial real estate investors will also drive around looking for distressed and abandoned properties that need some refurbishments. This is called, “driving to dollars. After finding the right place, you want to make sure everything is up to code and the property is safe to live in or work in.

To find a potential buyer, you want to begin by asking around to see who is looking for a new home. Family members and friends are great options to begin with. Once you find a buyer make sure that you negotiate a fair price for both parties.

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

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.

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

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.

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

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 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

111 Congress Ave |Austin | Texas | 78701

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

111 Congress Ave |Austin | Texas | 78701

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.

Setabay Private Hard Money Lender

Friday, July 8, 2016

Commercial Real Estate: Fix and Flip Tips

Financing the property is not the only thing you have worry about in the commercial real estate business.

So should you join the commercial real estate business?

Commercial Real Estate: How To Find Leads

Connections in the commercial real estate business are extremely important

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

Commercial Real Estate Property: Your Quick and Dirty Guide To Fixing and Flipping

After educating yourself on the commercial real estate business you now have to apply your knowledge.

Where are the best places to look for commercial real estate opportunities?

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

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

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

Monday, June 20, 2016

How to Get a Commercial Loan with Bad Credit

Is a Commercial Mortgage Broker a Good Idea?

Is Owning Commercial Real Estate a Good Idea?

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