3 reasons multifamily commercial lending will maintain its momentum heading into 2018

Commercial lending in the multifamily sector continues to evolve. This is good news for investors and lenders alike, as change brings with it valuable opportunities.

No business opportunity is a sure thing, but detailed research can help your company make informed and highly profitable real statements investments. One of the most important pieces of information a company should identify is which industry niches are the best fit for investment. The odds of investing in industrial properties, for example, are hard to predict due to political uncertainty and unrest.

Commercial lending opportunities in other markets, particularly multifamily, continue to perform well regardless of forces that are impacting the rest of the industry. In fact, data from the Mortgage Bankers Association revealed that multifamily mortgage loan originations increased by 28% in Q2 this year over the previous quarter, said CoStar. A number of key considerations are keeping the market primed and ready for companies to make strategic investments. Understanding these factors will also sheds light on why investments in this sector represent a smart option for your company.

1. Rental Forecasts Remain Optimistic - A critical trend driving multifamily commercial lending is the fact that the demand for rental properties continues to rise. A recent study completed by the National Multifamily Housing Council and the National Apartment Association said that the industry is near, with 4.6 million new rental spaces needed across the country by 2030. Several cultural trends, including delayed marriage and shrinking interest in homeownership, are making investments in multifamily an attractive long term bet.

2. Commercial Lenders Keep Evolving - Stagnancy can turn a once bustling industry into a dead-end. Just look at the shopping mall. That being said, no one can accuse the commercial multifamily sector from resting on its laurels. According to Forbes, recent changes in the industry include a greater focus on building up neighborhoods surrounding core markets, greater reliance on analytic data and more nuanced approaches to evaluating value-add redevelopments. The more these into your own investments, the better prepared those properties will be for the future.

3. REITs Keeping The Industry Competitive - Traditional commercial lenders may not be so interested in locking down their multifamily investments immediately if not for added pressure from ambitious real estate investment trusts (REITs). These bodies of investors don’t need to depend on lenders to play the commercial real estate market, and have been purchasing up multifamily properties at an alarming activity. This activity puts the pressure on traditional lenders to make funds available to those willing to invest in multifamily, lest the best opportunities get snatched up by the new players in town.

Don’t Take Research And Due Diligence For Granted When Investing In Multifamily Real Estate

The more time and effort you put into evaluating your options, the more likely your company will see a significant return on its investment. That’s why taking your time to research such investments is well worth the manpower and resources.

A vetted hard money lender will ensure that your company has the funds they need to take advantage of the booming multifamily sector.

Don’t put off a tactical investment just because your company can’t get ideal financing terms from a traditional commercial lending professional. Private lenders can provide you with the capital you need to act now.

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

Technology Is Creating New Ways to Leverage Commercial Real Estate Loans

The real estate industry is catching up with the digital revolution. You’ll get more out of your commercial real estate loan if you understand the new status quo.

The commercial real estate game is extremely dynamic. That’s why it’s a surprise that technology driven solutions have only began to catch on over the past decade. The next generation of lender tools, building management solutions and other critical real estate systems will take advantage of the latest advances in digital communications and real-time monitoring. These updates will help take the industry to new heights and change how investors spend their commercial real estate loans.

How does this information affect investors? As adoption rates increase and tech-driven services become the status quo, your company will need to stay abreast of changes while planning redevelopment and fix and flip projects. The shift in the industry also requires dedicating a larger percentage of your commercial real estate loans to technology upgrades. That being said, take a closer look at how technology is driving major changes in the industry.

● Major Players Recognize Importance of CRE Tech - One great example of the industry’s shifting focus onto technology was the recent founding of JLL Spark, a subdivision of industry giant JLL dedicated to innovation in the industry. Recently, JLL Spark co-CEO Mihir Shah shared his thoughts on technology’s impact on the industry with Forbes:

“...[L]ike it has in so many sectors of the economy, tech has started to take hold in real estate. It’s not hard to imagine technology transforming real estate like it did transportation,” said Shah. “Once technology takes hold, it’s not going to stop.”

● Investments In CRE Tech Higher Than Ever - There’s no clearer evidence to how important technology has become to commercial real estate than how big players in the industry are spending their budgets. According to data collected by research firm CB Insights, interested investors pumped approximately $2.6 billion into commercial and residential real estate tech startups in 2016 alone. Compare this to the $221 million invested in 2012 and it’s clear that the industry gives considerably more weight to the advantages technology can promise.

● CRE May Soon Jump On The IoT Bandwagon - If there’s any technology on a collision course with commercial real estate more than any other, it’s got to be the Internet of Things (IoT). Interconnected, digital communication platforms stand to revolutionize how businesses operate and share information internally, as well as with clients and customers. This is of special interest to companies investing in commercial office projects and mixed-used redevelopments. Understanding how interconnected technology affects customers and impacts the cost of running a business will play a huge role in the industry for years to come.

Millennials Are Driven Toward Tech-Driven Work Spaces

The tech-savvy workshop grows more influential every year. Incorporating the latest technology and collaboration tools into your commercial real estate investment is simply way to make your assets considerably more appealing to a wider audience.

Don’t overlook the impact that technology can have on how you invest commercial real estate loans.

Want to incorporate new technologies into your redevelopment but didn’t account for the upgrade in your original loan? Reach out to a private lender to stay up to date instead of falling behind.

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

Don’t Forget These 4 Key Considerations When Taking Out Commercial Loans

Sometimes the smallest details make the biggest difference. Make sure your company isn’t caught off guard by understanding the tiny details that make up a commercial loan.

The process of applying for and taking out a commercial loan can be one of the most time-consuming parts of your company’s ambitious real estate projects. Getting the right amount on reasonable terms is paramount, as failure to do so could upend the success of the entire investment. That’s why it’s so important to ask the right questions when meeting with a commercial lending professional.

Some pieces of information, like the hard number details about loan terms, are a no brainer. There are a few more key considerations that often get forgotten when large amounts of money are at stake. The following questions are helpful reminders to consider when taking out commercial loans to fund your company’s next real estate investment.

1. Are there any extra fees or costs attached to the loan? Be diligent in asking your lender after fees that might inflate the final cost of your loan. Expect lender fees, loan origination costs and appraisal fees, but don’t assume these are the only types of extra costs that a lender may see fit to add.

2. Is this a recourse or non-recourse loan? In a recourse loan, the borrower (your company) would be responsible for the paying back the full amount of the loan if it goes into default. This is in addition to the property being possessed by the lender. If you’re working with a non-recourse loan, your company is “off the hook” after the loan goes into default. However, the lender can still come after you to cover the loan if they can prove in court that your company was negligent in how it ran the project.

3. How easy would it be to refinance the loan? In an ideal world, your company will put enough thought and planning into its next real estate investment that there will be no need to refinance a loan for several years. That being said, we rarely live in the ideal world. That’s why it’s important to ask a lender about the possibility of refinancing the loan. Borrowers may need to pay a prepayment penalty if they wish to renegotiate their terms in response to a new developments.

4. Will you need to borrow more money down the road? It’s better to lock in all the capital you need at a rate your company can manage now rather than wait. The more you leave to chance, the more you expose your company to less favorable loan terms down the road. Better to invest for the future with a reasonable lender than be left scrambling for capital a few months later.

Doing Your Homework Before Reaching Out To Lenders Simplifies The Process
Examining all the details available is the first step toward a successful real estate investment. This goes double if your company is making its first foray into the industry.

A trusted private lender can answer all of the other questions you may have about acquiring commercial loans for your business.

Private lenders experienced with commercial real estate transactions are a valuable resource to our company. Count on these experts as you plan your next moves.

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

A Closer Look At Commercial Mortgage-Backed Securities Heading Into 2018

Commercial mortgage-backed securities are still an important part of the real estate industry. Their role has evolved over the past decade, however.

Mortgage-backed securities got a bad rep following the market crash that occurred between 2008-2009. Despite this, commercial mortgage-backed securities (CMBS) have become one of the most important players in the modern commercial real estate industry. Even if you aren’t planning on doing business with a CMBS, it pays to be an informed investor. Understanding how CMBS are performing, as well as how their success or failure impacts the rest of the industry (and visa versa) is invaluable information regardless of what your company’s plans for real estate investment.

The following is a quick overview of how CMBS are currently performing and where we can expect them to be as we head into next year. Be sure to take this information into account as your company plans its real estate investment strategy for 2018. Poor planning can result in wasted capital and minimized return on your company’s investment.

● Experts No Longer Expect CMBS To Collapse - One major fear regarding CMBS over the past few years has revolved around as 10-year maturity dates, taken out in 2007 and set to be paid in 2017. An massive acceleration of declines was expected to send the market spiraling out of control. So far, this hasn’t happened yet.

Instead, the Mortgage Banker Association reported that defaults more or less leveled out across the first quarter of 2017, reports RE Journal. How did the industry avert disaster? It turned out that many of the properties headed for delinquency in 2017 were sold or foreclosed on years earlier. In essence, the market corrected for itself, spreading out the spike in delinquencies across half a decade rather than imploding dramatically this year. This is fantastic news for investors, as stability encourages the entire market to spend more aggressively.

● Issuances Of New Capital Are On The Decline - While it seems that CMBS have averted a long expected crisis, these financial institutions do face some major challenges. First and foremost, the rate of new commercial mortgage issuances continues to lag far behind the market’s performance in 2007. Compared to the approximately $229 billion in loans secured in 2007, just about $70 billion of issuances are expected to be written by the end of 2017, said the National Association of Realtors. Increased competition from new types of lender has made life difficult for CMBS. Thankfully, the market remains dynamic, providing opportunities for innovative CMBS to thrive.

Find Out More About The Latest Real Estate Industry Area Trends In Your Area Before Making A Move

Hopefully this overview of commercial mortgage-backed mortgages acts a reminder for real estate investors: You never know when you’ll need to change up your strategy to keep pace with the market.

Staying up to date with all the latest developments in the dynamic commercial real estate market can be tough without help.

Keep up to date with this blog, review other online resources or reach out to your local private commercial lending expert if you have more questions about CMBS or other aspects of commercial real estate.

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

What to Ask Yourself Before Applying for a Texas Commercial Loans

Before applying for a Texas Commercial Loans, there are some things you should keep in mind to make sure your business affairs are in order. This way, you can increase your chances of getting approved for the finances you need.

“What do I need a loan for?” Determining what you need the loan for and how you will use the funds will help you decide what type of loan you need. You should also do some research about the types of loans available to you and how each can best benefit your needs. Develop an outline of what you will use the money for and then match those needs with the loan options available to make sure you get the best one for your business.

“How much do I need to borrow?” It’s important to have a specific amount that you will need, without going to far over that number. Reviewing your current bills, statements, payroll, etc. or determining how much you need to purchase equipment, for example, can help you fine-tune the Commercial Loans amount.

“How much can I afford to borrow?” You will need to asses how much you can actually afford to borrow, and how your company will be able to comfortably pay back each month while still keeping up with payroll, vendor/supplier invoices and other financial commitments. Keep in mind that the more you borrow, the higher your monthly repayment increments will be. You will need to be able to manage those payments properly. You can often do a quick estimate with an online loan calculator to get a rough estimate of how much your monthly payments will be based on the amount borrowed.

In order to qualify for a Texas Commercial Loans, you also will be required to present certain documentation to the bank or lender during the application process.

When preparing your business to pre-qualify for a loan, you should have the proper paperwork in order and ready to present. Proof of specific documentation varies depending on the type of loan you are applying for but often include: a business license, past bank statements, recent tax returns both personal and business, recent balance sheets, a business plan, and a credit report.

Before you apply for a Texas Commercial Loans, you can do some research online to determine your needs and the type of loan that is best for you.

The more prepared you are prior to meeting with a bank or private lender regarding the loan, the smoother and easier. Having your business affairs and documentation in order can greatly increase your chances for loan approval. So before you dive into the application process, make sure you've asked yourself the right questions and put your paperwork in order to get the loan you want to help grow your business.

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

Choosing the Right Texas Commercial Mortgage Lender for Your Business

When shopping for a Texas Commercial Mortgage lender, there are multiple things to consider before making your choice. Read on for tips on how to choose the right lender to ensure a successful transaction and the right loan for your business.

Make sure the fees and interest rates are fair and within reason for what you can rationally pay back in the proposed repayment structure. While the loan will have an annual percentage rate, it’s not the only costs you’ll incur as part of the loan. You can ask about a detailed cost breakdown and also a “good faith estimate” that should include all the fees you will be expected to manage with your loan. It’s a good idea to also ask about any “hidden fees” or penalties that may not appear in the proposal.

Review your options when it comes to what types of loans are available, and which will best serve your business’s needs. Whether short term, long term, equipment financing, green building, SBA or other, there are many options and you should feel confident that your lender has or will present all of your choices and also offer their professional advice on which loan would be most beneficial for you and your company.

As with any business, customer service should be taken into consideration when selecting the right Texas Commercial Mortgage lender to do business with. Are they professional, friendly, helpful and willing to meet your requests with hesitation? Are you able to get in touch with them right away and directly or do you often get the “runaround?” In addition to being skilled in finding you the right loan, there should be a level of customer service that meets your expectations. Ask yourself these important questions prior to making your decision.

You’re not the only one who should undergo a background check — do your homework and research your lender’s background.

The importance of doing business with a reputable lender cannot be overstated. Make sure the lender you move ahead with has a good reputation. You can even ask for references or testimonials from the lenders you are essentially “interviewing” to take on the job of finding you the best Texas Commercial Mortgage loan.

As with many things, ultimately selecting who will serve as your Texas Commercial Mortgage lender all comes down to trust.

Do you have a good connection with this individual? Do you feel that he or she truly has your best interests at heart? Yes, the loan will benefit this person as well, but they should be putting your business needs as their top priority — not their bottom line. Make sure you feel comfortable with having your business finance needs in this person’s hands. If you have reservations, it may be time to keep shopping.

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

The Benefits of Getting Texas Commercial Loans for Equipment

For businesses that need a lot of expensive equipment to start or grow their businesses, Texas Commercial Loans can be the ideal avenue for cash advance. Equipment loans have their own unique set of specifications so here are some tips to help you understand the requirements, pros and cons of this type of loan.

An equipment loan is designed expressly for a bank or lending company to extend most of the financing typically 80 to 90 percent needed to purchase equipment for the business, with the business owner responsible for the other 20-10 percent as well as repaying the Texas Commercial Loans in monthly increments.

There are different types of equipment loans, and a variety of lending options from conventional banks to alternative lenders such as credit unions and online sources that are reputable. Even the United States Small Business Administration offers backing for equipment loans.

There are many upsides to obtaining an equipment loan. These include reasonable payment schedules, relatively low interest rates, and the ability to use the equipment to be purchased as collateral. Most importantly, this type of loan makes it possible for new and small businesses to purchase the expensive equipment they need to get their business off the ground or grow it.

As with any type of Commercial Loans, in addition to the benefits, there are also some downsides to consider with an equipment loan.

First of all, you must have good credit to qualify for this type of loan; and equipment financing also requires a down payment that may be too substantial for a small or new business to manage. Sometimes, the loan’s terms may outlive the lifespan of the equipment. However, even it that is the case, you will still be required to repay the full amount of the loan even if the equipment breaks or stops working all together.

For the most part, equipment Texas Commercial Loans can be a very helpful way for businesses to get started without having to front all the cash for the pricey machinery they need.

Seeking the counsel of a professional lender can help answer your questions about how to proceed with applying and getting approved for equipment financing. It’s important that a business have the proper equipment in place before opening its doors or in the case of expansion and the right lender can help you recognize your needs and get the equipment loan that is right for your business. Lenders can also help negotiate terms for you and help you sort out the exact documentation and paperwork you will need to apply for the loan. When it comes to equipment financing, do your research, weigh your options and talk to a professional before moving ahead.

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