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.

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

CRE Investors Should Take Note Of Recent Commercial Mortgage Delinquency Rates

Commercial mortgage delinquencies aren’t skyrocketing, but the numbers aren’t optimistic. You’ll want to understand where the market is headed before your company makes a major property investment.

The reality is that delinquency rates are up for commercial mortgages. A wide range of experts are have offered explanations for this trend, though a vast majority have promised that this is just an instance of the post-recession market correcting itself over time. This cyclical behavior should be expected. Regardless of why delinquencies continue to rise, companies taking out commercial loans are smart to understand the market they are entering.

This recap of the summer illustrates how commercial mortgage delinquencies have risen and fallen since the beginning of the summer. With 2018 right around the corner, it pays to analyze trends like these for patterns that can be used to prepare for the future. Likewise, failures to account for these trends could mean missed opportunities or wasted revenue for your business.

● Delinquencies Increased In June - In June, commercial real estate delinquencies experienced a disturbingly large jump. According to Fox Business, 5.75% delinquency rate measured in June of 2017 marked the largest month-over-month increase since 2012. It is also a notable increase over last year’s delinquency rate in June, recorded at 4.6%.

Much of this increase was attributed to a “wall of maturities,” a large volume of loans signed in 2007 and set to be paid this year. While jump in delinquencies not ideal, the impact of these is far less dire than was predicted a year ago. That’s because much of the properties that made up the feared “wall of maturities” were sold or foreclosed on before their mortgages reached delinquency.

● Delinquencies Decline In July - Scotsman Guide reported that delinquency rates did not see major further gains during the month of July. Instead, they decreased to 5.49%, about the rate measured in May, prior to the major jump during June. Despite the positive shift, Trepp, the bank that collected the July data, emphasized that 13 of the past 17 months through July have seen the delinquency rate worsen.

● August Shows More Signs Of Relief - Delinquency rates fell further to 5.44% in July, according to National Mortgage Professional. This is considerably higher than 2016, when delinquencies sat at 4.68%. A further testament to the enduring demand for multifamily property is the fact that delinquencies in this sector remained relatively unchanged throughout the summer. In that way, multifamily is very much buoying the rest of the industry. Other industries saw a mixed bag of results.

Making Smart Investments Helps Companies Avoid Dealing With Delinquent Rents

The biggest takeaway from this summer’s delinquency rate trends is how well some sectors of the industry are performing while others lag behind. Be sure to take these trends to heart as your company decides on what type of properties to finance with a commercial mortgage.

Work with a qualified private lender in your area to identify the best locations and industries for low-risk redevelopment.

Need a commercial mortgage to help your company take advantage of the strong multifamily market? An experienced private lender can help you the capital you need as quickly as possible.

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

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