Setabay Private Hard Money Lender

Thursday, September 14, 2017

3 Key Considerations When Converting Commercial Into Residential With A Commercial Loan

Turning office buildings into living space is big business. Take advantage of the strong multifamily market by investing your commercial loan strategically in one of these promising projects.

High demand for residential property is a major force in today’s commercial real estate market. Several factors, including a large population of Millennials putting off home ownership, have created a huge need for residential space that is expected to continue growing. Building from the ground up is a huge investment, however, preventing many companies from cashing in on the strong multifamily market.

That’s why redevelopment projects have become so attractive. With the help of a commercial loans, your company can invest in converting existing property into a state-of-the-art multifamily asset. A carefully selected building and the right upgrades can make this redevelopment project quite profitable for your business as well. As you develop a strategy for redevelopment, be sure to ask yourselves these questions:

1. Do You Have Access To Quick Capital? You may qualify for the credit necessary to invest in a redevelopment project through traditional means, but that doesn’t mean you won’t want access to quick capital in the back of your pocket. Emergencies happen, deals fall through and chances are the redevelopment budget is going to get even bigger before the project is completed. You can offset these unexpected cash shortages with the help of a reliable private lender.

Hard money lenders offer flexible lending terms and a short turnaround once borrowers have submitted an application. Make sure your company knows where it can get access to rapid funds before committing to a redevelopment investment.

2. Could Mixed-Use Maximize Your Opportunities? In some cases, completely converting an office space into a residential property may not be the most effective redevelopment strategy. This is especially true if adjacent office buildings continue to succeed as income generating properties.

You may be able to better leverage the value of your Commercial Loans investment by converting only some of the building into residential space and updating the remaining office space with modern decorations. This mixed-use approach is more popular than ever, especially if the surrounding area is sustaining similar projects.

3. Will Local Authorities Facilitate Your Timeline? It’s not uncommon for local authorities to place holds on conversions, especially if local policies are already clear on the matter. Your next investment project could be stopped cold if the city prohibits commercial to residential conversions. In other cases, you’ll have to prove to the city that demand exists for the new residential or mixed-use property you plan to bring to the market. Doing research about local zoning and use conversion policies before zeroing in on a location will save your company from hours of extra work and backtracking.

Don’t Overlook These Key Considerations When Investing Your Commercial Loan

You’ll find many of the best redevelopment projects near areas that are already successful. Proximity to high-traffic areas is a key clue that your company is investing in the right project.

Analyzing a property for a quick turn-around is easier said than done. Rely on as much expert input as you can when making your investments.

Whether they are funding your initial investment or providing some much-needed emergency funds, private lenders will likely play a crucial role in your redevelopment plans.

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 Tips For Getting Your Next Commercial Real Estate Loan Approved

It’s time to go back to the drawing board if your commercial real estate loan gets denied. These tips can help you turn that failure into a profitable success.

Your company is ambitious and looking to take advantage of a tempting real estate investment. The only problem? The business lacks the immediate capital and your most recent commercial real estate loan was denied. Don’t think that means your commercial real estate project is out of the picture. Your company has ample opportunity to rebound from this rejection. What’s the best way to proceed?

By understanding why your loan application was denied and identifying ways to change up your approach, your company is in a much better position to get an approval. Employ the following strategies to put the odds in your company’s favor:

1. Address Feedback From Previous Applications - Chances are that the lender that denied your application provided an explanation for why your loan wasn’t approved. Perhaps your company’s credit score was too low or the business’ credit history was not sufficiently diverse. Perhaps your company and the lender couldn’t agree to satisfactory terms. Either way, learning the lessons from the first application is critical toward getting the your next commercial real estate loan approved.

If your company is unable to effectively address these criticisms, then it’s important to develop a narrative explaining why these perceived weaknesses are irrelevant. Simply having a confident explanation for holes in your company’s loan application will improve your chances of getting approved.

2. Draft Multiple Promising Business Strategies - Regardless of why a lender reportedly denied your application, it almost always comes down to whether or not the lender was confident your company could successfully pay back the loan. With this in mind, it’s up to your business to do everything it can to convince a lender that they are likely to see a return on their investment. Business plans demonstrate to lenders that your company has defined path toward success.

Depending on other factors in your company’s credit history, this may not be sufficient. Devising multiple contingency plans, illustrating your ability to pay back the loan in multiple scenarios, may be enough to get your loan approved.

3. Consider A Private Commercial Lender - Instead of changing up your approach, why not just change up your lender? Traditional lending institutions like banks have plenty of capital to lend, but strict rules about who, how and when they lend it to borrowers. Working with a private lender promises more flexible options that better line up with your company’s timeline. Private hard money loans have their own advantages, so much so that it’s worth comparing your options even if you can get you loan approved by a traditional lender.

A Flexible Lender Will Help Your Company Create Success Through Real Estate

Start researching your lending options now if your company is preparing to make a major commercial real estate investment.

Don’t let your business miss out on an opportunity for lack of capital.

Local private hard money lenders are ready to facilitate your next commercial real estate investment. Reach out today to learn more about your options for rapid capital.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Use These 4 Tips To Determine If Your Commercial Mortgage Lender Is On The Level

Not properly vetting a commercial mortgage lender can quickly get your company into hot water. Research and careful evaluation separates true professionals from pretenders.

Any business deal can go under when a partner comes into the deal in bad faith. It is extremely important for your company to to research, evaluate and vet each professional you work with before moving forward on an expensive real estate project. This includes the person responsible for providing your company with the capital needed to fund the real estate investment in the first place.

For example, an unscrupulous lender may provide your company with advice that exposes the borrower to more risk while helping their own bottom line. In other scenarios, an incompetent lender may provide your company with bad information about the market, leading to your company making a critical error in investment strategy. Want some tips to make sure your company doesn’t get stuck working with a subpar lender? The following tips are a big help.

1. Trust Informal Interactions - A gut feeling goes a long way when it comes to evaluating a commercial mortgage lender. Let small interactions, like inappropriate tone in email or seemingly toxic internal communications, speak volumes. Better to judge a book by its cover than to discover that members of your commercial lending team have some serious personality problems.

2. Review Customer Feedback - Thanks to the Internet, consumers have more weapons in their pockets than ever before. The same goes for organizations searching for a top tier commercial real estate loan. Better Business Bureau and other online customer review portals clue you into the lending institutions your company is better off avoiding.

3. Pick Their Brain - Most lenders keep lots of information handy on their website or may try to guide customers via simplified handouts or presentations. A lender’s ability to regurgitate information, however, does not reflect his or her ability to problem solve on the fly or keep their cool in a high-pressure situation. That’s why it pays to push lenders out of their comfort zone. Ask them a few what-if scenarios and see how they respond. Those that respond with hesitation and half-answers are less likely to be the lender you’re looking to work with.

4. Shop Their Offer - Think a lender’s offer is too good to be true? Maybe you think the opposite and are convinced that you could get better terms from another financial partner. Put it to the test. There’s nothing that says you have to bite on every loan offer that’s given to you. Find out how long a lender will lock discussed loan terms and take the time to shop around. Consider lenders who appear aggressively resistant to the idea of you comparing terms as having already showed their hand.

Partnering With A Proven Lender Makes The Difference For A Commercial Mortgage
Members of your company will feel that much more confident about a major real estate investment when working with an experienced, trusted lender.

Any professional lender worth their salt will be happy to show off their experience via their portfolio.

Tired of managing personalities at a traditional lending institution like a bank? Consider a new approach by working with a friendly, helpful private lender to get your commercial mortgage.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Help Your Company Circumvent These Common Obstacles For New Commercial Mortgage Investors

Commercial real estate investments represent profitable opportunities for your company. Put your commercial mortgage to good use by avoiding these common investing errors.

While the industry is constantly changing, commercial real estate is demonstrating strong performance across all sectors (excluding industrial). That means there’s no shortage of opportunities for companies interested in owning or redeveloping a valuable real estate asset. If this is your company’s goal, it’s important to do as much of your homework beforehand as possible. Why the focus on prep work? That’s because there’s a long list of pitfalls lurking in wait for first-time investors.

If your company wants to fully leverage its commercial mortgage, the more planning you put in the better. This overview of common hurdles illustrates some of the easiest traps you could fall into your first time playing the commercial real estate game.

● Missing Important Property Details - A high degree of due diligence is an essential quality in any successful commercial real estate transaction. Failure to analyze every detail of a property before committing funds from you commercial mortgage can result in gross misappropriations of capital. That’s why it makes sense for your company to put sufficient manpower and resources into evaluating every last inch of a building before making an investment. Failure to do so could result in catastrophic consequences and huge costs down the road.

Additionally, it’s up to investors to research the surrounding area potential investment properties to the best of their ability. Understanding which local business are successful, why nearby property types are thriving and the type of regular foot traffic in the area provides massive advantage when analyzing the potential value of a real estate asset.

● Not Investigating Local Policy - Local authorities can throw all manner of monkey wrench into your company’s commercial real estate strategy. None of this is intentional, but it is critical that companies brush up on local and regional commercial real estate policies. For example, some cities have laws controlling the conversion of properties from one business type to another. Knowing this information beforehand would be extremely important if local policies prohibited such redevelopments.

Getting access to this information may be easier said than done. Your company may have to reach out to local authorities or invest manpower into reviewing the public records in-house. Regardless, the advantages of brushing up on local building policies is impossible to ignore.

● Ignoring Alternative Lending Options - If your company is new to commercial mortgages, it might seem like an obvious choice to approach a bank about funding your property investment. However, limiting your search to traditional lending institutions may prevent you from finding a loan that best meets the terms of your project.

Don’t Assume Banks Will Offer The Terms Your Business Needs
Banks are rigid in their lending, locked into offering certain terms to certain customers by corporate policies. If these terms conflict with the needs of your company, feel free to seek capital from another source.

Working with a local private lender has numerous benefits for first-time investors.

In addition to providing ideal loan terms and a quick application turnaround, private lenders can help introduce first time lenders to the nuances of putting a commercial mortgage to good use.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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.

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.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Setabay Private Hard Money Lender

Thursday, September 14, 2017

3 Key Considerations When Converting Commercial Into Residential With A Commercial Loan

Turning office buildings into living space is big business. Take advantage of the strong multifamily market by investing your commercial loan strategically in one of these promising projects.

Don’t Overlook These Key Considerations When Investing Your Commercial Loan

Analyzing a property for a quick turn-around is easier said than done. Rely on as much expert input as you can when making your investments.

3 Tips For Getting Your Next Commercial Real Estate Loan Approved

It’s time to go back to the drawing board if your commercial real estate loan gets denied. These tips can help you turn that failure into a profitable success.

A Flexible Lender Will Help Your Company Create Success Through Real Estate

Don’t let your business miss out on an opportunity for lack of capital.

Use These 4 Tips To Determine If Your Commercial Mortgage Lender Is On The Level

Not properly vetting a commercial mortgage lender can quickly get your company into hot water. Research and careful evaluation separates true professionals from pretenders.

Any professional lender worth their salt will be happy to show off their experience via their portfolio.

Help Your Company Circumvent These Common Obstacles For New Commercial Mortgage Investors

Commercial real estate investments represent profitable opportunities for your company. Put your commercial mortgage to good use by avoiding these common investing errors.

Working with a local private lender has numerous benefits for first-time investors.

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.

Speak with a private commercial lending professional to get your company up to speed on how retail is performing locally.

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.

Making Smart Investments Helps Companies Avoid Dealing With Delinquent Rents

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

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.

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

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

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