The Difference between Bank Commercial Loans and Private Hard Money Lenders

3page_img1Hurricane Harvey is gearing up to be the second most costliest natural catastrophe to hit the United States. Investors and developers are already reaching out to commercial lending institutions in search of funding.

In addition to the immense devastation and human tragedy caused by Hurricane Harvey, its economic impact is expected to rank as the second most expensive natural disaster to occur in America. According to an article in the New York Times, Moody’s Analytics have estimated the damage to be in the $40 to $50 million ballpark. This is second only to Hurricane Katrina which killed almost 2,000 people and caused $130 billion in damage. Note: A recent article in USA Today raised the estimated cost of Hurricane Harvey to $190 billion. Commercial properties that have been flooded are estimated to cover approximately 455,000 square feet. Just as in 2005, rebuilding will accelerate once insurance checks are cut and federal aid is disbursed. And investors are already lining up to raise funds from commercial lending institutions for distressed properties.

Before Harvey hit, the building and construction segments were, as in other parts of Texas, booming in Houston. According to an article in Dallas News, “At midyear, more than 27,000 single-family homes were being built in the Houston area. And more than 23,000 apartments were under construction and scheduled to open this year.” Due to the increase in demand, construction firms and those they employed were already maxed out when Harvey hit. Now, in the wake of the devastation, other investors and contractors will be arriving to fill in the gaps. Just a few of the investment companies looking for commercial lending include Delshah Capital, Madison Realty Capital and Steven Witkoff, a New York developer.

The San Diego Union reported that more than 3,000 national and state guard troops were being deployed to assist with relief and recovery efforts. Water, food and shelter are the top priorities at this time. As the waters recede, there will undoubtedly be an influx of contractors, insurance adjusters and FEMA employees. Currently, there are more than 200 shelters housing more than 32,000 people who have been displaced due to the catastrophic nature of Harvey. Because of these two factors, multifamily units are expected to be in high demand.

Timing

At Level 4 Funding, our hearts and prayers go out to those affected by this national disaster. With an office in Dallas and clients in Houston, we are very close to those affected. We hope that investors and developers will show good taste and wait for the waters to recede and displaced residents to find housing before making their move. At the right time, these individuals and businesses will be a great asset to the recovery of this place in America that has shown its true colors of faith, humanity and neighbor helping neighbor in the midst of incredible challenges.

“Bad things do happen in the world, like war, natural disasters, disease. But out of those situations always arise stories of ordinary people doing extraordinary things.”—Daryn Kagan.

When the time is right, we are here to help those looking for immediate funds and commercial lending with which to rebuild this incredible area of our country.

mark-gowlovech-150x150Dennis 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

Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701   

     Linked In Active Rain     You TubeFace Book         

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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Understanding the Various Kinds of Alternative Commercial Hard Money Loans (Jabxzhkmop)

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When you are trying to obtain financing for your new or growing business, there are lots of options. Even if you are still establishing a credit history or have been turned away for a loan via conventional lender or bank, you can still get approval on commercial hard money loans with alternative lending options.

One alternative option to consider is a merchant cash advance. When you are in need of an alternative lending option for your business that you do not have to pay back in traditional monthly installments, this route offers the commercial hard money loans you need without the added stress of another monthly payment to make. Companies that get merchant cash advances pay it as a percentage of their credit card sales versus monthly payments. This is ideal for companies that accept payment via credit card for their products and services. This is also a loan that can be paid off rather quickly, based on the volume of sales of your business. The more sales, the quicker the loan pay off can be made.

Another non-traditional commercial hard money loans (Jabxzhkmop) option is an asset-based line of credit. A lender offers a line of credit that is a ratio of the value of the borrower’s company equipment or business assets. Asset-based lines of credit come in handy for companies like restaurants, beauty salons and manufacturers that use large or valuable equipment for their business. Similar to the merchant cash advance loan, amount and access of working capital via an asset-based line of credit is increases with relative to the equipment’s value.

Finally, another alternative loan option to consider is called an unsecured line of credit. This type of loan usually comes in handy for companies that do not utilize equipment, does not have an actual storefront, or does not have hard assets that can serve as collateral. If approved, an unsecured line of credit allows the borrower working capital; however, this often comes at the (literal) price of higher interest rates and strict repayment terms.

Companies can still have the advantage when it comes to obtaining alternative commercial hard money loans Jabxzhkmop.

When new companies and companies that are expanding need hard cash fast, alternative lending options are often the way to go. They can be approved much more quickly than traditional loans with conventional lenders such as banks. These loan application processes are also typically more lenient than traditional loans.

Alternative lending options fit a specific need. However, not every business will qualify or benefit from this type of financing.

Let’s face it – loans are not one size fits all. And that’s a good thing. Your loan should fit your business’s specific needs, give you the money you need to grow and nothing too far beyond what you can afford to pay back. But if companies have poor credit history, haven’t established a line of credit or can’t offer enough assets to serve as collateral, they can still be rejected. Even if your application is turned away, seek other options until you find the right loan for your business (Jabxzhkmop).

mark-gowlovech-150x150Dennis 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

Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701   

     Linked In Active Rain     You TubeFace Book         

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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona