Phoenix Arizona Hard Money Lender
Obtaining a commercial loan is a time consuming and detailed process, even when all of your ducks are in line. However, there are some factors that are common to most loan application processes that, if taken into consideration, can make the process easier and reduce the stress involved.
· Exhaustive financial reporting – This is something that you should begin preparing for before pursing your loan. It is not uncommon for a lender to not only want to examine bank statements from previous months, but it they will most likely want to see tax returns and your business balance sheets as well. Some lenders will also want you to include a projection of revenues and expenses. Having this information on hand when you need it will help you successfully prepare for the application process.
· Personal financial history – In addition to the financial history of your business, it is quite possible that potential lenders are going to want a great deal of information about your personal financial history. This will most certainly include a look at your credit score and your credit report, but could also include personal tax information and an assessment of other assets. Remember, the goal of acquiring all of this financial data is to determine your ability to repay the loan, not to cause as many hassles as possible.
· Oversight on behalf of the lender – One question that you might consider asking your lender during the application process is how much oversight they require for how the funds are used by your business. This will vary from some lenders requiring a detailed plan, as well as monthly updates with benchmarks, to a simple question asking you how you plan to use the funds. Take this into consideration so that you are not caught off guard by potentially strict oversight.
· Potential need of collateral – Depending on the state of your business and personal credit, there might be need for a lender to find other methods of securing your loan. One such method is to ask for collateral. Basically, you, as the borrower, guarantee the repayment of your loan by putting it against the value of personal assets, such as a house or car. This helps a lender to ensure repayment, due to the fact that if you cannot repay the loan, they will receive some compensation by seizing your assets.
Preparation. The more financial information you can have ready when you start the process, the more smoothly it will go for you. The benefits of putting in the work to ensure that your financial statements are in order will go a long way in easing the stress of applying for a commercial loan. At Level 4 Funding, we have an experienced and knowledgeable team that will help prepare you for the rigors and stresses of applying to various lenders.
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.