Tag Archives: commercial hard money lenders

How to get a Commercial Loan when you are Self-Employed

In today’s era of rules and regulations, it can be difficult for the self-employed to obtain a commercial loan. Fortunately, there are options available for those that are fortunate enough to work for themselves.

One of the main reasons self-employed borrowers have difficulty obtaining a commercial loan is because of their reported income on annual tax returns. This is one of the many perks of being self-employed—all those write-offs including lunch with clients and travel expenses associated with training and business prospects. Unfortunately, all those write-offs are also the reason that individuals find it difficult to get the commercial loans they need to get started or increase their real estate investment portfolio.

One of the requirements that commercial lending institutions utilize is the debt-to-income (DTI) ratio. This is the ratio of monthly payments or liabilities such as car, credit cards, insurance, mortgage, etc. to monthly income. The requirements generally range anywhere from 38 to 50 percent. Lenders further break it up into two categories: front and back-end. Your front-end relates to housing payments while the back-end is your total recurring debt payments. These numbers will be determined by your bills and your tax returns, making it difficult for those that have lessened their tax burden through numerous business deductions. In addition to your past two years of tax returns, you will require other documentation.

Most traditional commercial lenders will require the following from a self-employed business owner: A copy of your business license, most recent 2 months of bank and asset statements, year-to-date profit and loss statement, and current property’s insurance. If you are a corporation, you will also need the last two paystubs with year-to-date earnings. If you are not “paperwork” minded and diligent in keeping business records, providing the needed documentation that gets you approved can be nothing short of a nightmare. Fortunately, there are alternatives.

Acquiring a Loan through a Private Hard Money Lender

If you are looking to develop or expand your real estate portfolio, a hard money lender may be the funding you are looking for. Most private lenders in this category look to collateral as a means of securing the loan and pay less attention to credit scores and DTI. One option is obtaining a bridge loan—a short-term loan that investors use in order to purchase a property quickly and make the necessary renovations before reselling.

One of the loans we offer at Level 4 Funding is the bridge loan. This loan is generally used as a bridge from one asset to the next—allowing you to keep one property while purchasing the next.
At Level 4 Funding we specialize in commercial loans for the self-employed. We offer a fast and easy approval process using either 12 months of bank statements or the last two years tax returns. Your credit score can be as low as 620 and the DTI up to 50 percent. We also offer 5/1 ARM or 30 year fixed with rates starting at 4.99 percent APR with no prepayment penalty. Call us to discuss your many options.

mark-gowlovech-150x150Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177

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   

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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.

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How To Write Your Business Plan to Impress A Commercial Hard Money Lender

p1_img4You need to do enterprise? You’ve obtained to have a plan. There are quite a few the reason why you want one and impressing a Commercial Hard Money Lender is one among them. If what you are promoting concept is sweet, get it down on paper! Don’t let lack of a superb marketing strategy spoil your eligibility of getting a loan.

Initially, congratulations in your entrepreneurial endeavor! For those who’re studying this weblog article, you’ve in all probability obtained a terrific enterprise concept, or one “within the works,” and it has occurred to you that you just would possibly want a loan, would possibly want to fill out a loan software very quickly, and should very nicely be doing so with a Commercial Hard Money Lenders. Nothing reeks of professionalism, being ready, genuineness, and strategic-thinking, than having ready a marketing strategy–a superb marketing strategy. Nicely–what is an effective marketing strategy, why do you want one, and the way will your buyers consider it?

You’ve obtained to get it down on paper. Nobody desires to speak about concepts with you which might be floating round in your head with out considerate and strategic back-up planning–not potential companions, lenders, distributors, actual property brokers–the checklist goes on and on. A good marketing strategy reveals that you’re critical, that you realize what you might be doing, and when you don’t know the whole lot, it reveals that you’re greater than able to figuring it out. It manufacturers you, explains your services and products, forces you to plan your targets and techniques, spells out agreements, units values to the enterprise, and is mostly a needed request of a Commercial Hard Money Lender when it will get down to finishing a loan software.

You probably have no concept as to how to write marketing strategy–how about researching on-line? There are numerous articles and how-to’s about getting began, what you want to know, and why it is crucial to have a written plan when it comes to requesting a loan or elevating funds for what you are promoting concept. Most enterprise plans do embrace the next that Commercial Hard Money Lenders are searching for–a robust government abstract, enterprise and product/service definitions, focused demographics, advertising and marketing/gross sales plan (on-line and offline), financials, companions and managers, an summary of your self and the corporate, and extra–not in that exact order.

Will Your Commercial Hard Money Lender Be Keen To Work With Your Business Plan?

There are a lot of issues Commercial Hard Money Lender considers when considering providing a loan. Your marketing strategy is only one of them. Whereas a Commercial Hard Money Lender is just not there to scrutinize each element of your plan, he/she is going to, 1) need to see that you just certainly have one, 2) see that you’ve tried addressing each space of a plan, most pointedly–advertising and marketing and financials, and, three) notice that you’re skilled, organized, critical, and decided.

A Commercial Hard Money Lender Needs A Win-Win Answer. If Your Drawback Is

Getting A Commercial Mortgage, Get Your Business Plan On Paper And Get A Date With A Hard Money Lender.

Commercial Hard Money Lenders are fantastic choices when and when you could also be turned down for a loan from a financial institution, and/or in case you are in a rush so as to compete with different bidders. Nonetheless, it doesn’t matter what the circumstance, a marketing strategy is all the time wanted. For those who count on buyers–private buyers–to loan you presumably a whole lot of 1000’s of , they’re going to need to see one thing in writing. Take it a step additional even and create the true variations–not solely present a marketing strategy, present a superb one!


Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Dealer/RI/CEO/MLO
Degree 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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Concerning the creator: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly realized concerning the wonderful funding alternatives supplied by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to specialise in various funding for actual property buyers who might have bother getting a standard financial institution loan. Dennis is keen about various funding sources and sharing his data with others to assist make their goals come true.

Dennis has been married to his fantastic spouse for 42 years. They’ve 2 lovely daughters 5 wonderful grandchildren. Dennis has been an Arizona resident for the previous 40 years.