Dennis Dahlberg - It Can't Get Better Than This!: April 2019

Tuesday, April 30, 2019

Self Employed? Here's How You Can Still Get the Loan You Need

Think you can't get a home loan if you're self-employed? You actually can, and it's easier and cheaper than you might think. Let's look at Colorado Self-employed Home Loans.

In the old days before the recession, you could walk into a bank, verbally tell them how much you make, and walk out approved for a home loan. These days, things have changed. Of course, this is generally a good thing — it will keep people who can't afford to make payments from taking on too big of a house. This, in turn, should keep the housing market from disintegrating the way it did 10 years ago.

However, there's one group of people who have been left out in the cold by the new Dodd-Frank regulations — the self-employed. You can have spotless credit and a healthy down payment, but if you don't have those official pay stubs, the bank could slam the door in your face.

A lot of self-employed people give up there, assuming that there's no way they can get the funds they need for their home purchase. Thankfully, there is another route.

Home Loans for the Self Employed

Colorado Self-employed Home Loans do exist but you won't find them at the bank. Where you will find them is with private lenders. Private lenders work outside the conventional banking system, so they aren't as beholden to the regulations as the banks. That means they can choose to take on a risk and loan money to a home buyer if they want to.

There are a few distinct advantages to this approach. The biggest is that you don't have to produce pay stubs; you can show a bank statement or a tax return instead. You can also get approved much quicker (as little as 1-2 days) and get the money much quicker (sometimes as little as a week). And, because it's private money, the lender is flexible; you can work together to find terms that work for both of you.

Self-Employed Home Loans in Colorado

Looking for a self-employed home loan in the state of Colorado? You've come to the right place! We specialize in these types of loans and offer some of the best terms in the business, including credit qualifications down to 620, rates as low as 4.99 percent, and no prepayment penalties. Give us a call today to find out how we can help!

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Monday, April 29, 2019

Get in on a Hot Industry with Cannabis Loans

With more and more states legalizing marijuana for recreational and medicinal use, the cannabis industry is exploding. Learn how to get in on this burgeoning industry with Colorado Cannabis Business Loans.

Today, marijuana is legal for recreational use in nine states and is legal for medicinal use in 30 states, including Colorado. If you're looking to get into the business, there are a few steps you can take first.

Find out if your county or city is currently allowing applications for licenses. Because the government is trying to control the number of new cannabis dispensaries that pop up, some cities and counties limit the licenses they award.
Make a corporate structure for your new marijuana business. Build a corporate structure that's compliant with the state's regulations.
Have a solid business plan. Do your research and come up with a business plan that includes projections and pro forma financials.
Apply for all the necessary licenses. Keep in mind that the application fee can be in the thousands of dollars and that you may have to show proof that you have at least $150,000 in a financial institution.
Contract cultivators and growers. Or, if you're proficient, you can grow your own.

Getting Funding for a Cannabis Business

Starting a cannabis business isn't cheap. There are a wide variety of upfront costs, including application fees, rent, and utilities for your storefront, and advertising to make people aware of your business. Plus, as we detailed above, your state may require you to have $150,000 in a bank just to apply.

So where do you get funding for a cannabis business? Some banks may be willing to help, but they're usually pretty averse to risk, and a cannabis business is riskier than most because it walks a line in terms of legality.

Another option is a hard money Colorado Cannabis Business Loan. Hard money is much easier to qualify for than a bank loan. There's no begging, jumping through hoops, or having your entire history dug up. Interest rates can be higher and the terms can be shorter, but there are also fewer fees and you can get the money in a matter of a week or two.

Cannabis Loans in Colorado

Need a Cannabis Business Loan in Colorado? We have extensive experience in both the lending industry and the marijuana industry, so we are in a unique position to help prospective cannabis business owners succeed. Give us a call today and we can talk about the details!

What's the Difference Between Hard Money and Conventional Construction Loans?

Just like the real estate business, the lending business has changed a lot over the last several years, but one thing is always constant: investors need funding for their construction projects. So which route should you go: conventional bank loans or Colorado Hard Money Construction Loans? Let's look at which one is best for you.

Here's what you need to consider when you're looking at a traditional or a Colorado Hard Money Loan for a construction project:

How fast do you need your money? When you're building, sticking to the budget and schedule are two of the most important elements to success. With a bank or credit union loan, you might wait over 30 days to get your funds, and that's not including the application ordeal (which we all know can be a nightmare). The application process for Colorado Hard Money Loans takes 1-2 days and the funds can be in your account in a week or two.
What do you qualify for? Banks don't want to take on much risk, especially after the new restrictions that were put in place after the recession. Plus, they have complicated underwriting processes, so they put institution requirements in place for borrowers to qualify. They want you to have a certain credit score, they want you to have a healthy cash flow, and they want you to have a nearly spotless history. Colorado Hard Money Construction Loans come from private sources and are secured with collateral, so lenders aren't as worried about your credit score and financial history.
What loan structure do you want? With banks, loans are a one-size-fits-all affair. With hard money, lenders can tailor the loan to fit your needs, both in terms of collateral release and repayment terms.

Which Type of Loan is Right for You?

The answer depends on a range of factors. If you've been told no by the banks, a Colorado Hard Money Loan might just be the way to get your project the funds it needs to get off the ground. If you have the time to wait and don't mind the less flexible loan terms, the bank may be a better option. Ultimately, the right loan will depend on your priorities. Weigh the pros and cons carefully.

Hard Money Construction Loans in Colorado

If you feel like a Colorado Hard Money Construction Loan is the right move for you (or if you want to find out more), give us a call today! We offer loan values up to 90 percent LTV, 24 months interest only and rates from 9.5 percent.

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

What are Buy and Hold Loans?

Most real estate experts will tell you that Colorado Buy and Hold Loans are a great investment strategy that can transform your portfolio. But what exactly is "buy and hold" and is it a good idea for you?

Buy and hold real estate is pretty straightforward. In fact, it's exactly what the name implies — you buy a property and then hold on to it for a period of time. Most investors choose to rent the property out while they're holding it and then sell it once it's appreciated to a certain point. For the right piece of property, it's a win-win; you get a steady income for a few years, then a nice chunk when it sells. You can then roll that profit into another buy and hold.

To find a workable buy and hold property, you'll want something you can add value to. Turnkey buy and hold properties are few and far between and will usually go really close to asking price. Instead, look for a property that needs some cosmetic work or some basic updates. You don't have to completely rehab it. Usually, a new coat of paint, new floors and sprucing up the kitchen and bathrooms will suffice.

Getting Financing for Buy and Hold Real Estate

Once you've found the perfect property — whether it's a rehab or something that's almost ready to rent — you'll need to secure financing. If you've got nearly perfect credit and the financial past of a saint, you may be able to go through the bank. If not, you'll want to look into other options, like FHA financing, private money, or hard money. In fact, hard money Colorado Buy and Hold Loans are a great way to break into the game because they are flexible and can be tailored to your situation.

Want to hold on to the property for up to four years? That can be done. Need up to 90 percent loan-to-value ratio? That's doable, too. Want to convert into a longer-term loan? Easy as pie. Need to move lightning fast on a hot property? Hard money can be in your account with a couple weeks.

Go with Hard Money for Your Next Buy and Hold

Whether you're ready to take the plunge for your first buy and hold real estate investment or you're an old pro, we've got Colorado Buy and Hold Loans that will work for you. Give us a call today and we can discuss the details!

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Sunday, April 28, 2019

The Difference Between Banks and Colorado Private Money Lenders

When you're attempting to get funding for a fix-and-flip or a new business property, is it better to go with a bank or a Colorado Private Money Lender? The answer depends on a range of factors, so let's look at some of the pros and cons.

Banks can offer lower interest rates. Why? Two reasons. First, banks have tons of retail customers who deposit their money into savings and checking accounts. They pay their customers very little in interest (almost always under 1 percent), so they can afford to lend out funds at a lower rate. Additionally, banks can draw on federal funds at incredibly cheap rates, so they can turn around and mark up their rates to make a profit.

Conversely, private lenders get money from individuals or groups of investors who are looking for a basic return. Private lenders also aren't backed by a gargantuan system that supposedly "can't fail." Rather, they take on substantial risk, so they want the possibility of a higher return.

Why Go with a Private Lender Over a Bank?

If banks can offer lower interest rates, why would anyone want to go with a Colorado Private Money Lender? After all, aren't interest rates the only consideration when it comes to borrowing money? Not so fast. Depending on your situation, the interest rate may be less important than other factors.

For instance, if you've had a blemish in your financial history or your credit score isn't perfect, you won't fit into the banks' narrow box and you may get turned down. With a private source, you can sit down with them, explain your plans, show them your passion for the business and you have a much better chance of getting funded.

Moreover, with all their complicated underwriting and regulatory hoops, bank loans can take a long time to come through. If you're in the fix and flip game or you've got your eyes on the perfect property, you don't have the time to wait a month for funding. With private money, you can get approved in a matter of days and have that money in your account in a matter of weeks.

Finally, banks add a lot of extra costs on their loans that have nothing to do with interest rates. Private loans can have a fee or two, but they are nothing compared to conventional loans.

Getting Private Money in Colorado

Need a Colorado Private Money Lender? You're in the right place. We have decades of experience in the Copper State, so what are you waiting for? Give us a call today!

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Here's How to Figure Out Your Loan-to-Value Ratio in Colorado

Looking for funding for a fix-and-flip or a refinance? Your loan-to-value ratio in Colorado is incredibly important. Here's a simple way to figure it out.

If you've ever searched the internet to look for funding to buy a home, a commercial storefront, or an income property, you've probably come across the term "LTV." The mortgage industry is full of confusing code words and abbreviations. For newcomers, being inundated with this jargon can feel intimidating. Like most things, though, once you cut through some of the dense vernacular, it's not as complicated as it seems.

As an example, let's break LTV down right now. LTV is short for "loan-to-value ratio." It's the amount of the loan you're asking for compared to the value of the property you want to buy. In other words, it represents how much of the property you actually own versus how much you owe.

How to Calculate Your Loan-to-Value Ratio

Calculating your LTV is simple. To do it, simply divide the amount of the loan you're asking for by the value of the asset that's securing the loan (the property you're buying).

Example: Let's say you're looking to buy a property that's valued at $100,000. You have 15 percent of that in cash for a down payment, leaving you with the need to borrow the remaining 85 percent. In this case, your LTV ratio would be 85.

Those nice even numbers are easy to figure out in your head, but if things get a little more complicated, here's a simple trick: open Google, type amount you need to borrow, followed by a slash and followed by the value of the property and you'll get your LTV. In the above example, you would type in 85000/100000 and Google will spit out the answer: 0.85, which is 85 LTV.

Why Does LTV Matter?

It's simple. A higher LTV means a higher risk for the lender. Even Colorado Hard Money Lenders don't really want to take over your property; they want to be paid back in a timely manner. Also, if you have more of your own money invested in the property, you're more likely to have a vested interest in keeping it nice and making on-time payments.

It's not the end-all, but knowing your loan-to-value ratio in Colorado is an important factor in getting the funding you want. If you have questions about your LTV or anything else about Colorado Hard Money Loans, give us a call today!

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.