Dennis Dahlberg - It Can't Get Better Than This!: hard money

Showing posts with label hard money. Show all posts

Monday, June 4, 2018

What to Expect With Hard Money Loans Arizona

Hard money loans Arizona offers real estate investors a great tool. But, that tool is only useful if the investor understand the process and knows what to expect.

Hard money loans Arizona represent a good opportunity for many real estate investors. But knowing what to expect from the process and how to prepare are critical to a successful request and having the loan funded. Knowing what the lender is looking for will let you present him or her with the desired information and be prepared to meet the requirements of getting the loan.

Hard money lenders are going to want to see that the borrower has some money in the bank as a safety net in case there are issues with the property or the future transaction. Being cash poor is going to make it difficult for you to pay insurance, invest in repairs to the property or even maintain the property. So it is always wise to create a nest egg before beginning your search for hard money loans Arizona.

As a first time hard money borrower, it is also important that you do your homework. Understanding the terms for hard money loans Arizona is very important. The interest rate is definitely going to be higher than a traditional loan and the terms are going to be much shorter. But that is the price of doing business in the hard money world. However, the advantage for you is that all of the terms on hard money loans Arizona are negotiable. You simply need to work with the lender to agree to terms that meet both your needs and his or her needs.

What to Ask For

The loan to value rate is simple the comparison of the amount that you are asking for and the current market value of the property. In most cases a hard money lender will never fund over 70% of the cost of the property. So you need to be aware of this “magic” number and limit your request accordingly. In addition, you will need to be able to demonstrate your ability to provide the remaining amount of the purchase price for the down payment on the property.

Have a Planed Exit Strategy

All that the lender is really interested in is recovering his or her investment and interest on the hard money loan. But the lender understands that for you to pay off such a large loan in a short period of time, then you will most likely need to resell the property for a profit. So the lender will want to know how you plan to accomplish that task. And because it is only on a very rare occasion that things go perfectly, it is best for the lender and for you, to have more than one exit plan. You might want to do a quick flip on a residential property. But if you can’t find a buyer then a reasonable backup plan it to rent the property and seek a traditional loan to pay off the hard money loan.

Knowing what to expect and being prepared will not only help you to secure a hard money loan but it will also help you to be successful in profiting from that loan.

Friday, June 1, 2018

Tips for Success When Considering Hard Money Loans Arizona

Every industry has its good and bad participants and hard money lending is no exception. But following a few tips can help to ensure success when seeking hard money loans Arizona.

As with any loan, careful evaluations should be completed for each lender and the terms for all hard money loans Arizona. If you are not familiar with the process or the loan documentation it is always a good idea to have your lawyer review any documents before you sign them because a hard money loan document is legally binding. In addition, there are a few other tips that can help you to ensure that your entire loan application and funding process goes smoothly.

There can be a few legitimate upfront fees that a borrower is asked to pay when requesting hard money loans Arizona. But be cautious of any extremely large fees that you are presented with prior to being approved for the loan. In most cases, these fees are being charged by a third party or a “broker” who is not actually the lender but is trying to get a fee and masquerade as a lender. Not only is there a good chance that you will not get funding from this person but there is also a good chance that they will sell your identity or personal information to others for an additional profit at your expense.

When you are presenting information to a potential lender, assume that they will find out any “little secret” that you might know about the property. Do not try to hide information about the title, tax liens or any issues that could become a problem in the future. A lender is going to fully investigate the property and will not look kindly on any borrower who has attempted to be dishonest or take advantage of them.

Know the Current Rates

Not all lenders are dishonest just like not all used car dealers are dishonest. But that are a few in every crowd. So be sure that you have polled several lenders and are well aware of the current rates and terms for hard money loans Arizona. This will let you know immediately if a lender is trying to take advantage of you and you can cease the relationship immediately.

As for A Detailed Fee Breakdown

In the end, all you are really shopping for is the loan with the best overall cost to you. So it only makes sense to clearly ask for a list of all of the fees and costs that you will be paying for the use of the lenders money. Having this clear list of the total cost will allow you to easily compare all of your offers without having to sort through various terms and jargon that can be a part of a loan document.

Using these few tips will help you to more easily determine which hard money loan is the least expensive and will allow you to get the best return on your investment.

Wednesday, May 23, 2018

What Are Hard Money Loans Arizona?

Understanding hard money loans Arizona will provide investors with an additional lending resource when they are interested in investing in real estate. It will also greatly reduce the time involved in securing funding.

Hard money loans Arizona are just loans that is secured by real estate. In addition, these loans are funded by private investors or lenders instead of the traditional banks or loan companies. In most cases, the loan is short term such as a 12 month time frame or even as short as three or six months. But the term can be extended to as long as two to five years. Another term used for this type of loan is asset based lending.

The terms of hard money loans Arizona are flexible because the lender is not obligated to follow the same rules and restrictions that traditional lending institutions must follow. The private lender is able to work more closely with the borrower to create terms that are mutually beneficial to both parties. For this reason, many borrowers prefer hard money loans Arizona over traditional loans.

In addition to being flexible with the repayment terms of hard money loans, borrowers also like the fact that it is much easier to qualify for a hard money loan than a traditional loan. Instead of the lender reviewing the borrowers credit, income and current debt load, the lender is really only interested in the current value of the property that is going to be used as collateral for the loan. This allows borrowers with no credit or poor credit to still be able to qualify for the hard money loan.

Deals the Could Require Hard Money Loans

Hard money loans are not the perfect solution for any type of deal. They are financed at a higher rate than a traditional loan and also can have additional loan fees which are charged to the borrower. In most cases, if a borrower can get a traditional loan, then that is the best solution. But when banks are not willing to fund a loan request then hard money is a viable option. Deals such as a short term fix and flip, land loans, construction loans and deals that have a very short time frame for funding are all prime examples of the perfect reason to select a hard money loan.

Properties to Secure a Hard Money Loan

A borrower can use just about any type of property to secure a hard money loan. The only qualification for a property is that the lender be willing to accept that type of property as collateral. Often times a lender would prefer a single family home as collateral because it has a more stable market value and is easier to liquidate if the borrower defaults. But multi-family residential, commercial, industrial and even unimproved land can all be used to secure a hard money loan.

Understanding how a hard money loan works and when it is beneficial, offers borrowers a legitimate option for funding when a traditional lender has declines a loan application.

Monday, April 23, 2018

Why you shouldn't just rely on appraisals when it comes to hard money

A traditional appraisal is usually the most crucial estimate of a properties value with a conventional mortgage. The situation can be more nuanced when it comes to hard money loans. There are additional factors that fall outside of the scope of an ordinary appraisal, and the amount of financing offered will depend on the valuation of your property. By having your an understanding of what a property might be worth you maximize your chances of qualifying for a more substantial loan.

The standard appraisal is a report given by a licensed professional and usually ranges between 5-70 pages in length. The report will detail information the appraiser used to justify their opinion about a properties market value. A more informal valuation is a broker price opinion, or BPO, which is much shorter than a detailed appraisal and is usually no more than 2-5 pages in length. The value of a BPO depends entirely on the individual broker. Another option is to commission a review of your initial appraisal by yet another appraiser to get a different perspective.

So why can't you solely rely on appraisals or other professional estimates? Appraising a property takes time and in some cases considerable resources. You also need to be aware of things that may fall outside the scope of a typical valuation if you want to qualify for a larger loan, especially when it comes to commercial properties.

When it comes to hard money loans, you benefit by going above and beyond the initial appraisal, especially when it comes to commercial real estate valuations

Having an understanding of what is property is worth is especially useful if you are dealing with commercial property.Know that anything that positively or negatively impacts a commercial properties ability to generate income will have a significant impact on its value.An ordinary appraiser might overlook the impact of a floor plan, the availability of parking or a properties accessibility in their estimate. The usual appraisal might also disregard the potential expense involved in bringing a property up to code or the cost of complying with environmental regulations.

It is vital to perform your own due diligence to see things an appraisal might have missed and to plan for any unforeseen expenses.With asset-based loans, the loan amount depends in most cases on the value of the underlying property. Having a thorough understanding of how your property is valued can help you qualify for a larger loan.

When it comes to hard money loans, always consider the future potential of your project to qualify for the largest loan

In all likelihood, an appraiser will underestimate a properties potential especially if you are renovating a distressed property. An appraiser will never attempt to estimate a properties value in the future, based on your renovations or pricing trends in the immediate area. Projecting the market value of a property is simply beyond the scope of an ordinary appraisal

It is up to you to perform own assessment when it comes to pricing trends in the immediate area, vacancy or occupancy rates, or any potential zoning changes in the future. Any of these factors could cause a property to rise or fall In value in the near future.

Entirely relying on an appraisal could blind you to a project's potential. Do your research and develop your understanding of specific things that could impact the value of your property in the future. You can thoughtfully discuss the potential of your project by performing your own due diligence, allowing you to qualify for the largest possible asset-based loan.

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

Saturday, March 31, 2018

How to Benefit From Hard Money Loans

Though many borrowers are unfamiliar with the concept, hard money loans offer many benefits to certain borrowers. Understanding how these loans work can make them a great financial tool to have at your disposal.)

Hard money loans are simply short term loans which are secured by real estate. The loans are often referred to as non-conventional as they are provided by private lenders rather than traditional lenders or banks. Unlike the more traditional loans offered by banks, there are much less stringent requirements to qualify for these private loans. This is one of the main reasons that many borrowers elect to use a private lender and hard money.

As a rule, private hard money is seen as a faster and less difficult solution for many real estate investors. With less documentation required for the application, not only is this a less stressful process for the borrower but it is also faster for the lender. For these types of loans, the lender is primarily interested in the value of the property which is going to be used as the collateral on the loan and not the borrower’s financial health. So rather than spending days or weeks verifying credit history and credit reports, the lender is only seeking the current market value of that one property. If the loan amount is less than 70% of the property value then the lender is most likely ready to draw up the agreement and fund the loan.

Who Benefits from Hard Money Loans?

There are four main ways that hard money loans can be used to a great benefit for borrowers. The first is in the case of flippers. This is an investor who is buying a house that needs work and will be completing a renovation with the intent of selling the property for a profit and in a very short time. A private loan is much faster and easier for this process. Builders will also use this type of loan to purchase a lot to build on. Once the structure is complete, they sell it and pay off the private lender with the profit from the sale. Investors also favor a private loan when they are in need of funding very quickly. Opportunities can be very time sensitive and making the initial purchase using a private loan is much faster. Then the investor has the option of securing a traditional loan to lower their interest costs once they have ownership of the property.

A Final Benefactor

The last type of situation which can require a private loan of this nature is a person who has bad credit. There are occasions when a person has saved enough for the down payment on a property but is still unable to secure a traditional loan for the purchase. Their credit is too bad or they have no credit history. In this case, they can use the private lender to secure the property and then refinance later when they are able to qualify for a traditional loan. All of these situations are clearly good options to take advantage of an opportunity that would otherwise be lost.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Invest 5 Minutes to Learn How Hard Money Loans Can Work for You

By understanding the process of hard money loans, you will see the benefits that they offer. Then you can use this financial tool to make money.

Hard money loans are non-traditional loans, meaning that they are funded not by banks or lending institutions but by private sources. These sources can be a private individual or a group of people who are working together to fund loans. In most cases, the loans are short term and are used to purchase investment properties. The other key feature for these loans is the qualification process.

In the case of a conventional loan, a borrower must complete a loan application and submit it to the traditional lender. This document can be very in depth and tedious to complete. And then the lender begins the process of verifying the information to determine if the borrower is a good risk. The lender considers the borrowers credit score, credit history and overall financial well-being to decide if they will grant the request for funds. In short, the approval is based on the borrower’s current finances. But for hard money loans, the lender is basing the approval on a totally different criteria. The lender is only interested in the current market value of the collateral being offered for the loan. Collateral is something of value which is pledged as a form of security on the repayment of a loan. In this case the collateral is most often the property being purchased. If the borrower fails to make the payments on the loan then the lender is able to sell the collateral to recover their money. The lender is not even really interested in the borrower’s credit or financial position, only the collaterals value.

Understanding this single point is critical to making money using hard money loans. What this means is that you do not need to have great credit or a strong credit history to be able to fund an investment property. You only need to have found a property which has a value greater than the amount that you need to borrow. This single fact opens up investment real estate to an entire segment of the population who might not qualify for a traditional loan due to past credit issues.

Use This Knowledge

Knowing that private lenders are willing to extend loans to borrowers without perfect credit means that anyone can invest in real estate and benefit from this potentially huge profitability. Fix and flip purchases have become very popular in the past 5 years. Buying a property which needs work is a great way to buy cheap, invest sweat equity and then sell for a large profit. Using hard money allows anyone who is willing to invest the time and work needed to improve the property to make a profit on this short term investment.

Invest in Your Future

Not everyone has great credit or can qualify for a second traditional mortgage for an investment property. But using a private lender is a great way to get a short term loan to begin your path to financial freedom as a real estate investor.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, March 28, 2018

How to Make Money Using Hard Money Loans

Hard money loans are not suitable for every borrowers needs but they are perfect to meet some specific needs. Using this loan correctly can be a great way to grow your wealth.

Nothing in this world is perfect and likewise, there is no single type of loan that is perfect for every scenario. But there are several situations which are tailor made for hard money loans. Understanding the correct time to select a non-traditional loan is the first step to using this financial tool to generate financial security for yourself and your family.

In general, hard money loans have a higher interest rate and therefore the money is costing the borrower more than a traditional loan. But for every negative there is also a positive. And in the case of these private loans, the positive comes in several forms. The first of which is that the loan approval is based on the value of the collateral unlike a traditional loan which requires good credit scores and a strong credit history to secure a loan. Not only does this fact reduce the amount of documentation that a borrower needs to provide but it also streamlines the lenders approval time. All the lender needs to do is establish the current market value of the collateral to determine if the loan will be funded or rejected. This time savings can be critical when you are trying to purchase a property before another buyer makes a better offer.

Private lending options offer borrowers a faster turnaround time, less paperwork and do not rely on personal credit or financial stability. All of these facets of private lending make this a very viable solution when considering deals such as fix and flips, land loans or construction loans. In all three of these cases it can be very difficult to secure traditional finding. And without funding, it is impossible to make these deals and reap the rewards once the project is completed. But using a private lender will allow you to complete the funding and the deal to realize the profit in the end.

How and Why It Works

As you might have noticed, all of these potential money makers are short term investments which are time sensitive. It can be very difficult to secure a loan fast enough to purchase a great fixer upper to flip or to purchase unimproved land for a new construction project. Banks are not willing to lend money for these more risky ventures nor are they willing to expedite your request. But a private lender is willing to work with you to provide more flexible terms and a faster approval and funding to allow you to meet the shorter time line. Then, with the property secured, you can invest some time in finding less costly financing and refinance or you can make the necessary improvements and flip the property quickly for a large profit.

Making Private Loans Work for You

Hard money loans are not the solution for every deal or opportunity. But they do offer certain features which can make them the perfect financial tool to use to make money and increase your financial security. When used properly by a borrower who understands the process, the risks and the rewards, this type of loan offers a great return on investment.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, March 22, 2018

Defining Working Capital Commercial Loans and Their Good and Bad

Do you wish you could obtain working capital commercial loans to help your business? Level 4 Funding shares the pros and cons of these loans.

The amount of cash a company has to cover standard business operational needs like employee payroll, rent, monthly utilities, paying vendor and more is called “working capital.” Working capital can really come in handy if a new or growing business hits a slow patch or is having growing pains while expanding. Without an extra cushion of working capital to cover these everyday expenses, a company could go out of business or have to file bankruptcy or foreclose on their property. So working capital commercial loans really can be the difference between your company’s success and its downfall.

Working capital loans have lots of benefits. They generally have a very quick approval process, which means you can receive the money you need often inside of a week after the loan is approved. Unlike other types of conventional loans from traditional lenders, there are no stipulations on how the funds from the loan are used. The application process is not as complex as others can be and even if companies don’t have perfect credit or are still establishing credit history, they can still have a chance of getting approved for these types of commercial loans.

There are some drawbacks to these loans, as well, that lendees should know about. For example, due to the fact that they are bit more lenient in some ways, such as credit check and application process approval, these loans typically require that borrowers to put up a specific amount of collateral to obtain the loan. Because they have shorter terms, working capital commercial loans also have higher interest rates than longer-term loans from conventional banks’ repayment schedules.

These loans are ideal for businesses that aren’t “typical” and therefore don’t usually have an easy time getting loan approval from other lenders.

Sometimes lenders require the funding to be used in a certain way (such as for equipment like machinery or computers). But because working capital loans don't, this can be beneficial for companies that don’t need equipment or small or new businesses that could really use the cash to get up and running or through a difficult patch when cash flow is tight. This is also great for niche companies that need supplies or equipment that doesn’t fall in the typical range of what traditional lenders recognize.

If you need cash and you need it now, this is the type of loan for you — and there are lots of lenders that specialize in this exact type of loan.

It’s important to work with a trusted and experienced lender — regardless of the type of loan you need.

Regardless of your business status, credit history or any other factor, it’s important to deal with a lender that you trust to get you the best loan for your needs with the best terms. Do some research on local lenders in your area that specialize in these loans and don’t assume the first lender you meet with will be the right one. Be patient and don’t jump into this important decision too quickly.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, March 16, 2018

How to Know What to Expect When Applying for Commercial Real Estate Loans

If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans. There are many important components that you should be aware of during the application process.

Commercial real estate loans are not given to individuals, but to corporations, developers and other business entities. The funds can be used for a number of things for their business. It can be used for remodeling, adding more locations. If your business doesn’t have a strong credit history, then some lenders might be looking at the owner’s individual credit scores. To be sure of approval, it is best to have an excellent credit score, usually of around 700. So, make sure to keep that in mind before applying.

Be prepared to pay higher interest rates than those compared to residential loans. On top of higher interest rates will also be extra costs for the fees. These fees can include: legal fees, appraisal, loan application and survey fees. Keep these fees in mind when you ae shopping around for the best deals. You want to take these into consideration along with interest rates and other terms.

Also, be aware that you could face prepayment restrictions. Most of the commercial real estate loans come with certain regulations and terms. These will pop-up if you decide to pay off the whole amount of debt before the payment due date. This could result in having to pay penalty fees. This is actually a very common thing among lenders. It is usually calculated by multiplying the current outstanding balance by a certain penalty amount or interest guarantee. If the balance is paid off early, you may be responsible for paying a fee to the lender.

There are many different types of terms offered for commercial real estate loans.

The terms usually range from 5 years to 20 years, but the amortization period could end up being much longer than the actual term length of the loan. For example, a loan term could only be 7 years, but the amortization could be for 25 years. The length of the loan and amortization could affect the rate of the fees and the interest rate. But remember that most terms are negotiable. Just keep in mind that the longer period of the loan length, the higher interest rate.

Always take into consideration the factor of loan to value ratio.

The loan to value ratio measures the value of the loan compared to the value of the property that the loan is being used for. This is calculated by the lender and the category of the loan does play a role in this. If the loan to value ratio is high, then it is usually common for loans to be approved. Always talk about this with your lender before making any final decisions.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, March 11, 2018

Alternative Ideas for Helping You Obtain Commercial Loans Through a Broker

Why should you seek an alternative lender for your *commercial loans**? There are many benefits to going this route — Level 4 Funding explains them here, so read on.*

You may think you’re alone if you’ve been rejected for a loan before or if you don’t have the requirements to seek a traditional loan. But there are lots of alternative ways to get approval for commercial loans. Even if you have a few bad marks on your credit history or not the highest credit score, or if it’s a matter to a tough economy making conservative banks tighten their wallets even more than usual, that doesn’t mean you aren’t destined to let a loan. Seeking other loans like short-term or hard money loan are good alternatives. If you talk to a broker about these options, they can help you get the best loan for your needs.

There are some differences between traditional long term commercial loans and short-term and hard money loans. First of all, these types of loans don’t typically require such a lengthy and strict application process, “red tape” and bureaucracy that often takes place with conventional lenders or banks, and longer term loans.

One of the most important things to keep in mind when seeking alternative loan options is that lenders that specialize in these look mostly at the probability that you will be able to pay back the terms of the loan back. However, it’s important to know that interest rates are typically higher with short term and hard money loans – this is because lenders are putting up a higher risk. The good news is that these loan applications often are much simpler and easier to get approved quickly than traditional loans, so you can get the money you need — and get it fast! However, high interest rates are worth it if it means taking your business to the next level. Even though you may have higher interest rates, getting this loan can make all the difference for the growth of your company and taking your company to the next level.

It’s important to meet with a broker to find out if a short term or hard money loan is right for you.

When you meet with them, be upfront about what you need and your business experience or history so that they can best help you get the commercial loans you need. Professional lenders and brokers can offer advice on how to prepare for the loan including what documentation you’ll need to submit. These will typically include your financial statements, credit report, business plan, bank statements (personal and business) and more.

Try not to get too stressed out about getting approval for your loan.

Yes, this is a high-stress situation; however letting your emotions get the best of you won’t help. Try to remember to take it one day at a time. There may be snags and setbacks, but keep your eye on the prize — getting your loan approved to help open or grow your business! There are lots of options so just keep in mind that if there is some rejection along the way, it doesn’t mean it’s the end of road for your business dreams. So find the one that’s right for you and you’ll be on your way to making your business dreams come true.

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

Saturday, January 14, 2017

Deed of Trust Definition - What is a Deed of Trust

What is a Deed of Trust? Deed of Trust Definition

Definition of A Deed of Trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).

There are three parties to this type of title. They are:

The Trustor (Borrower),
Beneficiary (Lender) and a
Neutral 3rd part called the Trustee.

They are written so that the lender gives money to the borrower to purchase a real property (home) and the borrower signs a deed of trust giving the power of sale for property to the natural 3rd party trustee to be held in trust for the lender. (I like to think the trustee takes the Deed of Trust and puts it in the top drawer of their desk and waits.) The borrower owns the property, but the title is held by the trustee.

This is noted in the Deed of Trust and is called the ‘power of sale clause’.

Deeds of Trust Definition

Equity – our long-term Mortgage program is brokered at 60% of the after repaired value (ARV or LTV) where the goal is to have a fixed and rented home that more than covers the monthly payment..

Money Down – All of our professional real estate investors will have either personal funds or a spread of equity in the transaction serving as their personal guarantee and commitment that the Deeds of Trust payment is a priority

1st Deeds of Trust Only – Our investors are the only holder of the note and in first position

No Pooling of Funds – The Level 4 Funding does not pool funds (also called fractionalized Deeds of Trust). This gives the Deeds of Trust investor more control over the investment

Non-Owner Occupied Properties Only – The Level 4 Funding only brokers Mortgages for non-owner occupied, single family homes and units (1-4) to a very unique client, the professional Arizona real estate investor.

Appraisal – An estimated value placed on a property at a particular point in time. Also known as appraised value.

Beneficiary – The beneficiary is the lender that can be an individual or a legal entity. Also known in a Deeds of Trust investment as a private money lender.

Deed of Trust – A document signed by the borrower that, once recorded, acts as proof that a Mortgage has been made on a property.

First Deeds of Trust – The first in line of Deeds of Trust recorded on a property.

Hard Money Mortgages – given at a higher interest to reflect perceived risk and added convenience of speed.

Interest Only – No payments being made on a Mortgage are being applied to principal. The balance due stays the same.

Simple Interest – Its calculated using the following: (Balance Amount * Interest Rate) divided by 12. This gives you the monthly payment for interest only payments.

Mortgage to Value (LTV) – Is a ration is used to determine risk and equity position in a property. If the property us currently valued as it stands now at $100,0000 a Mortgage of $70,000 gives a LTV of 70% ($70,000 divided by $100,000). This should not be confused with ARV – After Repair Value.

Points – A percentage fee charged for origination of a Mortgage. One point is equal to one percent.

Promissory Note – The Promissory Note is signed by the borrower and shows the terms of the Mortgage.

Trustee – An individual or organization authorized to hold a trustee sale.

Trustor – The trustor is the borrower.

About 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.

Friday, January 13, 2017

Does Our Government Really Hate US? Really?

What's wrong with our economy?

One of the technical terms used when evaluating a healthy economy is a term called velocity of capital. What this means is how fast money is moving around from one person to another, or defined as "The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.”

As you can see from the above graph the Velocity is on a steady decline. So what causes the drop? My opinion is that there are two main reasons:

People (consumers) have stopped spending money. They are sitting on a boat load of cash and they are in a wait and see mode.
The second reason why there is a decline is that the government has put up road blocks to keep spending money. One of the biggest road blocks enacted are the Dodd-Frank Regulations that are making it extremely difficult for individuals to purchase homes.

When someone purchases a home it's not just the seller and buyer who are happy. There are those downstream of this closing that are going to be happy when the home closes. Typically the listing and selling agents are happy, but there are others who also benefit from this happiness and make a living off of the sale. Sure the buyer is happy, they have their dream home they always wanted, and the seller is happy since the can move to their next home, or maybe get rid of the current home. It's going to be a Happy, Happy, Happy fest. The agents who listed/sold the home can't wait till they receive the final HUD 1 is completed and the title company sends out the checks to the brokers. Most agents keep a list of the transactions in their pipeline and like most agents, their spouse is quizzing them on the transactions. My wife usually says, 'got anything closing this week'? She says this specially during the holiday season. I'm happy to say that yes!. This is going to be a good Christmas. However there are many others who will benefit from this transaction and will have a happy Christmas.

Title company and the title agent are getting something from this transaction, like title insurance & escrow fees.
The loan company, Loan Officers, Loan Brokers, Underwriters, support staff, company sales rep also benefit.
Home Inspectors, and termite inspectors are getting some of the money.
Handyman who will fix the conditional items from the homeb inspection also get a piece of the deal, and don't forget all the hardware stores will get a piece of this pie when the handyman buys a new faucet or other item to be fixed.
Tax payers benefit when home taxes are being paid in full with collections of future taxes.
Insurance companies are writing a new policy.
HOA's are going to receive a transfer fee and maybe impact fees.
Neighbors are going to be happy to see a new neighbor.
Disabled Vets are going to receive all of the stuff the new home owners are going to give away before they move.
Utility companies are going to get a change notice and if the account is past due, they are going to get paid.
Appraisal companies will get their piece of the pie also.

It is amazing when you think of all the people who will touch this transaction to complete the deal at all. BUT what's really startling is how many people will be able to keep their job, put food on the table and survive.

With all of this occurring, we should sell homes all the time, but I'm shocked by the road blocks our government has put in place to stop this from occurring. In an effort to fix the last collapse of the housing industry, the administration has generated a mountain of mind numbing regulations to stop consumers from purchasing a home. It's like passing through gates of hell to get a loan. We have gone too far in the wrong direction to fix the problem. The incoming administration has indicated that they are aware of this problem and is promising to fix the regulations ASAP. Let's get money flowing again!

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
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About 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.

Wednesday, January 11, 2017

Level 4 Funding LLC Arizona Private Hard Money Lender

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About 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.

Monday, June 4, 2018

Hard money loans Arizona offers real estate investors a great tool. But, that tool is only useful if the investor understand the process and knows what to expect.

What to Ask For

Have a Planed Exit Strategy

Friday, June 1, 2018

Every industry has its good and bad participants and hard money lending is no exception. But following a few tips can help to ensure success when seeking hard money loans Arizona.

Know the Current Rates

As for A Detailed Fee Breakdown

Wednesday, May 23, 2018

Understanding hard money loans Arizona will provide investors with an additional lending resource when they are interested in investing in real estate. It will also greatly reduce the time involved in securing funding.

Monday, April 23, 2018

Saturday, March 31, 2018

Though many borrowers are unfamiliar with the concept, hard money loans offer many benefits to certain borrowers. Understanding how these loans work can make them a great financial tool to have at your disposal.)

Who Benefits from Hard Money Loans?

A Final Benefactor

By understanding the process of hard money loans, you will see the benefits that they offer. Then you can use this financial tool to make money.

Use This Knowledge

Invest in Your Future

Wednesday, March 28, 2018

Hard money loans are not suitable for every borrowers needs but they are perfect to meet some specific needs. Using this loan correctly can be a great way to grow your wealth.

How and Why It Works

Making Private Loans Work for You

Thursday, March 22, 2018

Do you wish you could obtain working capital commercial loans to help your business? Level 4 Funding shares the pros and cons of these loans.

Friday, March 16, 2018

If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans. There are many important components that you should be aware of during the application process.

There are many different types of terms offered for commercial real estate loans.

Always take into consideration the factor of loan to value ratio.

Sunday, March 11, 2018

Why should you seek an alternative lender for your commercial loans? There are many benefits to going this route — Level 4 Funding explains them here, so read on.

Saturday, January 14, 2017

Friday, January 13, 2017

What's wrong with our economy?

Wednesday, January 11, 2017

Why should you seek an alternative lender for your *commercial loans**? There are many benefits to going this route — Level 4 Funding explains them here, so read on.*