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

Wednesday, July 6, 2016

Commercial Bridge Loan: How To Evaluate Risks vs. Benefits

Any form of financing is going to have some advantages and drawbacks to using it. Commercial bridge loans—like any other loan--have both.

In a perfect world, there are many things that business owners would never have to worry over. They would never have cash flow issues. They wouldn’t have to wait for their long-term financing to come through. If they needed to make any repairs or changed before they could get approved for a long-term loan, they would be inexpensive and easy to fix.

The list could go on and on, but the sad reality is that business owners often find themselves in need of cash for one reason or another before they can receive approval for their primary loan. A commercial bridge loan can help them bridge the time gap till the long-term loan is approved.

However, just like anything else in finance, a commercial bridge loan comes with drawbacks as well as benefits. It is important to know what they are ahead of time.

Benefits To Applying For A Commercial Bridge Loan

Of course, the biggest benefit is that your business gets a much-needed cash infusion, but there are other benefits to getting it through a commercial bridge loan.

One of the more significant benefits is the very nature of the loan--it's short term. Short term means you have less time to pay off a loan and can only break the payments down so much, but it also means you pay less interest. With longer term loans there will be more of a chance you and your business fall on some hard times. If you struggle to recover and miss a few payments (or default) getting another loan in the future could be harder.

To keep repayment from being an issue, commercial bridge loans are often structured to be paid back when your long-term loan comes through. Making your payments will, of course, improve your credit rating which will make it easier for you to get your next loan.

Drawbacks Associated With Commercial Bridge Loans

One of the biggest drawback to commercial bridge loans is the most obvious. Since it is a short-term loan, the payments will be larger. Larger payments are more challenging to make, and since the term is shorter, lenders are often less likely to be flexible with payment arrangements. Instead, they will probably be more likely to tack on late fees and penalties making it even harder to make your payments.

Of course, you can get around payment issues by structuring the loan so you can pay it off after you receive our long term one. However, the longer you take to pay it off, the more interest accrues. Depending on the size of the loan, the interest can be significant.

The biggest potential drawback is the purpose of the loan itself. It is meant as a short term solution to help you cover expenses as you wait for your long-term loan to be approved. What if it gets turned down? What if, like many people were faced with during the housing crisis, the institution you are trying to get your long term loan through fails?

You still have to make your payments on time. Should you struggle with doing so, your credit rating may be adversely affected which will make it harder to get approved the next time you apply.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com

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.

How To Make Money With A Commercial Bridge Loan

Commercial bridge loans can be a sound investment in the future, not just as a businessman in need of one, but as an investor looking to make his money grow without taking on too much risk.

You just got a nice bonus at work. As tempting as it would be to waste the money on a sports car, luxury vacations, or the most impressive home theater system ever built, you know you should do the smart thing and try to make your money grow. Make the right investment decisions and you can still have the vacations and home theater system after you retire and have time to use them.

But your buddy lost his shirt in a recent investment, and you are a little paranoid about suffering the same fate. What should you do? What has a limited amount of risk, but still has a decent gain?

Maybe you should get involved with a commercial real estate lender who approves commercial bridgeloans!

Why Commercial Bridge Loans?

What is a commercial bridge loan? It is not unusual for a business to need cash to keep from going into foreclosure or to cover costs while waiting for long-term financing to be approved. In those situations, a commercial bridge loan can be obtained. Since they are short-term and do come with a little more risk than a mortgage, the interest rate will be a little higher. So why should you invest in them?

If you allowed your money to be used for a commercial mortgage, you wouldn’t see it all again for a very long time. Commercial bridge loans, however, are short-term loans (often from as little as two weeks to three years) so you will see your money again a lot quicker than the 10-30 years it would take to get it all back from a commercial mortgage.

Loans are secured by commercial assets so should the borrower default your investment is safe. Your broker will have the loan placed in First Position, so a default does occur when the property goes up for auction you are paid first.

As the borrower makes payments, you will receive monthly payments as well a 6 percent yield. Most lenders will likely have no problem reinvesting it so that your money can keep working for you.

Is Investing In CommercialBridge Loans Worth The Risk?

If there were an investment that did not have some level of risk, it would have people waiting in line to get in. Everyone wants to earn money while not taking a chance on losing it. However, there is no such thing. Every investment will have some percentage of risk.

With a commercial bridge loan, your investment is secured by the commercial property the borrower used as collateral, but that does not mean the borrower is going to make every payment. Business could fall off, demand could slip, a scandal could taint the product or company, someone could embezzle money—there is a host of things that could go wrong.

Yes, there is the collateral that will be sold at auction, but there is no guarantee on how it will sell. So—is the risk worth the reward? Only you can answer that question.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

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.

Commercial Mortgage: Tips and Tricks To Get Approved

Getting approved for a commercial mortgage can be challenging, but the process can be made easier by following certain tips.

Before you go into an interview, it is considered a good practice to find out as much as you can about your potential employers. Before taking a test, it can help to know what sort of questions an instructor likes to ask. Before taking a date to the movies, it is smart to know if she prefers comedies over action movies or romantic flicks over horror shows.

Just like job interviews, tests, and dates, the process of getting a commercial mortgage approved can go a lot smoother if you adhere to certain tips.

Tips To Help You Get Your Commercial Mortgage Approved

• Location: Lenders prefer to enter into relationships with local businesses so don’t bother looking into any that are out of state or without an office in your metropolitan area. This doesn’t mean you can’t get approved by someone out of state, but you’ll get better terms from a local lender.

• Don’t go with the first lender you see or talk to. There are a lot of potential lenders out there, and they all want your business. Terms can vary widely from one lender to the next, so you want to talk to a few and see who offers the best deal.

• Be careful when dealing with private lenders. If they are pushing you to pay for fees upfront early in the process, there is a good chance they are crooks trying to run a scam.

• Make sure you know how long your lender takes to approve loans. You want to ensure you allow enough time for it to get done before you need it. Expect it to take a while.

• Only the lender can order an appraisal. So if you are working with a mortgage broker, don’t be talked into getting one.

• If the lender wants you to get an appraisal, get a term sheet first. It is not legally binding, but it will give you an idea of what you are going to get before you pay for anything.

• If you are not trying to get a loan through the bank you use, offer to switch your accounts to their institution should your loan get approved.

• Be aware of any hidden costs your lender may charge before you even get the process started. No sense in wasting time if it is going to cost you money just to apply for a loan.

A Successful Approval Can Depend On Proper Documentation

No matter how many tips you follow or how many hoops you jump through, you will have a hard time getting your commercial mortgage approved if you can’t provide the lender with the appropriate documentation when asked.

At some point during the process, your lenders are going to want to see certain documentation. Whatever it is, make sure you have it on hand. One of the quickest ways to get turned down is to fail to provide something requested. So get organized and have it ready.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

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.

Tuesday, January 19, 2016

Eager to Move? Here's How an Arizona Bridge Loan Can Help

If you need to move quickly but don't have the cash for a down payment until your current home sells, an Arizona bridge loan may be just what you need to help make your dreams come true. Learn the risks and benefits of a bridge loan to decide if it is the right choice for you.

If you are trying to sell your home, you know that it can take a while, especially if you are still living in it. Between picky buyers who can't see around your furniture to trying to keep it clean for showings that are often erratic and unproductive, you may feel that you will never be able to sell your current home. Which may be fine, but it probably isn't. Whether you need to move for work or simply to have more space, you may need to get out of your current home quickly.

You may be able to double qualify for two mortgages which would make it possible to move while your current home is still on the market. However, even borrowers who can qualify for two mortgages may find themselves short on their down payment for their new home. Even at only 5%, your down payment can be upwards of $20,000 and most people don't just have that sitting in a savings account. You are most likely relying on the sale of your current home to finance your down payment into your new house.

This is where an Arizona bridge loan comes into play. An Arizona bridge loan is a short term loan
designed to bridge the gap between your current home selling and you needing to move into your new home. You use the bridge loan funds as a down payment on the new home, and when your current home sells you pay back the bridge loan with funds from the sale. This will allow you to move almost immediately and will make it easier to sell your current home.

What You NEED to Know About Your Arizona Bridge Loan

While an Arizona bridge loan is a great way to get cash for a down payment, it is important to be aware of all the terms and conditions of your loan. Typically, bridge loans have a higher interest rate than most long term financing options. However, you can often find grace periods that allow you to skip payments for a month or two. If your home sells during that time you may not even end up making a payment on the loan and will avoid all interest charges. You also have to be able to qualify for two mortgages so most bridge loan borrowers will need to have relatively high incomes and decent credit scores.

Traditional banks don't have access to Arizona bridge loan funds, so call a private lender today!

If you need to move, don't wait. Contact our bridge loan specialists at Level 4 Funding to get started on the bridge loan process today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Make Money With Texas Hard Money Lenders

The key to being successful in real estate investing is to find the right Texas hard money lenders to back your purchases. Without a lender, most investors don't have sufficient cash to purchase, renovate, and sell properties and therefore won't ever get their real estate career off the ground.

Unless you are independently wealthy or have family who is, you most likely don't have the cash collateral necessary to make money by investing in real estate. Sure you could probably finance one property but it is unlikely that you would be able to get a cash loan to get a good deal or make an auction purchase. In addition, you won't be able to borrow more than the mortgage amount to use to fix up the home.

So, you may think, that unless you are a millionaire, it is impossible for you to make money in real estate. This is simply not the case. Using a less commonly known type of financing called hard money loans from Texas hard money lenders, you can break into the real estate game.

How to Make Money With Hard Money Loans from Texas Hard Money Lenders

Once you have decided to stop let finances hold you back from making big bucks with real estate investing, it is time to do a little research to find Texas hard money lenders. Hard money lenders specialize in asset based loans called hard money loans. Hard money loans are backed by the property you are purchasing and are cash loans. This makes them ideal for foreclosure and auction properties. You can also use a cash offer to get a better deal on many properties. If you can talk the asking price down, you may even have enough left over to put towards some renovations.

Once you have obtained your hard money loan, you use it to purchase a real estate investment. Whether you choose a fix and flip, short term rental (think a home in a city that is getting a big sporting event or other event that will attract short term vacation rentals), or another real estate investment. Once you sell the investment, you use the money to pay back your Texas hard money lenders. Any amount above and beyond your loan value, is your profit to keep.

There are several benefits to hard money loans. First and foremost, they are not based on your credit score or finances. Secondly, hard money loans are very flexible in their terms. You can often get extensions if you need to and there are even interest only payment options. Finally, hard money loans allow you to cross collateralize to borrow more money if you run into unexpected expenses.

Once you have decided that hard money loans are the right option for you, find Texas hard money lenders to lend a helping hand and make your dreams come true!

A hard money lender can help you get started on the hard money loan process. Your lender can also point you in the direction of other real estate professionals that can help you on your investment journey. Don't put off getting a loan any longer. Make your dreams of becoming a real estate mogul come true today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Top 3 Fix and Flip Projects According to Texas Hard Money Lenders

If you are a real estate investor, you know that Texas hard money lenders are a great resources for your hard money loan to purchase and rehab a fix and flip property. In addition to providing hard money loans, Texas hard money lenders also know a thing or two about property renovations.

For many first-time flippers, the process of renovating a home can be overwhelming. If you find yourself not knowing where to start, it can be easy to over-improve a home. While this many not sound like a big deal, it is. If you over spend on renovations, you run the risk of putting more money into the home than you will be able to get when you sell it.

If you are unsure what renovations will help you make money and which to skip, you need to consult the experts. Texas hard money lenders have given a lot of hard money loans on fix and flip houses and seen many success stories, as well as failures. As a result, they know where you should splurge and what projects you may want to skip.

Top 3 Projects That Will Earn Top Dollar, According to Texas Hard Money Lenders

Based on their experience with fix and flip investment projects, here are the top three money making renovations, according to top Texas hard money lenders:

1. Flooring: If you purchase a fix and flip property, chances are that the floors will be in bad shape. Stained carpet, burned or scratched hardwoods, or even carpet that has been completely removed and sold as scrap. Buyers do not want to purchase a home with tattered, worn, or missing flooring. Durable laminate and higher end carpet are great options that are budget friendly. If the home is in a particularly prestigious neighborhood, you may want to look into springing for hardwood or tile.

2. Kitchens. A kitchen will really help sell your home. If the kitchen is dated, spruce it up with new paint, appliances and counter tops. You can look into quartz options to help save money.

3. Major structural issues. If you purchase a home and find that it needs a new roof or has foundation issues, these will make it impossible to sell. Make sure that you budget for any major issues that may come up during your renovation. Texas hard money lenders know that structural improvements are a must if you want your home to sell for top dollar.

Once you have decided to purchase your fist fix and flip, make sure to find Texas hard money lenders that will lend a helping hand.

Call the experts at Level 4 Funding to get your renovation project started and make money today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.