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

Tuesday, July 12, 2016

Benefits of Finding the RIGHT California Hard Money Lender

Researching California Hard Money Lenders

Discovering an California hard money lender can seem like an intimidating task. In reality, you could be so deep in financial hardship, it's taking all your strength to keep your head above water. When you don't have anywhere to turn, California hard money lenders are there for you. After you locate the appropriate hard money lender for you, they could loan you the money you need in as little as 24 hours and set you on the course to economic freedom. There are a couple of methods to find the appropriate Arizona hard money lender and it is your responsibility to find the right one for you.

Initially, you have to determine the kind of hard money you are looking for. Are you a business owner wanting hard money? Or are you an individual who is thinking about a residential hard money loan? Choosing which class you belong to is the first step to take into consideration before looking more.

At that point, you need to crunch the numbers and decide exactly how much money you are in need of. Bear in mind that California hard money lenders will loan you up to 80 % LTV (loan to value), yet this quantity will probably be closer to 65 %. Keep your expectations somewhere in between that area and then begin your research. You most likely already have your investment in mind, so do the math. Don't request more than you actually need so you can keep your debt as limited as possible.

Finding the RIGHT California Hard Money Lender

What better way to begin than with everybody's tried and true method of research? You do not even need to get off the sofa-- just start with the internet. Use a search engine such as Google or Bing and enter the words and location you are looking for a hard money loan in. For instance, if you planned to find a lender in your region, you might type "California hard money lenders." Undoubtedly, several hundred (if not thousand) internet sites will pop up. This could be kind of frustrating if you are wanting to find the right lender quickly. Click on some of the websites near the top of Google and compare and contrast what you see. Make a few lists of items that seem legit to you and also keep track of those that seem a little sketchy. It isn't a lot of to ask to have your hard money lender have a legitimate looking internet site if they are going to be managing your funds.

One of most crucial things to bear in mind is that if it appears too good to be true, IT IS! Don't do anything you feel uncomfortable with, even if it looks like an excellent offer. Rely on that gut feeling of yours, even if it lender you select has somewhat greater interest fees. Don't allow your financially troubled circumstances lead you down a course that will be wrong in the long run.

When you find a usable lender, look up some client reviews. You could discover a lot about a lender by merely reading what other individuals' encounters have been like with them.

Happy senior business man making his notes at work Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

www.Lff.info

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.

Wednesday, July 6, 2016

Commercial Mortgage: Advice For Your First Loan

Is this your first time financing a commercial mortgage? If so, you don’t have to go at it alone.

An investment property can be a big step for you or your company. Thus, like any other big step you probably want to know just what you are getting into of course and why shouldn’t you? Signing up for a commercial mortgage for the first time is always the hardest. In other words, you’ve more than likely talked a good game about purchasing that strip mall, office park or hotel. But, you’ve probably never seen it through until now and that’s perfectly okay. Before, it was a future dream and bow you are ready to make it a reality so let’s help make that happen.

By now, you probably have your eye on a few good properties, but before you start shopping around for your commercial mortgage, there are definitely a few things you need to do. For starters, stop whatever you are doing this minute and check your credit—double check it, in fact. Your credit and your credit report don't matter. Chances are you have some issue you need to address or clear errors that you didn’t know where affecting your ability to be a strong borrower in the eyes of your future lender. Thus, this is the very first piece of advice you should take —check your credit and thoroughly review your credit report. If you do have a few outstanding issues that you want to take care of before applying for a commercial mortgage do that, but do not close out any old account, at least not before you obtain your loan. Knowing what your credit score will help you determine if you need an investor partner and it will also help you narrow down your loan options.

Other pre-applying tips that you take advantage of for your first commercial loan include having a down payment of at least 20 percent down or consider a second mortgage if the term down payment scares you and exploring your borrowing options i.e. there are more than banks that are interested in helping you finance your commercial property. Lastly, don’t be afraid to ask about owner financing—it may be just what you need.

The Difference between Wanting to Apply for a Loan and Applying

Clearly, looking at a few properties and checking your check and figuring out your down payment situation are all a part of the game, but there is a difference between wanting to finance an investment property and taking the next step—applying for financing. Thus, when you are ready to apply for your commercial loan make sure you truly understand the numbers, have the necessary documentation on-hand, have the necessary people on board ( accountant, investors, attorney and so on) and try your best to get pre-approved. In doing all these things your commercial property is that much closer to being yours.

Hello Investment Property!

Once you’ve obtained your mortgage for your investment property, it more than likely full-steam ahead. Ultimately, this is an exciting time and a true chance to learn as you go!

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 Hard Money Lenders: Who We Are and What We Offer

You may be new to the commercial investment property business or you may be a seasoned vet. Regardless of which category you fall under you need to check out commercial hard money lenders and see what they have to offer.

Commercial hard moneylenders are generally non-banking institutions i.e. private individuals or small groups that solely provide fast financing for such individuals as house flippers, developers and so on. Typically, most people that venture into the world of commercial real estate and investment properties are familiar with the term hard money. But, more than likely do not know exactly what a hard money loan is. This may sound strange, but the fact is unless you are in the business of flipping houses or a developer, hard money is a hard concept to follow.

In other words, you are not alone when asking the question just who exactly needs hard money? Moreover, how does hard money differ from standard financing? Well, the obvious answers are listed above. But, the in-depth answers are that hard money is for individuals who for a variety of reason cannot qualify or obtain conventional or rather standard loans/ financing and hard money differs from standard financing because there is simply less red tape.

All in all, this may sound like these particular individuals have bad credit or are just from a bank standpoint a bad investment, but the truth is this isn’t always the case. Nine times out of ten, the people that need hard money are those that need to move quickly on a property and often times need to borrow the full purchase price. Consequently, these people are often far from a “bad investment” as most commercial hard money lenders require their borrowers to back up hard money with real assets i.e. the collateral and credit are often more than there. In reality, it is often the banks that simply cannot move at the required speed necessary to allow the borrower to make a profit.

The Benefits of Hard Money

The clear benefit of hard money loans is that they are readily available. In fact, if you are able to find a few reputable commercial hard money lenders in your area, you can have the necessary financing in less than a couple of business days. Furthermore, due to the required turnaround time with hard money loans near perfect credit is simply not high on the list of borrower requirements and you are also not dealing with the standard processing team that comes with banks or conventional loans. Thus, this means you can get what you need when you need it without the hassle of dealing with a half a dozen people and jumping through a half a dozen hoops.

Commercial Hard Money Lenders can Offer a Helping Hand

Ultimately, dealing directly with your lender and having access to the money when you need it (within the timeframe you need it in) is what hard money is all about. Moreover, working with these particular niche lenders when you first start out means you can build your investment business much faster than you could without their assistance.

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 Hard Money Lenders: How To Get Your Loan To Close Swiftly

One of the worst parts about applying for any loan, not just one from commercial hard money lenders, is the time it takes to get it approved. The following are a few tips that can help you get your money faster.

One of the most frustrating parts about applying for a loan can be the time it takes to get it approved. Here you are, ready and raring to go, but you can’t do anything until you have some money. With commercial hard money lenders, the time is often a lot shorter since they do not have the same strict requirements as banks do.

However, that is not to say it can’t feel like it is taking too long for the lender to say yes. But if you want to do what you can to expedite the process there are a few tips you can follow.

How To Get Your Commercial Hard Money Lender To Approve Your Loan Faster

The tips may seem simple, but when you are working on getting a loan to help keep your business going it is easy to forget something that may seem like it should be second-nature:

1. Do your homework. Find out what documents your lender is going to require before you start the process. So that way when the lender asks you for something, you will have it on hand.

2. Don’t go overboard on documentation. People often like to work with the notion that it is better to have too much rather than not enough, but in this instance, that isn’t necessarily the case. You are better off sticking with only what the lender has requested. Keep whatever you do have on hand in case the lender wants it as they go over your application.

3. Be ready for anything the lender may want or request. Maybe you know someone who has been shot down by this lender or perhaps you were not approved by a different lender. This, of course, only means something if you took care of the issues that got you rejected before applying again.

It may seem hard to believe, but people can forget to be prepared. But if you want to make sure nothing holds up your loan, do your homework, be prepared for anything, and don’t overload your application with paperwork.

4. Be Nice To Your Lender. As kids, we get tired of hearing our parents, teachers, and counselors tell us to ‘kill ‘em with kindness’ but it is great advice. People are more apt to work with you and try to make something go smoother and quicker if you give them the respect they deserve. Commercial hard money lenders make money by approving loans and then making sure you pay them off in time.

They don’t want to make things harder or foreclose on you. Doing so only ensures that they do not make money or possibly even lose money. That being said, no one is going to go the extra mile for a rude person.

So mind your manners when dealing with your commercial hard money lender and the process—from beginning to end—will likely be easier and more pleasant for everyone.

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 Hard Money Lenders: How To Get A Loan With Rotten Credit

Rotten Credit Keeping You From Getting A Loan? Try Applying With Commercial Hard Money Lenders!

Poor credit can prevent many from even applying for a commercial loan, but it doesn’t need to. There is an option that is still available through commercial hard moneylenders.

People make mistakes with money. It happens. You don’t mean to (or maybe you did). Sometimes life just throws too many problems at you, and you couldn’t see another way out—or maybe you and your credit card were the life of the party in college.

So you developed bad credit while you were in college or your younger years. Now you are a responsible, hard-working adult that just wants to open your own business and be your own boss. It’s the American dream. Too bad your rotten credit rating is keeping you from getting approved for a traditional commercial loan.

But there is a solution to your problem—commercial hard money lenders!

What Is A Commercial Hard Money Lender?

Don't worry--you are not dealing with your local loan shark. So you don’t have to worry about someone trying to take out your kneecaps if you miss a couple of payments. No, commercial hard money lenders are legitimate, private individuals or companies that loan money to people and businesses with rotten credit who can’t get approved for a traditional loan.

Loans are secured by commercial property and will have higher interest rates than conventional loans. Since there is more risk involved for lenders, they can charge higher interest rates. It is not unusual to see a lender charge 11-13 percent and three points.

If you want to go into business for yourself, it is a cost you have no choice but to accept. You may hesitate because you don’t want to risk having your business foreclosed on, but lenders don’t want to foreclose on your property if they can at all avoid it. When they do, it is not unusual for them to lose money—and no one wants to lose money.

Beware The Fees And the Dreaded Balloon Payment!

Commercial hard money lenders are not going to be willing to wait 10-30 years to get their money back. They give short term loans; typically for a year, but maybe as long as three years. With the interest rates being as high as they are, if you can, it is not a bad idea to try and pay the loan off early—that is, unless there is an exit fee or prepayment penalty.

While it may sound strange to be penalized for paying a loan off early, lenders make money when you pay interest. If you pay the loan off early, you don’t pay as much interest. So to recoup this loss, some will charge a prepayment or early payment penalty.

Some will even charge exit fees whether you are paying the loan off early, late, or on time. This way lenders make a little more money off of you.

You will want to know if your loan has a balloon payment at the end. Where these can sting is if you are paying your loan off late, like many hard money loans often are. So along with the balloon payment you get stuck with a hefty late fee making it even more difficult to get the loan paid off.

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 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

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.