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

Monday, March 20, 2017

What you need to start flipping homes in Texas

When you are beginning your career as real estate investor, flipping homes can be an extremely strenuous ordeal. The rehabbing process of a home in Texas could end up costing you a lot of time and money in the end. You can make a lot of money as long as you take the time out to properly prepare yourself for every investment. There are a few trade secrets that you should keep in mind when you begin.

Knowing how to or someone that is handy.

Rehabbing is not all about buying and selling homes. Sometimes a new or not so new home, calls for you to be able to get down and dirty. Being able to install a common toilet system or a being able to run a wire through a wall are great skills to have as an investor. Like we have stated before, depending on how you are buying a home, often you cannot tour the property prior to purchase. Being able to do certain small jobs on a property can take some of that apprehension away.

On the other hand, you also need to humble yourself, no one person can conquer the world. Play to your strengths and recognize your weaknesses. If you know you have no clue on filling holes in drywall, do yourself a favor and find someone that can do it for you. Having a home that looks nice to a potential buyer trumps any expenses you may incur during the rehabbing process.

Make yourself familiar with your work

When taking on the rehab business, you need to make sure you are always on your game. From what sports history tells us the most prepared player wins the most. If you are a hard money lender in Texas, you need to constantly check how the market is changing. If you are an investor, you need to know what you are looking for. Check the area that you are looking to purchase a home in. Make yourself familiar with the types of homes that are in your area, as well.

Surround yourself with a team of experts that know the business

While you should make sure you are familiar with the business, you should also make sure you have a solid team of experts around you. Should you be handy enough to fix certain small jobs in the home, however, you do need an expert that is able to do the bigger jobs. If you are not familiar with plumbing in the home do not take it on by yourself. You may feel as though you save money, in the long run, it could end up costing more if you happen to mess something up.

You might even think you should solely bankroll your investment by yourself. Having a solid hard money lender in Texas that can loan you the money you need. Give yourself a fighting chance when you start your real estate career. You will have a lot of competition, but if you follow these steps you will ensure your success.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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How do you make money fixing and flipping houses?

Let’s face you are on here to find quicks tips to making money in real estate. Becoming a successful investor or hard money lender in California is the end goal. If you manage your money well and pick solid property you can find your fortune fixing and flipping. It will not happen overnight, but here are a few tips to get you on the right track.

One of the first things you want to do is scope out the area that you think you want to flip in. Most of the time you can save some cash by looking for auctions that are being held. Most of the time these homes are being foreclosed and will have cheaper prices than cold searching through a company.

The only thing you need to worry about is the competition. These auctions are usually held in the traditional sense where you have an auctioneer and multiple people there with you. If your purse is a little light this may be difficult. Most people can circumvent this by hiring a solid hard money lender in California that is able to lend you enough money to purchase and pay for the home you are looking to buy. Most of the time you will need to have a nice amount of collateral at stake.

When you are purchasing the home or property you want to make sure you can make money back when you are attempting a new investment. Now, this can vary person to person, but as a general rule of thumb most investor get a goal for return. For some investors, this means they will not take on an investment unless they can make a $25,000 profit on it. Others want to make enough to pay off their debt. The main thing you want to focus on is what works for you.

Use your property to your advantage

Let’s say you have a property that you are looking to purchase, and instead of selling it at a higher price you opt to keep it. Depending on the area and the quality of the home you could use the property as an addition source of income. You can rent it out to a family, or you could turn it into a hostel and charge people vacationing in your area.

You can then use the funds to ask your hard money lender in California for a short-term bridge loan. After you can purchase another home and flip the property, as well. Once you get good at this method you could end up owning multiple homes that provide you with a recurring income that can help support future flips.

You should start out on the lower end

This may seem like an obvious tip, but if you choose to purchase low-end homes you may be able to save some money. Most of the time they are cheaper which can potentially mean less of a loan you have to apply for. Most hard money lenders in California will be able to work with you and your new properties, as well.

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How the real estate industry benefit from the medical marijuana market?

The cannabis industry has been, and always will be a major cash crop. With the passing of Prop 64, California has become a hotbed for the plant. California has always been known for its cannabis culture, and with more states jumping on the bandwagon the real estate industry can profit from it. Hard money lenders in California should consider lending in this area, as well.

So, how can a hard money lender in California make money in the industry?

This is simple, do what you do best, lend people money. You may be a little apprehensive about loaning money to someone who is involved with this market, but you may make a lot off your investment. Medical marijuana has been taking off like a rocket over that last few years and is estimated to be worth billions of dollars. Most of this comes from merchandise and of course the plant, but production is key when you are getting in the business. Since it is considered a part of the “gray market,” you have to be vigilant when choosing a piece of property that you want to use.

You need to make sure the property you are looking into follows certain guidelines. For example, the dispensary or lab you will ultimately open needs you follow certain zoning laws. You are obviously not allowed to open anything near a school. That facility also needs to be in a commercial area since it will be operating as a business.

Where do you start in the business?

Well, the first thing you need to do is find a building that you are able to use. Sometimes you will have to make sure you contact the city you are working in. If you are the main proprietor of the building another you want to start looking for a lender that wants to help you. A commercial hard money lender in California is a great way to start the process. Lenders, if they can see your vision, should be able to lend a sizable amount.

Depending on if you are planning to open a warehouse or a dispensary, you have a fairly large loan that you may be able to use for the facility. You could potentially be able to borrow a loan anywhere from $500,000 to $3,000,000. This is contingent on the size of your lender. The loan would typically last around one to three years with an interest rate of about 12 percent. Since the market makes so much money, you can pay off the loan quickly.

This real estate market is ripe for the picking

Cannabis is a cash crop that is going to be around for a while; well in California at least. Money can be made by everyone. With enough work and the right real estate team there could be shops and dispensaries throughout the state. On average, about 760,000 people benefit from medical marijuana in California. With the law still in its early stages, this is the right time to jump on the bandwagon.

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Saturday, February 4, 2017

Commercial Real Estate Loans and Bad Credit

By now you are probably aware how lucrative commercial real estate loans can be when you play your cards right. But, if you have bad credit or an unfavorable business credit score, you may have always assumed you couldn’t qualify—well think again!

Bad credit can stop most people from doing a lot of things in life and in business. But, the truth is that there are always ways around bad credit or an unfavorable business credit score. Of course, this is not to say that your credit or business credit do not matter, but rather, at least when it comes to commercial real estate loans, if you present your loan request the right way more often than not you will be pleasantly surprised with the outcome.

So, how does one go about presenting their loan request in the right way? Well, for starters, you want to present a complete and well-thought-out picture for exactly why you need a commercial loan. The best way to do that is via a business. If you do not have a business plan, now is the time to create one. Moreover, this plan should clearly lay out the reasoning behind the need for funding, a detailed description of your current or future business, your marketing strategy, pertinent financial information as well as both your long-term and short-term company goals—just to name a few key areas to cover in your business plan. Ideally, the more in-depth you can go with your business plan the better.

As you can see your vision matters and it can help commercial lenders reconsider their loan decision. But, it is important to still address the elephant in the room i.e. your bad credit or unfavorable business credit score with your potential lenders as well as with your creditors. Remember, if you show that you aren’t afraid to tackle your bad credit not will you able to secure commercial real estate loan you will also be to able obtain better loan packages.

Reaching out to Your Creditors

As briefly mentioned, it is your best interest to reach out to your creditors, if you haven’t done so already. By reaching out to them, you can set up manageable repayment plans or receive a possible extension and stop your creditors from taking further unfavorable action towards your business. Moreover, you will able to demonstrate to your potential lenders that you want to do everything in your power to make good on your debts.

Don’t Let Rotten Credit Slow You Down

If you have taken the above-mentioned steps (creating a stellar business plan and attempting to settle your business debts) to heart and you are still having trouble obtaining a loan through a particular commercial lender, remember it is perfectly okay to lender shop. In other words, you should exercise all your options whether that means speaking with traditional lenders such as banks or reaching out to commercial mortgage companies, local credit unions, and private money lenders. Lastly, you should always be open to the idea of investors or partners if your credit is pretty bad.

Happy senior business man making his notes at work 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 real estate loan,commercial real estate loans

Thursday, January 19, 2017

The Benefits of Working with Private Money Lenders in California

If you are like most borrowers and investors, you have probably asked yourself at least once, what the big deal is when it comes to private money lenders in California? Well, the big deal is really about the benefits that come from working with private money lenders in California.

Private money lenders in California are more than just great local lenders. The reasoning being that you do not have to necessarily live in California in order to take advantage of all the benefits they have to offer. Nevertheless, one of the major benefits of these particular California lenders is that they are local, which means they are not some worldwide or national financial institution. Instead, they are reputable lenders that value their potential borrowers as well as their investors just as a family-owned and operated business would.

Of course, that is not to say that all private money lenders that are based out of California are small or have humble beginnings. In fact, many reputable private lenders are well-seasoned individual and large financial institution with deep roots in the community. Therefore, the point here is simple, local California lenders care about your success and do not look at you or your business venture as just another number.

In addition to being able to put a face to a name when dealing with your California-based lender, there are several other benefits that are well worth the trip if you are not native to California. For starters, your chances of getting approved are much greater and here is why. Number one, you are more than likely dealing with a niche lender who understands your particular vision and specific circumstances. This goes back to the idea or rather reality that there are dozens of California-based lenders, but they make it a point to specialize, which is why you have a better chance of being approved.

Additional Benefits Private Hard Money Lenders in California

Moreover, when dealing with California lenders, you also allow for faster processing and quicker financing. Think about it, if you are dealing with an individual, he or she can quickly approve and fund your loan—sometimes on the same day or at least within a few days. Other benefits include a lower risk associated with your investment and as briefly mentioned a lender that has experience in your particular market. You have a lower risk on your investment because California-based lenders of private money tend to be more involved in the process (appraisal, assessments and so on), thus they make it a point to ensure everyone’s success as much as allowed. Lastly, these lenders’ niche-mentality is what keeps California lenders of private money thriving—they know your market plain and simple.

Private Hard Money Lender in California - The Real Deal

Thus, as you can see, there are a few substantial benefits that come from working with California-based lenders. Therefore, if you have considered working with these particular lenders already, what exactly are you waiting for? Remember, there is no time like the present and it never hurts to step outside your comfort zone to try something new.

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.comhttp://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.

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.