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

Monday, February 19, 2018

The Difference between Bank Commercial Loans and Private Hard Money Lenders

Hurricane Harvey is gearing up to be the second most costliest natural catastrophe to hit the United States. Investors and developers are already reaching out to commercial lending institutions in search of funding.

In addition to the immense devastation and human tragedy caused by Hurricane Harvey, its economic impact is expected to rank as the second most expensive natural disaster to occur in America. According to an article in the New York Times, Moody’s Analytics have estimated the damage to be in the $40 to $50 million ballpark. This is second only to Hurricane Katrina which killed almost 2,000 people and caused $130 billion in damage. Note: A recent article in USA Today raised the estimated cost of Hurricane Harvey to $190 billion. Commercial properties that have been flooded are estimated to cover approximately 455,000 square feet. Just as in 2005, rebuilding will accelerate once insurance checks are cut and federal aid is disbursed. And investors are already lining up to raise funds from commercial lending institutions for distressed properties.

Before Harvey hit, the building and construction segments were, as in other parts of Texas, booming in Houston. According to an article in Dallas News, “At midyear, more than 27,000 single-family homes were being built in the Houston area. And more than 23,000 apartments were under construction and scheduled to open this year.” Due to the increase in demand, construction firms and those they employed were already maxed out when Harvey hit. Now, in the wake of the devastation, other investors and contractors will be arriving to fill in the gaps. Just a few of the investment companies looking for commercial lending include Delshah Capital, Madison Realty Capital and Steven Witkoff, a New York developer.

The San Diego Union reported that more than 3,000 national and state guard troops were being deployed to assist with relief and recovery efforts. Water, food and shelter are the top priorities at this time. As the waters recede, there will undoubtedly be an influx of contractors, insurance adjusters and FEMA employees. Currently, there are more than 200 shelters housing more than 32,000 people who have been displaced due to the catastrophic nature of Harvey. Because of these two factors, multifamily units are expected to be in high demand.

Timing

At Level 4 Funding, our hearts and prayers go out to those affected by this national disaster. With an office in Dallas and clients in Houston, we are very close to those affected. We hope that investors and developers will show good taste and wait for the waters to recede and displaced residents to find housing before making their move. At the right time, these individuals and businesses will be a great asset to the recovery of this place in America that has shown its true colors of faith, humanity and neighbor helping neighbor in the midst of incredible challenges.

“Bad things do happen in the world, like war, natural disasters, disease. But out of those situations always arise stories of ordinary people doing extraordinary things.”—Daryn Kagan.

When the time is right, we are here to help those looking for immediate funds and commercial lending with which to rebuild this incredible area of our country.

mark-gowlovech-150x150 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

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 mortgages,commercial loans,commercial lender,commercial hard money lenders texas,commercial mortgage Texas,commercial loan Texas,commercial mortgage Arizona,commercial loan Arizona

Saturday, April 1, 2017

Real Estate Is Going Up…But Now What? Danger Ahead!

From the bottom of 2012 Real Estate values in the southwest have been on a steady increase, but will soon.........

San Francisco has recovered the most with an average total appreciation rate of 83% since 2012, however other areas have dramatically improved.

Will this trend of the past 5 years continue? What is lurking on the horizon that can kill the growth and drop us into despair?

My opinion is that the past ups and downs of values were a direct result of our government meddling in our affairs.

1. The crash was a result of our government making it easier for home owners to purchase loans with little concern for their ability to pay.

2. The drop or change in appreciation occurred December 2013 when the government ran out of money and started to argue about increasing the debt limit. (Merry Christmas, do you remember this?)

3. HARP refinance keept a lot of people from foreclosure, if they had equity and a job, but this program is going to end soon.

So what's the future?

Our government again is quickly running of money and the US Treasury will run dry and be empty and be out of money mid May 2017. Without an increase in the debt limit, we are broke and overdrawn on the checking account. Will Congress and our President come to an agreement to increase the debt limit once again? I Doubt it, based on the current feelings of House and Senate. Democrats hate President Trump, and secretly so do the Republican’s. Everyone is out to get Trump, and if House and Senate can stick a failing economy on the president door step everyone will love it (except for the US consumers).

Have you seen any significant legislation out of the House/Senate since Trump was elected? It seems that the only thing that Trump can do is write executive orders. Trumps number one promise to kill Obama Care failed and is never to be visited again. So what's next? An agreement on increasing the debt limit? Good luck on that happening.

What's really surprising is that no one is talking about this soon to be financial disaster. Not on the news, or anywhere. They are too concerned about someone visiting the White House or some other piddly event. The good news is that if we do run out of money, then Obama Care will fail and go away, which is what I think Trump was talking about when he said 'let it die on its own'. It will be around memorial weekend when the country is broke. Just in time to close all the national parks for the holiday weekend.

So if congress cannot come to an agreement to increase the debt limit the government cannot borrow more money, what are they going to do for money? Will they cut Entitlements, cut Social Security, cut Military Pay, Raise Taxes? If you believe this, you are living in a different reality. If there is no agreement to increase the debt limit; the only way to keep spending and not borrowing is to print more and more money. Which means inflation like we never seen before.

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: fix and flip loans,private hard money,than merrill

Friday, March 31, 2017

Funding For Flipping | Cheaper Than Hard Money | Flexibility of Cash Innovative Funding for Flippers Private Hard Money Lender

Funding For Flipping | Cheaper Than Hard Money | Flexibility of Cash Innovative funding for flippers Private Hard Money Lender

Funding for Flipping was for flippers just like you.

Is lack of Capital Preventing You from Effectively Marketing, Outsourcing, or Operating you Real Estate Investment Empire.

Just like you, we struggled to find a Private Hard Money Source of funding that was reliable, honest, understood the business and had pricing that was based in reality.
We developed this program after years of the Flipping Business. We know what it takes to find money for Flippers Like you. We have the experience and funds available to help you in your Fix & Flip deals.
After years of experience in flipping we have developed a reliable and reasonably priced funding Private Hard Money source for Fix and Flippers.

We o put together a program that is realistic for our industry, and we want to bring it to our fellow flippers.

Imagine Having $50K-$250K Cash

In Your Checking Account For Anything Your Business Needs F4F.com fundingforflippers.com fundingforflipping.com

Our Flipper Program

Loan Amounts: $50,000 - $3 million
Loan to Value (LTV): up to 90% of the purchase price, plus 100% of the construction funds.
Interest Rates: 8% to 18%*
Points: 1-4 points
Loan Position: 1st TD
Loan Term: 6 or 60 Months
Property Types: Residential, Condos, 2-4 Plex, PUDs
Loan Types: Non-owner occupied residental. Purchase, Refinance, Bridge Loan, Rehab, Business Loans

Our Commercial Program

Loan Amounts: $250,000 - $25 million
Loan to Value (LTV): up to 60% Loan Type: Acquisition, Refinance, and Cash-Out
Interest Rates: 7.9% to 14%*
Fees: 1 - 3 points
Loan Term: 3 - 260 months.
Property Types: Residential, Condos, 2-4 Plex, PUDs
Loan Types: Non-owner occupied residential, multifamily, retail, office, industrial, mixed use, vacant buildings, and entitled land

Technorati Tags: Funding For Flipping,Funding for Flippers,fundingforflipping.com,fundingforflippers.com,F4F.com

Tuesday, March 28, 2017

The 3 Ways to Fund Your Next Flip & Flip

The trouble facing most real estate investors who want to enter the fix and flip business is finding the money to purchase property. Short-term financing through fix and flip loans is available in a variety of forms, each with its own advantages.

Private-Money Fix and Flip Loans

Private money lenders usually takes the form of loans from family or friends. If you are able to offer a return on investment that is better than what these potential lenders can expect from low-risk investments such as interest from a money market account interest or certificates of deposit, they may be willing to lend money at a relatively low interest rate. These investors are willing to lend you money based on your established relationship and good reputation, meaning that there is more riding on the success of your flip than money alone. However, if you are able to take the money and flip a home at a profit to your investors and to yourself, you may be able to establish an inexpensive source of capital for future flips.

Hard Money Fix and Flip Loans

Hard Money Loans can be more expensive than private money loans, but they do have some great advantages. For one thing, hard-money lenders may allow the complete cost of renovation added to the loan, and many will write the loan based on the expected value of the house after it is rehabbed. Often this means that the loan amounts to more than the purchase price of the home, allowing the investor to build a budget for repairs in the loan. The primary disadvantage of these loans is their price, which after points and interest make them an expensive financing option. Additionally, many lenders want to see that you have invested some of your own money in the purchase because it reduces the likelihood that you will walk away from your money—and theirs—should something go wrong while fixing the home. Don’t forget, this is Hard Money Loans can be funded quickly and save a deal that has high potential.

Fix and Flip Loans Made Through Portfolio Lenders

Unlike most banks, which quickly sell the loans they make on the secondary market, portfolio lenders retain ownership of the loans they write. This gives them greater discretion when deciding whom they are willing to lend money. For this reason, establishing a good relationship with a portfolio lender can be of value to real estate investors who wish to hold several properties simultaneously. The rates portfolio lenders charge for using their money, while not as low as those from most private-money lenders, are typically much lower than what hard-money lenders demand. The down side will be the time required to underwrite the loan and these lenders generally require substantial documentation from the borrower.

Technorati Tags: fix and flip,hard money lenders texas

Monday, March 27, 2017

Top 6 Reasons to Purchase and Invest in Apartment Buildings

When people hear about the millions and billions of dollars investors make buying and selling properties, most of them think about duplexes and homes. A good number of people do not know much about buying apartment buildings.

The benefits of investing in apartments are out of this world. Investing in apartment buildings can be one of the best ideas even when the economy is going sideways. Even though there are advantages and disadvantages to every kind of investment, investing in apartments in not a bad idea. As part three of our apartment building blog posts, here are some of the top reasons to invest in apartment buildings.

1. Predictable source of income

The reason many investors prefer buying apartment buildings is because they provide a very steady source of income. When you choose properly, and in a good location and area, apartments will always provide cash flow every month. Most businesses come and go especially in office, retail and warehouse properties. But people are always looking for a place to live.

2. Apartments provide a more affordable housing option

When we get into all economics that explain why apartments provide a cheap housing option, there are so many things to talk about. For example, the difference between the amounts of paying rent and mortgage payments most consumers spend every month is called a gap. Now, if the average rent is $800 per month and the average mortgage is $1200. The gap is 400. When the gap increases, very few people can afford to buy a home. This means they will choose apartments to live in. If mortgages increases the gap becomes bigger, and we experience greater demand for apartments. This is another good reason to purchase an apartment building.

3. Property appreciation

The value of the apartment is based on the Net Operating income the building offers to the investor. The good thing about apartment buildings is that you can escalate the value of the building without investing in new windows, carpet, siding or paint.

When you decide to increase income, reduce expenses or even both, you increase the value of your property. For instance, if the average Cap Rate in the area is 10%, and you increase the Net operating income by $1000 annually, you have definitely added $10,000 to the value of the property. The Cap rate (capitalization rate) helps to measure the ratio between the net operating income and property’s buying price. Cap rate involves three variables that include value, interest rate percentage, and the net operating income.

Hence, the lower the Cap rate percentage, the lower the net operating income will be. If interest rates fall, it is uncommon it see the rates fall, but when interest rate increases, the rates will follow. You can do this by raising rents and reducing expenses. This is one of the most protected secrets of investors.

4. Principal Reduction

Another benefit of apartment building purchase is a principal reduction. Your equity automatically increases each month in apartment building. This is because your tenants are paying the mortgage on your property with their rents. When you receive the monthly rents, you pay out expenses, and then pay the mortgage. With such payments, you are gaining equity and also increasing your wealth.

5. Taxes

Fianlly, another benefit from commercial loans on apartment buildings are that they provide the best tax benefits. In taxes, apartment buildings benefit in two ways: through depreciation expense while you purchase the property, and you can sell the property and re-invest the proceeds into a new property, you will not pay the taxes on the gain. You can never try this with mutual funds or stocks.

6. Numbers do not lie

If you decide to purchase a family home, your expenses consist of taxes and insurance. But that does not mean other expenses do not exist. There will be turnover, resident problems and the like. For example, if you have 10 houses, you have 10 roofs, and probably 10 utility bills, tax statements and remember the time you will be spending from one property to the other.

When you purchase apartment buildings, expenses will include taxes, utilities, insurance, management and much more. But you get to spread out the cost of maintaining the property across all units. It is cheaper to own an apartment building than buying a house.

Technorati Tags: commercial loans,commercial real estate loans

Glenford’s Spec Home Story—Are Spec Homes Right for You?

Contemplating adding a spec home to your real estate investment portfolio? Weighing the pros and cons and working with professionals can help.

An Experienced Contractor’s Story

Glenford Branham comes from a long line of savvy real estate investors and general contractors. Starting at just 14 years of age, Glenford has been in the construction industry for 57 years. Originally from Kentucky, he moved to Arizona to enjoy the warmer weather. “Construction and real estate is a family tradition,” he says.

Glenford’s built a few houses in his day—around 40. After his wife passed away last year, he decided to “do something a little different” by tackling a spec house project. He called his go-to contact Tony for assistance with the mortgage loan, but spec home financing is simply not an option at most traditional banks and mortgage brokers.

Tony recommended Glenford work with Private Hard Money Lender, Level 4 Funding, touting the group’s impeccable track record, quick service and competitive pricing. Glenford was sold, picked up the phone and called Mark Gowlovech.

As a general contractor, Glenford also handles commercial construction and is always on the go. He’s actively coordinating several construction projects, all while raising his 12 year old granddaughter by himself. With no time left for added headaches or piles of paperwork Glenford was happy to lean on Mark for the heavy lifting and speedy service his hard money loan request needed.

Speedy Service

Mark swiftly took the reins and got Glenford the financing he needed for his latest real estate project. Glenford smiled as he shared he just received the project permit and would be diving into the construction process shortly.

Glenford was satisfied with his Level 4 Funding spec home loan experience, thanks to Mark. Though this was his first transaction with Level 4 Funding, chances are it won’t be the last. Glenford will be back when his next spec home or specialty project calls.

A Contractor’s Advice

Glenford is a man of few words. When asked to summarize his experience with Level 4 Funding and share advice regarding lending and investments, he said:

“Get with someone you trust to help you

with your lending and your business.”

Pointed advice from a seasoned general contractor, with so much incoming work he has no need to advertise. Glenford trusts his projects to Level 4 Funding, and recommends calling Mark for your next spec project loan.

Are Spec Homes for Right for You?

Speculative homes, commonly referred to as spec homes, are of course houses investors build with the intent to sell for a profit. Some builders prefer to deal in spec homes, and avoid the complications and time needed to customize a project for a specific home buyer.

Review the pros and cons below to help decide if building a spec home is the right investment move for you.

Pros

Moderate Risk: Don’t let their risky-sounding name fool you—spec homes can actually be a fairly conservative investment. Of course you must have or be an experienced builder to confidently secure a tidy profit or conservative turns to risky.

Reputation is Everything: Builders know that spec homes are a reflection on their quality of work and highly visible in the marketplace. Shoddy work will quickly show, and negative news spreads like wildfire. To preserve and showcase their reputation, builders typically take great care to perform their best work on spec homes. Great news for investors and homeowners alike.

Generous Profit: Profits on spec homes vary based on house location, type, and size, but many investors strive to net a 25% profit. Others follow a “sell two, build a third for free” rule of thumb, with a target net of 33% per project. No matter where you fall in this range, spec homes can indeed be lucrative. Just ensure you’re properly estimating and tracking expenses and using the most trustworthy partners you can find.

Cons

Builder Biffs: End up with a disreputable builder and your project stability begins to crumble. Costs can creep up, profits sink down and in a worse-case scenario you’re stuck paying expenses for a property you can’t sell. Or can’t sell for a profit. Do your homework and ask around to ensure a reputable builder is on your side to increase safety and peace of mind.

Customized Competition: Once your spec home is ready to sell, you’ll be competing with custom built homes. Spec homes are intentionally built following rather “vanilla” formats as builders have no idea what customized features the buyer would want. Keeping costs down without sacrificing quality is their primary concern. Your home may lose the battle against a buyer’s ability to choose their specific preferences and build a customized home.

The Great Unknown: Even the most sophisticated and experienced spec home builders can’t predict the future. The real estate market takes twists and turns outside of anyone’s control. One construction company owner built and sold over 20 spec homes in California over a 15 year period. But his spec home profit streak ended when the real estate market headed south and he avoided spec building for 5 years. Now he’s back at it, and his first project sold before it was even finished.

Spec Home Financing Solutions

Decided building a spec home is in your future? Follow Glenford’s lead and call Private Hard Money Lender Level 4 Funding. They can’t guarantee your profits or reduce your project risks, but they can ensure smooth, solid financing solutions available when you need them.

Technorati Tags: private hard money lender,private hard money lender in california,hard money,mark gowlovech

Violin Soloist and Attorney Share Success via Level 4 Funding

When Sharon Chen and her husband William needed a hard money business purpose loan, they knew just where to go—Level 4 Funding. Busy professionals don’t have time to “play around” to find the right loan, William explained. And Sharon and William are successful, busy professionals indeed.

Success on Stage

Sharon was born and raised in Maryland, to parents originally from Taiwan. Her father is a well-respected physician and both of Sharon’s brothers followed proudly in his footsteps—one works for Johns Hopkins University, the other became a gynecologist.

The only girl in her family, Sharon opted out of medical school but took an equally prestigious path. She started playing the violin at just 2 ½ years of age, and eventually went on to attend Harvard College.

Sharon played the violin in the Harvard symphony and became a concertmaster, which is the highest ranking violinist in an orchestra. As a concertmaster, Sharon led the violin section in maintaining unity, and typically played all of the violin solos during a performance. When it comes to Sharon’s musical talents, her adoring husband William says “she is a genius.”

William is a successful banking attorney handling business investors, legal contracts, and legal consultant work. Originally from Switzerland, he and Sharon met and married in New York. Starting 10 years ago, Sharon unfortunately began suffering from an unusual medical condition, and together she and William have traveled throughout Europe and the US in search of the best medical care and cure. They visited Arizona as one of their destinations, prior to heading back home to New York.

After the New York tragedy on September 11, 2001, William and Sharon decided to head west and make Arizona their home. The couple have been proud Phoenix residents ever since.

Nothing but the Best

When it comes to Sharon’s medical care, William settles for nothing less than the best. Their travels around the world are proof that he puts his money where his mouth is.

William’s high-quality philosophy translates into his family’s financial transactions as well. He originally heard about Level 4 Funding from his trusted colleagues in the real estate industry. Unwilling to waste time or risk his personal finance transactions being handled by a mediocre team, he dealt directly with Mark Gowlovech at Level 4 Funding.

“We can’t afford to take shortcuts. Good work is worth paying for,” says William. “Go where service and quality count, like Level 4 Funding.”

William speaks from experience, and just wrapped up his second transaction with Level 4 Funding. He is impressed with Mark Gowlovech professionalism and expertise, and glad he took his colleagues’ advice to reach out to Mark when he needed a quick response on his first loan.

“He’s very easy to work with,” says William, “and he takes time to understand your story and situation. He’s great at putting everything together, and finding ways to make solutions fit your needs.”

Like many of us, William knows that some traditional lenders can be extremely slow to make decisions, and require hours of time to wade through large stacks of paperwork. William prefers the private client boutique-style experience he’s received with Mark and team.

Success Tips from the Professionals

William and Sharon’s track record as successful professionals speaks for itself. Among the best of the best at what they do, they shared additional tips for life and lending.

“Life is made up of two things,” advises William, “your occupation and your hobbies and leisure pursuits. Work hard to get paid well at your career. Then pay someone to work hard and give quality service and results to you.” The cost of incredible service and better quality is worth paying for, William stated firmly. Getting a high-quality loan has just as much value as buying reliable quality clothes and dining at the best restaurants.

“Hard Money Loans are serious business,” William continued. When you need something done, find a professional who can help you get the job done right, and go with them. It’s the same as a critical home repair. If you have a plumbing issue, you find the best plumber and have them handle the job. If you try to do it yourself, you risk errors and waste time—time you could be spending making more money in your area of expertise, or time you could be spending enjoying leisure pursuits. “Don’t play around to try to find the [least expensive] deal,” he advised. “Go where service and quality count, like Level 4 Funding.”

William and Sharon continue to be highly complementary of Mark and team. As two-time clients and connoisseurs who settle for nothing less than the best, they should know. In summary William stated:

“Excellent work, Level 4 Funding makes things a lot easier. I’m busy, Sharon’s sick, and we can’t afford to take shortcuts. Good work is worth paying for.”

Technorati Tags: hard money lender in California,hard money lenders in California