Friday, August 3, 2018

How do Hard Money Lenders Differ from Each Other?

Know your lending options so that you are educated on what to expect when you’re ready to obtain that first commercial loan. There are several things to consider when evaluating hard money lenders.

The following are the varying differences you will encounter when obtaining a commercial loan:

· What is the loan to value ratio of your project? If the ratio is high, the more cash that you will receive for your project.

· What is the minimum and maximum loan amount of the lender?

· Are the hard money lenders that you’re talking with direct lenders (funds in house) or are they a broker? Brokered loans can delay delivery unless dealing with agents that have an extensive rolodex.

· Is the lender local or what geographic region do they serve? Where is your project located?

· What are the closing costs and interest rate?

· Can they close the loan quickly? Are they responsive to you and your project?

· Is the lender trustworthy and experienced in the type of project you are seeking to fund?

When searching for hard money lenders, a Google search will produce hundreds of options. Be sure to look for the following:

Experience. The lender you are talking with should have plenty of experience in the real estate industry as well as experience in the niche industry of hard money loans. An experienced lender will have knowledge in the specifics of hard money loans. The experienced lender will also have the knowledge of procedures and regulations that must be followed which will simplify the process.

Licensed. A hard money lender should hold licenses with state and local real estate bureaus and associations. If the lenders originate consumer loans, then they should be registered with Mortgage Licensing System (NMLS).

Rates and Terms should be Competitive. Look out for lenders who charge interest rates that seem too good to be true. This may be indicators that the lender you are talking with or negotiating with is either unexperienced or untrustworthy.

Transparency is Key

Some lenders will use a bait and switch tactic. Published rates that are very low are often used to attract novice investors looking for the best deal. In all communications, a reputable hard money lender should be clear and upfront about rates, fees and terms.

Quick funding is one of the most common reasons that real estate investors choose to obtain capital from a lender specializing in hard money.

You locate the real estate you want to invest in, your offer is accepted, and now the clock runs, and time is of the essence. You may be choosing this type of lender because of the time-consuming process a conventional lender takes to approve a loan. Then, of course, there is the massive documentation that is needed with a conventional lender. Hard money lenders are known to deliver the loan quickly. As many an investor will tell you, if you do not get the loan funded quickly, you may very well lose the deal. If the lender you’re working with cannot fund the loan in an expeditious manner, you may want to seek capital elsewhere.

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

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: private hard money lender,owner occupied home loans,hard money loans,hard money loan

Wednesday, July 18, 2018

Considering a Fix & Hold? Read What This Broker Says First

Broker Explains Why Arizona is Tops for Investment Properties

Most of the people we help at Level 4 Funding work in the fix-and-flip industry. They use hard money loans to purchase a property, make repairs, and get it back on the market quickly. We’ve recently interviewed several clients who do just this. However, hard money loans are also utilized by borrowers who need to move quickly in the market; particularly if they’re trying to grab up an investment property before someone else does. This unique angle is attractive to a different category of real estate investors; perhaps those who fix-and-flip, but also those who fix-and-hold in situations where a traditional bank loan won’t suffice. Realtor Chris Mendenhall of Harcourts Prime Properties spoke with us on this front and gave us a few insights for those hoping to make smart real estate investments.

Chris has Been in Real Estate Since 1987

A true veteran of the industry, Chris began his career as a real estate broker more than three decades ago. Although he works primarily in north Los Angeles County, he also serves Orange, San Diego, and Riverside Counties. Chris was working in lending during the 90s crash, helping buyers with their loan applications. “It was a tough time,” he says. “There were only 12,000 sales that year, in an area with 12,000 realtors.”

His Current Focus is on Asset-Based Auctions

Working with Harcourts Prime, Chris’ current focus is on asset-based auctions. He helps sellers get top dollar for their properties within a very short period of time and also gives buyers the chance to purchase property at public auction using a transparent process. Unlike other auctions, buyers can see everything from home inspections to pest inspections prior to making a bid. Despite the quick turnaround, Chris says most properties are grabbed before they make it to auction. Those that do land in the hands of trusted auctioneer Ben Brady, who has handled $4.5 million in properties over the past year alone.

Chris Says Arizona’s the Place to Be for Fix & Flips and Fix & Holds

One of the most recent deals that left Chris in awe was a 26-unit building in Phoenix, which was purchased by investors with the intent to flip and hold. “Mark changed their lives,” Chris says of Level 4 Funding partner Mark Gowlovech. “He helped them generate close to one million dollars in equity.” After a few rounds of funding, the property, which was purchased for next to nothing, now has a value of about $1.5 million and is filled with renters on month-to-month leases. When asked what he thinks of the industry, Chris compared the Arizona market to California. “Arizona’s a better place to do it,” he explained. “It’s easier to rent. The laws are more favorable.”

Focus on the Numbers if You Plan to Get into the Industry

Aside from working in Arizona over California, Chris gives investors some additional advice: “Identify a property that has the numbers. It’s all a numbers thing. Not, I like this color or I like this floorplan,” he explains. He also adds that working with someone like Mark is advantageous. “He has tools that really help his clients,” and ensures they’re making smart investment decisions.

Work with Chris or Learn More About Hard Money Loans

Chris says he often works business professionals who run into situations in which properties have to get to market quickly and the sale must be handled by a neutral third party, which is quite common when it comes to the legal realm, especially family law. Harcourts Prime Properties is only in California thus far, with plans to expand across the US in the near future. If you’d like to connect with him, you can visit his LinkedIn profile, follow him on Facebook, or visit his site ChrisMendenhall.HarcourtsPrime.com.

Level 4 Funding, on the other hand, helps people in California, Arizona, and Texas. If you need funding for a project, such as a multi-family dwelling or general fix-and-flip, and a traditional bank loan isn’t a viable option, learn more about how we can assist you.

Technorati Tags: fix and flip,hard money loan,hard money loans,hard money lender

Here’s What it Takes to Be a Rebel Rehabber/ Fix & Flip Pro

Curious what it takes to be a rebel rehabber? At Level 4 Funding, we have the pleasure of helping some amazing people who work in the fix and flip business and sometimes they’re kind enough to share their stories with us. We recently had the pleasure of speaking with Yvette Stevens of Miami Beach Fix & Flip, and she not only gave us her personal story, but some epic tips for those of you who are interested in becoming a house flipper as well.

Yvette Always had a Fascination with Finance and Homes

While she may not have known it at the time, Yvette was being primed for the fix and flip business from an early age. Growing up in Chicago, she often visited her father’s construction sites and fell in love. It wasn’t long before she was begging her parents to take her on tours of the city, so she could soak up the architecture and imagine what it would be like to create similar homes. While other kids were nagging their parents for spending cash, Yvette was happily balancing her mother’s checkbook and paying the household bills. It’s no surprise, then, that when it was time for Yvette to choose a career, she jumped headfirst into lending.

One of Yvette’s current projects: completed stock plan, a 2,721-square-foot beauty

She Decided to Kiss the Corporate Ceiling Goodbye

Although Yvette loved many aspects of her career, particularly reading the plans that came in with loan applications, she wasn’t content to sit still. “Corporate America has a ceiling,” she says, “especially for women.” She rebelled. Using her expertise in both construction and lending, Yvette began transitioning into development in 2005, building homes from the ground up.

The Market Crash Left Her with “Beans”

“Real estate goes in ten-year cycles,” she says. The money, mortgages, real estate, and politics are all tied together, resulting in regular shifts. This, she says, is also the cause of the “steak and beans” lending cycle. During lean times, Yvette has been able to refocus on her career in finance, while searching for development opportunities when the market has been good. Like many others, the crash of 2008 hit Yvette hard. She was working on building an entire subdivision that September, but she managed to climb back up out of it and now does fix-and-flip work too.

When Choosing Fix-and-Flip Properties, Yvette Goes for a Blank Slate

Every fix-and-flip pro has a specialty. For Yvette, her ideal property is one she can tear down to the studs, simply because she loves having a blank slate to work with. “The uglier they are, the more we like them,” she says. Her current project is an older home in a historic district, which comes with rigid requirements for what can be done to the outside of the home, but she doesn’t mind at all. “Construction feeds my creative side,” she adds. Her primary focus is Florida these days, but Yvette researches various markets and finds new opportunities all over the country.

Yvette Offers a Wealth of Advice for Potential Fix-and-Flippers

“It’s not that easy,” she says. “People think they’re going to jump in and make money,” but there’s so much more involved. You have to “live, breathe, and eat real estate.”

“You’ve gotta have some cash.” Even if you get 100%, you’ll need to have money set aside for things like closing and emergencies.

“Look at it like a line of credit.” Lenders look for 20% verified liquid assets in order to ensure the borrower can finish the project. “Be prepared. Everybody wants something for nothing these days, but it just doesn’t work that way.”

“Learn, learn, learn before you earn.” Research your market; don’t jump into it. Get a good understanding of how credit and assets work. Learn about the business and concentrate on a market. Yvette’s a fan of BiggerPockets.com and points out that newcomers may benefit from the free information and tools the site offers, like fix-and-flip calculators.

“Make a lot of offers. Keep throwing them up against the wall until one sticks.” Resilience is paramount because you’ll get a lot of rejections before you find one that’s really a great deal you can work with.

“Love what you do. If it’s not fun, you’re not going to be successful.” There will be a lot of ups and downs when you do home rehabs. Enjoying what you do will keep you motivated and on your toes, even when things are difficult.

Learn More

If you’d like to connect with Yvette, head over to her LinkedIn profile and say “Hello.” We’ll be covering the stories of other Level 4 Funding clients as well, so pop back over soon for the next installment. You can also reach out to us directly if you’re interested in financing your next fix-and-flip with a hard money loan.

Wednesday, July 11, 2018

Dallas Texas Hard Money Loans

Looking for Private Hard Money Loans in Dallas Texas for you real estate investment, development or need funding fast.

Level 4 Funding LLC is an Texas top Hard Money Lender Commercial Lenders for Dallas, Houston, Austin.

We are brokers and can find you the best possible hard money loans

for your Commercial, Construction,

Hard Money Loan in Dallas Texas.

Yes we work state wide and have years of experience as Private Hard Money Lender for Dallas Texas. If you need a quick decision and a quick loan, we can deliver Low Rates and Great Terms on Private Hard Money.

We look for the best possible deal on rate and terms and

will provide you an underwriting decision

within 24 hours.

Level 4 Funding provides hard money loans to real estate investors and developers who need Hard Money Loan quickly. We are a direct private money lender – this term is synonymous with “hard money lender” – hard money broker who looks at applications and finds an outside lender to provide funds for the Private Loan.

We lend statewide and have extensive experience in Dallas Texas, Austin Texas and Houston Texas.

We can make decisions on your loan applications quickly and we underwrite loans in-house, cutting out the middleman and helping us to minimize the time and processing costs by creating as few steps in the Hard Money Loan Application process. We can provide Hard Money Loans in Dallas for Commercial, Residential, Office Multi Family, Warehouse, Storage Complex, Student Housing, Raw Land, Construction. We offer:

· Investment Property Financing for Commercial and Residential

· Funding in as little as 24 hours

· Rates as low as 7.9%* (8.4% APR)

· No upfront prepaid fees in advance

· Terms from 6-60 months*

· No pre-payment penalties, no back-end points, no hidden fees*

As an asset-based lender, we are mostly concerned with the real estate used for the Hard Money Loan. As an Dallas Texas -based lender, we work with Texas real estate investors in Dallas, Houston, Austin and other Texas markets, making us ideal to work with thanks to our understanding of the state’s market as well as being easy to reach during hours that work for you.

Level 4 Funding Has the Experience in Hard Money Loans in Dallas Texas to Help You Today

We look for the best deal for you. Our team is built to see the potential in a property and provide a financing solution that can bring value to your project and save you profit! We have taken the time and care to understand Dallas Texas Market unique real estate market to ensure that we can create a customized Private Hard Money Loan fit for any property or project in the area.

When Your Loan Can’t Wait and Need a Dallas Texas Private Hard Money Loans

Level 4 Funding has assisted with financing a variety of investment properties. we have the experience and knowledge to get you to the next stage of your project from purchasing a property to either hold onto while it appreciates in value or to turn it into a monthly cash flow asset in your portfolio, to fix and flips, to full scale residential subdivision construction, We make asset-based lending a quick, simple and easy-to-apply-for process.

If you’re looking for a private loan, don’t wait –

start you application today.

We look forward to working with you.

We do them all! Give us a quick call to discuss your situation and your project. We can provide you with an answer over the phone with no obligation or pre-paid fees in advance. If we can help we will, if not we can tell you the course of action you need to take to get your project funded. Yes we do them all, give us a call today for a Private Hard Money Lender for AZ, CA, CO, FL, ID, OR TX and WA! Give me a call at 623-582-4444 or for Texas Hard Money Loans call us at 512-516-1177.

Technorati Tags: hard money lender,hard money loans california,hard money texas

Monday, June 4, 2018

What to Expect With Hard Money Loans Arizona

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

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

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

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

What to Ask For

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

Have a Planed Exit Strategy

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

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

Sunday, June 3, 2018

Spotting a Business Loan Arizona That Is Too Good To Be True

(Looking for a great deal on a business loan Arizona is smart. But you need to be able to determine which offers are legitimate and which are actually a scam.)

When you are searching for a business loan Arizona, it can be difficult to tell which lenders are legitimate and which are actually running a scam just to collect fees from unsuspecting potential borrowers. But completing your due diligence will reveal some information that will give you a good indication of which firms are legitimate and which are scams. There are some legitimate lenders who do request a processing fee when you submit your request. So that is not always a sure sign of a scam but there are a few dead giveaways.

When researching lenders to submit loan applications to, it is wise to always eliminate any that are outside the United States. This will greatly help to reduce the number of shady or fake lenders that you will be speaking to. Any lender who is outside the country is not going to be forced to follow any U.S. laws and that greatly increases the potential for you to become a victim of a scam or to have your personal information and identity stolen. In addition, if you are working with a firm who claims to be in the United States and then in fact is not, stop all transactions. A business who is hiding their location is more than likely not legitimate.

If you are told that there are no qualifications to be met for business loan Arizona approval, you are likely dealing with a fake company. These “firms” are likely to say that they charge a somewhat substantial fee for the loan request to be processed but then the fees are applied to your loan points. And that it is just a formality because there are no criteria that you must meet to get approved. These are all lies to get you to pay the fee. Once you pay then the lender never calls you again and will not return your calls or emails.

Don’t Be Fooled By an Office

Even if the company has a nice office in a respectable neighborhood there is no guarantee that they are legitimate. In most cases the office is in another state or city and all that you are seeing are pictures on a website. Not only is the office likely to belong to someone else but the entire business could be nothing more than a person who is running a website and collecting application information to sell as well as bilking borrowers out of application fees.

There Is No Free Loan

You are never going to find a legitimate business loan Arizona that is offered without any fees or interest. Lenders are in business to make money just as you are. So always look very closely at the entire contract and all of the fee and payment structure of any loan that appears to be too good to be true.

Owner Occupied Borrowers Can Get a Private Hard Money Loan From Lenders

Welcome we offer Private Hard Money Owner Occupied Loans in Arizona up to 80% LTV. Our Arizona owner occupied hard money loans program makes it easy for you to get the new home you need despite not having credit, having bad credit, or even if you’re not from the United States. Owner occupied loans have easier requirements than investor loans and can even benefit from our cross collateral 100% LTV loan option.

Owner occupied hard money loans are also considered Principle Residence Loans, alternative financing, and private money loans.

We continuously stay up to date on all regulation required to offer owner occupied hard money loans.

Poor Credit, BK, Foreclosure, TIN Numbers, Self Employed YES we can!

No Up-Front Fees and No Cost to Apply.

Quick and simple to Apply for a Owner Occupied Private Hard Money Loan

Reasons Why Borrowers Use Owner Occupied Loans using Private Money

Bad credit

Hard to prove income

Dealing with a problem property

Cannot qualify for conventional or FHA/VA financing

Common Uses Of Owner Occupied Private Hard Money Loans Arizona

Buying first or second home

Refinance an existing loan

Cash out for repairs or remodeling

Cash out for debt consolidation

Hard Money Owner Occupied Loan Program Options

100% FINANCING AVAILABLE if the borrower has another property that is free and clear or has a small mortgage in relation to value (substantial equity) to pledge as additional collateral.

We are a Private Hard Money Lender in Arizona, making real estate loans to both Investors & Owner Occupants in Arizona.

NO PRE-PAYMENT PENALTY

We have no pre-payment penalties on our loans.

PURCHASE - REFINANCE

Down payment: 20-30%

Can accept co signers

Allow seller carry back for the Down Payment

Up to 70% or 80% of appraised value

Up to 100% financing with a 2nd free and clear property.

Interest Rates from 9.5% for Owner Occupied Private Hard Money in Arizona.

Requirements for Private Hard Money Owner Occupied Loans

Income verified – 3 months banks statements or tax return.

BK, Foreclosure, INN, Self Employed YES we can!

Apply for an Owner Occupied Hard Money Loan

If you are interested to see if you qualify for an owner occupied hard money loan in Arizona, give Jamie a call today at 623-582-4444 or fill out our loan application to get started.

What is an Owner Occupied Private Hard Money Loan?

These types of loans are considered consumer loans. This means that they are for the individual home owner not an investor or corporation. These loans are for borrowers who will live in the home as their primary residence home. These are loans where the borrow will use the funds for consumer purposes, such as paying down debt, buying a boat, debt consolidation or paying a tax lien. The funds are going to be used to help the consumer. When you are applying for a consumer Private Hard Money home loan there are a lot of requirements that the lender must do to make sure that the borrower fits the loan. These are recent requirements, but the main requirement is that the Private Hard Money Lender Lending for an Owner Occupied Homes needs to make sure that the borrower can make the payments. They call this verifying the ability to pay the loan. Since this a Private Loan, these requirements are easier and more relaxed that the traditional lender. Additionally, Arizona Private Hard Money for Owner Occupied Loans usually have a lower credit requirement. Another requirement is that the loans must be ‘fully amortized over 30 years’ and cannot have a balloon payment. The advantages of a Private Hard Money Lender are that the loan is completed quickly, and the borrower can move fast. Typically, the lender is private individual that will look at the property and make a quick decision. Rates on the loan are higher that a traditional loan, but usually range from 6-12%.

A few other reasons for a Private Hard Money Owner Occupied Consumer Loan:

Self-employed

Trouble documenting income

Inconsistent income history

Credit issues due to a recent loan modification, short sale or foreclosure

Bankruptcy

Client already owns the home and needs to refinance, the purpose is consumer in nature, and there’s no purchase component