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

Wednesday, March 13, 2019

Hard Money Lenders are a Win-Win Solution

Financing a residential or commercial investment is quick and easy with hard money lenders. Here are some quick facts about hard money lenders so you can know what’s best for you.

If you’ve ever bought a home then you’re familiar with the guidelines and qualifications you had to meet in order to secure a lender. There was a ton of paperwork just to get started, then you had to get your prequalification, and then work with a lender to determine the best loan for you. Hard money lenders are more simple in their determination of loan funding.

Below you’ll find some facts about hard money lenders that you may not know.

They don’t fund traditional loans per se

Arizona Hard money lenders aren’t looking to fund owner-occupied properties, though some may from time to time. For the most part they want to fund opportunities for residential and commercial investments that will pull in a bigger return. Just as the investor is looking to make money, so are hard money lenders, just like traditional banks. The main difference is that they will fund that money quicker because it is an investment and they know that investors can’t wait for funding to come through.

They aren’t working with secondary mortgage markets

Arizona Hard money lenders are giving you, often times, their own money. Unlike traditional lending institutions your loan won’t be sold to Freddie Mac or Fannie Mae. Your money is coming from an investor, much like yourself, and they will see that loan through. That’s why their requirements for eligibility are different from those of big banks.

Eligibility is based on property, not owner

You won’t be asked to fork over tons of personal financial information by a Arizona hard money lender; instead, they’ll want to know more about the property. They’re investing in the opportunity and want to know that the risk is worth the loan. That’s why they’ll want to know your plans for the property so be prepared to answer questions such as that.

Short term loans is the name of the game

If you’re looking for a 30-year loan, this isn’t the place for you! Short term loans are what hard money lenders specialize in and that’s because they need to be able to free up their money for more investments. You’ll usually find loan terms somewhere between a few months and two years. The repayment terms will be negotiated between the lender and the borrower.

If you think that a hard money lender can help you realize your investment dreams, call Level 4 Funding today!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, March 12, 2019

Why a Arizona Bridge Loan May Be Your Best Option for New Investments

If you’ve already funded an investment property and need the money to make a move on the next, an Arizona Bridge Loan may be the best way to close that gap between the two properties.

If you’ve ever heard of an Arizona Bridge Loan, also known as a swing loan or gap financing, it may have been in the context of a homeowner financing a second home until they can sell their first. These temporary loans have come in handy for home buyers who are cash poor and need to secure a second loan in order to make a move. However, Arizona Bridge Loans are also a great tool for investors.

Arizona Bridge Loans, due to their temporary timeline and quick funding, can be great for investors who have sunk their money into one property, but want to snatch another one off the market before selling the first. Here’s the big picture on Arizona Bridge Loans and how it could be an option for you.

Leverage your current equity

Arizona Bridge Loans will be based off the value and equity of your current home and your current home loan. This is a way to leverage what you already own to generate another level of funding for another investment opportunity. We won’t scrutinize your credit or take weeks to fund your Arizona Bridge Loan so that you can make quick investment moves.

Less focus on numbers, more on sensibility

Rather than having strict debt-to-income ratio qualifications and stringent credit score minimums we will look at your situation as a whole and make a decision on your application based on the opportunity at hand. We can see the bigger picture and what a Arizona Bridge Loan could do for your financial future so we will take that into consideration and make a quick funding decision so you can make quick real estate investments.

Flexible terms mean no one-size fits all

We, as an Arizona Bridge Loan lender, pride ourselves on being able to mold our loans to fit the borrower. We don’t have firm guidelines for our payback schedules and interest rates. We know that each investor is unique and create our loans based on that knowledge. That’s why an Arizona Bridge Loan may be a better option for you than a traditional home equity loan, especially if you have your eye on a property that you’d like to make an offer on quickly.

We know that opportunities may arise to make another real estate investment before you’ve been able to complete your prior project. That’s why we want to learn more about your investment goals, the opportunity you have, and how we can help. Level 4 Funding is proud to offer Arizona Bridge Loans in Arizona to help investors meet their monetary goals.

Give us a call today to find out how we can help you.

Monday, March 11, 2019

3 Key Differences Between a Bank Arizona Bridge Loan a Hard Money Lender

If you’ve been reading up on Arizona Bridge Loan options, you’ve probably only gotten the details on how banks operate. To get the full story, you should learn what it’s like to get one from a hard money lender too.

1. Banks typically require good or excellent credit. Getting an Arizona Bridge Loan from a bank isn’t too much different from qualifying for any other form of financing, but it’s a bit riskier for the bank than other forms, so they often set the bar a bit higher. Because banks typically place your credit score at the top of the list of considerations, many people don’t qualify.

2. Banks expect a significant down payment. While there are government programs to help people purchasing homes to live in and businesses when they don’t have a large down payment, those options diminish with this type of financing. They’re fairly stringent on having at least 20% down, and often more if you didn’t meet other criteria.

3. Banks are tied down by more regulatory red tape. They’re pickier about what types of businesses they fund, how long those people have been in business, what their debt-to-income ratio is, and if you’re approved, it generally takes longer to get funded.

How Can I Tell Which Form of Lending is Right for Me?

If you need to move fast on purchasing a property, an Arizona Bridge Loan may be the ideal choice. It’s a short-term option that’s often leveraged by real estate investors who don’t want to pay down a balance over a long period of time. Instead, they usually plan to refinance later; perhaps when they’ve cleared up issues that prevented them from getting a traditional mortgage, be it a credit score, owning multiple properties, or the condition of the property they’re buying. Other times, the goal is to pay off the balance once the property sells. This is what homeowners do when they take on a short-term loan to buy a new house before they’ve sold their old one or what people who buy distressed properties do—once the repairs are made, they can then sell the house for profit and pay off the balance. While bank options typically offer lower rates for theirs, they obviously don’t approve everyone, and so Texas Hard Money Lenders step in to fill the niche banks leave behind.

A seasoned broker will help you find the right financial product for your needs—and at the best rates too.

If you approach a bank for an Arizona Bridge Loan and don’t get approved, it ends there. And, if you do get approved, you’re given a rate that may or may not be better than what others are offering. When you work with a broker, it’s his job to find a product that meets your needs, so it’s easier to get approved in the first place, and he’ll also know what rates are available through various lenders, so he can help ensure you’re not paying more than you need to. If you think short-term funding can help you fill a gap, tap into the expertise of a seasoned broker.

The More You Know: Secrets of Arizona Private Money Lenders

Here are some insider tips for getting to know the Private money lending in Arizona industry and how it can help you in your business endeavors.

Private money lending in Arizona can seem intimidating if you are not familiar with the process and how it is different than traditional lending institutions. There are a few key things to know to be successful in obtaining a private money loan and we are here to tell you those things! Whether you want to buy an investment home, a commercial property, or start an Airbnb business, we are here to help you through the Private money lending in Arizona process and want to make it as easy as possible.

Be prepared!

One of the best ways to go into a Private money lending in Arizona institution feeling confident is to have a thorough, well-organized loan pitch. You’ll need to include information on what you need the money for and why. Are you starting a cannabis business? Have a detailed business plan ready. Are you buying a commercial property to generate monthly income from tenants? Explain that in a carefully crafted loan scenario.

The more information you can bring to us in order to help us better understand your financial goals, the easier it is for us to make a swift decision on your loan approval.

Find the Arizona Private Money Lender for you!

Not all Private money lending in Arizona institutions are the same. Although the idea behind private/hard money lending is easier approval and less qualifications with credit, there may be different payback terms. Arizona Private Money Lenders may also have specializations for what types of loans they prefer to fund. You can do your research online and set up an appointment with a couple different Arizona Private Money Lenders to get to know them and find the right one for your monetary goals.

Get ready to apply!

Once you’ve chosen your Private money lending in Arizona institution it’s time to request an application. You’ll need to provide detailed information about the property for which you’re applying for funding, as well as your own finances including equity. This is where having your business plan or loan scenario will come in handy. Any Arizona Private Money Lender will want to know your plans for the property.

This information should help you feel comfortable approaching Private money lending in Arizona for your first time. If you’d like to speak to an expert to learn more, give us a call and we can make sure you’re well taken care of for your first private money loan.

Sunday, March 10, 2019

Why the Mighty Arizona Bridge Loan is Making a Comeback in 2019

An Arizona Bridge Loan is a type of short-term funding used in real estate. Thanks to market changes and consumer demand, it’s making a big comeback.

There’s a lot of misinformation on the net about what an Arizona Bridge Loan is and how it works; so much so that oftentimes investors don’t know if and when it’s appropriate to leverage one. This form of lending works well when someone is trying to bridge a gap in funding for a short period of time. They often have 6-month or 12-month terms, though some lenders offer terms of five years or more. Usually, the borrower only pays interest during the term, and then pays off the balance when the term ends, and funding is quick—much quicker than other forms of lending like mortgages, which can take three months of more. It’s often believed that you have to have excellent credit to qualify. This is true some of the time, particularly if you’re working with a bank, but alternative lenders routinely work with people who don’t have good credit.

There are many situations in which this form of lending could be beneficial. For example, a real estate investor might use it to make an initial purchase because he knows he’ll get funded quickly, so he can grab a deal before someone else does. In this case, he’ll likely refinance the property or resell it within a matter of months. An investor might also use one if he’s purchasing a multi-family property, but plans to bring on a more investors. Private homeowners sometimes use them as well, especially when they want to move into a new home while they’re waiting on their old home to sell. Using this financial tool, they can pay off their prior mortgage and possibly make a down payment on the new place with one.

With so many uses and benefits, one might wonder why they fell out of popularity. In reality, they never really did with investors. However, private individuals struggled with them during the early 2000s, around the time of the housing collapse. People were using them to get into new homes. The problem was, when the market started collapsing, their old homes stopped selling. The homeowners would wind up with two homes and loans they couldn’t afford, and so these loans fell out of popularity in the consumer market.

Due to Market Shifts, Potential Pitfalls are Declining and Security is Increasing

The housing market has obviously recovered and there are now even housing shortages in some areas. That means opting for an Arizona Bridge Loan is a safer option for private homeowners than it once was because their old home will likely sell much faster. Because of this, more people are leveraging this form of funding; both in the private and commercial sectors.

If you’re on the verge of securing a great deal, alternative lending can help you have a great year too.

Start with the mindset of an investor when dealing with any kind of financial product. Good investors have a solid exit strategy and contingency plans. They get into an investment only after research, but also prepare for issues like not being able to refinance or not having a new buyer for a property. This in mind, you can secure an Arizona Bridge Loan that will help overcome your short-term funding gaps and make this year your strongest yet.

How to Find Commercial Texas Hard Money Lenders That Are the Real Deal

There are lots of commercial Texas Hard Money Lenders, but not all can become real contributors to your success. Learn how to evaluate your options, so you can get funded fast and have a great experience.

Step 1: Watch the language. Finding people who promise you the sun, moon, and stars? That’s a warning sign. Yes, you can get funded even if you have rotten credit and you can get a substantial sum too, but if the company is veering from industry standards by promising you all the money you need with no down and interest rates well below average, they’re probably wasting your time.

Step 2: Do some research. Find out what the company’s track record is like and if they have a strong history of helping people like you. They may be great to work with, but if they don’t typically have involvement in your industry, it’s going to be harder to get funded.

Step 3: Find out the terms in advance. If you’re working with a reputable company, chances are they’ll have lots of information on their website about the process and what they offer. Look for pages that give overviews about the types of projects they fund and the rates they offer. Beware of barren websites. Commercial Texas Hard Money Lenders that are well-established and have created a successful businesses will have sites packed with information that make it easy to understand what you’re getting into before you reach out to them directly.

Know the Differences Between Industry Standards and Fluff

Chances are, you will have to put some skin in the game. Anywhere between 50-90% LTV is considered standard. That means you can expect to receive funds equal to somewhere between 50% and 90% of the asset you’re leveraging. In other words, if you’re purchasing real estate valued at $100,000, you won’t get more than $90,000. Some commercial Texas Hard Money Lenders use ARV, which is “after repair value.” If this figure is used, expect the percentage available to be much lower. It’s also worth noting that one of the key benefits of working with alternative lenders is that they can lend a helping hand when bank financing is not an option, but no company can help every single person who applies. Some simply don’t have sound strategies or haven’t evaluated the risks and profit margins well enough. Don’t buy into the hype if a company says they can help everyone. They can’t, and if they did, they’d be out of business fast.

A good lending team is there when you need them.

When commercial Texas Hard Money Lenders care about you, they value your time and work diligently. You should expect prompt responses, answers to your questions, and people who are more than willing to see that you get the best rates possible for your situation. They will help you identify issues with your approach and will find ways to assist, even if you have rotten credit or haven’t been in business for long.