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

Wednesday, March 27, 2019

Residential Arizona Hard Money Lenders: Why Are They Better Than Traditional Lenders?

If you need investment funding, why not let your home, apartment, or townhouse help you get it? These type loans are not the easiest to acquire, but have definite advantages over more traditional ones.

Residential Arizona Hard Money Lenders offer funding that is normally defined as a non-bankable loan on whatever property a borrower is offering, ex. a single family duplex or other hard asset. This type loan can close in a short a time as three to five days as opposed to traditional lenders whose process can take three to six months (or more) and be held up by any glitch that shows up in the background checking that is being done into your credit history. Time is money, after all.

Some additional reasons for taking this road to funding include: the buyer(s) hold a mortgage already on another property; debt to income ratio appears here because, bluntly speaking, the more money you already owe, the less your chances of repayment, so thinks the standard lender. Traditional lenders generally refuse to set up a fix-and-flip loan—they are strictly interested in the property’s value on the current market. The property is not a conventional type home and again this fact will get in the way of regular funding approval.

The list can go on and on with reasons that never occur to a borrower—a standard lender can and will take into consideration all of these things and more. Arizona Hard Money Lenders don’t view these things in the same light.

Are these type lenders something I should seriously check into?

Also these type loans can be stretched out to a longer period of prepayment than most standard loans—traditional lenders are hidebound by a certain set of rules and requirements their borrowers are obliged to follow.

Residential Hard Money Lenders in Arizona often charge no upfront fees or down payments, a real asset when you are already strapped for cash while trying to get everything off the ground.

Residential Hard Money Lenders in Arizona are much more interested in the value of the collateral you presently have than an absolutely ‘perfect’ credit history in the financial ratings community. They prefer that you have on average of around 40% equity in the home.

Success in your first venture through this type of funding has many advantages—making professional contacts in your chosen field, building a solid reputation by living up to your end of the bargain and having a portfolio of successful investments to show when you try to take on a larger project.

Make certain that you learn all the facts—pro and con--before you decide to go with this type of lender.

Talk to people you already know who are based in the real estate field. Find out what the traditional route of borrowing requires ion order to be able to intelligently compare the two areas. Make your decision based on the facts and go after what you want.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Arizona Hard Money Lenders: What Can They Do For Your Financing Needs?

There are a ton of people out there saying they are the best lender, can get you financed no matter what, would love to work with you … but which one is really best for you? Know the details surrounding these lenders as well as the traditional financiers before you go further.

After a period where the term ‘Arizona Hard Money Lender’ was used to describe an individual whom you dealt out of desperation or not at all due to a few persons whose methods darkened everyone’s reputation, the good news is that today’s lenders who specialize in these type of loans rank up there with other well known respectable traditional lenders. They simply work from a different perspective and utilize methods that may be easier for your individual financing needs.

This type loan, obtained through private investors or independent companies, is basically one where the borrower gets his/her funding and it is secured by real property value—something the customer already owns or is acquiring. The borrower will have to provide a well-written schematic describing their plans for the property and how they intend to repay the funding received. Terms can range from twelve months up to five years; the customer normally pays interest and a portion of principal every month and a balloon payment at the end of the term.

What are the advantages of using these types of loans?

As per the usual, Arizona Hard Money Loans are designed to aid borrowers who happen to have issues that cannot be resolved by using conventional lenders. Self-employed persons as a rule generally have more difficulty obtaining a loan than those with a 9-5 job and a steady company-dispensed income. A recent foreclosure or any other credit glitch makes things difficult, if not impossible, in the traditional route as well. Banks and mortgage companies also take a long period of time to process a loan application.

One or more of these areas could stop your application cold, costing you the amount of time you have already spent in this effort. Now there is the prospect of starting over with possibly the same result looming on the horizon. That is where Arizona Hard Money Lenders could be the answer to your problem. They tend to look at your collateral and ability to repay rather than your credit report, past income history and the steadiness of your current employment and sometimes can close a loan in less than two weeks.

See if your dreams can come true—find a lender today who can help you.

Do the digging in order to find out all you can about these loans and arm yourself with information on both the positive and the negative aspects involved—funds that are obtained through an Arizona Hard Money Lender come packaged with a higher interest rate than conventional ones. Contact lenders, both traditional and nontraditional, and find out what terms they offer. Once you have all the needed information, take a deep breath and set out making your real estate dream a reality.

Tuesday, March 26, 2019

Arizona Rental Property Loans: Can I Borrow Against This Type of Property?

If you have rental property you want to borrow against and traditional investors are holding you up for whatever reason, there are other options. Check into for Arizona rental property loans obtained through hard money sources in order to find out if this can clear the way for you.

Money, generally speaking, is the key to making money—you have to have it to make it and buying property—any kind--calls for a lot of it. Traditional mortgage lenders, banks and the like will lend, but they will go through your credit history one item at a time, tie you up with procuring documentation of all sorts and bring the whole process to a grinding half if any bumps appear long the way. This will put you back to the place you originally began, minus a great deal of effort on your part and considerable time loss.

Say you have an apartment complex you would like to use as collateral, but it needs major renovations, roofing, windows, flooring, et al. Traditional financiers won’t lend money on property that needs renovation on any large scale; their emphasis centers on the value of the property as is and damaged property is not an encouraging sign to a conventional lender. You have reached that point when other options should be investigated.

Although most people say that traditional loans are the way to invest in rental property, there are times when an Arizona rental property loan via hard money and designed for rental property may just be the answer to your problem.

What can a hard money property loan do for me?

Three positive reasons for this type of loan are fast processing of the actual loan application. First you will get your money sooner, something everyone wants. Secondly, you may be able to borrow a larger amount of money and cover more of your desired project quicker. Finally, you can grow your real estate portfolio and have something to show on down the road when another investment catches your eye. If you have kept up your end of the deal and repaid the loan in a timely manner, the established relationship with your lender could aid you in your next project.

Another very pleasant reason Arizona rental property loans are a good form of financing to follow is that these type loans don’t require a down payment like most banks. The least most traditional lenders generally require begins at around 20 percent of the property’s value.

Customers do, however, end up paying much more for the loan in fees, interest rates and the like for this particular kind of funding.

Let your rental homes or apartments pay off in ways never imagined.

This type loan is not for everyone, but it’s definitely worth looking into. Roll up your sleeves and start investigating this possibility that could aid you in making your dream investment into a reality.

Owner Occupied Arizona Hard Money Loans: Do the Advantages Overrule the Requirements for Borrowers?

Thinking of financing your latest project by using your current home as the collateral? Do some research into the area of owner occupied Arizona Hard Money Loans and learn the pros and cons of this route to funding your venture.

While you are wracking your brain in order to find collateral that will satisfy the bank or whatever conventional lender you may have chosen, you may not realize that that you are literally sitting on what might be the best thing for you.

An owner occupied Hard Money Loan in Arizona could be exactly what you need, but these loans have strict specifications set up through the Truth in Lending Act –indeed a lot of people think they are illegal. This is not true, but they are in a class by themselves being stricter than other hard-money related loans.

What kind of requirements do these loans have?

In California, the majority of this type funding must be earmarked for a business investment ranging from increasing your business itself to setting up an office for you to work from in your house. They cannot be for household, personal or family usage. Laws, however, vary from state to state.

Another requirement is that the borrower’s income must be verified through a third-party source.

If the loan ends up being defined as a ‘high-cost loan’, both hazard insurance and property taxes have to be paid in on the first year of the loan. This is termed an ‘impound’ and can only be cancelled by the borrower.

The borrower has to be given a full disclosure statement regarding all of the terms of the loan he/she is taking out. This process is the same as if the customer were dealing with a stand loan through a bank.

Requirements can be strict, but closing can be completed in less than two weeks. Poor credit, a recent foreclosure and/or a loan modification will not automatically keep you from receiving funding. Being self-employed is not the stumbling block it often is with bankers and other traditional lenders either.

These are not the only requirements that owner-occupied Hard Money Loans in Arizona have attached to them, but are a short list of the basics and provide an outline of the structure of this type of funding.

Point: the strict requirements may put some people off, but a point worth noticing is loans that have closed through this process have been approved for customers whose credit score was lower than 600. Another positive area is that proof of income can be shown through methods other than the normal ones demanded. On the average, there are no prepayment fees when a customer pays off the loan before the required time period runs out.

Let your current home work for you in ways you never imagined. Investigate your owner-occupied Hard Money Loan options in Arizona today!

Remember the Devil really is in the details. Do your homework, read the fine print and find out where you stand in regards to the requirements.

Are You Eligible For An Arizona Fix and Flip Loan?

This real estate loan is exactly what it sounds like –the buyer purchases a home with the intent to fix it up to sell at a profit as soon as possible. Make certain you know the advantages and disadvantages of these loans before you take one out.

Since an Arizona Fix and Flip Loan is basically a short-term loan, most investors use an Arizona Hard Money Loan letting them buy, repair and sell off a property within a year’s time. Private investors and people you already know are your best bet. They will be evaluating the property value both before and after the renovation is done as well as your ability to complete the project.

This takes much less time that traditional bankers and lenders who go through your background with a very careful eye. If something turns up that is negative, hold up the entire process in order for more proof that you are a good risk according to the rules they have set up for borrowers.

Traditional loans also only look at home’s current value, but they are less expensive than other types of funding. Standard loans also require very strong credit for loans while other types of investor are more interested in past and current projects than your actual numerical credit rating.

When first starting out, finding money may be difficult and borrowing against private assets and setting up an escrow account to use might be required. Interest rates can often range from 10 to 20 percent per year.

So, is this type of loan the way for me to take?

Your traditional lenders—banks, mortgage companies, most finance companies--will not lend money if there is a health or safety issue with the house. Arizona Fix and Flip Loans are not restricted by this concern.

Arizona Hard Money Loans can be closed within a week if you end up with a good professional lender. These lenders are looking at recovery for themselves however—they want to feel assured that you can renovate the house and sell it as quickly as possible in order for them to recover their money. Liens on the property are attached so if a sale falls through they can be assured of getting their money back.

The longer you are in business, the less you’ll pay for a loan—sometimes a borrower may can receive 100 percent and have several projects running at once depending on past performance.

Find out all the details, advantages and disadvantages, beforehand instead of just jumping in over your head first thing.

Be a detective before going down this road—Arizona Fix and Flip Loans are not the answer for everyone. It will pay you to be as certain as possible that you will be able to perform in this area--the adage ‘knowledge is power’ is very true.

Monday, March 25, 2019

Arizona Bridge Loans: How Can I Tell If This Funding Is Right For Me?

The financial market is filled with numerous types of loans. Take time to learn the advantages and disadvantages of Arizona Bridge Loans before you go any further.

The world of financing is filled with numerous types of funding ventures, conventional bank and mortgage loans, private loans, revolving money accounts and that is just to name a few. Confused? Most people are, but we can lend you a helping hand in understanding this particular kind of funding. Here are the basics involving these particular loans and why you might want to consider this route in your quest for financing.

An Arizona Bridge Loan is normally taken out by an individual who needs funding for the difference between a cost of a new home and the money he/she will receive from the sale of their present home in the event that the closing has not occurred before that time.

Do you wish that you could close while your current property is still on the market? Providing conditions are met, these loans can entitle a seller to go ahead and purchase the desired new property before an existing property is sold.

Sometimes an Arizona Bridge Loan allows a few months that free you up of any payments on the new home, something most buyers find highly desirable.

While a home equity loan is less expensive than these types, some lenders will not make an equity loan if the home is currently on the market.

The contingency to sell (meaning that the buyer’s first home must sell before the second home can be purchased) can be removed. The purchase of the new property can be forwarded if the buyer has made a contingent offer and the seller issues a notice to perform. This avoids a long drawn-out escrow process and the possible discovery that the seller has no intention of completing the sale. California is the only state that legally requires an action like this, but it is used in other states as well.

What should I do in order to know if this type of loan is the one I should make?

Be wary of moving too fast, however, there are other things to consider when taking out an Arizona Bridge Loan. First, they are much more expensive than most standard loans. Secondly, the purchaser must meet the qualifications set by a lender to own both homes and requirements are normally pretty strict for this.

Decide if this particular loan is the best kind for your situation and find a lender that works for you and your needs.

Other than-standard loans are not right for everyone—do your homework and find out what pitfalls there are in this type funding. Working without all the facts in this instance can often be costly and time consuming, two things you are trying to avoid by going this route. Get out there, take in all the things you need to consider and find the best thing for you!