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

Saturday, March 30, 2019

How to Prepare Your Investment Pitch for a Colorado Hard Money Lender

The best thing you can do when applying for a Colorado Hard Money Loan is to be prepared! Here’s the kinds of information a Colorado hard money lender wants to know before approving your loan.

When you approach a Colorado hard money lender about applying for a loan you want to come in prepared and ready to field questions about your investment opportunity. Below you will find a list of the things you’ll need to have ready for your Colorado hard money lender in order to be approved.

Property Information

Compile all the information you have on your property in an easy to read format including list price, location, and offer price. If you’re pitching the purchase of a commercial property you will want to have the numbers that show the potential income for the property, as well.

Improvement Plans

A Colorado hard money lender will want to know exactly what your plans are for the proposed property. This should include construction budgets, bid sheets, architectural plans, and any other information that will show you have a well-detailed plan for the improvements to the property.

Personal Financial Information

Because Colorado hard money lenders don’t focus as closely on the credit requirement they’re going to want to know about your personal financial situation. Be prepared to present income verification and bank statements in case the lender wants to review that information before making a decision.

Get Ready to Field Questions

Just as you are interviewing the Colorado hard money lender, they are interviewing you. You will need to be ready to answer questions professionally and quickly to show that you are equipped to use a Colorado Hard Money Loan.

If you spend the time to prepare for your presentation to the Colorado hard money lender it will show! If you have all of your documentation in order it will be easy to submit your loan request following your initial discussion. Level 4 Funding can make moves on loan requests and have them funded as quickly as a week. To learn more, give us a call.

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.

Finding the Perfect Colorado Hard Money Lender

When you’re making a big real estate investment purchase you want to be selective about your Colorado hard money lender. Here’s how to find just the right one for you.

Most people wouldn’t purchase the first car they ever saw and test drove. Most people wouldn’t purchase the first house they saw without comparing it to others. So why would you go with the first Colorado hard money lender you find?

Research is the key to picking the right Colorado hard money lender for your investment project. Some Colorado hard money lenders will be picky on the location and property type. You can shop your project around to a few different Colorado hard money lenders before making your decision. Here’s a few ways to find Colorado hard money lenders.

Use the Internet

This probably goes without saying, but the Internet is your friend! Of course it’s easy to search “Colorado hard money lender near me” and pick one off the list, but the best part about the Internet is that it’s going to give you lots of information. You can find reviews from past borrowers and find out about their experience to see if it’s the right fit for you.

Attend Networking Events

If you have any experience in real estate you know that networking is key. This goes for lenders, as well! If you attend a conference or a meeting for investors you’re bound to meet some Colorado hard money lenders. You can also ask other investors in attendance if they have a recommendation based on their own experiences.

Interview Potential Colorado Hard Money Lenders

Once you’ve found a few Colorado hard money lenders it’s time to conduct some interviews. Some lenders may be more suited to experienced investors and some may specialize in commercial properties. By spending time getting to know their clientele and what they can offer you can feel comfortable pitching your opportunity for funding.

You can also speak with another more experienced investor and ask them what kind of questions they ask a lender before accepting a loan offer.

If you’d like to learn more about what we have to offer investors, give Level 4 Funding a call today!

Friday, March 29, 2019

Hard Money Facts: What Your LTV Percentage Means

If you’re taking out a Colorado Hard Money Loan you’ll want to understand the LTV and what the percentage attached to your loan means. Here’s a quick rundown to get you in the know.

When you research Colorado Hard Money Loans you’re going to see numbers like 70% LTV and 80% LTV. What does this mean for you as a borrower?

If you’re investing in property the loan amount is going to be weighed against the purchase price and the value of the property. The LTV is the loan to value, meaning the amount of the loan divided by the assessed value of the property.

Another important term to know is ARV. This is the approximate retail value, the amount the lender estimates the property to be worth after it has been improved.

Understanding Your LTV Percentage

Now that you know the key terms you’re going to see lenders offer 70% LTV, 80% LTV, and some, like Level 4 Funding, offering 90% LTV Colorado Hard Money Loans. If you’re purchasing a $200,000 house and want a 90% LTV Colorado Hard Money Loan you’ll be asking to borrow $180,000.

Borrowing more can be riskier, but if you can’t put up more than 10% of the purchase price then a 90% Colorado Hard Money Loan may be the way to go!

How LTV Affects Your Loan

Another thing to consider is the higher the LTV, the higher the interest rates and points. These will vary from lender to lender, but the LTV and percentage rates will climb in tandem. If you can afford to use a lower LTV loan you’ll be paying less over the long run, saving yourself more money for investments.

Getting Your Loan Approved

Once you’ve picked a Colorado hard money lender you’ll have to explain how you’re going to put their money to work. A complete plan of how you’re going to pay the loan back will include your plans for improving the property in order to pay off the loan.

For more questions about calculating your LTV or to discuss being approved for a Colorado Hard Money Loan, call Level 4 Funding today!

3 Benefits You Can Expect From a Colorado Bridge Loan

Colorado Bridge Loans can save you in a tight financial situation. Here are three things that you can expect when receiving a Colorado Bridge Loan from a Colorado hard money lender.

Depending on your financial situation and what purchase you want to make, a Colorado Bridge Loan can save you when you need to fund a real estate purchase quickly. Put into simple terms, a Colorado Bridge Loan will give you temporary funds while you’re waiting for permanent financing to come through.

There are many reasons a Colorado Bridge Loan may be needed. Here are three times you would benefit from using a Colorado Bridge Loan:

Purchasing Before Selling

A prime example is to pay for the purchase of a new home while an owner is waiting on their current home to sell. The timeline isn’t always ideal and if you find the perfect home, but haven’t been able to sell your property then a Colorado Bridge Loan is perfect for making that new purchase in the meantime.

This can also free up a homeowner from having to sell their home with a contingency, a requirement that could keep offers from coming in.

Remodeling Before Selling

A homeowner may want to make upgrades to a home before putting it on the market and if the upgrades require the homeowner to move out, a Colorado Bridge Loan would allow the homeowner to move into a new property while completing the upgrades instead of finding temporary housing which can be expensive and inconvenient.

Purchasing Commercial Property

Another example is when an investor wants to purchase a commercial property, but the loan-to-value isn’t high enough or there aren’t enough lessors in the building. Big banks won’t fund a purchase like that due to their stringent requirements so a Colorado hard money lender comes in to offer the capital to fix up the property and then the investor can turn to traditional lending after.

Colorado Bridge Loans can be an alternative to a traditional home equity loan and can be funded by a traditional bank, but when you need the funds quickly the best way to go is a Colorado Bridge Loan. The flexible requirements and repayment could be perfect! Call Level 4 Funding today to learn more!

Don't Count Out Colorado Hard Money Lenders for Your Next Investment

Make sure you have all the facts about Colorado hard money lenders before you make the call on who is going to fund your next investment project.

If you’re familiar with the investment and lending industry then you’re sure to have heard of Colorado hard money lenders, and if we had to guess there have been some negative pieces of information attached to what you’ve learned. Why is that?

In our experience, Colorado hard money lenders get a bad rap because people use them for the wrong reasons. Here are some scenarios where using Colorado hard money lenders might not be beneficial for you.

If You Have Good Credit and Income History

This doesn’t mean that people with good credit and income can’t use Colorado hard money lenders to fund their investment, but it’s especially helpful for those that don’t. If you fit into the first category it may be the right path for you to go through a traditional lender, but if you don’t we can help. We overlook bad credit and get you the money necessary to invest in real estate.

If You’re Looking for a Long-Term Loan

If you’re looking to snag a loan for a long-term investment scenario, Colorado hard money lenders are not the way to go. The higher interest rates can be a deterrent and quick payback times don’t fit the traditional lending mold. However, if you need cash quick and are going to be able to pay it off quickly, it is most definitely your best bet.

If You’re Not Prepared to Flip

Colorado hard money lenders approve their fund disbursements based on a business plan. We need to know where our money is going, what it’s doing, and the likelihood it will be returned. Our strongest clients come to us with a well thought out business plan. That’s not to say that first-time investors won’t get approved, but without the knowledge and skill to make the money work for you, it won’t work for us either.

If you feel that working with Colorado hard money lenders rather than a traditional bank sounds like the way you want to go, we can talk you through the process and discuss your investment opportunity with you. Call Level 4 Funding today to learn more!

Thursday, March 28, 2019

Colorado Hard Money Loans to the Rescue!

Investors with poor credit know that you can’t wait months or even years to repair their credit in order to make moves. Colorado Hard Money Loans allow them to quickly obtain funds.

According to credit.com, about one third of Americans have a credit score lower than 601. That can be a huge determining factor in a bank’s decision to fund a loan. It’s a fact that has to be faced along with the fact that it can take months or even a year or more to fix a credit score. While it’s absolutely a good idea to work on your credit, investors don’t have the luxury of waiting.

Purchasing real estate as an investment is a great way to make money, but when the market is hot investors need to move quickly. Places like Level 4 Funding allow those investors to get their loan funded much quicker with a Colorado Hard Money Loan, without scrutinizing the borrower’s credit.

We can also create flexible lending terms to fit the situation. We don’t have to follow guidelines that may be harmful to someone’s real estate deal.

Lightning Fast

We’ve been known to fund loans in a matter of days! Forget the waiting game. If you come to us with a well-rounded business plan to put our money to work, we’ll make your Colorado Hard Money Loan happen!

Terms to Fit Your Loan

The best part of giving out Colorado Hard Money Loans is being able to custom design the loan terms for each client. Many of our clients use our loans for fix and flip properties that they won’t own for a long period of time. That’s why we make sure to build the loan around the situation.

Is It Right for You?

Another upside to working with a Colorado Hard Money Loan is that your lender is going to give you personalized attention. We are investing in your future and want to know about your plan, your ideas, and what our money is going to fund.

You can call us today to learn more about our Colorado Hard Money Loan offerings and how we can help make your real estate investment dreams come true. We will walk you through the process and make sure you are comfortable with what we have to offer and whether our terms and financing structures will work for your project!