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

Monday, April 1, 2019

Risk Taking with Texas Hard Money Lenders

When seeking out loan options, you’ll have to make some tough decisions based on your financial circumstances and the potential of the properties you wish to acquire. A lot of times, these decisions will center on whether or not you’re a risk taker.

If you get turned down by a public lender, like a bank or credit union, the end is not nigh. Oftentimes, when someone is turned down by a traditional lender, they are referred to private lenders who offer hard money.

Texas hard money lenders are able to approve a greater number of people for loans because they focus on the property’s investment value when approving loans. They are still known to deny borrowers, however, with strong plans and a property with potential, they can be great resources to help you with your dream property.

The Risks You Need to Know About Private Money

Texas hard money lenders are unlike public lenders because of the flexibility they offer. With the ability to approve borrowers and begin the process as soon as the day of, private lenders are very attractive. However, it is important to consider the costs of Texas private money lenders. Their interest rates are higher than public lenders and they require a short repayment period. A short repayment period is something that works well with something like a fixer upper, but it is not ideal in all situations.

Not all Texas private money lenders are reliable, either. Doing research is important, because the last thing you want is to be moving forward with your plans, only to have your lender pull the rug out from under you at the last minute. You also want to ensure that the terms to the loan agreement are agreeable. It sounds obvious, but unreliable and predatory lenders have a habit of hiding fees within the loan agreement. This is where a real estate attorney could come in. Having a pair of experienced eyes evaluate the loan and its value to you in your situation would be beneficial so that you can go into the loan agreement with confidence.

Finding Success and Making the Decision That’s Right for You

Choosing to work with a Texas hard money lender is a great option if you don’t qualify for a loan by a traditional lender. Working with untraditional lenders doesn’t always mean the process will be easy—and if it comes easy, it doesn’t mean it comes without risk. Choosing to move forward with hard money is just one option. If you aren’t willing to take a risk, and it’s not something that is necessary, you will have to consider other options.

Another thing to consider is that just because it doesn’t work out with one private lender, doesn’t mean it won’t work out with another. Staying focused and determined will be essential in your quest for a loan lender, and it’s something you probably had to utilize when you first began your property search. Moving forward despite some wrong turns will be essential if you want to obtain your dream property.

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.

Working with Texas Fix and Flip loans Like an HGTV Star

The stars of HGTV and the dazzling production quality of their shows may make it seem like any one can fix and flip a home and make a profit—but what kind of steps would an ordinary person take without the razzle dazzle of the cameras and production crew?

Chip and Joanna Gaines. The Property Brothers. Christina and Tarek El Moussa. All of these partners have worked their way to success flipping and fixing homes. Not all homes reap profit, but if the vast majority didn’t, there wouldn’t be a show.

So what do you do if you don’t have a mass amount of wealth from your successful show that would otherwise allow you to purchase and bid on competitive properties?

How Hard Money Literally “Lends” Itself to Fixer Uppers

When an ordinary person doesn’t qualify for a loan from a traditional lender, like a bank or a credit union, they are usually referred to an untraditional, alternative money lender. What most people don’t know is that untraditional lenders that offer hard money are often the best options for those who need Texas fix and flip loans. Texas hard money lenders offer cash fast, so it is ideal for someone looking to grab a property off a competitive market. Additionally, they have a short repayment period, which works well for someone who wants to make a quick profit off a fixer upper, rather than a profit off a long term rental property.

How to Know What Texas Fix and Flip Loans Are Right for You

While hard money is a great option for someone looking to fix and flip, there are some important things to consider. The short repayment period does lend itself to the fix and flip process, however, coupled with the high interest rates of private lenders, it may not be the most realistic option for everyone. Still, reliable private lenders offer something else: a transparent relationship. Because they offer flexibility and therefore a more individualized relationship with their buyers, there is the possibility of adding a short extension to the repayment period. If hard money isn’t the right option for you, other loan options are available.

Depending on the needs of the property, you may be able to obtain a loan from a bank or utilize crowdfunding sources. Personal loans can be combined with other loan types, and may be used in combination with the loan from a friend or family who wish to invest in you and your property.

Whatever you choose to do, obtaining Texas fix and flip loans is not impossible. It may not be as glamourous or as easy as the TV suggests, but there are a variety of resources that can often be used in tandem with one another—and if you’re feeling unsure, it’s always possible to invest in a real estate attorney to help analyze your options or loan agreements, so you feel confident that you are making the decision that is best for you.

Sunday, March 31, 2019

Colorado Private Money Lenders Aren't Private, Here's Why!

Colorado Private Money Lenders are an open book, answering questions and explaining the Colorado Hard Money Loan process so you can feel comfortable with your loan terms.

Gone are the days of dodgy hard money lending. Today’s Colorado Private Money Lenders are up front with what they have to offer, the fees associated with using a Colorado Hard Money Loan, and why or why not it would be the right option for you.

Colorado Private Money Lenders can fund investment opportunities based on different criteria than big banks can and because of that are a great way for people to get the money they need quickly. Here’s what you can expect, and should learn, from your Colorado private money lender prior to getting a loan.

Interest in Your Investment Project

Just as Colorado Private Money Lenders are going to be up front with you, you need to be up front with us. We have expectations in regards to your plans for your investment project and will ask questions in order to know if it’s the right investment for our money. Be ready to present facts and figures!

Flexible Credit Requirements

We won’t badger you about a low credit score or a previous foreclosure. We want to know what you’re doing now with your finances and if that enables you to be a good borrower who can repay your loan.

Up Front Lending Terms

Our lending terms won’t be run of the mill like traditional lenders. We have wiggle room to tailor the loan to your specific project. Flexibility is the name of the game and we are able to create a loan that will work for both you and us. We will also be very transparent with our lending terms so you can make a well-informed decision.

Clear Repayment Plans

We know the best way for a loan to be successful is for the repayment plan to be clear. That’s why we work to ensure our borrowers understand their loan fully and are comfortable with the plan put into place.

As a Colorado private money lender, Level 4 Funding is dedicated to meeting borrower’s needs. We want to make honest, transparent agreements with people who have a vision for their project and make sound investment decisions. To learn more about our funding opportunities, give us a call today!

Did You Know Owner Occupied Colorado Hard Money Loans Exist?

Colorado Hard Money Loans aren’t just for investors, owner occupied Colorado Hard Money Loans are here to help people buy the house of their dreams!

It’s common knowledge that Colorado Hard Money Loans are a great way for investors to get the funds for their investment projects. But did you know that owner occupied Colorado Hard Money Loans exist? It’s true!

There are two types of owner occupied Colorado Hard Money Loans. First, it can be used to purchase a home if traditional lending isn’t an option. Second, it can be used for investment purposes. Here’s the run down!

Owner Occupied Residential Properties

We know that purchasing a home through a traditional lender means tough requirements that not everybody can meet. What an owner occupied Colorado Hard Money Loan will do is enable a buyer to make a purchase with less than desirable credit until they can secure permanent funding.

Here are some reasons you may want to use an owner occupied Colorado Hard Money Loan for your primary residence:

Bad credit, recent foreclosure, or short employment history.

We can look beyond the traditional requirements to see the value you bring to the table as a buyer and we can create a loan tailored to your needs and have flexible repayment plans that can tide you over until you qualify for a traditional home loan.

Owner Occupied Investment Properties

Here’s another fact about owner occupied Colorado Hard Money Loans - you can use them to buy a multi-unit property, occupy one of the units, and rent out the rest! This is a great way to use real estate as an investment because not only will it provide you monthly income, but it’s an easy way to manage a property yourself and save costs on a property management company.

We here at Level 4 Funding have helped countless investors and buyers get the money to make the purchase they dream about. If you want to discuss how an owner occupied Colorado Hard Money Loan could work for your situation, give us a call today!

Denver is Booming and So Are Rentals

Rentals aren’t going out of style anytime soon. As an investor, rental properties are a fantastic way to bring in income. A Colorado rental property loan can make that a reality!

Denver is a hot spot for people who are looking to move to the mountains. Companies are buying up surrounding areas and bringing jobs, as well. All those people need places to live and renting is the way to go for some of them.

If you’re an investor, or want to become an investor, here are some tips for using your Colorado rental property loan to its maximum potential!

Know the Numbers

A rookie mistake that some rental investors make is to overestimate the value of their property. You may think that listing the property for a higher rent value means more monthly income, but that could lead to vacancies and price reductions that could hurt your bottom line. You want to know the area and the rent potential for your property like the back of your hand in order to be successful.

Understand Demographics

Renters are just as picky about the area they’re living in as buyers. They want to be close to shopping and transportation. For renters with families, they want to be close to good schools. Pick your properties strategically and in desirable neighborhoods to snag top dollar!

Don’t Over-Improve

Rentals are bound to need repairs and will have turnover so spending money on expensive upgrades isn’t the best use for your money. Instead hold onto that money for a new dishwasher if the old one breaks or to advertise for new tenants if you find yourself with a vacancy. Having a cash reserve is important for a rental investor and you definitely don’t want to put a large chunk of your Colorado rental property loan towards home upgrades.

If you’re choosing your properties strategically based on rental potential and location using your money for necessary upgrades rather than extra improvements, you’re on the right track to have great passive income from a rental property.

If you need a Colorado rental property loan in order to fund your property purchase, Level 4 Funding can do just that. Call us for more information today!

Saturday, March 30, 2019

What Makes a Good Investment Property?

Choosing an investment property is the first step to obtaining funds from a Colorado hard money lender. Here are some criteria you should be looking for to make a good selection.

Fixing and flipping is a great way to get cash as an investor. But how do you know which properties to choose? Many novice investors will make mistake when they choose their first properties and lose money on the project. Here are some things you’ll want to look for before applying to a Colorado hard money lender for your property!

Worst Property in the Best Neighborhood

As an investor you’ll want to know about the area you in which you want to make a purchase. It’s not a good idea to flip the best property in a neighborhood because the comparable properties in the area will bring your sale price down. You’ll want to choose a property that has good potential, but will be brought up in quality to match those around it to get competitive offers once it’s listed.

Don’t Go for the Money Pits

To go along with what we said above, you also don’t want to pick a property that’s going to be a money pit. You want it to be able to bring it up to the quality of its surrounding homes, but if that’s going to take far more money than you have, it’s going to dig you into a hole that can be hard to crawl out of. It can be easy to get sucked into a property that has ‘good bones’ and has the potential to be great, but if it’s not fitting into your budget then move along to the next one!

Unique Can Mean Harder to Sell

Another appeal to some investors is a unique property, meaning it’s different from the homes around it. Unique can be beneficial to a certain extent, but it can also deter buyers. Unique homes can cater to a certain audience and make it harder to sell. You’ll want a home that feels livable and appeals to the masses.

Once you’ve selected your investment property it’s time to put together your pitch for your Colorado hard money lender. That will include information like your rehab plans and finances for the remodel.

When you pitch your plan to a Colorado hard money lender you’ll be more likely to be approved if you’ve considered things like the area (schools, shopping, etc.) and the comparable homes in the neighborhood. The more prepared you are to present the information, the more sound your investment looks to your lender.