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

Friday, April 5, 2019

Pros and Cons of a Colorado Bridge Loan

Conventional lenders take ages to guarantee financing. Sometimes, a long time is too much time. A Colorado Bridge Loan is acquisition power. Get it—and get it fast!

A Colorado Bridge Loan is a short-term loan. For the most part, it helps individuals secure a new home before their old home sells. For example, in a favorable housing market, the Smiths need to sell their home and move to a new area. They search for new homes. It just so happens, they find the perfect house in the perfect neighborhood. Near work. Next to the kids’ school. Great, right? Maybe. It’s a coveted area –they think. Many other people may be vying over the property. How can they secure it?

Well, the answer is a Colorado Bridge Loan. A Colorado Bridge Loan is acquisition power. Get it, and get it fast! Conventional lenders take a long time to guarantee financing. Sometimes a long time is too much time. The Smiths want that home. They have a good credit score, a considerable amount of home equity, and a seller’s market. They do not have to wait months for the banks to come around—The Force of metaphysical lending is on their side. They talk to a hard money broker or Colorado Private Money Lender. As stipulated, the Smiths use their current home’s equity or cash down as collateral to secure the newer home. Within a week, they have the money and the purchasing power.

The (hypothetical) Smiths understand that a Colorado Bridge Loan is temporary, lasting generally anywhere from 3 to 12 months. A Colorado Bridge Loan is not a means of long-term financing, but rather a means of providing needed and short-term cash flow to complete a financial objective or acquire an asset until conventional lending is made available, most often at a lower rate. Thus, the loan loan “bridges” between short-term and long-term financing, and respectively high-interest to low-interest rates.

Risks of a Colorado Bridge Loan

As stated above, one of the main benefits of a Colorado Bridge Loan is that it’s a quick arsenal of purchasing power. Good deals and hot commodities are coveted. Money is required to lock down assets. Hard money Colorado Bridge Loans are a means to such an end. Along with this, a Colorado Bridge Loan offers comfort—buy a new home, move in to it, and comfortably wait for the old home to sell. This is more appealing than sell, rush out, find temporary housing till the new home’s financing closes. On top of this, homes empty of the clutter of the previous occupant may look better lending possibly to a quicker sale.

A Colorado Bridge Loan is an arsenal of purchasing power.

With the pros in mind, let’s move to the cons. First, time is an issue. If individuals reach the end of your Colorado Bridge Loans finance period without selling the older home, they will need to refinance the Colorado Bridge Loan. Unforeseeable difficulties such as market downturns and local variables can hamper the selling process of homes in a given area and thus use up the limited time of the bridge financing. Second, home value is a market variable, and equity is tied to such a variable. Should you have any questions or concerns, talk to your hard money broker at Level 4 Funding to asses benefit and risk in order to see if a Colorado Bridge Loan is right for you.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.

How to Get Financing for Cannabis Marijuana Business Loans

The number of borrowers searching for Cannabis marijuana business loans is at an all the high. Understand the market and your options before stepping into this slightly perilous, though very lucrative, market.

If you are a startup business, adequate financing is a requirement to succeed in your target market. If you are a liquor store or restaurant, you may seek financing from a traditional bank or credit union. However, if you are venturing into a marijuana related business and the ambiguous legal status of the marijuana federally, banks have been prohibited to open accounts for these types of businesses. Do not get discouraged, some traditional banks have started offering merchant services and lines of credit and even some Cannabis marijuana business loans. To fill this gap, Arizona Hard Money Lenders have swooped in to offer their lending services.

The Federal Deposit Insurance Corporation (FDIC), a federal agency that guarantees banking institutions, will not insure banks that are providing Cannabis marijuana business loans. Banks would rather avoid making loans to a marijuana business since they view it as aiding and abetting activities that are felonies under Federal Law. Traditional banking institutions accepting deposits from marijuana businesses could be looked at as money laundering. The Department of Justice has decided not to prosecute banks, but if political winds change, as they are prone to do, the banks that have opted to allocate funds for these types of businesses could be in serious trouble.

To fill the space that is left behind by traditional banks that are not willing to provide Cannabis loans, private investors have moved in. Some of these include venture capital and private equity, angel investors, high interest loans provided by private investors, and marijuana consulting firms that offer loans through private funds they manage. And, of course, Arizona Hard Money Lenders. Some of the requirements for private equity firms to offer financing are: be incorporated, have a checking account in the business name, be in the marijuana business as a dispensary or grower for at least six months, monthly gross of at least $10,000, and have a personal credit score of 500. There are a number of public companies that acquire and invest primarily in medical marijuana ventures. A company may take a significant ownership stake (equity) in exchange for funding. The company, after the investment, still maintains operational control. Canada has just approved legislation making all marijuana legal.

Merchant Service

Marijuana businesses need a way to deposit money and write checks to pay bills, pay employees, and distribute profits to partners. If you want to use a traditional bank, you may not want to fully advise the bank what type of business you are in. Of course, do not cover up the type of business by making the banker think you are in some sort of different business as this is bank fraud and you do not need the headache.

Marijuana business financing is difficult, but the rewards are huge. The laws are constantly changing, making it beneficial to contact an attorney to learn the latest laws and any new revisions that have occurred.

At Level 4 Funding, we offer rates as low as 7.99%. We work with hundreds of direct hard money private lenders, some of which specialize in the Cannabis business field. No credit required and no surprise front or junk fees added to the loan. Call us for a no-obligation quote.

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.

3 Reasons to Get a Commercial Bridge Loan in Colorado

Where months of paperwork may be required on the conventional end of the lending spectrum, a Colorado Bridge Loan offers speed and adaptability capable of capitalizing on market fluctuation, supply, and demand. It is the carpe diem loan—Seize your opportunities!

A commercial Colorado Bridge Loan is temporary, with a duration lasting between three to twelve months. Opposed to long-term funding agreements which can span years, a commercial Colorado Bridge Loan is concerned with providing short-term financing for acquiring assets. The word bridge indicates an intermediary period between hard money and conventional lending; since Colorado Bridge Loans are expensive, borrowers tend to enter into such financing agreements with the mindset of paying loans off quickly or bridging to a long-term source of financing.

Though commercial Colorado Bridge Loans may inherently have higher interest rates, contrastingly they offer borrowers quick approval rates, ease of convenience, and dependability. Since a Colorado Bridge Loan is made available through hard money brokers or lenders, the process of acquiring a hard money Colorado Bridge Loan is much shorter than the months needed to secure a conventional loan. Many businesses use hard money Colorado Bridge Loans to capitalize on opportunity typically unavailable using conventional lenders. Hard money Colorado Bridge Loans allow businesses to cut through the red tape, stipulation, and time required by the banks. Where months of paperwork may be required on one end of the lending spectrum, Colorado Bridge Loans offer speed and adaptability capable of capitalizing on market fluctuation, supply, and demand. It is the carpe diem loan—Seize your opportunities!

3 Reasons Businesses Apply for Colorado Bridge Loans

First and foremost, businesses need real estate. Real estate fluctuates. Real estate is legion!! It depends on the government, the economy, local industry, cultural attitudes towards purchasing property, technology, et al. Buying the right piece of property for a business is influenced by all of these factors. Sometimes, buying is difficult, other times the right unit was destined to descend from the heavens at just the right moment. But the window of opportunity is short, and others are capable of buying. The months needed to supplicate the bank for a loan are too long. Your business needs the right plot of land, and the main option available is a commercial Colorado Bridge Loan.

Sometimes, buying is difficult. Other times, the right unit descends from the heavens at just the right moment. Take advantage with a Colorado Bridge Loan.

Second, fix up the old money maker. Your business is a well-oiled machine. It generates profits proven year after year. You have buyers looking to acquire. What comes next? You decide that you should polish up the business in order to possibly increase its value or appeal. Third, Acquiring needed inventory in bulk. Sometimes, the inventory you need comes at reasonable price and a reasonable quantity. Should any of these reasons pique your interest, contact Level 4 Funding today and get the commercial Colorado Bridge Loan that you need.

Thursday, April 4, 2019

Do Texas Bridge Loans Really "Bridge the Gap" Between Homes?

Searching for a new home can be stressful, and if you need to take a loan out to do so, there can be some really strict contingencies on what you can do before you sell or move. Keeping all of your options open and considering “bridging the gap” as a possibility may be the best option for you and your situation.

Norman lived with his mother, but it was time to find a new home. Their current home was small, and as her medical needs increased, he wanted to find a new space that suited both of them. However, in most of Norman’s research, he found that there were some pretty strict requirements that he sell his current home first. It seemed that most lenders wanted the assurance that their borrower would be able to pay them back. While Norman understood, it wasn’t reasonable for him to sell his current home first. It would really ease the transition process on him and his mother if he could find the new home and work on selling their current home next. Fortunately for Norman, he was able to qualify for Texas bridge loans.

What Does “Bridge the Gap” Mean?

Norman soon found that Texas bridge loans were referred to in a variety of terms. A reference to swing loans, wraps, or “bridging the gap” all referred to the same thing. If one were to go into a loan agreement by “bridging the gap,” it would require putting a down payment on your current home so that you can fund your next purchase. This option alleviates any major contingencies and contracts that can put pressure on someone to sell their current home first.

As Norman’s mother was older and dependent on others for support, her having the opportunity to completely eliminate a transitory living space between moves was very attractive. It’s something that many people find appealing, as relocating can be much easier without having to rent out temporary living spaces or storage units. Norman was looking forward to learning more about the costs of “bridging the gap.”

Is “Bridging the Gap” Right for You?

Obtaining Texas bridge loans requires a strong credit score and a reasonable debt to income ratio. Needless to say, they aren’t perfect for every person in every situation. They require taking out a mortgage on two homes, your current and your new, and also have high interest rates. Additionally, they are meant to be paid back fast. Compared to other loan options, there is a short repayment period. This makes sense, however, as the goal would be to sell your current home as soon as possible. If your home can compete on the market, this may not be an issue. Knowing the realities of how it will fare, though, is something to consider.

Norman was thankful he qualified to “bridge the gap.” He was able to find a home that provided more for his current living situation, and it was less stress on his mom to have to bear more than one major move.

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

Who are Texas Residential Hard Money Lenders?

Public lenders have high standards and requirements surrounding your financial history that can disqualify you from loans when you really need them. If this is the case for you, read more below to see how you can make the best of working with Texas private money lenders, so you can finance the property of your dreams.

Seeking out a loan provider can be exhausting, and the disappointment in rejections can make it easy to lose motivation. However, public lenders are not the only resources there are for loans. While your local bank or credit union may seem like an easy option, they are likely to reject people who do not have a solid credit score or a reasonable debt to income ratio. Because of this, many people are turning to private lenders.

Residential hard money lenders in Texas are private money lenders that offer speed, but, most importantly, they flexibility in their approval process, meaning they can approve more people than banks can. This means they can approve some borrowers who are being disqualified from public bank loans.

What are the benefits of Texas private money lenders?

The most obvious benefit of residential hard money lenders in Texas is the opportunity to be approved with less strict requirements than public lenders. Instead of considering your financial history as top priority, they considered the collateral the most important factor. The value and potential of the home is considered before the creditworthiness of the borrower is considered. Now, the creditworthiness of the borrower is still considered, however, it is not held as highly as the factors regarding the property. Texas private money lenders can offer a type of flexibility and transparency in this way, because they will be real with you about the potential of the property.

Are Texas private hard money lenders right for you?

While residential hard money lenders in Texas offer a lot to offer, it is important to know a few things that may not make them ideal for your particular loan needs. The first thing is that they have high interest rates, and they can be as much as five percent more than what is asked by other lenders on the market. Some people who need money fast can afford to lose a pretty penny, but, combined with the short repayment period, they may not be for everyone.

Particularly, lenders who offer hard money work great with builders and home renovators. Builders and renovators are usually working on a fast timeline and, with the goal to sell the property as soon as possible, with what is hopefully a significant profit, the short timeline literally lends itself to them. The high interest rates just end up being an extra cost that pays for the speed of the loan, which can be really important if they are bidding on a competitive property.

Private hard money lenders are not for everyone, and not all of them are reliable. If you choose to move forward with a private lender, be sure that you understand all the terms to the loan agreement and the terms fit your particular situation.

How Helpful Are Residential Hard Money Lenders in Texas?

Obtaining traditional funding for a loan is determined by a variety of things: credit score, debt to income ratio, reliability, creditworthiness—the list goes on. If you are seeking funding for a loan, you should be aware of all possibilities including untraditional routes like residential hard money lenders in Texas.

Texas hard money lenders usually consist of private companies and investors. They are alternative options to people who cannot receive traditional funding by public lenders like banks and credit unions. Private lenders can offer money vast on a variety of different properties including, but not limited to, residential homes, apartments, and condos.

So, what’s the deal with Texas hard money lenders? And how can they help you?

What’s so Great About Private Lenders?

Residential hard money lenders in Texas offer a few attractive qualities that are unmet by most public lenders: speed, transparency and flexibility. These Texas private money lenders are able to do what banks cannot by beginning the loan process almost immediately. If they can’t get it started the day of, it’ll only take as long as 10 days while banks usually need between one and two months to get the process started.

Additionally, Texas private money lenders offer transparency and flexibility that banks do not. Private lenders focus on the property’s collateral. This means they evaluate the property’s value and potential, and how that affects the risk in investing. Banks, however, will consider the borrower’s creditworthiness first. This consists of analyzing the borrower’s financial history and seeing if it exceeds banks standards. Private lenders also consider creditworthiness. However, private lenders consider collateral first. So, they make great options for people with an imperfect credit score who are in need of financial funding fast.

Which Scenarios Are Best for Hard Money?

Hard money is not for everyone, and, before you jump right into any hard money agreement, there are definitely a few things you should consider first. Texas hard money lenders have high interest rates—and, sometimes, they can be as five percent more than a traditional or public lender. Some people can afford this, and some people don’t mind paying the extra costs if it guarantees speed. For example, architects and home renovators rely on speed if they are bidding on a particular property on a competitive market

Additionally, hard money works great for them because of the short repayment period. With the goal being to build, renovate and then put on the market for what is hopefully a quick sale, the short repayment process lends itself perfectly to builders and renovators. However, people seeking hard money for long term projects may not find it as easy to work it into their timeline. Still, hard money can be used for other things including preventing foreclosures or working on short timelines.

If you are interested in residential hard money lenders in Texas, do a search of private investors in your area. Being rejected by a public lender, or even by a private lender, doesn’t mean you won’t find funding from another investor. Be smart about your needs as a borrower so that you can make the decision that is best for you.