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

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!

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.

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!

Arizona Hard Money Loans: A Different Approach to Funding

Everywhere you look there are ads inviting you to borrow funds through traditional lenders—banks, mortgage companies and the like—but is the standard way the best choice? Find out if a non-traditional loan might be better.

Financing is the biggest problem a would-be investor has when starting unless he/she has a considerable amount of personal funds to invest and most of us don’t fall into that part of the population. Let’s say you have tried to invest before and while it went smoothly for awhile, life changed things and they all required money. Plenty of it.

The next thing you knew you had declared bankruptcy in your business and downsized it and a block of land you had purchased was foreclosed upon by the bank. This all happened in the last five years and despite your landing pretty much on your feet, the business coming back and most of the bills paid, those two items burnt holes in your credit report and knocked a considerable number of points off your score.

The conventional lenders you have seen about a loan to purchase two apartment buildings were very nice—one was a bank and the other a mortgage company—but neither of them could do anything to help you. As you went out the door of the mortgage company, the lender you had been talking to motioned you aside and said quietly, “Try the Arizona Hard Money Lenders—those people aren’t tied up with all the restrictions we have, although they do cost more.”

What is an Arizona Hard Money Loan? And is one right for you?

These loans are set up differently than conventional ones and are designed to aid the potential investor who has credit issues, low cash reserves, is self-employed, etc. The one thing that is needed here is collateral to back your getting the loan—the lender is much more interested in what you have to literally fall back on than your having a perfect credit score and a straight-line job that pays every two weeks. A lien will be placed upon the collateral by the lender to cover their interests in the event you cannot repay your loan.

A second positive point with Arizona Hard Money Loans is the time it takes for one to be processed and closed—it can be done in an average of two weeks’ time as opposed to a bank which can take six months easy. This is an especially good thing when you could end up taking all the time needed and getting required documentation for a bank, only to be told, “We’re sorry—we just can’t approve your application.”

Third, payment times and schedules can often be tweaked to favor your calendar rather than the lenders’. If you need five years to pay the loan back instead of two, an Arizona Hard Money Lender can generally work with you on that.

A different loan may be helping hand you need. Get out there and look for the one made just for you.

Do what the mortgage lender advised—research the hard money people in your area, find several that are offering loans which appeal to you and set up times to talk with them. You’ll meet new people, learn things that could help you in the long and perhaps walk out the door with possible funding for your future project.

90% Arizona Hard Money Loans: Difficult In Some Ways, Very Good For Business In Others

If you would like to have partially-financed hard money set up for your latest project, there are loans out there set up specifically set up for investors who can work within the strictures required for this. Research the details of financing up to 90% hard money to find out if you can go this route.

LTV (loan-to-value) Arizona Hard Money Loans are on the very high end of the Arizona Fix and Flip Loans category. Depending on where you are, companies’ rules and regulations vary, but the general overall picture can look something like this. As an investor beginning an application for a 90% Arizona Hard Money Loan, you need to have a FICO score of 600 or above. You must also be relatively certain of selling the desired property within 12 months. From there you may:

· Apply for loans starting at $75,000 (Some companies begin their loans at $25K) and up to $2M, which if cleared, will definitely improve the condition of your real estate portfolio.

· Have a property appraisal that is scaled back and not overly involved since the lender is more interested in the value resulting after renovations are made.

· Receive up to 90 percent of rehab and purchasing costs.

· Get 12 months financing and the time period can even be longer—this is just the average time length. And to really make the package attractive, no prepayment penalty.

This process can be completed within a short period of application time normally. Following approval, closing can be done in less than a month.

What things do you need to include with your application for a 90% Arizona Hard Money Loan?

Documentation is required for these types of loans and bears a resemblance to more traditional lenders’ requirements than some other unconventional loans do. You must produce your sales agreement, tax returns for the past two years, two months’ banks statements showing your savings and checking accounts, a list of your current residential and commercial properties and a copy of your construction budget. There are other paperwork demands, but this shows the overall average requirements for most companies who do these types of financing.

These loans are mainly for the fix-and-flip investment areas--they do not cover owner -occupied properties. They do however cover a large number of other real estate investments, both residential and commercial.

A partial Arizona Hard Money Loan may be exactly the type financing you need. Do your homework and see if this area of borrowing is what you need to pursue.

To be certain, the requirements are more stringent than some other financing, but if you have credit problems and have gone the traditional route with no results, investigating one of these loans might be just the thing you need to do. Check things out with people you know and whose opinion you value, set up a few appointments with lenders who handle 90% LTV Arizona Hard Money Loans and find out how you can help your ideas become solid realities.