Rotten Credit – No Problem!

Here’s why an Arizona hard money loanmight be best for you if you have poor credit and want to make a real estate investment.

Your credit score is incredibly important when it comes to obtaining long-term loans. While credit criteria make sense, there are times that investors wish it wouldn’t hold them back from making new investments and building their portfolio.

I’m here to tell you that an Arizona hard money loanmay be the right choice for you if you’re struggling to build your credit and need fast funding to nab the right deal. We take more than credit into account and that’s why we can put more weight into your project proposal and previous investment history.

We can take a big picture look at you, rather than scrutinizing your credit score. Here’s what we’ll take into consideration to determine our ability to fund your proposal:

· Project’s ability to make money, allowing you to pay your loan

· Property equity

· Plan for the proposed property

· Investment history

Each of these categories speaks to your ability to use an investment to make money, pay back your loan, and be a successful investor.

We value your expertise in the field of investment and can look beyond a poor credit score to help you fund your next project. An Arizona hard money loanwill not only fund quicker than a traditional loan, it can lead to other opportunities, as well.

We love working with successful investors more than once so we can offer incentives as you get more deals under your belt. At Level 4 Funding we take the time to get to know our investors and you’ll feel comfortable coming back to use for project after project in the future.

If you have questions about how to get started obtaining a Arizona hard money loanfor a fix and flip property, a commercial property investment, or a situation in which you need a bridge loan to get you by, give us a call! We would love to set up a time to speak with you and learn more about your next project!



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Trust Deed Investing—What are the Advantages? The Pitfalls?

Is this method of funding one you should take on? Again, do the needed research and find out what is best for your planned investment because these are different from most well-known funding packages.
These investments, if done correctly, can give a well-defined yield with the investor’s risk being a low one. Single digit returns, as high as 10 percent, can be registered on a monthly basis here.

Safety margins—the difference between the value of property and the total amount of the loan—border the possibility of loss in this kind of investing. Failure to repay funding by the borrower can result in the lender’s re-possessing the property in order to regain any losses along with any interest that may have been attached to the loan. Investments can have a LtV (Loan-to-Value) up to 65 percent, which is certainly a positive point for a borrower.

Trust deed investments do not, however, appreciate in their value as do typical real estate investment properties. Still, income can be generated by them.

Banks, on the whole, typically do not want to do this type investing since they are looking to make as much money as possible from their loans—six to 12-month payoff times do absolutely nothing for these institutions. The banking industry’s loans are set to expand over a lengthy time period up to and including 30 years in more than a few instances.

Lawsuits involving the property title, real estate values that drop suddenly and sharply, assessment errors made and overlooked during appraisal that change the property value are just some of the things that make this type investing termed as somewhat dangerous to both borrower and lender.

Traditional investors want solid ground under their feet at all times and the rules they work by are designed to make that as close to reality as possible. Investors that are in the ‘hard money’ areas are thought to be a better choice for trust deed investing since they can and do work outside the regular boundaries of investing. They also charge higher rates of interest and origination fees than conventional lenders.

Deep study and careful consideration of all factors is a must when it comes to this type investment—after all you want to make money, not lose it. Be assured that all the desired legal demands have been met and double checked, and that the property appraisal is correct to the last penny. Be certain of the whole as well as the sum of the details. These investments cannot be converted back into liquid cash in a couple of weeks if you have a change of mind as can bonds or blue-chip stocks.

If you are seriously interested in trust deed investing, however, along with your regular research, talk to an attorney or a certified public accountant whose opinion you value. If you have friends in the business, check with them as well. Once you possess all the facts, if you still want to invest in this area, find the lender who is best for you and work with them to make your experience a positive one.


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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Banks Don’t Like to Give Loans to Flip Houses in Arizona (And What You Can Do About It)

Going to banks for Loans to Flip Houses in Arizona usually results in a big fat “DENIED” letter. The good news is, there are other ways to increase your eligibility for funding.

Working on fix-and-flips can increase your wealth dramatically, especially if you’re already handy or have some experience in real estate or finance. However, getting your hands on financing, particularly for your first few properties, is a real challenge because traditional financing doesn’t work. Banks will typically tell you “no” for one of three reasons;

1. You’re not living in the home. Banks like owner-occupied homes because the person making the payments obviously needs a place to live. In other words, you’d move mountains to keep your home, no matter what else happens in your life. If you’re not living there, the bank will likely consider offering any kind of cash too risky.

2. The property is not in good repair. Some of the best fix-and-flip deals have serious issues, like roof or structural damage. They can’t be lived in because of this. If the bank were to give you Loans to Flip Houses in Arizona and you didn’t make good on payments or fix it, they’d be stuck with an unlivable house that they’d have to fix before unloading. It’s an expensive and undesirable situation for them.

3. Your credit isn’t spectacular and you don’t have business credit yet. It takes small businesses quite some time to establish credit, especially if you’re asking for tens of thousands or hundreds of thousands of dollars. In most industries, the business owner uses his or her personal credit until the business is established, but most people don’t have strong enough credit to cover the large amounts of cash needed for purchasing a property. If you already have a mortgage for your own home, that’s a double ding. They’ll be looking at it from the standpoint of making two mortgage payments; something most people cannot do.

Increase Your Eligibility by Choosing Alternative Funding

Banks aren’t the only ones you can go to when you need Loans to Flip Houses in Arizona. Oftentimes, people in the industry go with hard money instead. This refers to financing based on the value of an asset, rather than the criteria banks usually use. It’s easier to get and it doesn’t matter if the house is a wreck or if your credit is rotten. You’ll also hear it referred to as private money, simply because the people financing your project are regular people versus institutions or banks.

A seasoned broker can help make your dreams come true.

It probably goes without saying, but private individuals with cash to invest don’t hang around street corners asking people if they need cash. To get Loans to Flip Houses in Arizona with great terms, you’ll need to work with a broker who is familiar with multiple investors and can match you with someone who’s a good fit for your project. A seasoned broker will also help you shore up your plan if need be, so the deal looks good to investors and you have more success with your rehab projects. Whether you’re just looking for info or already have a property picked out, speak with a broker who works with hard money and you’ll increase your chances of getting approved dramatically.

                                                       
                                                      

                                                                                                                                         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

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

font-size: 12pt; mce_style=”font-size: 12pt;”>Why We’re a Top-Notch Hard Money face=”verdana, geneva”>

Here’s why you should choose Level 4 Funding as your Arizona hard money lenderfor your next real estate venture.

Just like two properties aren’t the same, neither are two hard money lenders. When you’re deciding how to fund your next real estate venture, you want to be picky about who you borrow from, making sure your investment is going to be funded quickly, ethically, and in a way that will make you want to go back for more!

Here are some things you should know about your Arizona hard money lenderbefore signing on the dotted line.

Clear as Mud

If you’ve presented your real estate proposal to your Arizona hard money lender, you’ll want to ask some questions yourself. Nobody likes hidden fees! When you ask the lender about what fees are associated with their loans you want to get the full picture and not be surprised the day of funding. This is why you should be interviewing your lender, as they interview you.

Too Good to Be True

Hard money lenders do what most conventional lenders can’t – they lend to investors who are unable to secure traditional loans due to stringent credit requirements and they fund quicker than big banks. That being said, if you’re coming across an Arizona hard money lenderthat’s promising everything and the kitchen sink, be wary!

Hard money lenders need to make money just like you do! They will be particular about which deals they choose to fund, and they will make sure it’s worth their time. If they aren’t asking enough questions, or asking the wrong questions, they may not actually fund their own loans, or aren’t concerned with the success of your transaction.

You always want your Arizona hard money lenderto be on your side, providing full documentation, a list of fees, and provide you the revenue to make you both money. Here at Level 4 Funding we are transparent and are looking for investors who have a strategic plan in place, but just need the funds to make a move.

Contact us today to learn how we can help your real estate venture!



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Commercial Hard Money Lenders—are they the answer to your funding problems?

If you are looking to fund your latest real estate venture—or even your first one—you may want to look at these lenders who work outside the conventional circles of funding. Do the required research because you need to know the difference between them and the traditional lenders in order to make the right decision for yourself.


Commercial Hard Money Lenders provide funding for a wide number of ventures from hospitals and apartment buildings to hotels and office high-rise complexes. Most of the loans have collateral that is secured through real estate property with a loan-to-value amount reaching 70 percent of the property’s value. Interest rates can be up to 8 percent, while origination fees average around 1.75.

One of the better-known advantages of these lenders is that there is no prepayment penalty for an early pay off. If you have the funding available and want to pay the remaining loan balance all at once, there is no charge as in more conventional funding setups. Repayment periods can be set up to three years, but not longer than that normally.

These lenders do not ask for the bulging briefcase of documents that banks and mortgage companies require, either. Nor do they require a minimum FICO score and a set income level before proceeding with a loan application.

The fast closing once the loan is approved also makes these lenders the answer to an investor’s prayer on occasion since the well known nightmare in real estate funding searches is when a couple of days before a traditional closing something suddenly needs ‘further checking out’ and the entire process comes to a grinding halt. Not to mention the now-looming possibility of the application being denied altogether.

With all those positive aspects involved, what are the disadvantages to working with commercial Hard Money

Lenders

Look at the following things that point out why these lenders are not the best ones to work with:

  1. Fees: these can make up a total of four percent of the total loan; banks do not charge these.
  2. High rates of interest: these lenders sometimes charge rates that can be up to 10 percent higher than conventional mortgage lenders.
  3. Down payments: these are higher here as well and particularly if the borrower’s credit score is low. This up-front payment can sometimes be the same as banks, but it also can be as high as 25 percent.
  4. Shorter payoff times: most of these lenders set their repayment period at three years while banks can go as far as five years.

A future borrower needs to follow the old adage of ‘do your homework’ before working with commercial Hard Money Lenders (this applies to most other things, too). Research the internet sources available and talk to a trusted friend or business professional about your project. When you have all the facts and have studied them carefully, find the lender that suits you best and can help you make your dreams into reality.



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Few 100 LTV Arizona Hard Money Lenders Exist (And What You Can Do About It)

If you’re looking for 100 LTV hard money lenders, you’re likely to find few, if any, options. The good news is, there are still ways to fully-fund your real estate investments if you’re savvy.

Before the big market crash, people could find 100 LTV Arizona Hard Money Lenders with relative ease. Obviously, not everyone offered loans worth the full value of a property, but home values were increasing at such rapid paces in most markets that a successfully-funded deal, even at 100% of what it was worth at the time of closing, could climb 5-10% or more in value before the project was even finished. That was one of the big draws to getting into the fix-and-flip market. It was incredibly difficult to lose money doing it.

That being said, the market crash changed a lot. Nowadays, fix-and-flips are still a lucrative field to get into, but you have to be smarter with your numbers because you can’t count on increasing market values to bring you profit; you’ve got to buy low, repair fast, and sell high. Moreover, getting 100% of the value at the time of the sale is unlikely, purely because the market isn’t climbing as fast. Most areas are still climbing, but at nowhere near the rates that they once were. Because of this, it’s more likely that you’ll get a deal funded at 60% of the value, with a few outliers climbing as high as 90%.

If that 90% isn’t going to get you where you need to go, you still have options. First, going with alternative lending means you can make an offer with cash-in-hand. Motivated sellers like that because it means they’re free of their problematic or junk house fast. They don’t have to worry about their buyer qualifying for, and possibly being denied, a traditional mortgage. That means you can often negotiate a better deal for the property, meaning your cost to purchase it would be lower and you’ll have more wiggle room for financing. As a second option, you can also consider cross-collateralization. Instead of relying solely on the value of the property you’re repairing, you could use another investment property or even your own home as collateral too.

An Experienced Broker Can Lend a Helping Hand

If you can’t find 100 LTV Arizona Hard Money Lenders and you’re still struggling for ways to fund your project, an experienced broker can help. Regardless of who funds your deal, they want you to be successful, and so if you’ve got a great property and have the knowhow, a broker can help locate a lender who understands your position or identify other ways to make sure that your deal goes through.

A successful project is a win-win for everyone.

Ultimately, you may not be able to find 100 LTV Arizona Hard Money Lenders or someone to fund a project, but that’s a lesson in and of itself. Savvy investors know when a project isn’t going to be a win, and they’re able to move away from it without emotion and onto something that is going to generate real returns. Find a good project, work with a seasoned broker who can find you the best terms possible, and build up from there.

                                                     
                                                      

                                                                                                                                         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

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Will Your Property Appraise?

You’ll want to consider these things when choosing an investment property because hard money lenders will require an appraisal to fund your loan.

Hard money lenders have to protect their investments and one of the ways they do that is by performing a property appraisal to determine the value of the home before renovation, compared to after.

There are some steps you can take when choosing your fix and flip property that will help the home appraise and get your proposal accepted by a Arizona hard money lender so you can get that money in your hands to begin the project!

Great Location

If your real estate investment opportunity is a fix and flip, it’s important to have a property that’s in a desirable location to ensure you attract buyers easily. Check what types of businesses are in the vicinity of the property and distance from busy streets. Those both will have an effect on the value of the home and can determine your loan amount from the hard money lender.

Floor plan

This is one of the most important things to consider about your property. If you’re looking for a fix and flip you want to see it from that buyer’s point of view. Could you envision someone or a family living in that home? If you’re looking at a commercial property, is it set up to have cubicles installed if the renter so chooses?

Neighborhood Trends

Every city has trends when it comes to desirable neighborhoods. You’ll want to be on the nose with where the population is moving and how quickly those homes are getting taken off the market. If you’re looking at commercial investment property you want to know where businesses are thriving and sticking around through the ups and downs of the economy.

If you have a real estate investment opportunity and want to work with a Arizona hard money lender to make your dream come true, contact Level 4 Funding today and we can hear your proposal, appraise the property, and fund the loan quickly to get you on the way to earning real estate money!



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
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.
© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

What you Need to Know About Arizona Residential Hard Money Lenders

Opportunities in residential investments have skyrocketed these last seven years. Funding, however, is not as easy as it used to be. Find out which Arizona Residential Hard Money Lenders offer the best rates and terms.

Traditional lenders offering home loans have been scarce since the credit crisis in 2008. Arizona Residential Hard Money Lenders have filled the gap that the traditional lenders have left. These types of lenders offer residential loans at higher interest rates and low loan to value on the property. When traditional lenders are hesitant to step in, hard money lenders are a very good option. The capital from Arizona Hard Money Lenders is available to every type of customer for real estate investing.

Private lenders base their lending on the loan to value ratio; traditional lenders base their credit decision on credit scores, income tax statements, and tax returns. Arizona Residential Hard Money Lenders base their decision on the property as collateral. As a basis for the underwriting of the residential property, the lender considers the equity in the property for their decision. Some of the Arizona Hard Money Lenders deal in land estates and projects with a high equity. Arizona Residential Arizona Hard Money Lenders base their decision by the Loan to Value using the current market value.

The money from An Arizona Hard Money Lender on a residential property acts as a temporary bridge for mortgage refinancing, avoiding bankruptcy or acquisition. This is an option many investors choose when faced with giving up control of the property to financial partners or filing for bankruptcy. An Arizona Residential Hard Money Lender offers people loans for renovation of the residential property and then renting out the property or selling it. The Hard Money Loans in Arizona is based on the value of the real estate property which is also the collateral for the loan. The loan is often 60-75% of the market value of the property. Typically, hard money residential loans can be found at interest rates from 11% to 12%, with 12% the standard for second trust deeds. The loan to value is 60% maximum on improved properties and 40% for vacant land.

Traditional Versus Arizona Hard Money Lenders

Traditional lenders offer loans based on credit reports, income statements and tax returns. Traditional lenders base the interest rates and fixed loan amounts, and other terms and conditions, on the borrower’s eligibility. Hard money residential lenders provide funding based on the value of the real estate. The documentation is much lower than traditional lenders. Eligibility is flexible, even borrowers with poor credit and little documentation are able to secure primary residence loans. The loan to value ratio runs approximately 65%.

The values are determined on the property’s current market price. The hard money lender will fix the price at which the property is sold.

If the borrower defaults on the loan, then the hard money lender will seize the property and possibly sell it. In most cases, the lender will allow the borrower a grace period of one to three months before selling the property. The bottom line: investors and home buyers often use Arizona Hard Money Lenders to access Arizona Bridge Loans for residential home mortgages. These types of loans enable buyers to “bridge” from one loan to the next. Instances when these types of loans are beneficial include when someone wants to buy a house before their existing house sells and the market is such that a contingency offer will probably be passed over. At Setabay, we offer quick-to-funding Arizona Bridge Loans at lower than average rates. Call us for a no-obligation quote.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions
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Advantages to Fix and Flip Loans

Think fix and flip loans are the trendiest expensive hair do-up in the fashion world? Read on—this could help you out in ways far more permanent (pun intended) than a haircut.

Simply put, this type loan is dispensed when the buyer wants to purchase property with the intent of selling it once it is renovated—this is the flip. Most of such properties are in need of some repair and a good percentage of them need major work in order to command the best price. Once properly marketed and sold at a profit, the purchaser can then pay off their loan and still have cash in hand.

Defined as short-termers, fix and flip loansare taken by clientswho desire to buy, do the necessary repair work and sell their investment within a year following the purchase. Property appraisals are done both before buying and afterwards. It is advisable to deal with businesspeople you already know or private investors that can determine your ability to complete the project following your receiving the needed funding.

There are considerable advantages in using this type funding, a major one being that private lenders are not forced to run your credit history through a sieve as are conventional ones, such as a bank or mortgage company.

These groups are set up with rules that basically stop the entire loan application if one glitch or blot turns up. Time passes, the property could be sold to another buyer and your application may very well be turned down, which puts you back where you started.

Beginners to the field of investment generally have some if not a lot of difficulty getting needed funding. Escrow accounts or personal guarantees, perhaps both, may have to be completed and shown to a lender before money can change hands. Interest rates can on a yearly basis run as high as 20 percent.
Are there other advantages to fix and flip loans?

A real relief to investors is the time element involved in applying for this type of funding. Someone who has been in an established business and knows all the details involved can close a loan in less than two weeks, as opposed to banks that can take more than six months.

A second positive point is if the investor’s business is one with a good performance record, the less they will have to ‘pay’ for the loan—interest, fees and the like. Sometimes the borrower can have several projects in progress at once if they are allocated 100 percent of funding applied for.

Private lenders, however, are in the business of making money for themselves and looking to have you repair a property as soon as possible, get it on the market and pay off the loan quickly. One way they have of assuring this is to attach a lien for their security and as an instigator for the borrower, who will work harder in order to avoid losing whatever is attached to the loan.

Fix and flip loans are not the answer for every investor with an idea to make money—you need to know both advantages and disadvantages of this type funding. Know all the facts, take the time needed to learn all you can and then work on making your idea a reality.


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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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.

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How to Choose an Exit Strategy with Hard Money Lenders

Arizona Hard Money Lenders offer short-term loans that typically last no more than five years but can sometimes be measured in months. You should have an exit strategy in mind before you get started using this form of lending to fund real estate deals, though knowing when to pivot away from your initial plans is crucial to your success.

Many people in the fix-and-flip biz work with Arizona Hard Money Lenders because it enables them to get cash fast and credit is less of a concern. In these cases, selling off the property as soon as it’s completed is the traditional route, purely because it allows the investor to collect and move onto his or her next project. Sometimes, however, a market downturn can mean selling it right after completion is not the best choice. People also use alternative lending for fix-and-holds. If the property is generating income or is expected to increase substantially in value, then it’s generally advantageous to hold onto it for some time. Neither is wrong or right; they’re merely different investment strategies based on the goals and preferences. With the fix-and-flip, selling off the property is a natural exit. With a fix-and-hold, you’ll need to evaluate whether your ideal selling point will fall within the terms of the loan or if it makes sense to refinance.

All that said, an important first step is to determine how much you’re actually paying as you hold the property. Your loan and interest are only one component, as there are always additional costs such as upkeep and property tax. Create a detailed list outlining all expenses associated with holding, so it’s easier to determine whether it’s best to sell or collect rental income.

Interest rates can also help you determine when it’s time to get your initial loan paid off. You may have one year or even five years to pay off the balance, but if interest rates on your refinancing options drop, and it’s your plan to continue holding for years to come, it may also make more sense to do the refi earlier rather than later.

Learn About Multiple Exit Options and Know How to Evaluate When it’s Time to Shift

Depending on which Arizona Hard Money Lenders you work with, there may be absolutely no penalties for doing an early payoff. Some are glad to have you pay off the balance early because it typically means you’re moving onto another project they can fund. This in mind, it’s important to do a comprehensive cost-benefit analysis before you purchase a property to identify the best time and method to exit. You’ll also need to keep an eye on market conditions and interest rates as you hold the property to make sure your initial projections are still going to provide you with the greatest amount of profit.

The more data you collect, the more successful you will be.

Experienced real estate investors don’t rely on intuition to tell them when to sell. They use hard data and build projections based on that, then keep a pulse on market and interest conditions to make sure they’re still on track. This not only helps them get top dollar on each project, but makes them more appealing to Arizona Hard Money Lenders when they go in to request funding.

                                                 
                                                      

                                                                                                                                         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

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions