Monthly Archives: January 2017

Hard Money Lenders—California Lender Basics

mark gowlovechThere is all this talk of private money and hard money lenders, California based lenders—the list goes on. However, if you are like most people you are probably a little unsure about the basics, which is perfectly okay because you came to the right the place.

If you are just starting your investment project or commercial venture, then most likely you are looking for a quick and affordable loan. But, before you become all gung ho and commit to the first lender you find, it helps to know the difference between private and hard money lenders. California lenders offer a wide range of private and hard money loan options, thus you need not look far for a reputable and accommodating lender. Instead, all you need to do is figure out which kind of financing is right for you.

Hard money, then, is typically the best option for resales and rehab investments. The reason being that hard money is at its cores is financing for asset-based endeavors. In other words, hard money is for commercial, industrial, residential (single-family and multi-family), and land. Private money, on the other hand, in essence, can be used for any purchase or investment project as a private money lender can be an individual or a company. Thus, you should ask yourself, what exactly you are trying to accomplish with this financing, especially when dealing with hard money lenders. California lenders that offer hard money financing are more than willing to lend a helping hand – pun intended. Therefore, it also helps to know what to look for in a hard money lender—if, in fact, you do decide to go with hard money financing.

With that being said, let us go over a few important things you should look for in a hard money lender. For instance, it almost goes without saying that, you should be looking at lenders that have a clear understanding of your particular business plan. This means doing a search for reputable lenders in your area and then doing some investigating to see if they offer niche programs that are applicable to you.

The Right Helping Hand Money Lenders California

Once you have narrowed your list of lenders, who understand your needs, the next step is to make sure your chosen few operate with a high level of transparency. This means that you, your lender and any other involved party should have access to your loan data, etc. Thus, if you come across a lender that is unwilling to be forthcoming with loan data or details—you should cross them off your list. Besides, a high level of transparency, it is also important to make sure your potential lender is licensed.

Things to Consider

Other things to consider include your hard money needs (project, budget, unforeseen expenses, etc.) and each lender’s loan-to-value ratio/guidelines. Remember, not every hard money lender has the same ratio or guidelines. Moreover, it is imperative that you know what terms you are signing up for. Ultimately, once you have tackled all of these things, you will pretty much be on your way to securing that financing.
 

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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The Benefits of Working with Private Money Lenders in California

 

2page_img1If you are like most borrowers and investors, you have probably asked yourself at least once, what the big deal is when it comes to private money lenders in California? Well, the big deal is really about the benefits that come from working with private money lenders in California.

Private money lenders in California are more than just great local lenders. The reasoning being that you do not have to necessarily live in California in order to take advantage of all the benefits they have to offer. Nevertheless, one of the major benefits of these particular California lenders is that they are local, which means they are not some worldwide or national financial institution. Instead, they are reputable lenders that value their potential borrowers as well as their investors just as a family-owned and operated business would.

Of course, that is not to say that all private money lenders that are based out of California are small or have humble beginnings. In fact, many reputable private lenders are well-seasoned individual and large financial institution with deep roots in the community. Therefore, the point here is simple, local California lenders care about your success and do not look at you or your business venture as just another number.

In addition to being able to put a face to a name when dealing with your California-based lender, there are several other benefits that are well worth the trip if you are not native to California. For starters, your chances of getting approved are much greater and here is why. Number one, you are more than likely dealing with a niche lender who understands your particular vision and specific circumstances. This goes back to the idea or rather reality that there are dozens of California-based lenders, but they make it a point to specialize, which is why you have a better chance of being approved.

Additional Benefits Private Hard Money Lenders in California

Moreover, when dealing with California lenders, you also allow for faster processing and quicker financing. Think about it, if you are dealing with an individual, he or she can quickly approve and fund your loan—sometimes on the same day or at least within a few days. Other benefits include a lower risk associated with your investment and as briefly mentioned a lender that has experience in your particular market. You have a lower risk on your investment because California-based lenders of private money tend to be more involved in the process (appraisal, assessments and so on), thus they make it a point to ensure everyone’s success as much as allowed. Lastly, these lenders’ niche-mentality is what keeps California lenders of private money thriving—they know your market plain and simple.

Private Hard Money Lender in California – The Real Deal

Thus, as you can see, there are a few substantial benefits that come from working with California-based lenders. Therefore, if you have considered working with these particular lenders already, what exactly are you waiting for? Remember, there is no time like the present and it never hurts to step outside your comfort zone to try something new.

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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Private Money Lenders in California—Are there when you need them

iStock_000000106079_LargeThere is no shortage of private money lenders in California. The reason that there is no shortage is because private money lenders in California are not afraid to offer investors what they need when they need it.

It is no secret that private money lenders in California have the market cornered. But, if you are new to the world of investing and borrowing, you are probably wondering why? Well, private money lenders, in general, offer three major upsides that definitely outweigh the downsides. Nevertheless, before going over those three major upsides, it is still important to know what the downsides actually are.

For starters, one of the main downsides or drawbacks to working with private money lenders is the substantially higher interest rates. However, this downside should not deter you from working with these particular kinds of lenders. The reality is that you will have to deal with interest rates regardless of the type of financing you choose. When you using private money, it helps to just remember your interest is higher because your need is greater. In other words, you use private money when time is of the essence.

With that being said, private financing lenders, especially in California, typically offer the quickest funding. Besides, besides being the best way to secure quick financing, these lenders’ qualification requirements are more relaxed. Of course, this is not to say that there are less adherence state regulations. Instead, California lenders who offer private money loans are accustomed to approving loans against virtually any properties (no occupancy or low occupancy, etc.). This means that any non-traditional purchases are not off the table with California lenders. Moreover, any previous bad credit problems or history tend do not affect your chances of approval and there is a lot less red tape involved. What’s more, there are still additional benefits that come from choosing to work with California lenders in order to secure private money.

Other Benefits from  Private Money Lenders in California

In addition to quick approval time and easy-to-meet qualifications, another major benefit you will see with this particular kind of funding is an opportunity cost. If you are unfamiliar with the phrase, opportunity cost is essentially having the ability to make one’s money go further. This means that not all of your assets are tied up in any specific property when you use private money. Furthermore, California lenders are open to negotiating loan terms when dealing with private money. Therefore, despite the higher interest you still may come out ahead.

A Win-Win Solution

Ultimately, choosing to work with California lenders who offer private money financing is practically a no-brainer. As you can see for yourself, all the benefits clearly outweigh the disadvantages. Nevertheless, if you are still unsure about working with a new California-based lender for your private loan, it always helps to do your research—no two lenders will be the same, of course. Thus, you should do a cursory search in your particular area as well as outside of your location—you will instantly see the difference in what non-California lenders and California lenders offer.

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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Private Money Lenders in California—Approval Basics

1page_img1Now that you have decided to work with private money lenders in California, it may be helpful to know what you need to do in order to get approved or to have a better understanding of what happens after you choose one lender in particular.

Private money lenders in California are not shy when it comes to the approval process. In other words, private money lenders in California typically will lay out what they need from you and the rest is really up to. Consequently, once you have found a few good private money lenders, the next thing you need to do is find the right loan. Of course, this may sound pretty straightforward, but the reality is that no two lenders are alike. Thus, you need to go over long terms, interest rates and repayment options with a few lenders.

You will be doing yourself a favor by going over everything with a fine-tooth comb because just as no two private lenders are alike, no two private loans are alike. This means you really need to take some time getting to know your potential lenders and take even more time discerning if the terms of your potential loan truly meet your project needs and requirements.

Besides doing everything you can to find the right lender and right loan for you, you have a few other things to consider before you can even begin the approval process. For instance, you should ask yourself if your potential lender does not have a high rate of foreclosures. Sure, it is never any fun to think about what will happen if your project goes south or if you cannot meet your loan payment, but it is a necessary evil. Therefore, let us get back to discussing that high rate of foreclosures if your potential lender has a significant number of foreclosures underneath their belt you should be concerned. Generally, when a lender has a high rate of foreclosures, more than likely your potential lack flexibility or the willingness to work with their borrowers when it comes to loan terms. Thus, if the lender you find seems too good to be true, such out-of-box questions should come to mind.

Eager to Understand the Process from a Private Money Lenders in California

After you have asked the hard questions (if you like the answers you get), then it is time to start the approval process. As you know, just like any other kind of financing, you need to submit ab application. With private lenders, it helps have an in-depth picture of your financial and credit situation to increase your chances of approval as well as to decrease your wait time. Once you submitted your application, next comes the real waiting game. But, the good news is that private lenders tend to move quickly, therefore you will most likely get an answer in a few days.

Regulations and Eligibility of a California Private Hard Money

Once you qualify, it is time to choose a loan program that meets your needs, order a title report, get an appraisal and set an escrow account with a neutral third party. All the meanwhile, your lender will be reviewing the necessary documentation you provided in order to approve your loan. Upon approval, you can sign closing package and get your loan funded (you will also need to record your documents and eventually make payments.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Does Our Government Really Hate US? Really?

What’s wrong with our economy?

One of the technical terms used when evaluating a healthy economy is a term called velocity of capital.  What this means is how fast  money is moving around from one person to another,  or defined as “The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country’s total supply of money.

 image

As you can see from the above graph the Velocity is on a steady decline.  So what causes the drop? My opinion is that there are two main reasons:

  1. People (consumers) have stopped spending money.   They are sitting on a boat load of cash and they are in a wait and see mode. 
  2. The second reason why there is a decline is that the government has put up road blocks to keep spending money.  One of the biggest road blocks enacted are the Dodd-Frank Regulations  that are making it extremely difficult for individuals to purchase homes. 

When someone purchases a home it’s not just the seller and buyer who are happy.  There are those downstream of this  closing  that are going to be happy when the home closes.  Typically the listing and selling agents are happy, but there are others who also benefit from this happiness and make a living off of the sale.  Sure the buyer is happy, they have their dream home they always wanted, and the seller is happy since the can move to their next home,  or maybe get rid of the current home.  It’s going to be a Happy, Happy, Happy fest.  The agents who listed/sold the home can’t wait till they receive the final HUD 1 is completed and the title company sends out the checks to the brokers.  Most agents keep a list of the transactions in their pipeline and like most agents, their spouse is quizzing them on the transactions.  My wife usually says, ‘got anything closing this week’?  She says this specially during the holiday season.  I’m happy to say that yes!.  This is going to be a good Christmas.  However there are many others who will benefit from this transaction and will have a happy Christmas.

  • Title company and the title agent are getting something from this transaction, like title insurance & escrow fees.
  • The loan company, Loan Officers, Loan Brokers, Underwriters, support staff, company sales rep also benefit.
  • Home Inspectors, and termite inspectors are getting some of the money.
  • Handyman who will fix the conditional items from the homeb inspection also get a piece of the deal, and don’t forget all the hardware stores will get a piece of this pie when the handyman  buys a new faucet or  other item to be fixed.
  • Tax payers benefit when home taxes are being paid in full with collections of future taxes.
  • Insurance companies are writing a new policy.
  • HOA’s are going to receive a transfer fee and maybe impact fees.
  • Neighbors are going to be happy to see a new neighbor.
  • Disabled Vets are going to receive all of the  stuff the new home owners are going to give away before they move.
  • Utility companies are going to get a change notice and if the account is past due, they are going to get paid.
  • Appraisal companies will get their piece of the pie also.

iStock_000002302749XSmallIt is amazing when you think of all the people who will touch this transaction to complete the deal at all.  BUT what’s really startling is how many people will be able to keep their job, put food on the table and survive. 

With all of this occurring, we should sell homes all the time, but I’m shocked by the road blocks our government has put in place to stop this from occurring.  In an effort to fix the last collapse of the housing industry, the administration has generated a mountain of mind numbing regulations to stop consumers from purchasing a home.  It’s like passing through  gates of hell to get a loan.  We have gone too far in the wrong direction to fix the problem.  The incoming administration has indicated that they are aware of this problem and is promising to fix the regulations ASAP.  Let’s get money flowing again!

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Deed of Trust Definition – What is a Deed of Trust

What is a Deed of Trust?  Deed of Trust Definition

Definition of A Deed of Trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).

There are three parties to this type of title. They are:

  1. The Trustor (Borrower),
  2. Beneficiary (Lender) and a
  3. Neutral 3rd part called the Trustee.

They are written so that the lender gives money to the borrower to purchase a real property (home) and the borrower signs a deed of trust giving the power of sale for property to the natural 3rd party trustee to be held in trust for the lender. (I like to think the trustee takes the Deed of Trust and puts it in the top drawer of their desk and waits.) The borrower owns the property, but the title is held by the trustee.

This is noted in the Deed of Trust and is called the ‘power of sale clause’.

 

Deeds of Trust Definition

Equity – our long-term Mortgage program is brokered at 60% of the after repaired value (ARV or LTV) where the goal is to have a fixed and rented home that more than covers the monthly payment..

Money Down – All of our professional real estate investors will have either personal funds or a spread of equity in the transaction serving as their personal guarantee and commitment that the Deeds of Trust payment is a priority

1st Deeds of Trust Only – Our investors are the only holder of the note and in first position

No Pooling of Funds – The Level 4 Funding does not pool funds (also called fractionalized Deeds of Trust). This gives the Deeds of Trust investor more control over the investment

Non-Owner Occupied Properties Only – The Level 4 Funding only brokers Mortgages for non-owner occupied, single family homes and units (1-4) to a very unique client, the professional Arizona real estate investor.

Appraisal – An estimated value placed on a property at a particular point in time. Also known as appraised value.

Beneficiary – The beneficiary is the lender that can be an individual or a legal entity. Also known in a Deeds of Trust investment as a private money lender.

Deed of Trust – A document signed by the borrower that, once recorded, acts as proof that a Mortgage has been made on a property.

First Deeds of Trust – The first in line of Deeds of Trust recorded on a property.

Hard Money Mortgages – given at a higher interest to reflect perceived risk and added convenience of speed.

Interest Only – No payments being made on a Mortgage are being applied to principal. The balance due stays the same.

Simple Interest – Its calculated using the following:  (Balance Amount * Interest Rate) divided by 12.  This gives you the monthly payment for interest only payments.

Mortgage to Value (LTV) – Is a ration is used to determine risk and equity position in a property. If the property us currently valued as it stands now at $100,0000 a Mortgage of $70,000 gives a LTV of 70%   ($70,000 divided by $100,000). This should not be confused with ARV – After Repair Value.

Points – A percentage fee charged for origination of a Mortgage. One point is equal to one percent.

Promissory Note – The Promissory Note is signed by the borrower and shows the terms of the Mortgage.

Trustee – An individual or organization authorized to hold a trustee sale.

Trustor – The trustor is the borrower.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Level 4 Funding LLC Arizona Private Hard Money Lender

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Level 4 Funding LLC Arizona Private Hard Money Lender

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper