Monthly Archives: October 2018

How To Understand House Flipping Loans

4page_img5-bigNot every loan works for every project so it is important that you understand all of the aspects of Arizona house flipping loans. This is a huge first step in a successful project.

Flipping houses can be a great business and a great way to build your personal wealth. But it can also be a very difficult business is you are not familiar with the financial needs and the criteria for that makes good house flipping loans. You will quickly learn that a traditional loan is not a good fit for most flippers. The biggest drawback on a traditional loan is the extended time frame to secure the loan. In addition, you need to have very good credit to qualify for most bank loans. But fortunately, there are much better solutions for your house flipping loans.

The best way to avoid all of the runaround and document requirements is to avoid the traditional lenders. Using a private lender is a lot faster and easier. The cost can be a little bit higher but in most cases, you can tailor the loan to meet all of your needs including a fast approval and funding process. These types of loans are called Arizona Hard Money Loans or asset-based loans and they are offered by a private lender or a small group of people who function together as a private lender.

The lenders are not looking at your credit history, income or even your credit score to decide if they are willing to loan you the money. For asset-based lending, the determining factor is the value of the property that you are buying. The lender requires that you use the property as collateral for the loan so that it is secured. All the lender is concerned about is that the value of the collateral is always greater than the balance of the loan.

Calculating the Amount of House Flipping Loans

Lenders who focus on these Arizona Hard Money Loans have a set loan to value ratio that they are willing to offer borrowers. The LTV is normally somewhere between 70% and 80% of the value of the property. There are two reasons for this choice. First, this assures the lender that the property will always be worth more than you owe in the event of a default on the loan. Second, the lender knows that you are very motivated to get the deal done as you have invested your own money in the project to reach the asking price. This is known as having some skin in the game and is a good motivator.

Know The Terms

Flipping houses in Arizona can be a great business and can grow very quickly if you are aware of the proper types of funding for these projects. In addition, you need to understand that the conveniences of hard money only come at a higher cost. So it is important that you find the best deal possible to begin your home flipping business and ensure your success.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Using Hard Money for House Flipping Loans

635975440There are many benefits to using hard money when you need house flipping loans. These nontraditional loans offer all of the flexibility and benefits that will make you profitable.

Traditional loans are designed to be used by home buyers who are going to carry the mortgage for 15, 20 or even 30 years. But house flipping loans should never reach even a year if you are running your business correctly. You want to buy quickly, make the repairs and renovations and then get the house resold for a profit as quickly as possible. And asset-based lending or Arizona Hard Money Loans as they are also called can be the perfect loan for flippers.

Arizona Hard Money Loans are very short-term loans. Many are for only a few months and because of their short-term, the rates are higher than a traditional loan. The rates range from a low of about 7% to as high as 15% or more if the lender is unsure of the deal. There are also additional fees that the borrower will pay such as closing costs and lender fees. But the biggest benefit of hard money is that the application process is very fast and simple. Many loans are fully processed in less than two weeks which is far less than the average 90 to 180 days for a traditional mortgage to process.

The process to qualify for Arizona Hard Money Loans is based more on the value of the property that you are buying than it is on your personal creditworthiness. While the lender might check your credit score and require a score of 550 or better, that is far below more traditional lenders standards. The value of the property is also what will determine the amount that the hard money lender is willing to offer you. The loan to value rate is how this is determined. Each lender has a specific percentage of a property’s value that he or she is willing to loan. In most cases that number is between 70% and 80% of the current value of the property.

Collateral on House Flipping Loans

The reason that the LTV is important is that the lender will require that you use the property as collateral for the loan. This protects the lender in the event that you default on the loan. Bu loaning only a percentage of the property value, the lender will always know that the collateral is worth more than the balance you owe on the loan. If you do default, the lender will take possession of the property and sell it to recover his or her investment in the loan.

Hard Money is a Wise Choice

As long as you make wise choices and are aware of the expenses of an Arizona house flipping loans, hard money is a good selection to fund your purchase. But only when you have a clear renovation plan and time frame for completion of the project. The short timeframe of the hard money loan and the higher interest rates leave little margin for error if you want to earn a good profit.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

The Benefits of Fix and Flip Loans

David ReeseFlipping houses quickly can be a very lucrative business. But the key to being successful is having fast access to fix and flip loans.

Most people are familiar with the traditional mortgage loans offered by banks and mortgage companies. But everyone also knows that securing a mortgage from a bank can take a great deal of time and effort. When time is critical, such as it is when flipping a house for a profit, Arizona Fix and Flip Loans offer all of the benefits that you need including a fast approval and funding time. A standard bank loan can take far over a month just for approval but the private lender will be able to process your documents and have an answer for you in just a few days.

Another benefit to Arizona Fix and Flip Loans is that these loans can be used on any type of property purchase. A traditional lender is not going to be willing to look at bank owned, foreclosure, short sale or a run-down property and make a fair decision. But a private lender is only really interested in the current value of the property. Banks do not like to lend on riskier investments but a private lender is willing to assume a greater risk as long as the borrower is willing to pay a higher interest rate.

Another drawback to a traditional lender is that fact that they are counting on a full interest payment. This means that if you pay the loan off early, the lender is making less money in the form of interest. So to avoid that, the lender will charge an early repayment penalty. Basically, no matter when you pay off the loan, it still costs you the same amount. But a private lender is not going to charge you any early repayment fees in most cases. But it is critical that you read the entire loan document prior to signing it as the lender is free to impose any terms that he or she sees fit. It is your job to catch any issues with the terms before you sign the loan documents.

Costs of Repairs

When you are flipping a property, you understand that a large part of the cost involved is going to be for the materials and labor for repairs. A traditional lender is not interested in this issue and will not always work with you on a loan for repairs. But lenders who specialize in Arizona Fix and Flip Loans normally will set up a loan reserve which helps to cover some of the repair costs for the property in additional interest.

Pick The Right Lender

As you begin to learn more about the process of fixing and flipping houses, you will also learn more about the financial side of the business. But when you first start out, it is important that you select a lender who is familiar with the process and knowledgeable about the real estate market. This will ensure that you have a good resource and a solid partner to guide you through your first loan experiences.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Securing Arizona Fix and Flip Loans With Bad Credit

FICO Score CardFor consumers with bad credit, flipping houses is a good way to earn a good profit and rebuild your credit. But first, you need to understand how to get fix and flip loans.

Having bad credit makes it nearly impossible to go to a traditional lender to get a loan for anything, let alone a business venture such as fixing and flipping homes. But if you are really ready to repair your credit, earn some good money and create a business to ensure your financial future, then Arizona Fix and Flip Loans could be the answer to all of your issues.

There is a nontraditional type of loan which is called hard money or sometimes asset-based lending. These are loans which are granted not based on the borrower’s credit score, credit history or even current debt level. These loans are granted based on the value of the property that you are going to purchase, which makes the name asset-based lending more meaningful. The secret is that the loan is secured by the property that you are purchasing. This offers the lender protection in case you default on the loan.

These hard money lenders are not just out to loan money to feel good about a selfless act though, they are interested in making money as well. And if you are using hard money due to bad credit, then you represent a higher risk. So the hard money lenders will expect you to pay a higher interest rate for the money that you borrow. In some cases, the rate can be as high as 15%. In addition, you will pay other fees such as closing and lender fees. But you are getting the loan even though you have bad credit.

Loan to Value

Hard money or Arizona Fix and Flip Loans are based on the value of the property. In most cases, the lender will offer anywhere from 70% to the property value to 80% depending on his or her personal preference. This is an added protection for the lender in the event that you default on the loan. If you default, the lender will seize the collateral for the loan, the property, and sell it to recover the investment in your loan. And the lender wants to be certain that the property is always worth more than the balance of the loan. So with a loan of 70-80% of the property value, there is always built in equity.

Understand the Terms of Fix and Flip Loans

Asset-based loans are a great option for someone who has bad credit but wants to get into the fix and flip business. But it is critical that you understand the full cost of the loan and use that number to create the budget for the project so that you will make a profit and be able to use that money to improve your personal credit and to also make your next purchase to continue your flipping business.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Types of Deals and Properties for Arizona Hard Money Loans

Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150Not every loan is perfect for every type of purchase. But there are many deals work very well within the parameters of Arizona Hard Money Loans.

One of the great features of Arizona Hard Money Loans is that they are funded by private lenders. This means that the borrower often has a great deal more freedom with regard to the type of property being purchased with the funds. The loan is being secured by the property so the lenders do want to be certain that the property value is greater than the loan. He or she will also be interested in the saleability of the property in the event of a default on the loan. But as long as there is a market for the property, most lenders are willing to fund a loan for any type of property. That is not to say that some lenders don’t specialize in a specific property type, but as a rule, any type of property including residential, commercial or industrial can be purchased with hard money.

Some of the features of Arizona Hard Money Loans make this a better loan for certain types of purchases. The short-term of Arizona Hard Money Loans makes them impractical for most home purchases but it also makes them ideal for many investment type purchases. Real estate investors who purchase properties to quickly fix up and resell, flippers, are very fond of hard money simply because it is easy to apply for and secure as well as being one of the fastest funding loans. In the world of real estate flipping, time is a critical element that makes it a perfect fit for hard money.

Hard Money Land Loans

Land can often be harder to purchase with a traditional loan. But a hard money lender is often happy to have the land as collateral on a loan. This allows the borrower to purchase the land and improve it with a building, utilities or other features to make the land more valuable prior to selling it. And with the loan for the land being hard money, there is less of a chance that the purchaser will be denied a construction loan for the addition of a structure.

Hard Money Loans with Bad Credit

Many borrowers find that with bad personal credit or no personal credit history, it is impossible to obtain a traditional loan to purchase real estate. But hard money lenders are basing their decision on the value of the property being purchased and not the creditworthiness of the borrower. So a bad credit score might mean that you pay a slightly higher interest rate, but in most cases, you will be able to get a hard money loan. Hard money can also be your only option if you have gotten into a very expensive project and you have overextended your credit or maxed out all of your other options. Again, the interest might be higher but you can get a hard money loan. Finally, for a busy flipper who might have multiple properties under contract at one time, the hard money lender will not decline your request based on the number of loans that you are carrying. The only really important factor is the value of the property. Knowing how to use these loans correctly can open many doors for someone who wants to enter the real estate industry as a flipper.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

The Cost of Loans to flip houses Arizona

Handsome young man looking confidentlyNo one is going to loan money without charging something for it. But understanding all of the costs for loans to flip houses is critical before selecting a lender.

Borrowing money is often the only way to be able to make a large purchase. And the ability to borrow money is something that most consumers are willing and happy to pay when it comes to buying a home. But when you are in the real estate, you need to understand that the loans to flip houses often cost more than a traditional house loan or mortgage. This is because the most popular loans to flip houses Arizona are Arizona Hard Money Loans which are offered by private lenders rather than banks or mortgage companies.

Arizona Hard Money Loans, or asset-based loans, are not funded based on the borrower’s creditworthiness. Instead, they are offered based on the current value of the property being purchased. The property is used as collateral for the loan and the lender wants to be certain that the loan balance is always less than the current market value of the property. To ensure this, the lenders only offer between 70% and 80% of the property value.

But the benefits to these loans are many. First, the loan application process is very simple and fast. Second, the approval process is also very fast. And finally, the private lender can be much more flexible on the terms of the loan as opposed to the rather inflexible terms of a bank loan. But all of these benefits do come at a cost. The most noticeable difference is the increased interest rate on a hard money loan. Hard money interest rates can range from 7% clear up to 25% or more if the project appears to represent a very high risk of failure.

Breaking Down Costs

In addition to the higher interest rates, some lenders will charge a flat fee for an appraisal of the property as well as another fee for processing the loan documentation. There can also be fees such as a funding fee, administrative fee or closing fee. Because the lender is a private person, he or she is free to charge the fees that they choose to and to call them whatever they want. For this reason, it is important to ask for a total cost of the loan in writing and itemized to understand all of the costs involved in loans to flip houses.

Making a Choice

Having all of the feels in writing will allow you to compare the total cost of each loan and decide which is the best option for you. In some cases, you will not choose the cheapest loan but instead the loan which offers the best overall terms to meet your needs. This can include a longer or shorter payment term, a variable payment or even the ability to extend the loan if you need more time to complete the project. But knowing the total loan cost is the critical first step in any house flip project.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Important Tips When Looking At Arizona Hard Money Loans

Not every loan or lender is going to be equally good. So it is very important that you follow these tips when comparing Arizona Hard Money Loans.

One key fact to remember is that hard money is provided by private lenders so the terms and the loan are not dictated or regulated in the same manner as they are for banks and traditional lenders. So you will want to be very diligent as you review the terms of any Arizona Hard Money Loans. Be cautious of any lender who is demanding large upfront fees. An appraisal fee is normal but large fees for exploration or due diligence is a strong sign of a less than legitimate lender. Large fees can also be a sign of a broker who is trying to lead you to believe that he or she is a lender and not just a broker. This is just a way of adding a middleman who will charge you fees but really add nothing of value to the deal. In both cases, it is very likely that the Arizona Hard Money Loans are never funded but the applicants are out whatever fees they paid.

It is also not uncommon for lenders to “fail” to provide you with a complete breakdown of the cost of a loan. There could be additional fees that you do not learn about until you are ready to sign the loan documents unless you request a full breakdown of all costs associated with the loan. Fees which could be listed on the breakdown include document processing, site inspections, title documentation and verification, funding fees and administrative fees. Lenders can either break the fees out or some will simply charge points to cover all of these administrative tasks that must be completed. Regardless of the way the lender explains the fees, be sure to get a grand total cost so that you can compare all of the loan options that you might have so that you can select the best one.

Beware of Unreasonable Terms

Some lenders will prey on borrowers who have no credit or particularly bad credit. In these cases, the lender could make unbelievable claims such as funding a loan that no other lender will fund or 100% funding with no down payment. If the deal sounds too good to be true then it most likely is. Also, if the lender says that he might be able to fund the loan but due to very bad credit, you will need to pay extra fees or an extremely high-interest rate, then seek another lender.

Do Your Homework

It is always important to be as educated about any business deal as possible. Be sure that you have a few loan options and a few rates to compare. Even if you have bad credit, you should still be able to get Arizona Hard Money Loans at a fair rate. Also, be as knowledgeable as possible about the property that you wish to purchase so that you know what to expect on appraisal documents as well as other inspections of the property. This preparation will help to make the loan process less stressful and faster.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Info to Know Before Securing Arizona Hard Money Loans

Trouble-with-an-Arizona-Home-Mortgage-150x150When using Arizona Hard Money Loans, there are a few pieces of important information that every borrower should know. This will increase your potential for success and earnings.

Arizona Hard Money Loans can sound very intimidating if you are not familiar with the process and this financial tool. But these are very useful and legitimate loans for many real estate investors. The first important piece of information that you need to understand is that hard money is a short-term loan as opposed to the 15 to 30-year term on a traditional mortgage. In addition, you need to understand that Arizona Hard Money Loans are funded by individuals or possibly a small group of lenders who work together rather than a bank or mortgage company. But this offers many great benefits to the borrowers of hard money.

Because the lender is independent, he or she is able to work with borrowers to customize the terms of loans much more than a bank or mortgage company. This could mean a unique payment schedule or even a payment amount that fluctuates. And borrowers will also be glad to learn that private lenders require much less paperwork during the application process. This makes applying and getting approved for a loan much less stressful.

One aspect of Arizona Hard Money Loans that some borrowers are uncomfortable with is the higher interest rate. Private lenders are not regulated in the same manner as a financial institution and they are free to set the interest rate as they see fit. In addition, hard money is normally an option for someone with less than perfect credit so the risk is more substantial for the lender. But for a fast application and approval process, many borrowers are happy and willing to pay the higher interest rates associated with hard money.

Asset Based Lending

This is the most important aspect that separates a hard money loan from a traditional loan. A traditional loan is based on the borrower’s creditworthiness and ability to repay the loan. But a hard money loan is based on the current market value of the property being purchased. The borrower must use the property as the collateral on the loan to provide added security for the lender. In the event that the borrower defaults on the loan, the lender has the right to seize the property and sell it to recover his or her investment.

Use It Wisely

Hard money is a very legitimate resource for any real estate investor who is looking for fast funding, a simple application process, and a short loan term. All of these benefits make many borrowers a huge fan of the hard money option. When used on a fix and flip project it is perfect. And other investors use hard money to make a fast purchase for a property with high potential. Once the purchase is secured, then the borrower will refinance on a long-term mortgage at a lower interest rate. Used correctly, hard money can help to make a real estate investor a great deal of money.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Using Arizona Hard Money Loans for Long-Term Purchases

confirm_registrationMost information points to using Arizona Hard Money Loans only for short-term investments. But there is a reason to take advantage of hard money when making a long-term purchase.

Every article that you read about Arizona Hard Money Loans points to using this financial tool only for a short-term project such as a fix and flip. And these loans are perfect for a short-term project. But all of the benefits that make Arizona Hard Money Loans appealing for the short term investor can also make them appealing for a longer investment.

The easy application processes and the fast approval make hard money a solid choice for any purchase that is time sensitive. Most investors think of fix and flip properties for tight time frames. But there can be other properties which have a great many potential buyers which would also require fast funding to secure the purchase. After the purchase is secured, the borrower has the time needed to complete a traditional loan application with a bank or mortgage company to extend the loan terms as to also decrease the interest rate.

Hard money can also be used to purchase a property that is going to require a lot of repairs or renovations and does not meet the lending requirements of a traditional institution. Once the property improvements are completed, the borrower can then apply for a traditional loan and again take advantage of the longer repayment schedule and the lower interest rate.

Tailoring Arizona Hard Money Loans

Because hard money is offered by private lenders, the terms of these loans are able to be customized at the discretion of the lender. In many cases, a borrower will request that the first payment not be due on the loan for two or even three months. This allows more time to secure a traditional loan. In return, the borrower is paying closing costs, points and sometimes other fees to the hard money lender for this added consideration. But it saves the borrower the higher interest on the monthly loan payments.

Hard Money is Useful

In the past, many borrowers were under the misguided opinion that hard money was a less than legitimate resource and that the high cost made hard money a bad choice for an investment opportunity. But as the real estate business has evolved, investors have become far more savvy about how and when to use hard more for a real estate deal. Short-term purchases, as well as long-term purchases of a very desirable property, are especially well suited to using a hard money loan. In addition, hard money is a good option for an investor who is carrying several traditional loans and does not have the credit to request another bank loan. The hard money is used essentially as a bridge to make the purchase until another project has been completed and the loan is paid off. Learning to skillfully use hard money is certain to offer any real estate investor many new options for growing his or her business.  

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

Open Your Eyes To Arizona Hard Money Loans

Not every aspect of Arizona Hard Money Loans is perfect for a borrower. But the advantages can often outweigh the drawbacks.

Nothing in this world is perfect and there is no perfect loan for every type of purchase or for every borrower. In the perfect world, money would be offered with no interest and the terms would be up to the borrower to determine. But in the real world, everyone must understand that lenders are also in business to make money so fees and interest are just the cost of borrowing money.

Arizona Hard Money Loans do have more fees and a higher interest rate than some traditional banks and mortgage lenders. But the justification for these added fees can be understood when you compare a hard money loan and the process of obtaining hard money to a traditional loan and working with a traditional lender. Everyone knows that time is money, but hard money puts that saying to the test. The application process for a hard money loan is only a fraction of the paperwork and time that you would need to invest in secreting a traditional bank loan. And the approval for hard money is also much faster. It can take up to 90 days for a bank to respond with an approval of your loan application but a hard money lender can often respond in just a few days and have your loan funded in just about a week.

And while the interest rate on Arizona Hard Money Loans is higher than the interest rate on a mortgage loan, the time savings can make it a good investment. In addition, hard money is going to be an opportunity for someone with no credit or less than perfect credit to secure a loan. This lower creditworthiness means that the lender is willing to assume a higher risk when making the loan and in return, he or she should be able to expect to make a little bit more money in the form of interest.

Know The Uses

Being funded by a private lender, hard money is also a good option for a borrower who is looking for some custom loan terms. No bank or mortgage company is going to change the standard terms of their loans. But working with a private lender allows for much more negotiation when drafting the terms of your loan. This convenience is certainly worth paying a little more for.

Be Smart

Knowing how to best use Arizona Hard Money Loans is critical to the success of your real estate investment business. Short term loans are almost always perfect for hard money, but there are also times when making an initial purchase on a long-term deal is also best done with hard money. Only after researching all of your options and requesting multiple quotes, will you be able to determine which loan is going to be the most profitable for a specific purchase. Sometimes hard money is the only choice and other times it is just one of many options.

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