Monthly Archives: February 2019

5 Reasons to Use a Texas Hard Money Lender

February 15, 2019Uncategorizedbigdaddydennis

Texas Hard Money Lenders can be a real estate investor’s best friend. They offer speed and flexibility on top of a plethora of other benefits.

1. You Don’t Have To Have Perfect Credit— If you fall into the majority of borrowers you have a ding or two (or several) on your FICO score. When it comes to traditional loans, the most important factor a bank looks at is that three digit score. If your score falls below their required number—no loan for you! Not only your credit score, but your monthly income is of just as much importance to them. If you fall outside of their criteria, you will not be approved. Texas Hard Money Lenders focus primarily on the value of the property that serves as the collateral on the loan. As long as the lender is comfortable with the loan-to-value ratio they are not overly concerned with a borrower’s credit score and income.

2. Quick Loan Approval and Funding— If you have ever applied for any type of loan at a bank you are familiar with the painfully slow process. There are countless documents that must be filled out and even once that is done the underwriting process is almost sloth like. It can be a month before a borrower is even approved and even longer to receive the funds. By this time, it is highly likely the borrower has lost the property to another real estate investor. The application process for a hard money loan is simple. Typically, a borrower only needs to fill out a standard loan application—and can be approved in minutes. Usually, the borrower can receive funds in 10 days or less.

3. Getting Financing For Additional Loans— Most banks cap the amount of loans a borrower can take out at four. It usually doesn’t matter how great their credit is or how much money they generate. Because Texas Hard Money Lenders are private investors they make their own rules. They do not have the same limitations on loans as do banks. Their main concern is the borrower’s equity in a property. Texas Hard Money Lenders enjoy working with investors that have multiple properties because the borrower can cross-collateralize their properties.

4. Making The Investor’s Offer Strong— Seasoned real estate investors are very familiar with banks pulling the financing during escrow—it is not uncommon. This can easily destroy the deal and the investor will lose the potential property. When an offer comes in from an investor using hard money sellers see this as a benefit. Texas Hard Money Lenders are not known to pull out of deals at the last minute. What that means is that an investor that is working with a Dallas Texas hard money lender in a competitive market is seen as preferential to the seller when there are multiple offers on the property.

5. Quick Close— Sellers want to close quickly—this is why cash buyers are a sellers dream buyer. Good news! Investors using hard money are viewed in the same light as cash buyers. Real estate investors can often negotiate a lower purchase prices because they can give a shorter escrow period and all that equals a quicker close.

There are numerous reasons for a real estate investor to work with a Dallas Texas hard money lender.

An experienced hard money lender is an expert in real estate investments and will work with an investor to make sure there are no issues that could hurt the project. At Level 4 Funding we have years of experience and are here to work with you. Please contact us at level4funding.com.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

If You Can Read This Post, You Can Get A Commercial Real Estate Loan

February 15, 2019Uncategorizedbigdaddydennis

Both buying and renovating commercial real estate is the mark of a giant step for your small business. However, it can be extremely stressful. It is imperative you completely understand the process—this will take a lot of stress off of you.

Very few small business owners have enough cash on hand to support any type of project with their own money—they will have to take out a loan. Fortunately, there are Arizona commercial real estate loans that can help make the project go much smoother.

There are many options when it comes to Arizona commercial real estate loans. The decision you make will affect the success of your project. Some options take much longer to close and some require a large amount of time spent of application and paperwork.

DIFFERENT TYPES OF ARIZONA COMMERCIAL REAL ESATE LOANS

What is commercial real estate? It is any type of property that is used for business purposes. Some examples are a shopping center, a movie theater or an office building. Actually, any building that uses 51% of the building for business can be considered commercial real estate.

Purchasing new or existing commercial real estate or rehabbing said property makes a borrower eligible for a commercial real estate loan. Commercial Real Estate Loans in Arizona can vary. There are multiple types of loans that vary in their application processes, rates, fees and loan terms.

The first loan that springs to mind for most borrowers is a traditional commercial real estate loan. These come from a bank or credit union. These loans generally fund the largest amounts of money at the smallest interest rate. However, these are very hard loans to get. Traditional Commercial Real Estate Loans in Arizona are generally given to businesses that have the best track record of profit and have the highest credit score. Even then, these loans are infamous for being painfully slow with tons of paperwork and documentation.

Hard money Commercial Real Estate Loans in Arizona are short-term loans from Texas Hard Money Lenders who are private investors. Private investors are not one size fits all. There are some who won’t give out amounts as large as a bank loan would—and others that can give out even more than a bank would. Texas Hard Money Lenders will charge a higher interest rate than a traditional lending institution. However, the payoff comes with the application process. These are much easier to qualify for than bank loans. Although, a hard money lender will look into your credit score—they will not base their decision simply on your credit score. These are loans backed by the property. Many startup businesses work with Texas Hard Money Lenders. You can typically apply for, be approved and receive funds in less than two weeks.

Real Estate Crowdfunding is a real estate loan platform. With crowdfunding many people lend small amounts of money to the business owner for their project. For example, instead of receiving a $100,000 loan from a bank or hard money lender you will receive many small loans that add up to $100,000. Real estate crowdfunding has similar terms as hard money lending does. However, you will be dealing with many people you have to pay back versus just one.

When it comes to Commercial Real Estate Loans in Arizona borrowers have many options.

Your options will depend on how long you have been in business, if you are startup business, what your credit score is and how much you can pay per month on your loan when it comes to deciding which real estate commercial loan will work for you.

Why Would I Need an Arizona Bridge Loan?

February 14, 2019Uncategorizedbigdaddydennis

So, you’ve put your house up for sale and you’ve begun to look around for your new, upgraded home. In no time at all you have found your dream home but, there is one problem—you haven’t sold your house.

Most people can’t afford to pay two mortgages. This is where a Arizona bridge loan comes into play. When borrowers want to buy a new home before selling their initial investment a Arizona bridge loan can give you the money for a down payment on a new home before the sale of the old home is complete.

Unless, you have stashed away a big financial cushion chances are you don’t have the required down payment on your new home before you’ve received the funds from your old home’s sale. Sometimes, a seller will include a contingency in the home you are trying to buy. A contingency states that you won’t buy the new home until the sale of your old home. Unfortunately, in competitive real estate markets many sellers don’t want to deal with contingencies.

In a Arizona bridge loan your home is the security on the loan. A Arizona bridge loan is taken out from a hard money lender. Hard Money Loans in Arizona are asset-backed loans. You will pay origination fees and closing costs on the loan. After those fees and costs are paid you will have the money required to put down on the new home.

BENEFITS OF A BRIDGE LOAN

Bridge loans make it possible for borrowers to purchase the home they desire in a competitive real estate market. Sometimes, borrowers have to rent while they wait for the sale of their home to go through—that means they are, literally, throwing money away. If a borrower either doesn’t have the means to pay two mortgages or doesn’t have enough money for a down payment before the sale of their home closes, a Arizona bridge loan can provide them with the funds needed to purchase their new home while waiting on the sale of their old home to close.

Another benefit to a Arizona bridge loan is there is no contingency required. Sellers are more likely to want to work with you if they aren’t waiting on a contingency. This also gives buyers of your old home to have more time for inspections and finalizations.

Bridge loans are set up to be interest only loans, requiring a balloon payment at the end once you sell your old home. Many times, payments on bridge loans are deferred until a month or two after the borrower closes on the loans—giving you more time to handle the selling of your house with less financial stress.

A Arizona bridge loan is a fantastic way to get the funds you need to secure the down payment on your new home.

A Arizona bridge loan is a short-term term loan where the funds are used to bridge a financial gap. Bridge loans will help cover the cost of your down payment on your second home by using the equity you have as the collateral needed to secure the loan. After the sale of your home you simply pay back the hard money lender with the sale of your home.

Commercial Real Estate Loans Made Simple

February 14, 2019Uncategorizedbigdaddydennis

Commercial real estate loans are typically used to purchase or renovate an owner-occupied commercial property.

Income-producing property is called commercial real estate and is used for business versus residential. Malls, retail shops, hotels and office buildings are some examples of commercial real estate. The commercial real estate loan includes the financing of not only the property, but the development and construction of said property.

Commercial real estate loans can be financed through banks and private lending institutions. There are no FHA or VA programs when it comes to commercial lending—and there is also no private mortgage insurance. What this means to lenders is they have no insurance to cover default of the borrower.

Interest rates on Commercial Real Estate Loans in Arizona are higher than residential loans. And there are fees involved, such as loan origination, loan application and appraisal fees. Depending on the lender there can also be other fees involved—such as prepayment penalties and exit fees.

HARD MONEY COMMERCIAL REAL ESATE LOANS

A hard money loan is a non-traditional bank loan. Texas Hard Money Lenders are private investors that do not have to follow the strict requirements of conventional mortgages. A hard money loan is an asset-based loan and is secured completely by the property’s equity.

Waiting on approval from a bank can be painful and time consuming—and much of the time can take months to receive funding. Here steps in the hard money lender. A borrower can be approved and funded in less than 10 days on a hard money commercial real estate loan. These are short-term loans and are usually only set up to last between 6 months and one year. However, because of the flexibility of Hard Money Loans in Arizona, they can be extended up to five years.

A borrower’s credit is of great importance to a traditional lender. But, because hard money loans are based on the equity of your property they can look past dents in your credit. While closing time is insanely long with a traditional lender—due to documentation, inspections and waiting on the loan committee, a hard money loan can close quickly because typically there are only a few individuals involved in the loan terms and it is their money they are lending.

The bottom line is that hard money loans are set up to be bridge loans. Bridge loans are “bridging” you from a temporary situation into a permanent situation.

These loans are interest only loans until the end of the loan term, in which the balance is repaid. The goal is to give the borrower time to get their ducks in a row and bridge themselves into a conventional mortgage. Texas Hard Money Lenders are there when the bank says, “no.” They are there when you need money quick. They are there when your credit has some issues. Texas Hard Money Lenders are there when you need them.

See what a Fix and Flipper Does on Her Off Time

February 13, 2019Uncategorizedbigdaddydennis

Aerial Drone Of Hard Money Loans

February 13, 2019Uncategorizedbigdaddydennis

Can You Get a Small Business Loan with Bad Credit?

February 12, 2019Uncategorizedbigdaddydennis

If your credit has been damaged and you want to start a business—you can still get a small-business loan with bad credit.

The biggest reason lenders turn down small-business applications is the borrower’s credit. Banks consider bad credit anything below a 620 FICO score. Because of their past, applicants with bad credit are considered a high risk for defaulting on loans. Have no fear—there are still options out there for entrepreneurs that need a small-business loan.

HOW TO FIND A PRIVATE HARD MONEY LENDER

There are lenders out there that will work with you to get a small-business loan with bad credit. There are lenders that will provide options for borrowers with shaky credit. Typically, they require a FICO score of at least 500. And, believe it or not, there are lenders that have no minimum score requirement. These lenders will look at your business and determine if it is strong enough to be successful thereby giving them confidence that you will repay the loan.

A borrower with bad credit must realize that the lower their credit score is the bigger chance they have in having a higher APR—interest rate and fees that accrue on the loan. A borrower with a low FICO score, no collateral and a brand new business should look toward the option of business credit cards and secured personal credit cards. If you want to manage your cash flow and working capital, a line of credit will be your best bet.

Hard money lenders can help with small-business loans

If you need a small-business loan—even with poor credit, but you have collateral, a hard money lender can work with you. Hard money loans are collateral-backed loans that can give easy access to small-business owners. They are secured by real estate. Hard money lenders are less concerned with a borrower’s credit and more concerned with their hard assets. If a borrower defaults on a loan the lender can foreclose on their property.

Hard money loans offer an execution that is fast. A borrower can be approved within 24 hours and have funds in as little as 10 days. They also don’t have the regulations that traditional banks do. While a traditional bank must adhere to state and federal regulations, a hard money lender creates their own regulations. These lenders still have an underwriting criteria; they are just more lenient.

Why a hard money small-business loan may be for you

If you are an entrepreneur with a vision and you have collateral, but unfortunately your credit is damaged a hard money small-business loan may be the best option. Along with speedier approval and closing time, hard money lenders work with each borrower individually. They have more leeway with underwriting and the repayment schedule. All in all a hard money lender can be more flexible than a traditional bank loan. These private lenders are entrepreneurs themselves and want to help others with that same entrepreneurial spirit.

Which Private Money Lender Is Best?

February 12, 2019Uncategorizedbigdaddydennis

The definition of a private money lender is a non-institutional individual or company that loans money. This money is secured by a note and deed of property for the funding of a real estate transaction.

Private money lenders care more about the deal than they do about your credit. Unlike traditional banks, their money is secured by a hard asset (real estate). They are protected by the deed of trust—the mortgage—on your property. Private money lenders also like to see a good track record. A lender is more willing to work with a borrower that understands the game.

What does that mean for a newbie with no track record? That’s where hard money lenders come into play. A hard money lender is one type of private money lender in Arizona and is more willing to loan to a brand new investor. It benefits the new investor working with the hard money lender by doing deals and gaining experience. A hard money lender can help a new investor start their portfolio.

THE DIFFERENCES BETWEEN PRIVATE MONEY LENDERS

There are 3 types of private money lenders:

* Primary Circle— This circle is made up of friends and family, the people that are closest to you. When an investor starts out in real estate he will most likely go to his friends and family because he feels safe there; and, more than likely, if they have the money, they will invest. Unfortunately, there is a huge downside to investing within your primary circle. They may not have experience in real estate and won’t know the difference between a good and bad deal. Also, if you lose money in the deal it may easily strain a personal relationship. Make sure you are clear about the risks when proposing money lending to your primary circle—just as in any investment this is a risk.

* Secondary Circle— This circle is your professional associates and colleagues of your primary circle. You know when you are on Facebook and you see “People You May Know”? That is your secondary circle. The negative part of working within your secondary circle is there is a lesser chance they will say yes. For this circle you will need a presentation ready. They will want details on this investment—they don’t know you well enough to just trust you the way your primary circle does.

* Third Party Circle: These are people found through advertising, through networking and also, accredited investors—such as hard money lenders. This is the circle that a borrower has no personal ties. This circle will have the largest pool of possible lenders.

Types of properties that private money loans fund

Private money loans can fund a variety of properties in both residential and commercial properties, such as:

* Apartments

* Condos

* Single-family homes

* Commercial real estate

* multi-unit properties (duplexes)

How quickly you need funding, what your hard assets equate, and your network will determine which circle of private money investors will work best for you.

Trying to borrow money fast? If you can’t qualify with traditional lenders and have a need for speed, hard money loans offered by private investors just might be for you.

Lots of people turn to traditional lenders like banks and credit unions when they need money. However, it doesn’t take a genius to know that traditional lenders have some tough requirements to meet. Having a great credit score and debt to income ratio can make or break you when it comes to qualifying for loans, often leading people to seek out alternative options.

Alternative loan lenders are not bad. They are untraditional, private investors that can usually offer money faster than traditional lenders. Because they can cater to a wider audience, their needs and expectations are often different. For example, they have different loan approval requirements, as well as steeper fees and interest rates.

Are You Eligible for Private Hard Money?

Qualifying for hard money loans is possible, even if a bank denies you. This is because Texas Hard Money Lenders consider property potential before they consider borrower potential. If you are working to obtain a property with high potential, it is likely that a private investor will provide you with funds to support your property. Private Texas Hard Money Lenders consider the LTV—the loan to value ratio. Sometimes, they can offer 65 percent of the property’s worth to you in funds. Additionally, because they work a little differently than traditional money lenders, the relationship is usually more transparent with a little flexibility. Usually hard money loans are paid off in 12 months, but can be expanded as long as 60 months, or 5 years. In this way, Texas Hard Money Lenders may seem “individualized,” making the loan process suitable to each individual that has been denied by banks due to high, generalized standards.

Borrowing from Texas Hard Money Lenders Successfully

If you think this sounds too good to be true, it probably is. While Texas Hard Money Lenders offer lots of benefits, they also have some cons that should be considered thoroughly—before making any rash decisions out of excitement. For one, Texas Hard Money Lender maintain very high fees. This is a stipulation of their easy approval process, and acts almost as a reliability buffer for them as lenders. Knowing if you can handle high fees and a short repayment period is important. Even if there is flexibility within the repayment period, you still want to be realistic. Researching a reliable lender will also be important. While Texas Hard Money Lenders typically provide good, transparent relationships with their borrowers, it is not unheard of for lenders to pull out at the last minute, or hide fees within the loan agreement. If you are feeling unsure of your hard money lender, you can always invest in a real estate attorney who can help you evaluate and understand the terms of the loan agreement, so that you can feel confident you will be making the best decision for you. Hard money loans are a great option for people who need money fast—just make sure that your need for a loan doesn’t overlook stipulations that could cause you trouble in the long run if you aren’t being realistic about all of your needs.

Red Flags To Avoid When Seeking Arizona Hard Money Lenders

February 10, 2019Uncategorizedbigdaddydennis

(Selecting potential Arizona Hard Money Lenders can be a challenging process. It is very important to know and avoid certain lenders who raise the following red flags.)

Because Arizona Hard Money Lenders are private individuals or small groups, it can be hard to evaluate them and separate the honest lenders from the scam artists. But this is a critical process that must be carefully completed before requesting a hard money loan. Knowing a few of the most common red flags that could appear during your evaluation process could save you a lot of time and money in the future.

Arizona Hard Money Lenders are in business to make money. And the only way that a legitimate lender can make money is by providing loans. If you are having a hard time getting a private lender to return your calls or respond to your email, then chances are, you want to eliminate this lender from your list. Honest Arizona Hard Money Lenders are eager to respond to and work with new clients. And any lender who is not active in responding and providing information is not trying to run a legitimate business.

Another red flag has to do with communication, but not a complete lack of contact or communication. You might find a lender who is eager to take your call and talk for hours about all that he or she has to offer you. But when you request that information in writing or send a question via email, the only responses come verbally. This is a tactic to avoid putting any promises, fee structure or details in writing so that the lender can overcharge you or simply disappear with your processing fees and possibly your personal identity information. Any reputable lender will be completely transparent and will gladly provide all of the written documentation that you request.

Large Upfront Fees

It is not unusual for lenders to request an appraisal fee up front as that is needed to determine the value of the collateral. But lenders who are requesting large application fees or processing fees for the application could be a scam that will disappear once you pay the fees. As soon as you learn of substantial upfront fees, you should begin to explore references and seek information about previous projects and previous loans which the lender has funded to determine if they are really a legitimate lender or a fee scam artist.

Be Attentive And Realistic

Using a private lender is no different than selecting any other service provider. During the evaluation process, you need to pay attention to the level of service and the time it takes to get a response. Also take note if the lender avoids answering certain questions about the process, the fees or the business in general. These can be signs that at the very least the lender has something to hide. And in the worst cases, the person is not even a legitimate lender and is just trying to scam you out of fees and possibly personal information. Be realistic and only work with the lenders who freely offer information and are willing to provide it to you in writing.

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

What To Look For In Arizona Hard Money Lenders

February 10, 2019Uncategorizedbigdaddydennis

(It can be difficult to evaluate Arizona Hard Money Lenders if you are not an experienced borrower. But having a few tips to evaluate potential lenders can make the process less daunting.)

Unfortunately, not all Arizona Hard Money Lenders are working to provide borrowers with a legitimate option to a traditional loan. There are some who will take advantage of a borrower with bad credit or no credit as well as an investor who is in need of fast funding. But using the following four tips can help you to better evaluate potential lenders and find the one who is best able to meet your needs.

One of the first questions that you will want to ask a private lender is about the turnaround time on funding a loan. The last thing that you want to do is be forced to wait for weeks while the lender accesses funds for you. It is sometimes difficult to be sure that private lenders are providing accurate information, so it is always best to request all of the answers to your questions in writing. Email questions so that you have documented responses in the event of any issues as the process moves forward.

After determining that the lender is able to fund in a reasonable amount of time, the cost of the loan is your next concern. Arizona Hard Money Lenders will generally charge an interest rate somewhere between 10% and 15% based on the perceived risk involved in the loan. This means that a good credit score and solid financial history can secure a better interest rate. The amount of your down payment can also have some impact on the interest rate as a larger down payment will create more instant equity in the property.

Be Sure The Lender is Legit

Although Arizona Hard Money Lenders are not governed by the same rules as banks and mortgage companies, they are required to follow numerous regulations. These include their business practices as well as the insurance that they must carry. Be certain that your lender or any potential lenders that you are considering are licensed, bonded and insured for your own protection.

Get References

You should always ask a potential lender for a list of references. If the lender is shy about providing this list then you should reconsider working with him or her. This is a sure sign that the lender has little or no experience or that he has no satisfied clients who are willing to speak to potential borrowers. Either way that is a serious red flag. Even when the lender does provide a list of references, understand that these are the clients who have had the perfect borrowing experience and are possibly real estate investors who bring a lot of repeat business to the lender. Take their information with a grain of salt. And take the time to check out the BBB and other Internet resources to see what borrowers are saying about the lender. This will give you an honest evaluation of the lender and his or her lending process. With all of this information, you can make a well-informed choice about who to use for your private lending needs.

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

Level 4 Funding Private Hard Money

Arizona, California, Colorado, Florida, Idaho, Oregon, Texas and Washington

Monthly Archives: February 2019

5 Reasons to Use a Texas Hard Money Lender

There are numerous reasons for a real estate investor to work with a Dallas Texas hard money lender.

If You Can Read This Post, You Can Get A Commercial Real Estate Loan

DIFFERENT TYPES OF ARIZONA COMMERCIAL REAL ESATE LOANS

When it comes to Commercial Real Estate Loans in Arizona borrowers have many options.

Why Would I Need an Arizona Bridge Loan?

BENEFITS OF A BRIDGE LOAN

A Arizona bridge loan is a fantastic way to get the funds you need to secure the down payment on your new home.

Commercial Real Estate Loans Made Simple

HARD MONEY COMMERCIAL REAL ESATE LOANS

The bottom line is that hard money loans are set up to be bridge loans. Bridge loans are “bridging” you from a temporary situation into a permanent situation.

See what a Fix and Flipper Does on Her Off Time

Aerial Drone Of Hard Money Loans

Can You Get a Small Business Loan with Bad Credit?

If your credit has been damaged and you want to start a business—you can still get a small-business loan with bad credit.

HOW TO FIND A PRIVATE HARD MONEY LENDER

Hard money lenders can help with small-business loans

Why a hard money small-business loan may be for you

Which Private Money Lender Is Best?

The definition of a private money lender is a non-institutional individual or company that loans money. This money is secured by a note and deed of property for the funding of a real estate transaction.

THE DIFFERENCES BETWEEN PRIVATE MONEY LENDERS

Types of properties that private money loans fund

Are You Eligible for Private Hard Money?

Borrowing from Texas Hard Money Lenders Successfully

Red Flags To Avoid When Seeking Arizona Hard Money Lenders

What To Look For In Arizona Hard Money Lenders

(It can be difficult to evaluate Arizona Hard Money Lenders if you are not an experienced borrower. But having a few tips to evaluate potential lenders can make the process less daunting.)

Be Sure The Lender is Legit

Get References