Monthly Archives: August 2019

Arizona fix and flip Vs Buy and Hold

August 31, 2019Uncategorizedbigdaddydennis

When you come across a property to use as an investment, you’ll have to decide whether to Arizona fix and flip or buy and hold. Here are some reasons why fixing and flipping using a hard money lender might be the way to go.

Investors have a decision to make once they’ve rehabbed a property. The main difference is whether you’re going to make income up front or whether you want an income stream to come in long term.

Below you’ll find an explanation of why one may work better for you than the other.

Buy and Hold

A buy and hold property is one that you’ll rehab and use as a rental. You’ll have property management costs if you choose to use a company to manage the property and maintenance costs. The goal of a buy and hold is to keep your costs to a minimum, so you have positive cash flow coming in each month. In this case you can still use a hard money lender to finance the purchase and rehab until you can secure long term financing.

Arizona fix and flip

Unlike a buy and hold, a Arizona fix and flip will be sold as soon as the renovations are completed, giving you instant cash flow to put towards your next investment. This can provide less stress with upkeep and monthly costs associated with a buy and hold.

So how do you decide whether to work with a hard money lender for a Arizona fix and flip loan or to focus on a buy and hold property? Here’s where having market knowledge will be helpful because some properties due to their specifications or location won’t bring in a high rental income. That should be a huge determining factor.

Also, if you aren’t able to buy the company with cash or obtain a loan that will give you low monthly costs that can be covered, and then some, by the rental income.

If you’re interested in making income from real estate you’ll want to research your options, get to know your market, and work with a knowledgeable team who can help you complete your renovation and then either sell the property or rent it out for top dollar.

To get more information on Level 4 Funding, a hard money lender, give us a call to set up an appointment to discuss getting your investment funded today!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

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

Use Your Hard Money Loan for a Property That Will Sell

August 31, 2019Uncategorizedbigdaddydennis

Your investment is only a success if you’re able to sell your property quickly and for top dollar. Using your hard money loan for a property that will be appealing to buyers is key.

If you speak to an experienced investor, they’ll tell you that they haven’t always had successful Arizona fix and flips. One pitfall that first-time investors can make is not choosing a house that even after renovation will be one that will attract buyers. Before securing your hard money loan you’ll want to research the property and make sure it will check the boxes for buyers.

Location, location, location!

Most buyers will have a desired area in which they will search for their home. If you’re renovating a home in an area that isn’t attracting buyers you’re going to have a hard time selling it once your flip is completed. Consulting with a real estate agent will help you focus on areas where homes sell quickly and for top dollar.

Know Your Market

In some cities smaller condominiums will be highly desirable where in other locations a 3 bedroom, 2 bathroom is the most sought after property size. This is also an opportune time to consult with a real estate agent who knows what’s selling easiest in the current market.

Cater to Your Audience

While it may be tempting to use finishes that will “wow” potential buyers, you want to keep the palette neutral. A brightly colored home may catch a lot of attention, but you’re drastically limiting who will actually want to buy your property. Use colors that are universal rather than going for what’s trendy right now. Chances are that the buyer may make changes to match taste so spending extra money on expensive hardware and landscaping won’t be a good return on investment.

Your hard money loan will help you buy your property, but your property choice is what will help you sell. To discuss your investment idea give Level 4 Funding a call today!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

Choosing a Contractor 101

August 31, 2019Uncategorizedbigdaddydennis

Taking out a hard money loan to Arizona fix and flip a property will make you the most money if it’s done on time and correctly the first time. Here are some tips for choosing a good contractor for your investment.

We’ve given you tips on how to choose a hard money lender, but once you have your loan it’s time to choose a contractor to complete your Arizona fix and flip. This is just as important as choosing a good hard money lender because your Arizona fix and flip needs to be done on schedule, on budget, and without corrections needing to be made.

Here are some tips you can follow to ensure you’re hiring a great contractor for your investment property!

Ask the Hard Questions

You’ll want to interview contractors just like you would your Arizona hard money lender. Ask them about past projects and ask for references. You want to hear first hand that they’ve completed projects on time and without going over budget from people who have actually worked with them in the past.

Present a Scope of Work

You’ll want to have an organized and well laid out scope of work to show your potential contractor. If all you can present is a theoretical idea of what you’d like done to your home, it’s going to be hard to get a legitimate estimate.

Compare Bids

The cheapest isn’t always best. You’ll want to get detailed bids based on your scope of work and compare the itemized projects you want completed.

Once you have all of this information collected you can make a well informed decision of which contractor will not only be able to complete your project, stay within your budget, and know that they’ve been successful in the past, but you’ll have met them and know if you feel you’re going to work well together.

We hope that these tips will help you select a great contractor for your next investment property. If you’re ready to select your Arizona hard money lender, call Level 4 Funding today to schedule an appointment!

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

111 Congress Ave | Austin | Texas | 78701

Steps to Getting a Hard Money Loan

August 31, 2019Uncategorizedbigdaddydennis

Obtaining a hard money loan is different that working with a traditional lender. Here’s what to expect when obtaining a hard money loan for your real estate investment project.

Whether you’re looking to invest in a commercial property or a residential Arizona fix and flip, a hard money loan will allow you to purchase the property quickly and without the red tape that can be a road block to obtaining a traditional loan.

Because hard money loans are based on different factors and isn’t funded through a bank the process will be different than if you were applying for a home mortgage. Here are the steps to obtaining a hard money loan that you can expect!

Step 1: Interview and Presentation

The first step will be to interview the lender and present your plan for the Arizona hard money loan. This is your opportunity to vet the lender for your own peace of mind and for them to know that your investment is a good funding opportunity.

Step 2: Underwriting

This part of the process is where the lender will review your project plan and appraise the property for its After Repair Value, determining how much they can lend on the property. If the underwriter approves of the investment project they will move the loan to the funding step.

Step 3: Loan Funding

For the loan to close and be funded the borrower will need to sign documentation so that the property can be purchased, usually via a wire transfer of the Arizona hard money loan, and the loan can be settled.

Step 4: Loan Draw

A schedule will need to be determined by both the borrower and the contractor to fund the actual project, creating an allocation timeline of the Arizona hard money loan.

Step 5: Payoff

Last but not least, you’ll pay off your Arizona hard money loan following the sale of your property!

Once you’ve completed all 5 steps of your Arizona hard money loan it’ll be time to find your next investment! Give Level 4 Funding a call today to see if we can work together on your next project!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

Study Up! Here are Hard Money Lending Terms to Know

August 31, 2019Uncategorizedbigdaddydennis

If you’re new to hard money lending and investing through private money loans you’ll want to know some of the terminology so you can speak to lenders to determine project funding.

Veteran investors will tell anyone who’s new to the game that it’s incredibly important to know the lingo when you are going to interview your first Arizona private money lender . Your first investment experience can be intimidating, but if you study up on these terms you’ll feel confident in presenting your project and being able to respond to the questions that the Arizona private money lender will have for you.

· After Rehab Value (ARV) – What the house is expected to be worth after renovation

· Appraisal – A professional’s valuation of the property in its current condition, and its potential value after rehabilitation

· Crowdfunding – A group of lenders who work together to fund a loan

· Default – The inability to meet the terms of a loan

· Escrow – The account that holds funds in between lender payment and borrower withdrawal

· Lien – A legal entitlement to an asset

· Liquidity – How quickly an asset can be sold

· Loan to Value (LTV) – It is a number found by dividing the loan amount by the appraised value

· Maturity/Loan Term – When the loan is contractually expected to be paid off

· Proof of Funds – A document that a borrower uses to show available funds

· Return on Investment (ROI) – The ability for an investment to make money beyond what has been spent

· Title – Legal proof of ownership of an asset

· Underwriting – How lenders determine whether a loan should be funded by comparing project plans to potential profitability

These are some of the most common terms that you will come across when speaking with a Arizona private money lender when you’re discussing a potential investment project. If you are able to understand and use these terms in conversation while pitching your project you will have a leg up on other first-time investors who aren’t able to talk the talk.

If you’d like to set up an appointment to pitch us your Arizona fix and flip investment project, give Level 4 Funding today. We’d love to hear your plan and see if we can work together to make your investment dreams come true!

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

111 Congress Ave | Austin | Texas | 78701

3 Pitfalls of Arizona fix and flip Investments

August 31, 2019Uncategorizedbigdaddydennis

To get the most out of your private money loan you’ll want to avoid these 3 things in order to bring yourself the most success with your investment.

Arizona fix and flips need to be carefully planned and executed in order to bring the highest return on investment possible. There are a lot of moving pieces and each needs to be managed so time schedules and budgets don’t get away from you. There are a few problems that investors run into that can kill the proceeds on a Arizona fix and flip.

To make sure you can pay off your private money loan and then some, stay away from these 4 pitfalls of Arizona fix and flip investments.

Pitfall 1: Not Having Support

If you aren’t going into a Arizona fix and flip with a great team behind you, you’re going to run into issues. You want to have a stack of trusted vendors at the ready so you can address things when they happen. Most Arizona fix and flip teams will consist of a contractor, lawyer, realtor, and lender to fund the private money loan. Having backups will also be helpful in case your go-to person isn’t available when you need them.

Pitfall 2: Not Scrutinizing Your Contractor

The general contractor you work with for your Arizona fix and flip is arguably the most important person on your team. The contractor can make or break your Arizona fix and flip by either keeping you on schedule or getting behind, sticking to your budget or overspending. You should be vetting your contractor by interviewing past clients and, if possible, visiting past work sites to see their work.

Pitfall 2: Holding the Property

We know that once you’ve completed your flip, you want to get top dollar on the sale. You may even have some emotional attachment to the property that you have spent weeks or months renovating. That being said, you want to get an acceptable offer and move forward quickly. If you hold out for an extended period of time just trying to get a few more thousand dollars out of a buyer, you can end up losing money on monthly expenses like HOA and utilities.

We love to work with investors who have plans for a successful flip and would love to hear yours. Call Level 4 Funding today!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

Buy and Hold Properties: Get Yourself Great Tenants

August 31, 2019Uncategorizedbigdaddydennis

A buy and hold property can bring great long term income, but only if you get great tenants. Here’s some ways to make sure you’re selecting tenants using proper criteria.

Many investors focus on Arizona fix and flip opportunities but there is also the prospect of holding a property beyond your initial Arizona hard money loan, obtaining a traditional loan for the mortgage, and take in long term rental income.

A buy and hold property is only as good as the tenants who reside there. Your selection criteria should help you determine who is going to be a stable occupant who will be able to meet the terms of your rental contract.

Make Your Selection Parameters

Here are a couple of things you’ll need to consider when outlining your selection criteria:

· Ideal income to rent ratio

· Minimum credit score

· Background check result considerations

· Personal and rental references

Pre-Screen to Save Time

You don’t have to carefully consider every potential tenant which can waste your time and theirs. Some will show red flags straight away. Getting them on the phone and asking a few up front questions can help you narrow down who is most suited for your property. You’ll still have to run credit and background checks, but if they tell you from day one that they have less than ideal credit, you can cross them off the list.

Perform Due Diligence on Applicants

We would like to think that everyone will provide completely truthful information on an application, but that isn’t the reality. You’ll want to confirm employment and references for accuracy.

In order to obtain a buy and hold rental property it may be best to use a Arizona hard money loan prior to qualifying for a traditional loan. Hard money lenders like us can fund in as little as a week so you can get started on any rehab for the property and get tenants in as quickly as possible. Call us today to find out more about securing a Arizona hard money loan!

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

111 Congress Ave | Austin | Texas | 78701

Bad Credit? How Arizona hard money loans can help

August 30, 2019Uncategorizedbigdaddydennis

A single solid real-estate deal could help you clear up a boat load of old debt, but if you have bad credit you can’t invest in real-estate, right? Because Banks just don’t give financing to folks with double digit credit scores. Well even if your credit score happens to be 75, you can still invest in real-estate with the help of something called Arizona hard money loans.

Conventional wisdom is that the last thing a person with bad credit should do is get into more debt. But, conventional wisdom is often wrong. Conventional wisdom once said that leeches could cure the plague.

In truth a single sound investment could change your financial future and Arizona hard money can help fuel the cost of these investments.

Even with bad credit, Arizona hard money lenders can give you a loan

Most lenders consider your credit score above all else, but Arizona hard money providers really only care about one thing-collateral. So even if you have a credit score of 75 a Arizona hard money provider could still fund your deal if you have a decent down payment on hand and your deal has enough potential.

A quick search about Arizona hard money will reveal high interest rates, balloon payments-scary words especially for someone with financial difficulties. You might be thinking ‘so these guys don’t care about credit, and they’ll give me a six month loan at 12 percent interest, it sounds like a scam. Given terms like that why don’t I just go get another credit card to pay off my debts?”

The fact of the matter is, Arizona hard money is a legitimate business,. In fact, Arizona hard money is the go-to form of financing for those in the flipping business.

Now you might be thinking “since when was flipping houses a sound financial strategy?”

Flipping houses with the help of Arizona hard money loans could be a path to financial freedom.

Arizona hard money can help you resolve your credit issues, because a single solid flip could earn you tens of thousands of dollars.

However, there’s a right and wrong way to go about this.

The right way to use Arizona hard money would be to perform all the due diligence possible, have a clear understanding of what a property will go for after you fix it up, have a clear timeline for your renovations, fix up the property, sell it and then use the resulting profits to pay off your initial Arizona hard money financing and your remaining bad debts.

The wrong way to use Arizona hard money would be to purchase a distressed property, with no understanding of what it will go for after you’ve fixed it, or how long your renovations will take.

So Arizona hard money isn’t too good to be true, because flipping is hard work, and above all it is certainly not risk free.

But what sounds better to you- fixing your credit issues through decades of penny pinching or resolving them in a couple months by flipping a single house?

If your willing to take that risk Arizona hard money can help.

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

111 Congress Ave | Austin | Texas | 78701

3 Tips to risk less when it comes to new construction loans

August 30, 2019Uncategorizedbigdaddydennis

When building your dream home it’s easy to lose sight of the details especially when it comes to financing. While managing the day to day grind on the work site, the last thing you need to worry about is your loan. You wont have to worry if you follow these 3 simple tips to risk less when it comes to new construction loans.

The first tip is to have refinancing secured ahead of time.

These sorts of loans are almost always short term arrangements with terms usually no longer than twelve months.If you don’t plan on selling your shiny new house, you’ll need to have money to pay off your initial lender. So ideally before any work starts you should have a long term lender in mind and have refinancing worked out before your initial loan comes due.

Another thing you need to know about with construction loans is something called the draw process.

New construction loans Arizona are given in draws; the second way to risk less is to have a clear plan

The next tip is to have a plan and stick to it. I know it seems obvious, but when it comes to construction loans following this bit of advice is crucial. You see the funds from construction loans are given bit by bit, usually on a monthly basis to cover the cost of work over a given period. So you need to have a clear, well-budgeted plan for each phase of construction to ensure you’ll have enough money on a monthly basis to keep work going.

If you don’t plan each phase of your project carefully, one month you might not have enough money to pay your contractors. What happens then?

Work stops until your next draw is given, and with your project set back by a week a month or more, your loan could come due before construction is finished.

If you ignored our first tip, the fact that your home remains unfinished will prevent you from refinancing. Then your initial lenders going to foreclose on your dream home before you ever set foot in it.

As you can see a lot can go wrong when it comes to construction loans. Which leads us to our next tip:

With new construction in Arizona loans you need flexibility, so the third tip is to have a lender you can work with

The next tip is have a lender you can work with. Don’t just do a quick online search and get a construction loan from someone you’ve never met.

Why? Well, theres a couple laws of nature: What goes up must come down, and if you have a plan something will go wrong.

Lets say some crucial materials, pipes or insulation, get damaged before they can be installed, and your supplier refuses to give you a refund. You might call that big national construction lender, requesting more money, to which they might say “sorry a deals a deal.” Without that extra money, you’re entire plan is thrown out the window. Your house will sit unfinished, again this will keep you from refinancing and that impersonal lender who refused to negotiate with you will foreclose. So get a lender you can work with.

Because a lot can go wrong in a construction project, and the last thing you need to worry about when building your dream home is your loan. So follow these three tips to risk less: have refinancing in place ahead of time, have a clear work schedule and have a lender you can work with.

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

111 Congress Ave | Austin | Texas | 78701

3 Reasons why Arizona hard money is best for rehab loans

August 30, 2019Uncategorizedbigdaddydennis

A recent episode of flip or flop might have convinced you to start flipping houses. But as the credits roll you realize you have a problem, you don’t exactly have a stash of gold bars buried in the back yard, so to get started in the flipping business- you’ll need financing. Where do you start? This article will tel where not to go and where to go to get rehab loans.

Those just starting out in the flipping business might think that their local JP Morgan Branch office will finance their first deal. Why not, if you’ve planned your project carefully, have a decent downpayment and have a good credit score, why wouldn’t your local bank give you a loan to flip your first house?

Well there’s really only one reason-

You cannot get Arizona rehab loans from banks.

Getting a rehab loan from a traditional bank is impossible. God himself might have spoken to you in a vision and said ‘if you flip it they will come,’ but still a bank wonk give you money for a flip. Period-end of discussion.

This is because banks fund their loans by selling their mortgages back to the government, which means a whole lot of bureaucracy comes into play when it comes to the condition of the home you intend to purchase. Basically any property you finance through a bank, has to be as close picture perfect as possible, and if you want to flip a house, this wont be the case.

So if banks don’t offer loans to flip houses, who does?

Heres 3 reasons why you need to go to Arizona hard money provider first when getting rehab loans

Arizona hard money is a loan given by a private lender based on the value of the hard asset (i.e. The house you intend to flip). These sorts of lenders specialize in funding flips, its their main game.

You might be consider other ways to finance your flip, like going to your relatives, but heres 3 reasons why Arizona hard money is your best bet if you want to get into the flipping business:

• Property condition isn’t a factor- The first house you want to flip might have one out of four walls left standing, but if you have a solid plan a Arizona hard money provider can still fund this sort of deal.

• No bureaucracy- Most Arizona hard money providers don’t answer to anyone but themselves. Without bank bureaucracy things like your down payment and interest rate are up for negotiation, which means you can get a better deal.

• Loan terms make sense for a flip- Arizona hard money is short term, with terms which don’t usually go over 12 months. No solid flip should take more than a year.

Speaking of loan terms, if you’re new to the flipping business you might see those double digit interest rates and be ready to spit up your lunch. In truth is, those high interest rates wont matter if your deal is good enough.

If you end up paying 2 K in interest, but earn 40 K in profit from a flip, a couple grand is nothing.

So in short if you want to start making money in the flipping business, you need Arizona hard money.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701