Monthly Archives: September 2019

5 Secrets of People Who Use Loans to flip houses in Arizona and Get Rich

Not all people who do rehabs turn it into a profitable enterprise. However, those who do use loans to flip houses and get rich doing it have a few tricks they apply to every project.

1. They work with the same people to get their loans to flip houses in Arizona every time. Once you establish a relationship with a lender, you can eliminate some of the work associated with getting funds down the line. This is particularly true when you’re working with private money and your broker is the one going to bat for you for each round of funding.

2. They know their numbers. The seasoned pros who make a ton of cash doing it always know their numbers, from the value of a property through all anticipated costs, and what the property will sell for after.

3. They don’t get emotionally attached. Especially if you’re new to investment properties, you may have the tendency to get fixated on a particular one. Perhaps it’s in a great location or is going for an amazing price. Maybe you’ve already done the rehab in your mind a thousand times. Unfortunately, something that seems great can go south for lots of reasons; the seller can be fickle about pricing or you might discover it needs more work than you initially thought, resulting in a thin profit margin. Those who become wealthy from flips walk away from these sorts of deals and don’t look back.

4. They get a property sold before it’s done. From the onset of a project, great flippers are networking, talking about their project on social media, sharing photos, and chatting up neighbors as they visit the home. Quite often, the buyer is a friend or family member of someone who already lives in the neighborhood, so word-of-mouth gets it moved fast and the project concludes without a hitch.

5. They expect issues and delays. Problems aren’t problems at all to the seasoned home rehabber; they’re expected and planned for. There’s always extra cash set aside for issues and a bit of wiggle room in the timeline to allow for delays.

People Who are Successful Risk Less by Knowing More

There will always be some variables you cannot account for. For example, you may think everything looks great, but pull up old carpeting to replace it and realize there’s flood damage that was not disclosed by the seller. This is where expecting issues and delays comes in and making sure that when you get loans to flip houses, you’ve got a financial cushion to dope with the unexpected. However, those who do best spend time getting to know the industry and each property, then crunch the numbers before making a decision.

If you think like a winner, you’ll have success too.

Whether you plan to use loans to flip houses in Arizona to get a single property going or you’re in the process of building a strong portfolio, wealth will be built in steps. This isn’t a sprint to the finish, but rather a marathon you’ll train for. Gold medalists don’t become one overnight. They have trainers, they study their craft, and even focus on the little details that can give them a competitive edge, like nutrition. The more you train, the stronger you will become, and that’s what will bring in the cash.

                        Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Why Hard Money Loans are Interest-Only and What that Means to You

One of the biggest questions people have is, “Are Arizona Hard Money Loans interest only?” Generally speaking, they are, but you should know the benefits and pitfalls before jumping in.

One of the most misunderstood forms of financing is Arizona Hard Money Loans. Unlike traditional lending options offered by banks, these deals are most often financed by individual people, so you’ll also hear the concept referred to as private money. It’s leveraged quite a bit in the real estate industry. For example, someone in the fix-and-flip business might source funds this way. A real estate investor who intends to hold his property after fixing it might also use one at the onset of a project and then apply for traditional funding later. In these cases, you may also hear it called a bridge loan.

The terms offered will vary based on a number of factors, including who the lender is and what you’re bringing to the table as well as what you need. However, in a typical situation, you’d be offered funds for a short period of time, such as 1-5 years, and during that period, you would make payments toward only the interest. When the agreed upon period ends, you’d be expected to pay off the full amount.

One other major difference is that the loan is usually secured by the property, and the amount made available to you will vary based on the value of it. The ratio is referred to as loan-to-value, or LTV. For example, if you found a property worth $100,000 and you managed to pick it up at auction for $70,000, and you got all your funding to make the purchase from a lender, your LTV would be 70%.

You Need to Have an Exit Plan to Be Successful

The reality is that Arizona Hard Money Loans aren’t ideal for every situation. Making interest-only payments can be great if you need to have more cash on hand for the duration of a project, perhaps even essential. However, you have to have a way to pay off all the principal at the end. Your loan balance will not decrease, meaning if you took out that $70,000 loan to purchase a fix-and-flip, and you do interest-only payments, you’ll be paying $70,000 when your time is up. That makes sense in an industry like fix-and-flips, where you’ll be selling the home for profit after the work is done and you’ll have a natural exit. You simply pay off the loan you took out when your payment comes in. It also makes sense if you know you’ll qualify for a conventional loan before your principal payment comes due. This might be the case if the state of the property was such that it couldn’t originally qualify or if you couldn’t wait around for funding and needed to close quickly to seal a deal.

Know how to evaluate your options and choose the best financing for the situation.

People like Arizona Hard Money Loans because they get funded fast, don’t rely on solely credit, and allow the borrower to make interest-only payments. Seasoned real estate investors often start out solely using them and then transition to other options as their credit worthiness increases. But, they will often go back to the same lender when time is of the essence or a property is in such ill repair that it won’t get funded by traditional methods. The bottom line is that it pays to be familiar with multiple forms of financing and choose what’s right for you based on the situation at hand.

                    Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Top 5 Reasons People are Denied Arizona Business Loans

Roughly 77% can’t get Arizona Business Loans and lines of credit at all or in meaningful amounts. If one or more of them is holding you back too, you still have financing options.

The Small Business Credit Survey is an annual publication produced by the 12 Federal Reserve Banks. The latest version indicates that of those who apply, 23% don’t get any kind of financing and 54% don’t get the amount of cash they need. These shortfalls can effectively shut down a company or stunt its growth. Oftentimes, banks cite one or more of five main reasons for denials.

1) Insufficient Credit History: The greatest cause for financing shortfalls for small businesses is not having established credit. This impacts 36% of those who apply.

2) Insufficient Collateral: When credit isn’t enough to obtain financing, sometimes people can use assets as collateral. However, 35% of shortfalls in financing are impacted by lack of assets.

3) Too Much Debt: The survey found that 30% of businesses don’t get the funding they need because the bank thinks they have too much debt to be able to make good on additional payments toward Arizona Business Loans.

4) Low Credit Score: In all 27% don’t have a good enough credit score to qualify for the loan they need. The numbers skyrocket if the lender considers you to be medium risk or high risk, with just 29% and 10% being fully funded, respectively. To clarify, you would have to have a minimum business credit score of 80-100 or a personal credit score greater than 720 to NOT fit into one of those categories.

5) Weak Business Performance: The last measurable segment includes those who are operating underperforming businesses, which could very well be weak because they lack capital. Even still, this ranks among the reasons for not being offered cash 22% of the time.

Arizona Hard Money Lenders Can Lend a Helping Hand When Banks Don’t

Given that lack of collateral only impacts 35% of small Arizona Business Loans, the approval rate could theoretically be as high as 65%, yet just 23% are getting all the funding they need. This means it’s not lack of collateral holding business owners back, but issues like credit, debt, and business performance. Yet, everybody knows it takes money to make money. The simple answer to getting around most denials: hard money.

If you’ve got collateral, you can get your company the capital it needs to be successful.

Arizona Hard Money Lenders are different because they care more about the value of the collateral than they do about all the other common factors that result in denials. In other words, it’s easier to get Arizona Business Loans this way and a greater number of people will qualify for them—including those who have already been denied by banks. The terms are a little different too. Instead of taking out funds for an extended period of time and paying on the interest and principal each month, you’ll likely have the funds for a year or two, making interest-only payments for the duration and paying off the principal in the end. If you think a hard money loan is right for you, talk to a broker to find out what kind of terms you qualify for.

                Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

ALL ABOUT RENOVATION LOANS

You have heard about fix and flips—buy a house, renovate it and sell it for a profit. The first step is find a property—the next step is financing.

You find a property at a great price in a good location and you just know you can get it in tip-top shape and make a killing on a sale. There is only one problem—you need financing. You’ve heard that hard money lenders are typically where investors get their financing. But, you haven’t ever done this before and need a quick rundown of the process. This article will walk you through the steps of getting financed for a fix and flip project.

All hard money lenders are different and have unique requirements for financing renovation loans. Certain lenders loan on a percentage based on appraised value and there are others tend to loan on a percentage based on the purchase price of the property. When you meet with your chosen lender they will give you a complete breakdown of their fees and terms—this will include interest amount, loan points and all closing costs. Closing costs will include all document fees, notary fees and escrow fees. The lender will explain clearly what that means to you and your financial obligation.

There are 7 basic steps of the hard money lending:

1. Get pre-qualified—This consists of finding out the requirements of the lender and applying for the loan. The application process is simple and straightforward. It typically takes about 15 minutes to become pre-qualified.

2. Search for a property that has a price you can afford and is in a good location and get it under contract.

3. Contact you lender and give them: the contract price, estimated cost of repairs and give them an idea what you believe the after repair value will be.

4. Your lender will typically send their appraiser out to the property, but occasionally they will give you a list of approved appraiser and you then are5 responsible to get the assessment done and to the lender.

5. The lender will ask for any documents that need to be verified. It is your responsibility to get the documents to your lender quickly.

6. At this step your terms and rates will be agreed upon with your lender.

7. You close your loan and buy your property

Renovation loans typically include any rehab costs, as well.

When you receive your loan based on ARV you will have more money than the purchase price. This is how it works. If you’re lending 70% ARV and the purchase price is $95,000—and your ARV is $155,000 you will receive $108,500 funding. Hard money lenders will lend more for renovations on a job by job situation.

               Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

HARD MONEY LOANS ARE A GOOD OPPORTUNITY FOR BORROWERS WITH BAD CREDIT

If you have damaged credit and want to get a home loan you have options available to you.

Traditional bank home loans are fully dependent upon the borrower’s credit-worthiness and income to qualify for the loan. Hard money lenders, on the other hand, take a different approach. These lenders base their lending decision on the value of the property. Hard money lenders are willing to take risks on people who have made financial mistakes in the past.

A hard money lender is a private individual or corporation that is not affiliated with a traditional lending institution– such as a bank or credit union. Hard money lenders use the purchased property as collateral; meaning in the event the borrower defaults on their payment, the hard money lender takes back the property and resells it to another buyer. To the hard money lender, the value of the property is more important that your financial situation.

Hard money loans are terrific for borrowers with bad credit. This goes for borrowers with low credit scores, bankruptcies and foreclosures. Generally speaking, hard money loans have shorter terms– three to five years at most. However, today there are lenders who will grant longer loan terms. Because these rates are higher than a conventional mortgage borrowers won’t want to stay in a hard money loan for a long period of time. They are perfect for borrowers that will be able to work on their credit and then transition into a traditional loan.

Why would borrowers with bad credit want to use these loans? Hard money loans have quick approval. Because the lender is concerned about the value in the property versus the financial situation of the borrower these loans are typically closed within a week. If a borrower continues to work with the same hard money lender, closing time can become even quicker. Because hard money lenders don’t have the same underwriting process as banks and look at each deal on an individual basis they can be more flexible. Borrowers are typically able to change the payment schedule and loan terms. These are individual lenders or small companies so there is room for them to be more flexible and negotiate. It is important that potential borrowers know they will most likely not be approved for 100% of the property value. In fact, most hard money lenders don’t lend more than 70% of the property value. A borrower must be prepared to put down 30%. Putting cash down protects the lender in case of a default. Lending to people with bad credit is a significant risk for lenders.

Hard money lenders give borrowers with bad credit an opportunity to buy property while helping raise their credit score.

Yes, borrowers will have a higher interest rate when taking out a hard money loan. However, if they want to own their home this is about the only way to get financed. The other choice is to continue throwing their money down the toilet on the first of each month while paying rent. Hard money lenders give people with damaged credit a chance to build their credit and own their home.

         Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

EVERYTHING YOU NEED TO KNOW ABOUT HARD MONEY LOANS

There’s a lot to know when you are considering taking out a hard money loan.

Hard money lending rates, which are also known as private money loans, are set by each individual lender. These rates can range from around 7% to upwards of 15%. Hard money loan rates are not set by the prime rate—instead they are influenced by the equity in a property and the risk involved for the lender. Hard money loans also have flexibility which gives the lender the ability to set their own rates. This flexibility also gives them the power to fund loans that traditional lenders would deny. Just as the rates are set by individual lenders so are the minimum and maximum loan amounts. Loan amounts are not set by the FHA—they are determined by the lender when looking at risk assessment, the LTV (loan to value) and the ARV (after repair value). Certain lenders in certain situation will loan up to 90% of the ARV and, or the LTV.

The LTV is the biggest determining factor when it comes to the lender’s risk. The risk becomes less as more of the borrower’s own money is invested. In fact, it should be noted that first time borrowers should be prepared to come with at least 20% down. Lenders want to see investors that have skin in the game. The more experience the borrower has, the more comfortable the lender will be when determining loan rates and terms.

Hard money loans typically fund two types of properties—fix and flips and and investment properties that investors may rent. However, these are not the only loans that hard money lenders will fund. They will fund small business loans and primary homes, as well. In the case of a primary home they are typically funded to borrower’s with poor credit that are planning on transitioning into a conventional mortgage at the end of the loan.

Hard money loans give investors an opportunity to compete with cash buyers. The approval process is very quick on hard money loans. The application process is simple and typically take less than 10 minutes to complete and generally are approved after a short conversation with the lender. Most loans are funded within 2 weeks. A seller wants a quick closing date and that will happen with a hard money loan. Conventional loans typically take an average of 45 days to close and at that point the borrower can easily lose the property.

Hard money lenders can help investors, businesses and borrowers with poor credit.

This article gives the reader a general idea how hard money lenders approve borrowers and what type of properties they typically fund. For more information on hard money loans 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

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

ALL ABOUT PRIVATE MONEY LENDERS

Private money lenders issue short-term loans for investment properties. These lenders are non-institutional lenders that are sometimes referred to as “hard money lenders.”



Private money lenders typically work with real estate investors looking to purchase and renovate a property; this is also known as a fix and flip. However, private money lenders can help in other situations, as well—such as log-term buy-and-hold investors. Private money lenders can come from a variety of circles— they can be family members, colleagues and acquaintances and, the largest branch—investors and hard money lenders. Basically, a private money lender can be anyone, other than a traditional lender, that is willing to loan money on a property. Because friends and family members can arrange any type of term under the sky with a borrower—in this article we will focus on hard money lenders.

Investors work with private money lenders for two main reasons: short-terms and quick cash. Competing with an all cash buyer is difficult if you don’t have cash yourself. Typically, private lenders will have funds available to the borrower within 10 days. Sellers are aware of how hard money operates and so they are armed. With the knowledge that rarely are there any setbacks when entering into a deal with a private money lender. Bottom line—they know they will get their money and get it quickly.

Investors tend to work with private money versus banks and credit unions because of the short terms. An investor wants to buy a property and sell that property. They don’t want to keep it for years—typically, just a few months. These loans have terms between 6 months and 3 years and interest rates range between 7% to 15%. Generally, private loans don’t carry an early payment penalty, which is great for an investor that sells earlier than expected.

However, there are other reasons borrowers choose to work with a private money lender. Long-term investors that are unable to qualify for a conventional mortgage, but plan to work on their credit and will refinance once those qualifications are met will benefit from the less rigid qualifications of a private money lender. Buy-and-hold investors who are looking to rehab a property before refinancing with a conventional loan can benefit from the flexible terms these loans offer.

Interest on a private money loan is generally assessed as interest only payments. What that means is the borrower will only pay interest throughout the life of the loan and pay a balloon payment at the end of the loan. It is not uncommon to see that, although the interest rates on private money loans are higher than a conventional mortgage, the monthly payments will actually be less. This would be helpful in a situation such as a buyer that is waiting for their house to sell and can’t afford to pay two mortgages.

Family members, colleagues and acquaintances can all work as private money lenders.

It’s not always a good idea to mix money with friends and family—especially if this is a first time investment or you’re in a pinch financially. Many times it is best to work with someone where it is strictly business and in that case a hard money private lender is the best bet.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

WHY USE HARD MONEY?

Why would anyone need a hard money loan and what is the difference between a hard money loan and a traditional loan?



Hard money lenders take a different approach than traditional lenders. While traditional lenders base approval upon a borrower’s credit score and income—a hard money lender basis their approval upon the value of the proposed property. The hard money lender’s collateral is in the property. In any case of non-repayment the hard money lender will simply repossess the property and sell it to gain their return. There is risk involved for these lenders. Not only will they work with bad credit; they are also working on deals that could easily flop. Take for example a fix and flip loan: an investor finds a property that he wants to rehab. He finds a great property that he believes he can make a 150% profit. He has a great business plan and the house is in a very sought after neighborhood. The hard money lender approves his loan. All is good until an unforeseen event occurs and the investor doesn’t complete the renovations. Now, the loan terms have run out and his balloon payment is due—he disappears.

Because of the larger risk that hard money lenders are taking and because of the shorter terms of the loans (we will get into that in a minute) they charge a higher interest rate than a conventional mortgage. Hard money loans tend to run anywhere from 7.5% to 16%, depending on the lender.

What is beneficial about hard money loans? A lot. We have already discussed bad credit. Flexibility. Hard money agreements are much more flexible than traditional loan agreements. Hard money lenders do not use a standard underwriting process. Not using this standard they are able to look at loans on an individual basis versus just looking at numbers as large corporation do. Depending on the situation, it may be easy to change repayment plans. Need money quick? Another benefit to hard money. Unlike conventional loans that can take up to 90 days—30 if you are lucky—borrowers can be approved within minutes and fully funded within ten days. This is helpful to investors that are competing with cash buyers. A seller will always take a cash deal over waiting up to 90 days for their money. In fact, sellers enjoy working with hard money because they know the deal is going to go through—there aren’t going to be any hang-ups that can delay closing.

Is a hard money loan right for you?

That’s simple. Are you looking for a home to live in for years to come? Do you have good credit and a solid income? If the answer is yes then a hard money loan isn’t right for you. Are you in need of rebuilding your credit, but want to purchase a home? Are you an investor in need of financing to fix and flip a property? Are you a business owner that has a few dings on your credit, but want to expand your business? If you answered yes to any of these—then, the answer is, a hard money loan is for you.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

THE BASICS OF HARD MONEY LOANS

In simplest terms a hard money loan is a way to borrow money without using a traditional lender.

If you have ever gone through the approval process of a traditional lender then you are already aware it is a painfully slow process. This is even the case when it comes to borrowers with platinum credit scores and plenty of income. And, if you have any negative marks on your credit or not enough income to please your lender then you are in for an even worse ride.

Hard money loans  are loans that come from private investors. These investors lend their money based on the property you want to purchase as collateral. Hard money loans  happen quickly; typically only taking 24-48 hours for approval. Many borrowers turn toward hard money lenders when traditional lenders don’t approve them.

All lenders require proof that the loan can be repaid. Traditional lenders are interested in your credit score, your income and your job security.They look at your debt-to-income ratio; and if all that looks great then you’ll be approved for a loan. You’ll receive your money anywhere from 45 days up to 90 days. Although, you will get the best interest rate using a traditional lender, it will not happen instantly. Hard money lenders work differently than traditional lenders. They lend based on collateral securing the loan. If anything goes wrong and you are unable to pay they simply take the property. To a hard money lender your collateral is more important than your finances and credit. Hard money loans are typically more flexible than traditional loans. Hard money lenders do not use a traditional underwriting process. They look at each deal individually; this allows the terms to be much more flexible than a loan from a bank or credit union.

There are countless benefits to using a hard money lender versus a traditional lender.

Most people who have gone through bankruptcy or foreclosure, even have a low credit score, feel like they are stuck. A hard money lender can work with you regardless of your situation. Hard money lenders are real people; people you can speak to on the phone and stop by the office—unlike traditional lenders where you are dealing with different teams of people. A hard money lender wants to know your story and can work with you to make your dreams become reality; whether it’s to fix-and-flip a home or you need commercial real estate help. These are typically short-term loans that run from two to five years. If you have bad marks on your credit, have run into any financial problems or you just need money quickly a hard money loan could be the answer for you.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLCDennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Fix and Flip Vs Buy and Hold

When you come across a property to use as an investment you’ll have to decide whether to fix and flip or buy and hold. Here are some reasons why fixing and flipping using an Arizona 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 stil use a Arizona hard money lender to finance the purchase and rehab until you can secure long term financing.

Fix and Flip

Unlike a buy and hold, a 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 Arizona hard money lender for a 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 Arizona hard money lender, give us a call to set up an appointment to discuss getting your investment funded today!

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

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

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions