Monthly Archives: January 2020

Investing in Deeds of Trust: Should You Use a Broker – and Why?

If you are interested in investing in deeds of trust, you will discover that a great deal of the money involved comes through private lenders or Hard Money Lender. The terms are frequently used interchangeably, but there are differences between the two. Hard money is sought in the actual financing of a real estate project, while private funding is based on the property value, termed asset-based lending.

Simply put, with trust deeds an investor funds a developer currently working on a real estate project, with their name put on the deed as the lender. Interest is collected by the investor during the life of the project. When complete, the principal is set to be repaid in full.

Banks generally do not go out of their way to cover this type of investing, while private money lenders are more open to it. It is a positive practical thing for investors, especially those new or just beginning in this field, to use a private money broker in order to help insure the best return and the least risk they can find.

Trust deeds, in the past termed ‘alternative investing’, are not easy to manage since there are so many factors involved and opinions have to be obtained and considered from each of these. Time is another consideration—payoffs range from six months to ten years—there is no 30-year fixed period as in the mortgage field. These investments have a very wide range of risk factors and are difficult to price as a result.

Working with a well-known experienced broker when investing in trust deeds can be not only advantageous, but a critical factor since the details and structure of a private loan–qualification, terms, fees and rates–can range widely. Three top reasons for using a broker are as follows:

  1. While lending money to only one or two borrowers might seem less stressful, a broker can provide you with more options, is possibly safer and more reliable than do-it-yourself.
  2. An experienced broker will have the needed ability to assess current market conditions and determine if a borrower’s background is the best person for you to lend money to.
  3. Brokers know the investment opportunities available and are able to base them using the type loan, kind of property and location, loan to value percentage, etc.

These type investments can, with a secure loan from a good borrower, however, have a reliable payment coming in on a monthly basis, allowing the lender to have a secure income even as other financial markets are rising one day and dropping the next. Again a good broker can point you in this direction when you might not be able to find the best set up by yourself.

Make certain you understand the different sorts of loans and all conditions available when investing in deeds of trust. Choosing the right broker who has the knowledge and expertise you need can be your best asset.


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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

5 Reasons to Seek Loans from Arizona Commercial Hard Money Lenders

You might be thinking of going to a regular bank to get your loan, but if you choose to seek your credit from Arizona Commercial Hard Money Lenders, you might be able to snag a few benefits.


Arizona Commercial Hard Money Lenders base the approval for your loan on assets, usually those concerning real estate, rather than your credit score, income, tax returns, and other data. If you’re looking to get a loan for a new property, you might want to go down this avenue for a number of reasons.

Why You Should Seek a Commercial Hard Money Loan

There are a number of benefits to choosing a commercial hard money loan over a regular mortgage or bank loan. These can be broken down into five significant advantages.

1. The basis for approving your loan is not associated with the many issues a bank will ask for. If you have real estate assets but you also have bad credit or a low income, a commercial hard money loan will be easier for you to get.

2. Upfront fees for this type of loan are slim to none, unlike with bank loans that require lots of upfront fees in terms of inspections, application fees, and more.

3. You will not be required to put together the amount of documentation for which you will be required to do when purchasing a business or commercial property through a regular bank loan.

4. You can often get one of these loans for a project that has been turned down by a traditional lender, such as a bank. If you can’t get this kind of approval, it may be time to speak with a hard money lender.

5. Hard money loans are approved much more quickly than traditional loans. While most people who seek traditional loans have to wait two, even three months to get their approval, you will be likely to get yours in a week or two.

Can you see the ways you can benefit from a commercial hard money loan? If you have a property you want to close on fast and you don’t want to deal with the hassle of paperwork and fees, this is the best choice for your needs.

Speak to Our Arizona Commercial Hard Money Lenders Today

We can offer all the information you need about commercial hard money loans as well a quick and easy process for your lending needs.



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Using the Rule of Threes Before Taking Out Arizona Fix and Flip Loan

Ever tried to evaluate a house before taking out a Arizona Fix and Flip loan? If so you know it’s difficult, because all the considerations can be a bit overwhelming, but lucky for you this article will show you three things to look for when it comes to location, resale value, rehab planning and some other things you’ll need to consider to ensure your success when it comes to flipping houses with Arizona Fix and Flip loan.

Using the rule of threes when picking houses to use Arizona Fix and Flip loan on

Body, mind, spirit, father, son, Holy Ghost it seems that all things have three aspects and the same is true for house flips. No, this isn’t just a mystical principal. This so-called rule of threes has some very practical applications as we’ll see below.

3 things to look for in the neighborhood:

Even if you see a promising listing online, you actually need to drive to the neighborhood and note the overall vibe in the area, considering:

• Noise levels

• Vandalism

• And the overall feel of the place.

Houses next to airports, replete with ramshackle gang sings, or in areas where the façade of every house is girded by iron bars don’t sell, or at least they don’t sell for a lot of money. After finding a decent neighborhood you need to find three comps that have sold in three months and consider three things about each of them:

• Time it took to sell

• Initial list price

• Actual price sold for

Knowing these three crucial details about comps in the surrounding area will help you account for three things per your loan, how long it will take to sell the property, a good initial price to list it at, and what the potential returns could be. Once you’re satisfied that a potential flip will sell in short order and for a decent amount, you need to refer back to your three comps and consider three things when planning your rehab:

• Finishes

• Layout

• Landscaping

When planning your project, whatever you include concerning the above, should be in line with your three chosen comps. This will keep your plans grounded in the realities of the market so won’t end up adding an Olympic swimming pool in the middle of a working class neighborhood.

How can applying the rule of threes help you risk less when it comes to Arizona Fix and Flip loan?

Simply knowing the neighborhood and having three comps in mind will give you a good sense of the resale value, and when the house will sell. In addition, by planning your project around your three comps you’ll also have an accurate sense of just how long rehab will take.

In the context of your loan, having these insights will tell you three crucial things:

1. Whether taking out a loan is worth it based on the resale value of your three comps.

2. How much money you’ll actually need to fix the house up to the standards of your three comps.

3. When your loan will actually get paid off based on the market history of your three comps.

When you apply the rule of threes, evaluating a potential flip before taking out financing becomes easy as well 1, 2, 3.

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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Simple Steps to Hard Money Lending

Trying to find funding for a hard money loan an seem a bit unnerving. Potential borrowers typically have many questions about the loan process, such as: where do I find a dependable lender and what does the loan process involve?

Potential borrowers can relax. The hard money loan is pretty simple and straightforward when compared to obtaining funding
from a conventional lender. The first thing potential borrowers are to find a few hard money lenders that work in the borrower’s area. There are a few ways to find lenders. Networking at local real estate investor meetings is a great way to find lenders looking for business. If you know anyone in real estate, be sure to let them know you are interested in finding a lender. A referral from someone you trust in real estate is a good way to find a reliable lender. Searching the internet for a local lender in the area of the property is always a simple solution. However, be sure to interview the lender. Ask questions such as: How much experience do you have? Do you have references from previous borrowers? Are you a direct lender or a broker? Do you enforce prepayment penalties? How long does it take, after approval, to be funded? What type of license do you hold? Who is your regulator? These are all questions that will either assure you this is a legit lender or will have you running for the hills.

After a few conversations and quotes of some hard money lenders, you should have an idea of which lender they want to use. You want to have the focus be on the terms and conditions of the loan, but you also want to make sure you feel comfortable with your lender. Unlike banks, this is a personal relationship. Lenders are generally flexible and will work with you when issues arise. It is a person you are dealing with, not a corporation.
The Loan Process

The first step in the loan process will be filling out the loan application. These are very general questions and only take about 20 minutes to complete. They typically require information about the subject property, borrower’s employment, income and assets, and any liabilities. All lenders are different; some require more documentation than others. Requested documents can include tax returns, proof of down payment, bank statements, any prior real estate projects.

After the borrower receives approval, the lender prepares the loan disclosures. The first disclosure form is usually an E-sign consent; this allows the lender permission to electronically send documents. After the E-sign consent is signed, the lender will begin sending documents such as the privacy policy, mortgage loan disclosure statement, fair lending notice, equal credit opportunity act notice, and hazard insurance disclosure. The deed of trust will have to be notarized; therefore, it will not be sent electronically.

Once all required documents are signed and have been received by the lender, the borrower will send their down payment to escrow. After escrow has confirmed they received everything needed, the hard money lender can disperse funds to escrow and fund the loan. Depending on the type of loan and the geographic area, the borrower will typically receive the funds within two weeks.

From start to finish, the hard money loan process is quick and painless.
This simplicity is the main reason real estate investors take advantage of hard money loans for their financing needs.

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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How to Get Started with Arizona Construction Loans

If you’re building a new home or business, you’ll be looking for Arizona Construction Loans rather than mortgages. Get to know the basics beforehand, so you can move forward without delays.

Contrary to popular belief, getting approved for Arizona Construction Loans isn’t necessarily difficult, but the process is different than going to get a traditional mortgage. People use them all the time when they’re building new structures or doing major renovations, and you don’t need to have perfect credit or be a builder to get one.

Before you attempt to get approved, though, you’ll want to make sure you have three key things in place; the plans, a comprehensive budget, and permits. In other words, if you aren’t a builder or a contractor, you’ll need to have one on your team before you get started. All aspects of the build will need to be outlined with estimates from the contractors or subcontractors who will be handling each task. The plans will also be necessary to get permits, and the permitting process usually takes a few weeks by itself. Having an experienced contractor pays off here because someone who routinely works in your area will know exactly what the review process entails and what inspectors are looking for, so permits are issued promptly. However, the permitting process can stretch out longer if there are questions or if the project is especially complex.

You’ll also want to take some time to get your finances in order beforehand. Depending on how you go about getting financing, you’ll need to address how you’ll make a down payment, check your credit score, prove financial strength, and demonstrate that the build will be a financial success.

Find Out What Form of Lending is Right for You Before You Begin

It’s difficult to get Arizona Construction Loans through banks because they don’t make a whole lot of profit off them, and so they heavily restrict who they’re willing to lend to. You have to be an incredibly low-risk borrower in order to get approved, and even then, the terms might not be great. That doesn’t mean a bank won’t help you, only that it’s worthwhile to explore multiple funding options before your start paying for plans and permits out-of-pocket.

If banks won’t help, you can get your project off the ground with hard money.

One alternative to bank Arizona Construction Loans is hard money. With this method, you’ll still need to have some of your own cash in hand to get started, but you can get up to 90% LTV. Best of all, you can make interest-only payments on the loan during construction, and then either sell the property or approach a bank for a conventional mortgage after the build is complete, when they’re much more likely to help you out. You’ll still need to have plans, a budget, and permits to qualify, but things like your personal credit are less of a concern with hard money, so it’s much easier to qualify and get your project moving forward fast.

                                                                 
                                                      

                                                                                                                                         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

How Investing in Deeds of Trust Passes the 4 P’s Pitfall Test

The four Ps of successful investing has been getting a lot of press lately. Investing in Deeds of Trustproves to be a solid strategy across them all.

If you haven’t looked into Investing in Deeds of Trustbefore, you’re in for a wonderful awakening. With this form of lending, a developer working on a real estate project borrows funds from someone, and that investor (you), are listed on the deed of trust as the lender. The investor receives interest payments from the borrower throughout the term of the loan and when the term ends, the bower pays off his balance in full. Most of these are short-term projects, like fix-and-flips, so the principal balance is only tied up for a matter of months and the investor is free to reinvest the money immediately after the balance is paid. The returns are varying from 9-29%, with an average of about 12%. Considering that CDs start out around 2% and the average stock return is somewhere between 5-7% right now, it can be the smartest way to increase your wealth.

In terms of investment portfolios, the four Ps include price, performance, poor diversification, and paying attention. Price relates specifically to the cost you pay to invest. Whereas there are all sorts of middlemen and fees involved with other forms of investments, all payments from the borrower are typically made straight to you.

There’s nobody scraping money off the top of your monthly returns. Performance, on the other hand, relates to what you’re earning, and takes into consideration whether there are other vehicles that might get you better returns. Frankly, 12% is hard to beat.

The final two Ps, poor diversification and paying attention, are up to you. It probably doesn’t need to be said, but any investment strategy should involve diversification, no matter how secure it seems. You’ll also ultimately be responsible for monitoring your investment and making sure things stay on the up-and-up, but if you’re working with an experienced broker, he or she can walk you through how to address any issues that come up.

Avoid Pitfalls by Being in First Position on the Deed of Trust

When people have a bad experience with Investing in Deeds of Trust, it’s usually because they didn’t get listed first. Maybe they accepted second position or contributed to a pool of funds. In these cases, it’s harder to swift take action if a borrower defaults as all investors must be in agreement on how to move forward. As first position, you exclusively make that call, and when the contract is structured well, you still come out on top.

Know how to evaluate a good deal or work with a pro who can lend a helping hand.

There’s risk with any strategy and Investing in Deeds of Trustis no different, four Ps or not. Especially as you’re just getting into it, it’s essential to ensure that your contracts are structured right and that you’re being matched with solid deals, so you’re protected and earn more for your help. This is where brokers come in.

However, many investors choose to continue working with the same broker continuously for years because a great one will keep finding new investment opportunities for you to tap into, allowing you to grow your wealth at a steady pace.



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Complaints about Your Home? An Arizona style=””> Construction Loan Could Fix That!

When people buy premade houses, the shine usually comes off the apple very quickly, and instead, they’re left with homes they don’t love. An Arizona Construction Loan can make all the difference.

Think about this: you move into your first home, and it seems like a dream come true. But quickly, you start to notice little flaws, and complaints become your main feelings about your house. Still, if you’d chosen to obtain a Arizona Construction Loanand had your home built from scratch, these complaints could have been avoided.

“This Is a Lot More Work Than I Thought It Would Be…”

Many people move into their first home with the thought that they’ll repaint, maybe tear down a wall or two, or even fix up a house that’s fallen into disrepair. Unfortunately, this can end up being an enormous project, one for which you weren’t ready. Instead, why not have your own home built from scratch? This way you’ll know it’s ready and tailored to your exact specifications before you ever move in.

“Things Aren’t as New or Up-to-Date as I’d Like…”

Whether your new home has old plumbing or wiring, or you realize its appliances aren’t exactly technologically savvy, this can be a huge letdown. However, when you choose to build a new house, you will be approached with every decision, many of which will allow you to choose the most up-to-date options available.

“There Were Hidden Problems I Didn’t See!”

Even after you’ve gone through every inspection imaginable, it’s still possible to miss hidden issues that will wind up costing you more in time and money. This can be frustrating, especially if you went in looking for a move-in-ready home. The great thing about getting an Arizona Construction Loanto build the house of your dreams is that you are much less likely to miss issues before moving in, as you will be a part of the building process every step of the way.

Building Your Own Home Is a Win-Win Solution

Not only will you be able to avoid the pitfalls many new homeowners experience after buying their first house, but you’ll be able to build your dream home from the ground up. All you’ll need is a Arizona Construction Loan.

Avoid the Common Complaints and Pitfalls of Buying a Home…

And build one instead! Talk to our lenders about a loan and see the process through from empty land to the cozy home sweet home of your dreams.



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

27 January, 2020 19:27

[titleWhat Does Trust Deed Investment Mean?]

Investors have many options when it comes to where they put their money. Gold, the stock market and mutual funds are popular investments. We all know about these types of investments because they are everywhere. However, you may have not heard of trust deed investing.

Although Trust Deed Investinghas been around for hundreds of years, it’s not one that is advertised. Trust Deed Investingis investing in loans that are secured by real estate. A loan made with a trust deed investment is similar to a home mortgage loan. The main difference between these two loans is that there are three parties involved in a trust deed: the trustee, the lender, and the borrower. The trustee is the holder of the deed while the loan is being paid. The lender is obviously the one financing the loan. And, of course the borrower is the one who owns the property being put up for collateral and borrowing the funds.

There is also a promissory note that clarifies all the terms and conditions of the loan. In case the borrower defaults on the loan, the trustee is the one that would begin the process of foreclosure. The difference in a conventional mortgage and a trust deed loan is in a mortgage, the lender has to go to court to begin the foreclosure on the property being held as collateral.


Trust Deed Investingis popular, with people who know about it, because it pays a high rate of return and the investment is secured by real estate. Typically, once the loan has been made, the rate of return won’t change. You may invest in a trust deed that has a term of 18 months and you would receive payments for each month for the interest the borrower is being charged.

Trust Deed Investments

Investing in trust deeds basically means you are loaning your money against collateral. The collateral, which is real estate or land, protects the lender’s investment. It is, however, imperative to consider the value of the collateral. It is also crucial that a trust deed investor reflects on the amount of money they are loaning in comparison to the value of the real estate that is securing the loan. The underwriting process typically handles this, however it is always a good idea, as an investor, to do your homework and pay close attention to the details.

If you are looking to invest in something with fast returns and pays a high rate of return, Trust Deed Investments may be for you.

Typically, the minimum investment for Trust Deed Investments is around $10,000. However, some firms require a minimum of $100,000. The exact amounts will vary from broker to broker.

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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Top 3 Tips for Getting First-Time Arizona Rental Property Loans

Getting Arizona Rental Property Loans as a first-time investor can be a challenge. With a little outside-the-box thinking, you’ll increase your odds of success.

We’ve come a long way since the market crash. Home values are climbing virtually everywhere and interest rates are low, making it a great time to purchase investment properties. However, if you’ve started looking into Arizona Rental Property Loans, you’ve probably noticed they’re not easy to get, particularly if this will be your first investment property. The good news is, you can still get financing, but you’ll have to be creative to make it work.

1. Have a sizable down payment. If you’re attempting to get bank financing, 20% is still the norm for owner-occupied homes. Once you get into investing, banks start to look for at least 25% before they start offering favorable terms. Owner-occupied borrowers can also sometimes get a second mortgage to help them cover the 20%, but it’s very difficult to get one for investment properties.

2. Demonstrate strength. Lenders look for financial strength in three key areas. Having a good credit score is one. For traditional lending options, you’ll likely need to top 740 to get good terms. Lenders will also consider your reserves. They’ll want to be sure you can afford to make good on the payments even if your property is vacant for a period of time. The loan-to-value (LTV) matters as well. This is the amount of the loan compared to the value of the property. For example, if you’re taking out a $60k loan on a $100k property, your LTV is 60%. The lower the LTV, the more likely you’ll be to get financing and good terms.

3. Skip the big banks. The reality is, most people looking into investment properties aren’t going to be able to bring a big down payment or demonstrate strength in the ways big banks want. Chances are, you’ll have more luck with a neighborhood bank or by going with some form of alternative lending.

Hard Money Can Make Your Investment Dreams Come True

One form of alternative lending is hard money, and it works well for Arizona Rental Property Loans, even if you’re a first timer. Hard money can be used to purchase properties for short-term renters, such as those listed on Airbnb or HomeAway, on traditional homes, and on multi-unit properties too. While LTV still comes into play, things like your credit score matter less, so it’s easier to qualify.

Once you’re successful, you can move onto a conventional loan with greater ease.

Hard money Arizona Rental Property Loans aren’t a permanent solution, but they’re a great way to get your foot in the door and start generating income. Many people use them to purchase fixer-uppers, make repairs, and get tenants in before going for a conventional loan. By approaching it this way, you can build up your cushion for the 20-25% down, increase your reserves, and increase the value, so you’re a strong buyer with cash ready. If you’re ready to get started generating a steady stream of income, consult with a broker who works with hard money.

                                                               
                                                      

                                                                                                                                         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

14 January, 2020 06:47

[title: Can You Calculate Your LTV? An Easy Guide to Real
Estate Math]

Here’s how to do the math on your next hard money investment so you know if it’s going to be the right choice for you.

Is that home going to be a cash cow? Will that fix and flip line your pockets for your next project? You may not be a big fan of math, but you can’t be a great investor without knowing the basics to real estate calculations.

Let’s go over some of the big numbers you’ll need to know for an investment!

Loan Amount

This one is pretty easy to determine and the most important one to know. How much are you going to be able to put down on the home? That is going to feed into the next equation because to get an Arizona hard money loan the lender will look at the loan to value. Are you going to need higher than 70% LTV to make your deal work? It’s important to know this going forward because different lenders have different max LTVs that they’ll loan on.

LTV – Loan to Value

This calculation is pretty simple! You’re going to divide the amount you’re borrowing by the appraised value of the home. To get the appraised value it’s good to speak with someone keen to real estate if you aren’t familiar with home values in the area.

Here’s an example: If you’re investing in a home worth $100,000 and you’re going to borrow $90,000, you’ll have a LTV of 90%. Now just add the data for the home you’re interested in and see what your LTV is, which is an important number to know when securing a hard money loan.

Hard money lenders like Level 4 Funding will often times go up to a 90% LTV, depending on the project. If you’ve got a proposal for an investment opportunity that you think is going to be a money maker, needs to happen quickly, or you’re worried about getting funded through a traditional lender, an Arizona hard money loanmay be just what you need.

Call us today to schedule an appointment to present your proposal and get started on your next project in as little as a few days!



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
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions