Monthly Archives: January 2020

3 Reasons Commercial Hard Money Lenders Are Better Than Banks

There’s a certain connotation associated with commercial hard money lenders. The reality is, there are certain times when it’s way more advantageous to approach an HML over a bank.

Google auto-suggest is supposed to be smart, but it does something really stupid when you start running searches
for “commercial hard money lenders.” No joke, the search engine giant will automatically append “are bad,” to the end of the phrase and offer it as a leading choice. That’s because people are actively searching for reasons not to work with HMLs, but it’s not why you’d think. It’s because people see the terms that they’re offered and start looking for a catch. There’s no catch. There ARE times HMLs are better than banks. A few are outlined below.

1. They finance when banks won’t. Most people don’t discover alternative lending until after they’ve been denied by a bank. Whereas banks have a whole list of criteria they use when evaluating a person’s creditworthiness, HMLs are more interested in the quality of the investment and the structure of the deal. They fill gaps left behind by traditional lenders.

2. They know your niche. Each HML chooses his niche and it’s typically based on the business experience he has. In other words, you’re getting funded by someone who has done what you’re doing. That means the person genuinely understands how your niche works and how to evaluate a good deal within it. Banks don’t usually get that in-depth.

3. They can get you your money quicker. There’s a lot of competition for investors in the commercial space. If you don’t have cash ready to go quickly, opportunities vanish. HMLs don’t have to deal with the same level of red tape others do, and so you can get cash in hand in a matter of days, versus the weeks or months it takes to get financing through traditional channels.

Programs Offered Are the Real Deal

Even though the programs and terms offered by commercial hard money lenders versus banks differ in many ways, the security is matched. For example, there’s still a title process, escrow accounts, and legal protocols to follow. Borrowers have a great deal of protection. The biggest difference is that you’re using an asset as collateral, which is the same thing banks often do when their traditional packages fall short. However, HMLs have greater flexibility because it’s usually one person or a small group of people making decisions as opposed to following rigid corporate protocols. That’s the very thing that gets deals off the ground quicker too.

Get expert advice before you sign on any loan.

Whether you’re planning to work with commercial hard money lenders or anybody else, it’s important to talk to a lending expert who can walk you through the best options for your situation. A broker can help ensure you have clear expectations going forward and make sure you’re getting the best rates possible, so it’s easy to decide the best way to borrow and feel confident in your decision.



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

A Tale of Arizona Land Deals

Sometimes I think I ought to just quit the real estate field altogether, Tom Biggers thought as he arrived home after what should have been a really good day closing on his Arizona Land Loan. He wondered idly if the job his cousin had offered him in wholesale office supplies was still available.

He poured a straight shot of bourbon and sat down in his favorite chair. Should he have seen this coming although no one mentioned it? After going to three banks and two mortgage companies, he had found a private lender, who said, “We can do this—my company handles land deals. Our application is online, so you can fill it out at home. You need to do—“

That night he had looked over the rather lengthy list of expenses that he needed to figure in to meet funding needs. They included attorney’s fees, insurance, appraisal(s), title search, bond fees and surveyor’s costs. The property already had its utilities set up and they had been done in the past year.

This made things easier, his lender had explained, utilities counted toward development. Raw land—nothing on it except trees and grass –was more difficult to get money for and the loan terms were stricter, too. Property with some development in place was easier to acquire funding for and repayments terms were easier. If he had had plans showing future development, he would have had still better terms, his then-Arizona Land Loan would have been deemed a Arizona Construction Loan and even quicker to obtain under most circumstances.

Everything had gone smoothly—his credit score was only a few points above minimum, but it met basics. A deed for a small office building he owned in the better part of town was accepted as collateral. When the down payment was listed under 40 percent of the loan value, he made sure the money was available, despite it having punctured his savings account.

Signed loan papers in hand, Tom had driven over to the property owner’s office to inform him that he had the money needed to make the purchase. “Well, Mr. Biggers, I can see that you really want the property,” Richard Halleck said. “But I had my appraisers in yesterday—you know how real estate values are, up and down all the time. The property values in the area have jumped 10 percent in the last week. I’ve got another buyer who has got the money I’m now asking for. But I’m going to give you a week to come up with it since I talked with you first. You be in here by Friday and we got a deal.”

He suddenly remembered the folder for bridge loans in the information parcel his lender had given him. I’ve already got most of the money, he thought, why shouldn’t I get the rest of it from these people? The banks were not an alternative, he was certain.

Thursday afternoon Tom found himself signing the papers for a small commercial bridge loan that combined with his original Arizona Land Loan gave him the total Halleck wanted. Better still, while walking over his new property late Friday afternoon, two different passersby stopped and inquired about using it as an advertising lot since it was hillside land with a good view. Things were good, he thought, he had his property and he had lending contacts for use in the future.


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

4 Reasons Arizona Construction Loans Can Make Your Dreams Come True


Arizona Construction Loans are an option for those who want to buy land and build their own homes on it. Here are some of the ways a Arizona Construction Loan can make your dreams come true.

If you’re going to build your own house, rather than purchasing a premade home, you might have lots of questions. The biggest one, of course, is will this be worth the time and effort? Not only are Arizona Construction Loansworthwhile for buying land and allowing you to construct your own home, but they can make your dreams come true for a number of other reasons, four of which are listed below.

#1: Location, Location, Location

Any real estate agent will tell you location is everything. It can make a perfectly nice home into the envy of all your friends and family, just because it’s in the right place. It can also make a truly beautiful home unlivable if it happens to be next to a noisy street or a railroad track. When you choose to have your own house built with a construction or land loan, your home will be exactly where you want it to be!

#2: Up-to-date Features

One of the things that can kill a family’s love of their new home is old features, such as pipes that barely work, an air conditioner that doesn’t run right, or a lack of energy efficiency. When you start construction on your brand-new home, you’ll know everything is up-to-date and state-of-the-art, from your house’s energy efficient features to its pipes and wiring.

#3: Choose Your Own Builder

When you choose a home that’s already built, you’re living in someone else’s vision. However, when you build your own home, you’ll not only be working with your own vision, but you’ll get to choose, meet, and work directly with the person who will execute it: your builder.

#4: Pride of Ownership

You deserve to fall in love with your house, and the easiest way to do it is to have it be yours from top to bottom. Your choices, your layout, and your space. You won’t be able to experience the same pride of ownership with a prebuilt home because you’ll know the house you got through your loan is exactly right for you.

Want to Build a Home that Makes Your Dreams Come True?

You’ll need to start looking at Arizona Construction Loansright away. Talk to our lenders to get the best option for your 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

Harvard Study Shows You’re Approaching Private Money Lenders in Arizona Wrong

You want to put your best foot forward when approaching Private Money Lenders in Arizona for funding, but research out of Harvard Business School suggests most people are approaching business situations totally wrong. Catering to people and bragging will not help you get ahead, but authenticity just might.

Prepare to be mind-blown. A collaborative study including researchers both Harvard and Wharton suggests you’re approaching business deals wrong, but then again, most of us are. The study looked at two distinct areas; how people view humblebragging and how they view catering. Both techniques are routinely used in business as a form of self-presentation. People use them as tools to make a good impression, and most people believe they’re effective at getting others to like them.

To test the impact of humblebragging, researchers had more than 100 students answer a fake job question regarding their biggest weakness. Over three-fourths responded with a humblebrag. These are the well-rehearsed lines we’ve all been trained to give in interviews. For example, “I’m a perfectionist and it can be irritating,” or “I’m so driven that I sometimes forget to take breaks,” or “I graduated Ivy League, so my peers can sometimes be intimidated by me.” You probably have your own humblebrags as well; for social media, business meets, interviews, and so on. Unfortunately, these kinds of phrases actually sends the message that the speaker is not self-aware and puts the individual in a less favorable light. In follow-up studies, the researchers discovered that people prefer outright braggers and even complainers over humblebraggers.

The group also tested how catering to someone impacts likability. The situation here, however, was just like what people do every day with Arizona private money lenders. They tested how entrepreneurs were received when they approached investors and asked for funding. In some cases, the entrepreneurs catered to the investors by demonstrating that their interests were aligned or by trying to behave in a manner they felt the investors expected. Although most people believe that catering will make them more likable or trustworthy, the inverse is actually true, according to the study. Those who catered were evaluated more poorly than those who did not.

You’ll Be More Successful if You’re Authentic

Regardless of whether you’re approaching private money lenders, an interviewer, or even your friends on Facebook, people prefer that you’re authentic. Being authentic, in spite of any flaws or shortcomings, may actually be the thing that lands you your next job or gets your next deal funded. That’s because people can see through your attempts to present yourself a certain way and it brings everything else into question.

Temper your bragging with self-awareness for the best results.

There are times it’s ok to brag. For example, if you’re approaching Private Money Lenders in Arizona and you have a great track record with fix-and-flips, show off your successes. Don’t hesitate to demonstrate your skills. However, if you’re asked about shortcomings or challenges you’ve faced, you’ll likely do better to give an honest assessment of yourself, minus the humblebrag.

                                                             
                                                      

                                                                                                                                         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

Harvard Study Shows You’re Approaching Private Money Lenders in Arizona Wrong

You want to put your best foot forward when approaching Private Money Lenders in Arizona for funding, but research out of Harvard Business School suggests most people are approaching business situations totally wrong. Catering to people and bragging will not help you get ahead, but authenticity just might.

Prepare to be mind-blown. A collaborative study including researchers both Harvard and Wharton suggests you’re approaching business deals wrong, but then again, most of us are. The study looked at two distinct areas; how people view humblebragging and how they view catering. Both techniques are routinely used in business as a form of self-presentation. People use them as tools to make a good impression, and most people believe they’re effective at getting others to like them.

To test the impact of humblebragging, researchers had more than 100 students answer a fake job question regarding their biggest weakness. Over three-fourths responded with a humblebrag. These are the well-rehearsed lines we’ve all been trained to give in interviews. For example, “I’m a perfectionist and it can be irritating,” or “I’m so driven that I sometimes forget to take breaks,” or “I graduated Ivy League, so my peers can sometimes be intimidated by me.” You probably have your own humblebrags as well; for social media, business meets, interviews, and so on. Unfortunately, these kinds of phrases actually sends the message that the speaker is not self-aware and puts the individual in a less favorable light. In follow-up studies, the researchers discovered that people prefer outright braggers and even complainers over humblebraggers.

The group also tested how catering to someone impacts likability. The situation here, however, was just like what people do every day with Arizona private money lenders. They tested how entrepreneurs were received when they approached investors and asked for funding. In some cases, the entrepreneurs catered to the investors by demonstrating that their interests were aligned or by trying to behave in a manner they felt the investors expected. Although most people believe that catering will make them more likable or trustworthy, the inverse is actually true, according to the study. Those who catered were evaluated more poorly than those who did not.

You’ll Be More Successful if You’re Authentic

Regardless of whether you’re approaching private money lenders, an interviewer, or even your friends on Facebook, people prefer that you’re authentic. Being authentic, in spite of any flaws or shortcomings, may actually be the thing that lands you your next job or gets your next deal funded. That’s because people can see through your attempts to present yourself a certain way and it brings everything else into question.

Temper your bragging with self-awareness for the best results.

There are times it’s ok to brag. For example, if you’re approaching Private Money Lenders in Arizona and you have a great track record with fix-and-flips, show off your successes. Don’t hesitate to demonstrate your skills. However, if you’re asked about shortcomings or challenges you’ve faced, you’ll likely do better to give an honest assessment of yourself, minus the humblebrag.

                                                               
                                                      

                                                                                                                                         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

30 Minutes and I Will Change Your Perspective On Hard Money Loans


Hard money loans are the way to go for some investors who need fast cash and can’t qualify for traditional loans – here’s why.

In the world of finance, hard money loans can get the short end of the stick when it comes to reputation. We’re aware! But what I’m here to tell you is why we may be the right choice for you.

First and foremost, we offer an opportunity for investors who can’t secure traditional loans – we’re the fairy godmother for those who have poor credit and can’t wait for a loan to fund for weeks on end.

Some of what you’ve heard is true. Yes, we do have higher interest rates and yes, we do scrutinize your project plan, but that’s because we’re taking a risk. We’re taking a risk on your project and on you as an investor.

We Don’t Avoid Risk, We Welcome It!

But that’s a risk we are not only willing, but happy to take! It’s why we’re in the business of hard money loans! We’ve seen investors miss out on opportunities because they can’t get the cash fast enough. We’ve seen investors be shunned by traditional banks because of their credit score. We won’t stand for it!

We Want You to Succeed

Our success is your success. We thrive on helping your investment come to life and that’s why we’re here to listen to your proposal whether it’s for a fix and flip residential home or you want to secure a commercial property for long-term income. We’re a one stop shop when it comes to real estate investment. There’s no project too big or small for us to consider lending.

An Arizona hard money loancan mean the difference between success and failure on your next project. The real estate market is HOT right now and deals are flying off the shelves before investors can submit their loan requests to traditional lenders. Allow us to fill that need for you by funding quickly and getting your name on the title of your next investment opportunity.



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

Properties You Shouldn’t Take Arizona Fix and Flip Loan Out On

When it comes to finding a property to flip, its best to buy low right? Well not exactly because there are certain properties you should never buy. Find out some details to look out for in a potential flips before taking out a Arizona Fix and Flip loan on them, so you can avoid disaster.

They say the first rule of investment is “buy low and sell high,” but when it comes to the flipping business you want to buy low, fix up and sell a property in the shortest amount of time possible.

With certain types of properties that’s just not possible, properties such as:

Risk less by not taking out Arizona Fix and Flip loans on these types of properties

First you should never buy blind, please take even the briefest of tours of any potential flip so you can look for:

• Foundation issues: If walking through a home makes you dizzy due to a dramatic slant in the floor, it’s pretty obvious you shouldn’t buy it. You should also never buy a house that looks like it was built on top of a fault line. But there are some less obvious signs you need to look for to spot foundation issues. You need to look for cracks in the wall but not just any cracks-horizontal cracks. If a crack runs horizontally it means the foundation is under considerable stress.

• Roof issues: When walking through a potential flip you need to look at the ceiling, looking for cracks, sags and dark spots which could indicate water damage. Even if there’s no outwardly apparent signs of water damage you’ll need to pop your head into the attic. Look for light, because where there is light there is rain and where there is rain there is water damage, and where there is water damage, there’s the need to replace the roof.

• Older homes with less obvious expenses: You should aim to do your walkthrough with your contractor, who’ll likely be able to spot less obvious expenses. For example, your contractor might notice that the age of electrical meter indicates a need to rip the walls apart to replace the wiring. If you don’t have a contractor, you could simply account for the age of the home, older homes are likely to have far more issues.

So before taking out Arizona Fix and Flip loans you need to walkthrough the home

Any one of these issues, foundation, roof or electrical will amount to an expenses, which could cost you tens of thousands of dollars. Not to mention the weeks and weeks it will take to resolve anyone of these problems, weeks and weeks in which you will need to continue making loan payments.

The golden rule when it comes to rehab is to spend money on things that buyers will see. Will buyers see that neatly poured foundation, that new roof, that new wiring system? Not really, so any money you spend doing these fixes is basically wasted.

If your too lazy to take a simple tour of the house do me a favor, why don’t you go into your backyard, get ten thousand dollars and set it on fire, because that’s what will be the end result if you don’t perform even this basic level of due diligence.

When combing the online listings don’t get baited in by a low sales price, buying low isn’t always right, you need to buy right, rehab smart and sell quickly. Properties with any of the above issues simple don’t meet these criteria.

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

An Arizona Land Loan is in a Class Mainly to Itself

How do you go about securing funding for a bit of the good earth?

A loan for what is termed ‘raw land’ (completely undeveloped) is difficult to obtain, particularly through conventional sources, such as banks and mortgage companies. Land can lose some of its value, but it doesn’t depreciate in the same way other items of value do. But be prepared to pay off this type of loan in a ten-year period. A construction-to-permanent loan or proof of building plans could extend the term further on out, however. If you have equity in your home or other property, a loan based on this could have a lower interest rate than a straight-out land buy. But the down payment could be as much as 50 percent.

If the borrower can put up that amount of their own personal funding, the private or Hard Money Lender can and do write mortgage loans since the borrower has what is termed ‘skin in the game’, although it is not the same as funding a house or apartment building. It can be done quickly, unlike traditional funding.

Is an Arizona Land Loan funded by hard money or a private investor also difficult to obtain? What qualifications do you have to meet?

Basically this type funding comes from other individuals than the traditional bank and mortgage companies; they typically set their loan on the property’s value combined with the borrower’s credit score with the amount determined by the loan-to value. To determine LtV, the loan amount’s ratio is divided by the value of your collateral property.

There is no guarantee of security with raw land—no profit yield can be offered here. The loan may be restricted to parcels that can be used for residential purposes only. Tax deductions are few if there are any. The LTV is generally lower, meaning a bigger down payment.

The type of land you are interested in purchasing makes all the difference here. “Raw’ land has no buildings, no fixtures—that being, this loan is the most difficult to obtain and will come with equally hard terms. “Lot’ property is partially developed, containing sewage, water piping, and other utility structuring. Those features make this type land easier to purchase via borrowed funding and repayment terms are more flexible. Construction parcels are not really considered an Arizona Land Loan if plans for immediate building are presented. Construction-to-permanent loans often include funding for both the property and the work to be performed.

Applications can be done online, saving you time and money–no waiting for hours in someone’s office and buying gas for numerous trips over town. Remember to take into consideration all the costs involved: title search, attorney’s fees, equipment rental, surveyors, permits, appraisal, insurance and related matters when you are filling out the forms.

The top companies require a credit score of around 620.

The repayment term at the longest can be 15 years –you may want to check into a personal loan that lets you do whatever want with the funding you receive if the structure seems overly tight. Interest rates can range from 5.99 to 35.88 percent. No collateral is required.

Like the people who use this funding, an Arizona Land Loan has individual facets that need to be considered before signing on that line at the bottom of the contract. Be certain you can handle this funding and its demands when you make the decision to work in this area.

What happens when you get your Arizona Land Loan approved and then problems occur? Tom Biggers found out that the unexpected can still happen even after the money’s in the bank.


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

Why Construction Loans are Key to Coping with Inventory Shortages

It’s no secret that the country is experiencing a major housing shortage. Construction loans in Arizona will play a pivotal role in relieving it.

CNBC recently reported on the national housing shortage. Supply is way down, thanks to increasing demand and favorable mortgage rates. At present, there are 1.77 million homes on the market, but experts say it would only take 3.9 months for the stock to be depleted entirely. It may sound like a lot, but a balanced market usually equates to about a six-month supply and stock has been dropping steadily over the past five months. Vacancy rates for single-family homes sit at 6.8%, down 7.1% from a year ago.

Challenges are greatest for those trying to purchase homes for the first time, with entry-level properties in the $100,000 to $250,000 range seeing a 6% drop in availability compared to one year ago. Part of this is driven by Millennials who have endured difficult economic times and are just now feeling strong and confident enough to take the plunge.

Inventory reductions are even more significant in certain parts of the country. Phoenix, for example, has 15% less housing available than it did a year ago. Austin and Las Vegas have seen 14% drops as well. Despite the respective high cost of housing overall, the state of California has also taken a major hit, which experts attribute to the increase in tech jobs available.

Investors are Being Successful with Both Sell and Hold Strategies

The seller’s market makes it harder for fix-and-flip strategies to work, simply because it’s that much harder to find an ideal property at a good rate that will provide adequate returns. This has more people turning to construction loans for more control over the process and profits. In many cases, investors are grabbing up undeveloped property within high-demand neighborhoods and subdividing plots to get more mileage, but homeowners are increasingly willing to buy in outlying areas just to have a place they can call their own at an affordable price.

Ultimately, savvy investors are using their construction loans to build and sell fast, with some concern that the favorable conditions are due for a shift, much like they did last year when a spike in interest rates helped correct the market to some degree. Others are leveraging a hold strategy, converting their financing to a long-term option after the build. Given the steady increases in rent prices, which now sit at a 4% hike year-on-year, the strategy is paying off and may continue even if interest rates put a dent in purchasing.

Alternative lending is giving investors a helping hand.

Despite the fact that market conditions call for more housing and builders can’t keep up, Arizona construction loans through traditional lending sources like banks are in short supply. Although they’re actively courting homebuyers and tempting with great terms, they’re not extending the same options to builders or investors. Alternative lending, hard money in particular, is helping fill the gap. Those interested in taking advantage of the inventory shortage would do well to connect with a hard money broker to explore all the options available.



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

Joe’s Arizona Land Loan Success: Advice Is for the Birds

If Joe had listened to the crowds, he would have missed out on an incredible opportunity: to build the house of his dreams with a Arizona Land Loan.

Joe and his wife Cindy were ready to move into their first home and start a family. But first, they had to decide what kind of option they wanted when it came to their loan. Instead of getting a traditional mortgage, Joe wanted to obtain a Arizona Load Loan, so they could build their dream house from scratch.

Everybody Had an Opinion…

Joe went to a party with some of his best friends. He told them about his idea. They all scoffed at him. “Don’t worry about that, Joe! You just need a house. Buy something that’s premade. It will be a lot less difficult in the long run.” When Joe tried to tell his friends that building his dream house was important to him, his friends waved him off. “It’s better to just settle for something that’s already out there. Trust us; you’ll thank us later.”

Joe even told his parents about his idea, but they were also skeptical. “Don’t Arizona Land Loanscost a lot more than regular mortgages? Shouldn’t you just buy a house? It’ll be cheaper, you know…”

What Cindy Said…

Joe heard everyone’s opinions, and mostly, they were negative. It frustrated him. Why were his friends and family members trying so hard to talk him out of his dream? Finally, he spoke to Cindy about all of this, and she told him her feelings on the matter.

“We want our children to grow up in a home just for them—and we want to grow old in a house that’s just for us. Getting this loan is the best way to do that. It’s important to us to have the house of our dreams. It always has been! Don’t let the madding crowd get to you.”

A Happy Ending

Joe decided his wife was right, and they obtained their Arizona Land Loan. Not too long after, they had the home they’d always dreamed of, and when they invited all their loved ones to visit, everyone said the same thing: “Wow, Joe, this house is perfect! I guess you made the right choice after all!”

Want to Learn More About Arizona Land Loan?

Be like Joe and avoid the unnecessary advice given by well-meaning but inexperienced friends and family members. Talk to our lenders today to get the perfect loan for your dream home.



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