Level 4 Funding Private Hard Money

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

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.

Hard Money Request Was Denied, Now What?

January 26, 2020WordPressconstruction loan, private hard money, WordPressbigdaddydennis

Rework your Arizona hard money loanrequest to make sure it gets accepted by a lender and you can begin your project.

Let’s face it – rejection hurts! Especially when it’s your livelihood on the line. If you’re a real estate investor, securing your Arizona hard money loancan mean the difference between success and failure because snagging a deal as soon as possible is KEY!

When you approach a lender for your Arizona hard money loan, they will ask for a project plan for two reasons:

1. They want to see your plan to ensure you’ve thought out your project from inception to completion.

2. They want to know how they’ll make their money back.

If you’re not providing that information in an easy to understand way, or you’re simply lacking pieces of the puzzle that make the lender uneasy to fund your project, you may face losing out on a deal because you can’t get your funding quick enough.

That doesn’t mean it’s time to give up! Once you present your project, the lender may offer some advice, but if they don’t there are some things you can do to make sure you have covered all the bases before your Arizona hard money loanpresentation.

Here are the things you should include to increase your chance of acceptance:

· Amount of loan requested

· Reason for needing the loan

· Your investment

· Project timeline

· Total project cost

If any of those integral pieces of your project puzzle are missing, you can count on having to rework your proposal and having to re-present your plan to the lender to secure your hard money loan.

Level 4 Funding is ready to hear your ideas and learn how we can help you pave the way to success in real estate investment. Call us today to set up an appointment to present your next project!

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

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

Old Myth Prevails: AZ Rehab Loans via Hard Money are Bad News

January 26, 2020WordPressconstruction loan, private hard money, WordPressbigdaddydennis

Should you take on this so-termed-risky funding?

A traditional Arizona Rehab Loan is simply a no-money down financing set up that not only includes the value of the property, but also the costs of renovation and repair. Despite the once-shady reputation of hard money, these loans are offered today by well-known respected firms and real estate investors. They can be obtained through both large and small companies, online and off, and are a proven advantage to both short-term and long-term investors as well.

These loans, falling under the onus of home improvement, are designed to purchase property that needs renovation before occupancy, something most banks won’t touch. Building a new home can be off-putting since most traditional construction’s loans require a credit score of 720. A would-be homeowner can find themselves blocked at all turns with these requirements.

A Hard Money Lender for this particular loan can generally pre-qualify you without any binders attached in order for you to estimate costs, fees, the possible ARV ratio and other related items. The process doesn’t take even an hour’s time. The process looks somewhat like this:

You must show two to three months personal bank statements.
Your credit score has to be a minimum of 550.
You will have to provide the usual information: property address, taxpayer ID, financial history, etc.

What do you need to qualify for this type funding once pre-qualification is completed?

Once prequalification is done, the lender will check your credit score and bank statements to insure you have a steady income and funds available to cover future holding costs that will occur during repair on the property.

Arizona Rehab Loans require a down payment as well. Most lenders want some basic real-estate experience before approving you. A property appraisal will be performed normally by the lender’s own appraiser.

Hard Money Lenders use loan-to-value to determine loans amounts and if the property is in good condition, can lend up to 90 percent. Most of the time, though, even experienced borrowers should expect to come up with 2 percent in personal money.

Closing time, once your loan application is approved, generally takes around 10 to 15 business days. Payments will be interest only (no full amortization) over a term of 12 to 36 months—interest rates can run from 6.99 to 12 percent. Lender points can total 10 percent of the loan value itself. The maximum approval amount after the estimated repair costs can be 75 percent being a combined amount that covers the purchasing price and a credit line that the borrower may draw from for needed repair work.

Is this loan for you?

These loans are taken out by various people and groups: investors, individuals wanting to purchase their own home, fix-and-flippers who buy, repair and sell houses as a business, rental property owners, et al. If you do the research and think you meet qualifications, an Arizona Rehab Loan my just be the helping hand you need to further your real estate ambitions.

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

3 Ways to Reduce Your Expenses for Arizona Land Loans

January 25, 2020WordPressconstruction loan, private hard money, WordPressbigdaddydennis

Arizona Land Loans might contain some initial expenses that are higher than those for mortgages. However, there are a number of ways you can reduce these expenses and get your loan for less.

Arizona Land Loansare great! They allow you to get the financing needed to purchase a plot of land, on which you can build the home—or anything else—of your dreams. Still, they can sometimes propose a higher risk for the lender, which means they usually require higher expenses for the buyer. Don’t worry, though; there are ways around these costs, allowing you to easily obtain this financing option.

Reducing Down Payments

Lenders might require higher down payments for Arizona Land Loansbecause of the financial risk they are taking in lending you the money. With some lenders, this down payment might initially be as high as 50%. To minimize this upfront cost, you may want to discuss with the lender the fact that you plan to build on the land soon. If you and your lender can determine a date in the near future on which construction will begin, they will often be willing to lower the initial payment you’re expected to offer.

Reducing Interest Rates

Sometimes, lenders will require higher interest rates in order to protect their investment. While this can initially seem like a problem, you may be able to get your lender to reduce interest rates as well when you promise to build on your land sooner rather than later. This is another way you can reduce costs and begin building as soon as possible.

Extending Payback Timeline

Arizona Land Loanscan require a shorter payback timeline than you may be used to with a mortgage or another type of loan. This might create an added expense… if you’re not sure how to get around it. If you choose a lot land loan, most lenders will give you a longer period of time to pay the loan back than if you were to choose a raw land loan. This means lower monthly payments, and often, fewer expenses overall.

Can I Reduce My Arizona Land Loan Expenses?

Absolutely! If you follow the tips explained for you here, it’s easy to reduce the expenses of your loan and to get started on the building process ASAP.

Negotiate Your Arizona Land Loan Today

We can help you choose the best option for your needs and ensure that your expenses are as low as possible. Come in today to speak with an experienced lender and get your loan!

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

If You Can Write a Listing, You Can Make Money with an Arizona Airbnb Loan

January 25, 2020Uncategorizedbigdaddydennis

Taking out an Arizona Airbnb loan may seem like a risky prospect. However, it doesn’t take much beyond knowing how to post a listing to make money using the platform.

In the early days, peer-to-peer marketplaces for home-sharing and rentals were little more than couch-surfing sites. Born out of necessity due to market conditions, these sites thrived because homeowners needed to generate extra income to make ends meet and travelers needed less expensive accommodations. Ergo, most of the rentals listed were either a single room in an occupied home or just a sofa in someone’s Livingroom.

These options still exist, but as the market has improved, peer-to-peer rentals developed too. Nowadays, people not only rent out second homes, but purchase properties with the express intent of renting them out. Data from Savilles concludes the average second home brings the owner a cool $21,000 per year in rental income and most people use a mortgage or Arizona Airbnb loan to fund the initial purchase. Interestingly, the average home is rented out just 17 weeks per year as well, meaning you could easily use yours as a vacation home as well or increase marketing to improve your revenue stream. If you do the math, it works out to $1,235 per week or over $64k annually if you’re fully booked.

The catch: you need to select a property that will rent out and you need to market it well in order to increase your ROI. The good news is, Savilles also researched what people are looking for in their short-term rentals, so it’s easy to pick a place that will get booked and stay booked.

Match Expectations to the Property and You’ll Be Successful

Coastal locations, towns/ cities, and mountains are your best bets as you shop for a property, according to Savilles, and your guests will prefer detached villas/ homes, apartments, and townhomes, in that order. Guests also look for basic features, such as broadband internet and air conditioning while booking, and if you’re in a coastal area, they want easy access to the beach. If your property doesn’t already have special features, it may be worthwhile to use your Arizona Airbnb loan to add them, so demand for your property increases. Not all features will give you ROI, though, so spend wisely. For example, guests aren’t generally looking for golf courses, marinas, and access to water sports, nor are they over-eager about sports facilities, gyms, extra land, and home automation systems. That’s not to say these features aren’t beneficial, but they aren’t as likely to increase your bookings or allow you to charge more as cultural activities and good parking.

You’ll make readers eager and increase ROI by highlighting the best features in your ads.

The secret to making money with an Arizona Airbnb loan is to keep your space rented out and get the most from each rental. Spend time crafting the perfect ad that demonstrates which features the property has as well as its proximity to local attractions and transit. Be sure to include photos and experiment with the wording. When the property starts off with good features, generating income with it is nothing more than good writing skills.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Why Fix and Flip Loans in Arizona are Awesome for REOs

January 24, 2020Uncategorizedbigdaddydennis

REO properties make great investments, but financing the purchase can be a challenge. Fix and Flip Loans in Arizona work especially well for REO purchases because they eliminate barriers.

As you search through property listings, chances are you’ll see the term “REO” quite a bit. It appears on listings for both investment properties and consumer properties, and references that the home is “real estate owned.” In short, the bank owns it, not a person.

Properties become known as REOs when the homeowner defaults on the mortgage and a foreclosure occurs. People wind up in foreclosure for many reasons, and the banks don’t like to take homes away from people, so the homeowner gets a chance to make things right during a pre-foreclosure process. During this phase, the homeowner can either get his mortgage caught back up or sell the property. Banks will even sometimes allow the homeowner to sell the property for less than they owe on their mortgage just to be done with the whole thing. If the homeowner does nothing, then the property will go to auction. Many investors use Fix and Flip Loans in Arizona at auctions as well, purely because they’re usually cash-only, meaning the buyer can’t try to apply for a mortgage after. He has to be able to pay for the purchase right away. If a property doesn’t sell at auction, then the bank takes ownership of it and it becomes known as a REO.

Naturally, banks aren’t in the home-selling business, so it’s their goal to unload the property as quickly as possible. Additionally, REO properties tend to be in disrepair, simply because the initial mortgage-holder is often unable to handle maintenance on the property for some time prior to defaulting on the mortgage. The foreclosure process takes months to complete too, increasing the timeline proper care hasn’t been given to the home. Because of these things, REOs can often be purchased fairly inexpensively.

One of the Pitfalls of REO Properties is that Banks Financing May Be Out

Regardless of whether you’re an investor or an average person looking for a new home, the banks may turn up their noses at your REO property. This usually happens when it’s in ill repair, but things like your credit and whether or not you plan to live in the home matter too. That doesn’t mean you can’t or shouldn’t purchase the REO, particularly if you’re getting a screaming deal on it, only that Fix and Flip Loans in Arizona may be better-suited to the job than a conventional mortgage.

Hard money can get you into a REO when the banks won’t.

Hard money Fix and Flip Loans in Arizona work differently than mortgages. You’ll typically take the money out for a short period of time; such as a few months or a couple of years. During that time, you’ll make interest-only payments and then pay off the balance at the end of your term. Things like the condition of the property and your credit are less of a concern, but you’ll need to have detailed plans for how you’ll repair the REO and know when/ how you’ll pay off the balance. If you plan to live in the home and the initial condition of it prevented you from getting a traditional mortgage, you should be able to qualify once the repairs are complete. If you’re a rehabber who likes to repair and sell, you’d pay off the balance as soon as the property is sold. In other words, don’t let the term “REO” scare you away from a property. Instead, research it well and explore alternative lending with a broker. You just might find you’re getting the deal of your dreams.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Trust Deed Investing—What are the Advantages? The Pitfalls?

January 23, 2020WordPressconstruction loan, private hard money, WordPressbigdaddydennis

Is this method of funding one you should take on? Again, do the needed research and find out what is best for your planned investment because these are different from most well-known funding packages.
These investments, if done correctly, can give a well-defined yield with the investor’s risk being a low one. Single digit returns, as high as 10 percent, can be registered on a monthly basis here.

Safety margins—the difference between the value of property and the total amount of the loan—border the possibility of loss in this kind of investing. Failure to repay funding by the borrower can result in the lender’s re-possessing the property in order to regain any losses along with any interest that may have been attached to the loan. Investments can have a LtV (Loan-to-Value) up to 65 percent, which is certainly a positive point for a borrower.

Trust deed investments do not, however, appreciate in their value as do typical real estate investment properties. Still, income can be generated by them.

Banks, on the whole, typically do not want to do this type investing since they are looking to make as much money as possible from their loans—six to 12-month payoff times do absolutely nothing for these institutions. The banking industry’s loans are set to expand over a lengthy time period up to and including 30 years in more than a few instances.

Lawsuits involving the property title, real estate values that drop suddenly and sharply, assessment errors made and overlooked during appraisal that change the property value are just some of the things that make this type investing termed as somewhat dangerous to both borrower and lender.

Traditional investors want solid ground under their feet at all times and the rules they work by are designed to make that as close to reality as possible. Investors that are in the ‘hard money’ areas are thought to be a better choice for trust deed investing since they can and do work outside the regular boundaries of investing. They also charge higher rates of interest and origination fees than conventional lenders.

Deep study and careful consideration of all factors is a must when it comes to this type investment—after all you want to make money, not lose it. Be assured that all the desired legal demands have been met and double checked, and that the property appraisal is correct to the last penny. Be certain of the whole as well as the sum of the details. These investments cannot be converted back into liquid cash in a couple of weeks if you have a change of mind as can bonds or blue-chip stocks.

If you are seriously interested in trust deed investing, however, along with your regular research, talk to an attorney or a certified public accountant whose opinion you value. If you have friends in the business, check with them as well. Once you possess all the facts, if you still want to invest in this area, find the lender who is best for you and work with them to make your experience a positive one.

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

Why Banks Don’t Like to Give Loans to Flip Houses in Arizona (And What You Can Do About It)

January 23, 2020Uncategorizedbigdaddydennis

Going to banks for Loans to Flip Houses in Arizona usually results in a big fat “DENIED” letter. The good news is, there are other ways to increase your eligibility for funding.

Working on fix-and-flips can increase your wealth dramatically, especially if you’re already handy or have some experience in real estate or finance. However, getting your hands on financing, particularly for your first few properties, is a real challenge because traditional financing doesn’t work. Banks will typically tell you “no” for one of three reasons;

1. You’re not living in the home. Banks like owner-occupied homes because the person making the payments obviously needs a place to live. In other words, you’d move mountains to keep your home, no matter what else happens in your life. If you’re not living there, the bank will likely consider offering any kind of cash too risky.

2. The property is not in good repair. Some of the best fix-and-flip deals have serious issues, like roof or structural damage. They can’t be lived in because of this. If the bank were to give you Loans to Flip Houses in Arizona and you didn’t make good on payments or fix it, they’d be stuck with an unlivable house that they’d have to fix before unloading. It’s an expensive and undesirable situation for them.

3. Your credit isn’t spectacular and you don’t have business credit yet. It takes small businesses quite some time to establish credit, especially if you’re asking for tens of thousands or hundreds of thousands of dollars. In most industries, the business owner uses his or her personal credit until the business is established, but most people don’t have strong enough credit to cover the large amounts of cash needed for purchasing a property. If you already have a mortgage for your own home, that’s a double ding. They’ll be looking at it from the standpoint of making two mortgage payments; something most people cannot do.

Increase Your Eligibility by Choosing Alternative Funding

Banks aren’t the only ones you can go to when you need Loans to Flip Houses in Arizona. Oftentimes, people in the industry go with hard money instead. This refers to financing based on the value of an asset, rather than the criteria banks usually use. It’s easier to get and it doesn’t matter if the house is a wreck or if your credit is rotten. You’ll also hear it referred to as private money, simply because the people financing your project are regular people versus institutions or banks.

A seasoned broker can help make your dreams come true.

It probably goes without saying, but private individuals with cash to invest don’t hang around street corners asking people if they need cash. To get Loans to Flip Houses in Arizona with great terms, you’ll need to work with a broker who is familiar with multiple investors and can match you with someone who’s a good fit for your project. A seasoned broker will also help you shore up your plan if need be, so the deal looks good to investors and you have more success with your rehab projects. Whether you’re just looking for info or already have a property picked out, speak with a broker who works with hard money and you’ll increase your chances of getting approved dramatically.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Why Banks Don’t Like to Give Loans to Flip Houses in Arizona (And What You Can Do About It)

January 23, 2020Uncategorizedbigdaddydennis

Going to banks for Loans to Flip Houses in Arizona usually results in a big fat “DENIED” letter. The good news is, there are other ways to increase your eligibility for funding.

Increase Your Eligibility by Choosing Alternative Funding

A seasoned broker can help make your dreams come true.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177