All posts by bigdaddydennis

Getting a Construction Loan for Investment Property

Because there are so many financing options available to today’s homebuyers and real estate investors, it can be hard to make the right choice. When it comes to upgrading your property, or even building a new one, one option worth considering is construction loans for investment properties.

Renovation or construction loans for investment properties can be used for several projects, but almost always allow the user to customize their space or property. Anyone interested in new construction or a big renovation should investigate this as a viable financing option. Keep reading to learn if these loans are right for you and learn how you can qualify.

What Are Construction Loans?

Construction loans are short-term financing options for new real estate or renovation projects. They are used to pay for the costs of building a new house or for upgrading an existing property. Construction loans are only applicable for the time it takes to complete the project, and users only borrow what they need. These loans are distributed directly to the contractor (instead of the borrower) in segments called “draws.” Draws are marked as certain elements of the project are completed, such as the foundation being poured, or the frame being built.

The main appeal of construction loans is that they enable home buyers or investors to build a new property; though, the freedom to customize a property does come at a cost. For example, construction loans are known to have higher than average interest rates. The structure is typically set up to protect lenders who trust that a project will be completed correctly and that it will be worth a certain amount when done. Homeowners should not rule this option out, however, because there are several perks to this form of financing.

What Can A Construction Loan Be Used For?

A construction loan can be used for several projects, depending on your lenders’ requirements and terms of agreement. Here are a few of the ways to utilize an investment property construction loan:

Purchasing raw land

Pouring foundation

Building an addition to a property

Framing and finishing a house

Building sheds or other structures

Adding a garage

What’s The Difference Between A Construction Loan And A Home Loan?

A construction loan and a home loan are different in terms of what they can be used for; and as such, the approval requirements will be slightly different for each. A construction loan is used to build new structures or renovate existing ones, while a home loan is just a traditional mortgage. Both types of financing will require a credit check and other financial information, but a construction loan will also require the project plans to be approved before the loan is issued.

Additionally, construction loans can only be used for the duration of the project. Home loans, on the other hand, are issued for a set period until they are paid off. Borrowers who rely on construction loans will typically refinance their property after the project is completed and enter a more traditional loan. To do so, homeowners will go through a property inspection and appraisal.

What’s The Difference Between A Construction Loan And A Renovation Loan?

The difference between construction loans and renovation loans lies in the type of project. Construction loans are used for new properties with definitive project plans. Those who use construction loans will also typically transition into a regular mortgage at the end of the construction project. In contrast, renovation loans for investors are used to purchase fixer-uppers or to renovate existing properties. These loans can be used for both cosmetic and structural fixes, like insulating a house or upgrading a kitchen.

Can You Get a Construction Loan For An Investment Property?

Yes. You can get a construction loan for an investment property if your project plans and finances meet designated lender requirements. Unlike some home loans, there is no process stating that a construction loan must be applied to a primary residence. Construction loans can be a great option for financing an investment property for many reasons. Most notably, real estate investors likely have experience working with contractors and supervising renovation projects already. Therefore, they may be well suited to oversee the construction of a new property.

There are also renovation loans for an investment property that can be obtained by following a similar approval process. Investors interested in a renovation construction loan will find that the loan is distributed based on the after-repair value of the property in question. This is where your investor tool kit will come in handy.

How To Qualify For A Construction Loan

To qualify for a construction loan, borrowers must meet several financial requirements in addition to having their project plans approved. To begin, lenders will typically review your debt-to-income ratio and credit. While the specific requirements vary based on your lender, many ask for a credit score of 650 or more. Borrowers must also have a down payment when setting up a construction loan, which should usually be between 20 and 30 percent. Make sure you shop around when searching for a lender; there are numerous options available for obtaining a construction loan and each will come with different requirements.

To get the final approval for a construction or renovation loan, you must also submit the construction plans for the project. Lenders will want to see detailed plans for the property and a team of qualified builders attached to the project. It is important to know that while you do need finished plans for the final loan approval, you can get preapproved for a construction loan before buying a property.

Do I need a licensed contractor to for construction?

Generally, the answer is yes.  The contractor needs to be licensed in the state where you are building the project and carry all of the bonds and insurance.  Additionally, they need to be licensed as a general contractor not specific license. Doing a ‘self-build’ is hard to qualify for a construction loan.  Why?  The main reason is that the contract (licensed ones) is going to stick there neck out when the build the home.  The typically have to ‘guarantee’ the work for several years.  In Arizona, my home state, the guarantee is a blank guarantee for 2 years and a general guarantee for 10 years.  When you self-build, there is no guarantee.

What does a hard money lender look for in a construction loan? 

The number one question is, ‘what are you going to do after the home is completed’?  If you say you are going to live in the home this kills the deal.  It becomes a consumer loan, and typically hard money lenders avoid owner occupied loans.

What Type Of Loan Is Best For Investment Properties?

Three construction loan types are best for investment properties: fix and flip loans, purchase and rehab loans, and construction/purchase and build loans. Typically, investment construction loans are reimbursement loans. In this case, the lender will pay for each stage of construction as it is completed and signed off by inspectors. Let us look at the best types of loans for constructing investment properties:

Fix & Flip Loans: These loans are ideal for the opportunist who has experience in buying, fixing, and reselling properties within a short period. You will find that most conventional lenders and banks will have no problem financing these projects if you comply with common sense hard money underwriting guidelines. What will matter the most for this loan is your experience in effectively flipping properties for-profit and the viability of the project in question.

Purchase & Rehab Loans: These loans are best for purchasing old or outdated properties and either demolishing them to construct a new one or completely remodeling it to fit today’s standards. Again, the underwriting will be the most important thing to get this project started.

Construction Loans/Purchase & Build Loans: These types of loans are available in the purchase of a lot or for construction on an existing lot you own. Construction loans and purchase and build loans are specifically for non-owner-occupied properties with the intent of retail or future rental income.

Summary

The idea of customizing a property from start to finish may seem impossible, both for homeowners and investors. However, this is not the case. With financing options like construction loans for investment properties, building a new property does not have to be a distant dream. While there are approval requirements for this form of financing, it can open new doors to anyone interested in purchasing raw land or fixer-uppers. Consider a construction or renovation loan next time you plan a project; it might lead to amazing results.

Is a lack of funds keeping you from investing in real estate? Do not let it!

What Are Arizona Construction Loans?



When you are building rather than purchasing an existing building, structure, or home, the loan requirements are different. Understanding these Arizona Construction Loans is critical to the success of your project.

There are two main categories of Arizona Construction Loans. The first is a construction to permanent loan. In these Loans, the money to build the structure is advanced to the contractors in stages. The balance of the loan becomes the permanent mortgage after the construction is completed. A stand-alone construction loan only covers the cost of building the structure. Once the building is completed, the owner must then secure a mortgage or be able to cover the cost of the construction loan in cash. And while this sounds like a great way to build a structure or home, few people have the resources to allow them to pay cash once the construction phase is finished.

The most significant benefit to selecting a construction to permanent loan is that the borrower only goes through the long and arduous process of securing a loan once. This means that all of the paperwork and credit reports are only done for the initial loan and then reused to obtain the final longer-term mortgage. The mortgage can be either 15 or 30 years and is just like any other mortgage that you might secure with either a fixed or adjustable rate. An added benefit with only one set of documents and credit checks is that there are fewer fees for the borrower to pay.

Using stand-alone Arizona Construction Loans allows the borrower a bit more flexibility when choosing a long term mortgage. In most cases, lenders will not offer VA or FHA Loans for a construction to permanent loan. But with a stand-alone loan, the borrower can secure these reduced-cost Loans as their long term mortgage. But the price to be paid for the selection is that you must qualify for the two Loans separately. That means maintaining a high credit score and low debt to income ratio for a more extended period of time.

Factors to Consider On Arizona Construction Loans

When you are deciding if you want to go through the loan application and approval process twice, consider all of the factors that could slow down the construction process. This could include a lack of materials, difficulty obtaining obscure materials, or even a long stretch of bad weather. With the two in one loan format, the time extension is not as big an issue, but if you are getting a second loan as your long term mortgage, a time change could add challenges.

Qualifying For a Construction Loan

Securing a construction loan is much like qualifying for a traditional mortgage. You need to show a very good credit score and also be able to make a down payment of 20% or more. Because the home or structure is not completed, it cannot be used as the collateral for the loan. In these cases, the lender will require specific documentation from the builder to secure the loan. Additional information about the builder could also be necessary to ensure that they have credibility and experience. If building appeals to you more than buying an existing property, it is vital to research the process of using a construction loan so that you can make a well-informed choice.

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

16 January, 2020 22:12

[title: Build Your Dream Home With a Arizona Construction
Loan]

House hunting can be an exhausting process that yields little results. If you are unhappy with what is on the market, consider how an Arizona Construction Loan can make all your dreams come true!

House hunting can be exhaustive. After a while, you may feel like giving up—but settling on a house is not something you should do. After all, you spend time in your home every single day and it is a reflection of who you are and functions within your lifestyle. Choosing a home that is too small or doesn’t have all the features you like will make you unhappy in the long run. Fortunately, there are other options.

Some prospective home buyers may go as far as to consider fixer uppers. Sometimes, this option can be cheaper. However, it does involve a little bit of work and transforming a home before your eyes. Depending on who you are, if you have a natural eye for design and are able to work with the existing foundation, the process of making a fixer upper your own can be difficult—and, because you are forced to work with what is there, not all creative design choices are possible. If you are tired of not being able to find your dream home, or even renovate or modernize one to your liking, consider building one from scratch with a construction loan.

Why You Should Invest in Arizona Construction Loans

An Arizona Construction Loan will allow you to create your dream home. You will be able to design the floor plan, and even go as far as picking the location of your property, probably with the help of a land loan. Building a home from scratch is a lot of work that involves multiple heads: an architect, project manager, and the builders themselves. However, a collaboration like this one may be able to allow you to create the home you want but doesn’t exist on the market.

The idea of building a home from scratch can definitely be overbearing. There is a lot of pressure to do the job right, but you are not alone. If you don’t want to design your floor plan by yourself, you can work with an architect who can help make adjustments or suggestions that will help ensure you are getting the home you want that fits your aesthetic and lifestyle. If you choose to work with a qualified mortgage broker, like those at Level 4 Funding in Arizona, you can be confident that you are working with someone who considers your needs on an individualized basis with a thorough understanding of the real estate market.

Arizona Construction loans in Arizona

If you are tired of the nonsense availability of the current homes on the real estate market, give the lenders at Level 4 Funding a call to discuss what an Arizona Construction Loan can do for you. We offer a free initial consultation, with no upfront costs or fees, to help you determine the best way to make your dreams reality. Our lenders are willing to work with you on an individual basis so that you can build the home that speaks to you. Give us a call today!



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

Essential Tips to Know About Fix and Flip Loans



Most new real estate investors are not familiar with Fix and Flip Loans. But these few tips can set you on a path to use these Loans successfully to launch your real estate career.

Most people are familiar with traditional bank Loans and mortgages. We have all been through the process when purchasing a home. But when you are interested in investing in real estate as a career or even a side business, you quickly learn that these conventional Loans are not going to meet your needs. One of the most widely used alternatives to a bank loan is borrowing from a hard money lender. While this might sound a little scary, hard money is an entirely legitimate industry. It merely means that you are getting Fix and Flip Loans from a private lender and not the traditional bank or loan institution.

Because hard money lenders are private entities or individuals, there is not as much advertising to promote these lenders. In some areas, you might even find it a bit tough to locate hard money lenders when you are new to flipping. So, it is crucial that you begin to build a network in the industry. Speak to other flippers, real estate investors, and realtors to learn who the best hard money lenders in the area are, and how to contact them. Word of mouth from satisfied borrowers is a great way to determine who is honest, upfront, and easy to work within your local hard money game.

Hard money lending moves at a very fast pace as compared to traditional lending, so it would be best if you had all of your information ready when you speak to a hard money lender. In general, you will need to have the address and description of the property that you are interested in. Also, prepare a project plan to demonstrate your professional experience in flipping or rehabbing and your budget. Finally, have documentation ready to prove that you have access to the funds needed for the down payment and the renovations that will be required on the property. The more documentation you have to show the lender about the property, the faster he or she can decide if you and your deal are a suitable risk.

There Is a Cost for Speed

While the speed of evaluating a hard money loan application is much faster than a typical loan application, there is a cost associated with that speed. In most cases, you will pay anywhere from about 10% to 20% interest on Fix and Flip Loans. You will also need to pay points, which are equal to 1% of the loan value. The lender will determine how many points he or she wants to fund the loan. Other loan costs will include an appraisal of the property and possibly a survey of the land.

New Is Good

While you might not be familiar with hard money Loans and lenders, they are an excellent solution for Fix and Flip Loans. And the time that you invest in learning the process and possibilities for hard money is sure to pay off. Most flippers find that building a long-term relationship with one or two hard money lenders is the perfect way always to be prepared to make a fast purchase when they see a great deal on a property.

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

16 January, 2020 22:00

[title: What Are Arizona Construction Loans For?]

If you are new to the real estate market, you may be playing catch up in all the jargon and lingo that goes on in the business—neglecting to watch HGTV may also keep you out of the loop in the types of creative passion projects people have and attempt to make a profit off of. So, what are Arizona Construction Loans? Are they the new fixer upper?

Someone choosing to obtain Arizona Construction loansare looking to build land on a property they own. Instead of purchasing a property to renovate or modernize, they choose to build from the ground up. In this way, builders have complete control over the type of home they build, and have a say in the location. Usually people who obtain Arizona Construction loansalso obtain Arizona Land Loans to complete a total vision of the project.

Construction or Fix and Flip?

Designers and lover of aesthetic may be more interested in fixer uppers than construction projects. Fixer uppers already have an essence to them, and somebody working on a fixer upper has to work with what exists. It’s true that renovators can tear down walls and turn a small office into a half bath and vice versa—but there is a foundation that is not malleable. Designers may see potential in what is already there and tweak it.

Those interested in construction projects may have an idea for a complete vision. Perhaps there is a vacant lot near business, entertainment and school districts that would be the foundation for a charming family home. Or, perhaps they are an architect with the vision of a director, and they would like to design and curate the home based on a blank canvas, or, in this case, vacant lot. Both construction projects and renovation projects have their pros and cons, but someone seeking Arizona Construction loansmay have to invest more time and money than those seeking fix and flip loans.

An Arizona Construction Loan covers many costs, and building a home involves a lot of people. Compared to fixer uppers, complete home builders require more labor and more brain power. This is because the project is being completed from scratch and as the home is built, many different people come into play to make sure it happens; this includes the architect, builders, project managers, inspectors, as well as those who provide the resources to actually build the house.

Sometimes it’s possible to find an affordable fixer upper that just needs a few changes, the commitment isn’t as deep, and the cost and stakes aren’t as high. Building a home is a much higher commitment and investment.

Where to Get a Construction Loan in Arizona

If you are seeking out an Arizona Construction Loan, consider the mortgage brokers at Level 4 Funding. We are a team of qualified professionals who offer a variety of loans and free initial consultation. We charge no upfront costs. Give us a call today to see how we can help make your passion project go from dream to reality.



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 Hard Money Is Better For Fix and Flip Loans



Hard money Loans might cost a bit more than a bank loan, but they offer many benefits that make them an excellent choice for Fix and Flip Loans.

When you are searching for Fix and Flip Loans, you will quickly discover that traditional lenders, such as banks and mortgage companies, are not interested in working with you. These lenders have very strict criteria to qualify for a loan, and they are also federally regulated. This makes qualifying for a less than cookie-cutter loan, very challenging. But the good news for real estate investors interested in Fix and Flip Loans is that hard money lenders provide Loans that better meet your needs.

Hard money lenders are private individuals or small groups who work together to provide Loans to borrowers. And because they are not regulated in the same way as banks and mortgage companies, they can be much more flexible and accommodating on terms for your Fix and Flip Loans. The loan terms cover everything from the length of the loan, or life, to the rates and repayment schedule. On flip projects, you never want to have a mortgage that drags out for more than a year, and hard money Loans offer the short life that you need. In addition, you can work with the lender to set up a repayment schedule that works for you, such as no payment for 90 days.

When applying for a traditional mortgage or bank loan, there are many documents that you must submit. And the approval of your loan hinges on having all of the forms completed correctly and having a high credit score. But with a hard money lender, the approval of your loan request is based on the value of the property that you are purchasing. This dramatically reduces the amount of paperwork that you need to submit. And it takes the stress off you if you do not have an excellent credit score.

Fast Cash

If you have ever applied for a loan from a bank, then you know that it can take many weeks or even many months for the approval process to be completed. And even after completing all of the paperwork and waiting, you still might be rejected. That is far from the case when you are requesting a hard money loan. The lack of red tape related to these Loans makes it very easy for the lender to provide you with a fast answer on your request. And if there is an issue that causes your application to be rejected, you can often negotiate new terms for the loan and be approved in just a few days.

The Right Tool for the Job

Flipping homes is a fast-paced business and one where timing is often critical to the success or failure of a deal. You can’t wait for months to get funding on a traditional loan. The solution for a fast loan with no red tape and no deep dive into your personal credit history is hard money. It is a solution that can help you begin a successful career in real estate investing.

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

16 January, 2020 21:36

[title: What Are The Best Fix and Flip Loans?]

If you’re new to fixer uppers, it’s enough to just be in-the-know through all the latest HGTV shows—an investment will be important for the property, but also your time, energy and resources. This includes your mortgage lender, loan process, and who to go to for successful fix and flip loan.

When it comes to fixer uppers, you have to have some extra cash. It’s not always difficult to find a property with potential on the market, but you also need to invest in possibly modernizing the home, fixing problem areas, and making it valuable to potential buyers.

If you don’t have extra money lying in the bank or a generous relative who can invest in you and your project, you are probably considering mortgage lenders to help fund your project. But what makes a successful mortgage lender who is worth your time and efforts?

What Is Hard Money—and Who Offers It?

Mortgage lenders can be public or private. When most people think of loans, they probably think of traditional money lenders, like banks and credit unions. These options are here for you, but with a catch. They have high expectations of their borrowers and the requirements for acquiring a loan can be strict. Simply, not everyone may qualify. Fortunately, there are other options if you don’t qualify with a traditional lender. Something else you may not know is that private, alternative loan lenders may be better for renovation projects anyways.

If you do not obtain a loan from a public loan lender, you may be interested in speaking with a private hard money lender. A private hard money lender is an untraditional loan option by private individuals or companies.

Because private hard money lenders are not backed by large, public companies, they can work on an individualized basis. Just because you don’t qualify with a public lender, does not mean you will not qualify for fix and flip loans with a Private Money lender.

Private lenders and mortgage brokers offer something called hard money. Once approved, hard money can usually be obtained within the week so you are able to begin working on your renovation project, or bidding on the competitive housing market, right away. Because private hard money lenders are speedy and flexible, they come with higher interest rates. Borrowers may still choose to work with private hard money lenders for their fix and flip loansbecause of the time line.

Hard money is meant to be paid back fast—within the year—and a successful renovation project smooth updating and a quick sale makes repaying the loan in such a timeline possible. Borrowers may also be interested in speed because of the increased ability to obtain a house with potential. Being able to obtain it makes the project possible, and not all homes are great contenders as fixer uppers.

Hard money lenders in Arizona

If you are seeking a qualified mortgage broker in Arizona, look no further than the professionals at Level 4 Funding. We offer a free initial consultation with no upfront fees, so we can determine what the best fix and flip loansare for you. Give us a call today!



Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
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 Much Money Can I Make with Trust Deed Investing?


Trust deed investing is still widely used in about 20 states and Arizona is one of them. Learn about this under-the-radar investment strategy and how much you can make.

First, let’s look at what a trust deed is and the role it plays in a real estate transaction. Trust deeds, sometimes called deeds of trust, are documents that bring in a third party (aside from the borrower and lender) in a property purchase. This third party (the trustee, which could be a bank, an escrow company or a title company) has no vested interest in the transaction; they just hold the property as collateral until the borrower pays off the debt in full. The borrower still takes control of the property but should he or she default, the trust deed would ensure that the property went back to the lender.

Private investors can get in on this game by lending money to a developer and using a trust deed to secure the loan. They can also purchase trust deeds from firms that specialize in this area. In essence,trust deed investing allows investors to get into real estate without knowing anything about real estate.

Pros and Cons to Trust Deed Investing

There are some pros and cons to this approach:

● Pros. Purchasing trust deeds allows investors to diversify their portfolios. Rather than be at the whims of the stock market, they can put money into an area that typically offers steady growth. They’re also well protected. If the borrower pays off the loan, the investor pockets all or most of the interest. If the borrower doesn’t repay, they can sell the property to recoup the money.
● Cons. In the stock market, you can pull your money out and become liquid at any time. This type of investing is less liquid; your money is tied up in the deed. In addition, if the borrower pays off the loan, you’ll get a nice, steady return but you might not see any capital appreciation.

Become a Trust Deed Lender in Arizona

Interested in diversifying your portfolio with a real estate investment? Level 4 Funding handles trust deed investing transactions and we take some precautions to make it safer. We do call-offs, which means every transaction is one borrower and one lender. You also get to keep all the interest; we only charge a small fee to broker the deal. What are you waiting for? Give us a call or get on our email list to be notified of new deals.

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

What to Know Before Investing In Deeds of Trust



Before you begin Investing In Deeds Of Trust, you should understand how these agreements work. They are not really the same as investing in a mortgage loan.

It is essential to investigate any type of investment before you commit your hard-earned money. And while many investors think that a deed of trust is the same as investing in any private real estate loan, that is not the case. When you are investing in a deed of trust, you never actually hold the title to the property as you would with a mortgage loan. In these deals, there is an impartial trustee who is responsible for the property until the loan is paid off.

The impartial trustee must always be prepared to sell the property if the borrower defaults on the loan. And because the trustee is unbiased, he or she never favors the interest of the borrower or the lender, ensuring that the transaction is fair to both parties. In addition, the foreclosure process involving a deed of trust is not conducted in the same manner as a traditional mortgage default. Conventional Loans require judicial supervision for a foreclosure while the trustee on a deed of trust does not. This makes the sale process much less complicated, which is a benefit for anyone who is Investing In Deeds Of Trust.

When there is a foreclosure, the trustee must sell the property and then distribute the funds to the lender and the borrower. The lender is repaid the full amount that he or she is owed according to the loan agreement, but the remaining funds are then given to the borrower. This is because the borrower retains the title to the property. In the case of most personal real estate Loans, when the borrower defaults, the collateral or in most cases, the property is passed to the lender in place of repayment of the loan. At that point, the lender owns the entire property and can sell it and keep the full sale amount. The lender who was in default has no right to any of the sale money.

Other Differences Between Mortgages And Deeds Of Trust

Mortgages have specific legal requirements that are not met by a deed of trust. And while this has some benefits for anyone who is Investing In Deeds Of Trust, it has some crucial factors that could be seen as a drawback for a borrower. Because this loan is not classified as a mortgage, there can be significant tax implications for the borrower. Many times, mortgage interest is tax-deductible, but the interest and fees on a deed of trust are not. Also, the trustee can liquidate the property much more quickly, which could work against a borrower who is trying to get caught up on payments.

Know Your Risks When Investing In Deeds Of Trust

As with any investment tool, every investor needs to complete his or her research before committing any money to an investment opportunity. The only way to decide which investment is best for you is to evaluate the risk involved and balance that with the potential financial return.

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 Fix and Flip Loans Work

When it comes to buying a property that you plan on renovating and reselling, a fix and flip loan is exactly what you need.

Fix and flip loans work a little differently than conventional mortgage loans. If you are planning on working with a hard money lender to finance you for a fix and flip loan, there are a few things you should know before meeting with potential lenders.


Fix and flip loans are formed to assist in the purchase and rehabilitation of a home or property to either rent or resell. Fix and flip loan terms vary with each lender. Typically, these loans are short-term, ranging from 6 months to 3 years. The purpose of the loan duration is for borrowers to sell the property before the loan balance is due. The last payment is a balloon payment, and the borrower will have the funds from the sale of the property.

Since fix and flip loans are short-term, they carry higher interest rates than conventional home loans. The benefit however, are investors will receive funding in less than 2 weeks, unlike bank loans which can take 30-90 days to receive funding.

Because hard money lenders are not banks, each lender has their own unique rules for lending. For example, a lender can finance up to 80% of the property’s after-repair-value (ARV). The ARV is what is the property is expected to sell for after renovations are complete. Interest rates will vary from lender to lender and also may be affected depending upon the borrower’s experience in these types of projects. Typically, interest rates run from 7.99% to 18%

What Lenders Need

Before applying for a fix and flip loan, there are a few things to consider that may increase your chance of approval. Lenders want to feel that you have some financial skin in the game. Borrowers will need to put anywhere between 15% – 50% of the property’s value. That money has to come from the borrower. Lenders will not fund down payments. There are select borrowers that offer 100% financing, but it is important to read your contract carefully. Typically, 100% financing comes with insanely high interest rates. Be prepared to show the lender the estimate for completing the project. This will include construction costs, goods and any possible labor.

Lastly, lenders will look at your track record. The more experience you have, the easier it will be approved. It is possible that, for your first fix and flip loan, you may be required to put your personal assets as security on the loan. Once, you have a proven track record, that won’t be necessary.

Before you apply for a fix and flip loan, it’s a good idea to do your homework.

Carefully research lenders in your area that fit your specific needs; Remember, it may sound perfect, but it is imperative to read between the lines. If it is too good to be true, it most likely is just that.

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