Category Archives: Arizona hard money lenders

Things to Consider When Obtaining Hard Money Loans

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Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-150x150 Are you wondering what Arizona hard money loans are and where they fit into your investment strategy? Here are the basics of these types of loans and what they can do for you as an investor.

This type of loan is an asset-based loan.  The borrower wishes to secure a loan backed by real property.  Private investors and companies are typical issuers of these loans.  Unlike banks, Arizona hard money loans can carry higher interest rates.  These interest rates are higher than a convention real estate loan because of the higher risk and the duration of the loan which is shorter than conventional real estate loans.

People using Arizona hard money loans are usually looking for funding for projects lasting from a few months to a few years.  The criteria for lending and borrower costs are similar to bridge loans. In fact, many hard money lenders specialize in bridge loans. Bridge loans are used for properties that are in transition and may not be able to qualify for traditional financing.  An example of a bridge loan is when a home buyer finds a new home they’d like to buy before their old home, which is on the market, sells.

Many hard money lenders will lend 65% to 75% of the current property value. The amount of the loan is determined by the loan to value or LTV. It is figured by the ratio of the loan amount divided by the value of the property. Arizona hard money loans are mainly used for commercial property.  These types of loans first started in the 1950s and have been growing in popularity.

Although mostly unregulated by state and federal laws, some restrictions on interest rates by states, commonly known as usury laws, prohibit hard money loans. Two of these states are Tennessee and Arkansas.

Federal Guidelines

Since the 2009 mortgage crisis and the passing of the Dodd-Frank Act, these loan programs have greatly expanded.  This is in part due to the strict regulations that were put on banks and lenders after the passing of this act. Truth in Lending and Dodd-Frank set out Federal guidelines for lenders, mortgage originators, and mortgage brokers requiring them to evaluate the borrower’s ability to repay the loan.  The ability to repay the loan is on the borrower’s primary residences. If the lender does not conduct the proper due diligence, they are faced with high fines for non-compliance. Hard money lenders mostly lend on commercial loans or business purposes so that they can avoid non-compliance with TILA, HOEPA and Dodd-Frank guidelines.

Before any offer of financing, the lender will want to determine the LTV (loan to value).  The basis for the loan is the liquidation value of the collateral.

A BPO (Broker Price Opinion) or an independent appraisal by a licensed appraiser in the state that the property is located in, will value the property. Typical hard money loan interest rates range from 10% to 18%.  Despite these rates, investors often turn to them due to quick loan approvals, high flexibility, less documentation than conventional lenders, and offering the ability to put a bid on a property that may go quickly after hitting the market.


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumb_thumbDennis 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 the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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

How to Make the Most Out of Arizona rental property loans

4page_img1If you have obtained a loan for a rental property, it is time to decide how you are going to make the most capital out of your investment. Drive the value of your investment up by strategically making the most out of your Arizona rental property loans.

If you are new to the world of investing in property or are considering investing in rental property, it does not have to be an overwhelming process! Getting a rental property loan or finding a loan for a second home definitely does not have to be an intimidating time. This helpful cheat sheet can guide you through the process and introduce you to some key ideas on how you can make the most out of your Arizona rental property loans and start making money for your business or company today.

First of all, if you are interested in investing in rental property, you are going to have to meet certain requirements in order to qualify for a loan at the bank.

  • Typically a 20% down payment on the property This is because is most cases insurance may not be available for rental properties.

  • 2 years or more of experiences with previous property management

Do these qualifications seem a bit intimidating! Don’t worry. For individuals that fail to meet these requirements, there are still other opportunities to find the right loan. These are other avenues to consider. This means that regardless of your experience or financial status you can start investing in real estate today with the help of:

  • A business partner. hard money lenders, private money lenders

Don’t let inexperience prevent you from investing in property. Even the most experienced investors had to start somewhere! Investing in rental property can grow your own personal assets or even grow the assets of your business or company. With the help of investing, you can grow you capital overtime and even potentially retire early!

How Do I Know if a Rental Property Loan is Right for Me?

The time is now to start investing in the real estate market. It does not have to be a challenging process! Finding the right lending opportunities or rental properties to pursue is as easy as picking up the phone or sending an email. Build your network of individuals within your community and you will promptly find lending opportunities near you.

With any business venture or lending opportunity, it is important to survey your options and make an educated decision on any loan you choose to pursue.

Regardless of your inexperience, you can start investing in real estate today. Achieve your dreams of retiring early and grow your assets by investing in rental properties. The right lending opportunity for you and your needs will be dependent on your level of experience and financial restrictions such as your credit score. Even with a lower credit score, you may still be eligible for a loan through a variety of different lending opportunities.


Dennis-Dahlberg-Mortgage-Broker_thum[1]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 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

Triple Your Property Value With Arizona Investment Property Financing

825082878Investing in the right loaning opportunities when it comes to property can dramatically grow the value of your property. Learn how to exponentially create your earnings by choosing the correct lending opportunities to grow your assets and secure a bright financial future for your business or company.

If you are trying to increase the value of your business or company and grow your assets, Arizona Investment Property Financing may be the perfect solution for you and your company. Investing in your business or company through the acquisition of loans can give your business the added capital or funds needed in  order to go after new business ventures. In fact, Arizona Investment Property Financing can even added to your property value substantially.

What could you do with an investment property loan? If you are attempting to invest in real estate, this could be an excellent step in the right direction. These helpful tips can be a good way to get started and begin to triple the value of your assets or properties.

1. Make a down payment that is as large as you can afford. Qualifying for the best interest rates is only possible when you are able to put a substantial down payment on your potential investment properties. If you don’t currently have the funds to make a large down payment, you may want to wait to invest or opt to acquire a second mortgage. Speaking to an experience broker may help you find the best choice for your particular financial situation and budget.

2. Big banks may not be the right way to go. Choosing local businesses or a local lending opportunity may be a better choice than choosing a larger bank. Typically, a smaller bank will have more financing options and more flexibility in their requirements for financing. This means that when investing it may be best to stick to local lenders rather than seeking the help of larger banks or lenders.

3. Think outside of the box. Don’t be afraid to get creative. You may opt to borrow from a person rather than an organization such as a bank. Private lenders can be a good way to find a particular lending agreement that suits your budgets and your needs. Similarly to local banks or smaller banks, a private lender may have more flexibility and able to work with you to accommodate a specific budget or financial limitations.

How Do I Know Which Properties to Invest In?

Arizona Investment Property Financing may seem like an intimidating process for beginner investors or new entrepreneurs.  However, with careful planning and strategy, investing in property can be a successful tool for growing your assets and developing your business or company.

Finding the best investment opportunities is a gradual process but with time can be the perfect tool for you to achieve your business dreams and goals.

Whether you are new to the real estate world or are a more experienced investor, hopefully this guide gave you some insight on the world of investing and finding the best opportunities for you and your needs.

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

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

How to Make Money with Arizona Commercial Loans

page2-img2Arizona Commercial Loans is a name for a variety of different types of Arizona Business Loans that can be used to grow or expand a business or company. While a loan does typically require an initial investment, acquiring a loan can still be a great opportunity to increase capital and add to your overall earnings.

Commercial financing is a great way to grow your business and potentially increase your earnings. When used the right way, Arizona Commercial Loans can be a great way to make money and develop your business or company. Learning the right way on how to use these loans can be the best way to develop your business and earn a higher profit margin.

You can acquire commercial financing to pay for large investments that can dramatically expand your company or business. Most loan opportunities that are for commercial purposes are for a larger sum that can be paid off gradually over time. This means that a business owner can use these loans to cover large expenses. Since these loans are larger in size, they typically have long-term payment plans. This means that you can grow your business at your own pace and pay off your loan at a schedule that suits the purpose of your business or company.

  • Have the flexibility to reach your dreams and meet your goals. One of the greatest benefits of commercial financing is the financial freedom that can be gained. Invest your lent funds in opportunities to further develop your company. This could be done through spending in marketing or new innovative products. Expand your staff or even grow to a new location.

  • Pay off your loan at your own pace and find a schedule that fits your budget or financial goals. With affordable rates and flexible payment plans, a commercial loan can be paid off at your own schedule and at your own pace. This gives you the time to focus on your business and slowly pay of your loan.

  • Create sustainability and growth within your business or company. Paying off a loan over time can build your credit score and lead to further financial freedom or opportunities. By making strategic decisions and slowly reaping the benefits of your investment, a loan can allow your business to develop exponentially.

What Can Commercial Financing Do for You and Your Company?

If you are hoping to grow your business or company, investing in Arizona Commercial Loans is the perfect opportunity to do so. This type of loan can allow you to expand your company at a pace that your budget can easily accommodate.

Commercial financing is a huge investment in both time and money but can ultimately be an excellent tool for the expansion and growth of your business or company.

Imagine how your business could expand or grow with new, exciting products or more members on your team of staff! A commercial financing opportunity could allow you the freedom to achieve this dream and much more. Consider a loan opportunity as a gateway to better your business.

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

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

How to Make the Most Out of Your Arizona Business Loans

24684040Getting approved for a Arizona business loan can be an exciting opportunity for you and your business. Learn how to spend your loan wisely to grow your business and increase your profit.

Great news! You have just been approved for your business loan! If your business has finally been approved for a loan, it’s time to spend your new funds carefully to best help your business grow and increase earnings. When used properly, Arizona Business Loans can be a valuable tool to help expand your business. These helpful tips will help you make the most out of your loan so that your business can thrive.

  • Keep your loan separate from the rest of your funds. Keeping Arizona Business Loans separate from the rest of the expenses in your other accounts can help you make sure that you do not overspend your loan or waste your loan on unnecessary purchases. Having to gradually transfer your loan through your accounts will help you keep track of your spending habits over time.

  • Make the payments on your loan automatic. Paying off Arizona Business Loans over time can actually be a good way to increase your credit score as long as you are sure to make your payments on time, every time. Setting up automatic payments on your loan can prevent you from making the mistake of forgetting a payment.

  • Spend on worthwhile expenses. Don’t waste your loan on costs that won’t broaden the horizons of your business or help grow your company. Instead, spend on worthwhile investments that can lead to exciting opportunities for your business. This could mean spending more money or marketing ventures or increasing the inventory of a product.

Forgetting to pay off your business loan on time or making payments too late can damage your credit score. Keep track of your spending habits and budget accordingly so that you will always be able to pay off your loan. Just because you have the added funds of a business loan does not mean that you should forget about your budget or increase your spending habits dramatically.

Common Business Loan Mistakes to Avoid

When used carefully and smartly, Arizona Business Loans are a smart investment for any business or company. A loan can give business owners much more flexibility within their business to achieve certain goals or bring more assets to their company. For example, strategically spend your loan on items such as marketing to draw more traffic towards your business.

Make sure your business loan expenses are valid. Don’t spend on unnecessary expenses just because you can.

It’s a simple truth that in order to make money, a business has to spend money. A business loan can be an exciting new opportunity for business owners to grow their business and invest in their future. Paying off a business loan over time can even lead to a higher credit score which can broaden a business’s financial future and options. Use a loan the right way to give your business the tools it needs to grow and succeed.

Dennis-Dahlberg-Mortgage-Broker32222[2]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 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

Investors; Why Real Estate Lines Of Credit ?

iStock_000001084155XSmall“Scoring” a Real Estate Lines Of Credit can be a great way to use your current equity in your properties to build your investor portfolio. Find out how easy it can be to draw capital on what you already own.

Are you an pansy Real Estate Investor? Do you find that there are more deals slipping through your fingers than you can fund at any given time? Do you feel like you are on the verge of becoming one of the “bigger fish” but are just falling short due to lack of available cash? Obtaining a single or multiple Real Estate Lines Of Credit is one of the best ways to use your current equity to help fund new and exciting real estate ventures.

But how does one secure Real Estate Lines Of Credit? Well it is easier than you may think. Sometimes called “Acquisition Credit Lines”, Real Estate Lines Of Credit can be obtained at most financial institutions. Though all financial Institutions are different and have different rules and processes, a line of credit to and investor with current real estate equity can happen as quickly as 30 days. Once you are approved, your accounts are funded very quickly in most cases.

How does it work? Well once you have secured your Real Estate Lines Of Credit, it could be used much like a credit card. No need to wait around for funding and underwriters to close that deal. You can get your deals done fast, beating others to the punch, who have, in the past, perhaps got there before you. The playing field is evened because you now have the cash on hand.

Other benefits of having real estate credit lines include small or no upfront fees, no appraisals, no secondary collateral, and absolutely no restrictions on use! Absolutely none! One of the greatest assets of securing Real Estate Lines of Credit is that it gives the investor the ability to do any type of real estate deal! Commercial, house rentals, Multi units, flips; with this kind of credit line, the investor is now on a level playing field as the “Tycoon” and is not limited to one kind of real estate deal.

Having ready “cash On Hand” available for an investment in real estate is a huge asset in an overall investment strategy. It may be just one part of your overall strategy but in most cases, it will be one of the most important ones.

As mentioned earlier, financial institutions differ greatly, so you should consult with multiple lenders to see what they offer. It is also a pretty good idea to consult your attorney and independent financial advisor to assess your personal situation before you dive head first into Real Estate Credit Lines.

So don’t be left behind or limit yourself as an investor. Real Estate Lines Of Credit are both easy and quickly secured. But more importantly, they give the investor the flexibility to make many kinds of deals and the agility to do it quickly.

Dennis-Dahlberg-Mortgage-Broker32222Dennis 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 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

Things to consider about Rental Property Loans

623183706If you are getting into the rental business, rental property loans, can be quite confusing. The following article will endeavor to clear up some confusion and attempt to answer the following questions: Where do you even start? What do you buy and who should you get advice from?

The first step before you even think about applying for an investment loan is to know your credit profile. Why? Because this will give you a sense of the amount of money you can qualify for and this amount will help guide your search for investment properties.

Review your credit score from all three major bureaus, Experian, Trans Union, Equifax, and do your best to dispute mistakes and clear up lingering debts. However, be wary, and consult with experts before you try to improve your credit score. Even the best-laid plans such as paying off old debts and closing old accounts might potentially have a negative impact on your score.

After you know your credit score and take steps to improve it as necessary you’ll want to get a sense of how much “house you can” actually afford. That is you want to approach potential lenders and get an estimate about how financing you can actually qualify for, which help narrow your search for investment properties.

In the case of rental property loans, you can increase your eligibility by knowing the numbers before hand.

After you find a property, you might want to purchase you need to have an in-depth sense of the costs associated with your investment.

First, consider the cost of carrying your loan, can you afford to make monthly payments while you wait to secure a tenant? If not you might want to think twice before taking on a new loan. Do you think the property will need repairs in order to make it ‘habitable,” if so you need to factor in the cost of repairs into the amount of financing you apply for, (i.e., You may need to borrow more money than you initially thought).

Above all ask the question, do you have enough cash on hand to make the 20 percent down payment needed for Arizona Investment Property loan? If not you might need to look at cheaper homes, or consider alternative steps to raise the necessary down payment.

Once you have a good sense of the numbers, you can start to take the following steps.

To increase your eligibility for rental properties loans, consider taking the following steps:

Your first job is to gather any relevant paperwork before beginning the application process. Typical documents needed include two months of bank statements, investment account or IRA statements, two months of pay stubs and other documents as requested by your lender.

Then you’ll want to consult some experts. An accountant can help you avoid paying additional taxes on any rental income you may earn. In addition, you should also consult an attorney who can discuss strategies to protect from legal liability. Do your best to get plugged with other local real estate investors in your area; this will give you a sense of the market, and where to find the best deals.

After gathering the necessary paperwork and consulting with experts  its time to get your loan pre-approved. It is always best to have your loan approved in writing before putting in an earnest offer; otherwise, sellers are prone to overlook your bid.

Once your offer is made, and your loan finally has closed, congrats you have just purchased your first rental property.

There are, of course, a lot of other things to consider but this article gives an underlying sense of the process involved with purchasing your first Arizona Investment Property.

 Dennis Dahlberg Mortgage Broker[3][2][2][2][2]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 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

The Differences between Unsecured vs.Secured Real Estate Lines of Credit

userThe main difference between unsecured and secured real estate lines of credit, comes down to how these loans are secured. Both loan types offer you a similar degree of flexibility and savings when compared to traditional financing. Evaluating the cost of both loan types can help you figure out which type of loan is right for your specific situation.

Your personal property provides security in the case secured lines of credit. Personal property can range from your primary residence to anything your business owns or some other form of collateral. With an unsecured line of credit, the loan isn’t secured by anything except for your lender’s estimation of your financial strength.

Now, why not just apply for a regular term mortgage to finance your next real-estate purchase?

With a term loan of any sort, a lump sum is given to you up front. No matter how much money you spend, you still need to make interest payments on the full loan amount. In addition, with term loans, you generally need to take a new loan out to finance each separate acquisition. A line of credit gives you far more flexibility. With a line of credit you only owe and pay interest on the amount you spend, and you don’t need to apply for a new loan with every new purchase of real-estate.

Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.

A secured line of credit is taken out and is secured by some form of collateral, which offers your lender a degree of safety should you default. By mitigating risk, lenders can provide lower interest payments on secured lines and larger credit limits. Nevertheless, with a secured loan of any sort, credit line or term loan, your personal or businesses assets at risk.

With unsecured credit lines you the borrower don’t risk your personal property if you default.  However, lenders need to protect themselves in some way, and so unsecured lines offer lower credit limits and entail higher interest rates, Unsecured lines also come with far more stringent qualifications versus their secured counterparts.

With secured and unsecured real estate lines its important to evaluate the costs of each loan type. This can help you determine which type of loan is right for your specific situation.

A secured line of credit is an excellent idea if you are confident you can pay back whatever you spend, as you don’t want to lose your personal property in the course of expanding your business. Because secured lines offer lower interest payments and larger limits, it is probably best to employ a secured line of credit for making full offers on properties.

Unsecured lines may be more expensive, but they are an excellent way to reconcile differences between offers you want to make and the amount of cash you actually have on hand.  You should employ unsecured lines only when necessary due to the higher interest payments involved.

In both cases having access to a credit line allows you to quickly close deals on investment properties. With a credit line, you don’t need to wait on a lender to make a full offer, which can give you an edge over competing buyers who might need to wait on financing. In addition, credit lines can offer significant long-term savings over term loans because only pay back and pay interest on the amount that you spend.

As with any type of financing, consider the costs, the risks and the benefits of each type of credit line to figure out which one is right for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2]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 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

Secured Real-Estate Lines of Credit: Benefits and Drawbacks

iStock_000002302749_Large (1)Looking to expand your businesses real-estate investment portfolio? Secured real estate lines of credit offer many benefits.A secured line of credit turns you into a cash buyer, and a secured real estate line of credit, you can make a full offer right away without having to wait for financing to come through. A secured line of credit can give you an edge over the competition when it comes to purchasing the best investment properties, while offering you savings over a standard term loan.

To qualify for this type of credit line, you’ll want to be a seasoned real-estate investor, whose properties are titled to an LLC or other legal business entity. Qualifying for this type of loan depends on how much income your business earns on a consistent basis and the total value of the properties currently titled to your business.


Eligibility in the case of secured real-estate lines of credit, comes down to the value of business assets and the financial strength of your business.

To get more specific about the qualifications for a secured line of credit, the sum of the loan you receive generally cannot exceed 65 percent of the value of your business’s currently held assets. In addition, your company should have a healthy balance of debt and income.

Because this is a business loan, its the financial strength of your company which counts for your lender, making your personal credit score a non-factor, which can make qualifying easier.

Secured real-estate lines of credit generally imply higher interest payments, and as with any secured loan, there is some risk to your personal property. However, if you can qualify, you could save a lot of money.

Business loans of any sort carry higher interest rates, but when compared to an unsecured line of credit, a secured line of credit generally offers lower rates, typically of 4-8 percent.However because a this line of credit is secured, your lender can confiscate whatever property you pledge should you default.

Nevertheless, applying for a secured credit line carries lower fees and little to no up-front costs. Application fees are virtually unheard of and there little in the way of underwriting costs.

But beyond the savings this type of loan offers you concerning fees, its primary benefit to you is what you could save in terms of interest. With a line of credit you only pay down and pay interest on what you spend, when compared to a conventional term loan this can result in massive savings.

In addition, secured lines of credit offer flexibility, once the loan closes you can spend the money in any way you see fit, with no restrictions on the type of property you can purchase. Compare this to a conventional loan where your lender will have to scrutinize the property you are purchasing.

Once you qualify for a secured line, your lender then gives you a lump sum which you draw from to finance individual purchases or spend as you see fit. So if your business can qualify a secured line of credit can help you rapidly expand, diversify your real-estate investment portfolio and could result in significant savings in terms of interest payments.

 Dennis Dahlberg Mortgage Broker[3][2][2]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 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

Benefits of Unsecured Real-Estate Lines of Credit

619408978Unsecured real-estate lines of credit can offer many benefits to those who can qualify. With an unsecured line you don’t risk your personal assets, and you save money over a standard loan. Above all with this type of loan you can close deals without having to wait on a lender, which can give you an edge over your competition.

Some refer to this type of loan as an acquisition line of credit. It allows you to acquire new investment properties without requiring you to pledge your personal or businesses property as collateral. Lenders secure this type of loan based on their perception of your strength as a borrower.

So qualifying for this type of loan will depend on your financial profile, be it your credit score, or the income you earn from your current investment properties. So if you can qualify for an unsecured line, it could be an excellent financing solution.

The main benefit of unsecured real-estate lines of credit is you can leverage your financial situation and strength as a borrower without putting your personal property at risk.

The main advantage of an unsecured line vs. a secured or equity line of credit is that your personal property is not used to secure the debt. Simply put, in the case of an unsecured line of credit, your lender cant repossesses your house should you default. Note that because this type of loan is unsecured, you need to be an exceptionally strong borrower to qualify.

However there are  fewer hassles with unsecured lines of credit, and the overall process can be a lot smoother.  Unsecured lines often come with little in the way of up-front fees, a sparse amount of documentation is needed, and no appraisal is necessary. 

With credit lines, you only spend what you need to and you pay back only what you spend. This aspect of credit lines is a significant advantage over a term loans, where you make interest payments on the full loan amount you borrow and pay back the entire loan amount.

After you qualify for an unsecured line of credit and your loan closes, you receive a lump sum which can then draw from whenever you need. You can make multiple offers on multiple properties using the same line of credit or use the funds to cover any other expenses.

Unsecured real-estate lines of credit offer you flexibility, you don’t have to go to a lender every time you want to acquire a new property

Above all, you can spend the proceeds of your credit line at your leisure, and on any property you wish to purchase. With this type of loan, you don’t need to apply for a new loan every time you want to make an offer on a property.  You don’t need to wait around for your lender to scrutinize the details of your purchase, and you can make a full offer right way.

So if you can qualify an unsecured line of credit could be a great financing solution, which can help you rapidly acquire new properties while at the same time protecting your businesses assets.


 Dennis Dahlberg Mortgage Broker[3][2]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 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