Category Archives: Arizona home loan home loan Arizona Blog 14: Do You Need a Mortgage Broker Arizona?

The Best Time to Use Hard Money Lenders Arizona

Not every real estate transaction is tailored to a traditional loan. In some cases hard money lenders Arizona is the only choice to meet the terms of a great deal.

There are many moving parts in most real estate investment deals. You might be facing a very small window of opportunity to make the purchase or you might not have the cash on hand to complete the deal. You might even want to hold onto your cash to complete the renovations needed to quickly sell and turn a profit on a property. But whatever challenge cannot be met by a traditional lender, hard money lenders Arizona is probably going to be able to accommodate.

Banks and mortgage companies have a specific process that they must follow for each loan application. And there is a certain amount of time that this process is going to require. So if you have just a few days to raise the funds for a great investment property, a traditional lender is not going to be of much help to you. But hard money lenders Arizona offer a legitimate means of raising the capital that you need quickly.

Sometimes, timing can be an issue not because you need the money very quickly but because you have just completed the purchase of another property. In many cases, you do not have the available credit to make an additional purchase. But a hard money lenders Arizona will only be considering the current market value of the property being used as collateral and not your current debt load. This will allow you to make the additional purchase and not miss out on a great opportunity just due to poor timing.

A Unique Opportunity

Not every real estate investment is a simple case of buying low and selling for a profit. In some cases, the buyer needs to be a visionary who can see the very obscure potential in a property. If this is the case, a bank is not likely to be willing to write a loan for the property. The risk involved will be higher than a traditional lender is willing to assume. But a creative real estate investor will know that a hard money lender will fund the loan. Yes, the risk is high but the opportunity for reward on these types of deals is also high.

Non-Traditional Circumstances

Hard money loans do cost a borrower more in interest and in points. But when a great opportunity presents itself, it can be worth spending a little bit more to make a great deal more in the long run. When you need to process a loan quickly, or have already maxed out your line of credit with a bank, a hard money lender could be your only choice to land a great deal. Hard money lenders are also a good choice when the property is going to require some vision to increase the value and banks are not willing to take the necessary risk.

Why You Should Review Hard Money Loans Options

Applying for and committing to the strict repayment schedule of hard money loans can be a big and complex process. This is why Level 4 Funding suggests reviewing your options carefully to ensure you find the right loan for your needs.

If you are starting a new business, expanding your business or simply wanting to make some improvements to your company without having the stress of being tight on cash, a hard money loans could be just the thing you need. However, there are many things to consider. One of your first options is going to be your lender.

Choosing the right lender will make all the difference when it comes to having a good or bad experience. When you’re starting a business or growing your current one, times can get very stressful — the last thing you want is to add more stress by not having a good loan experience. That starts with an experienced and professional lender that can help you get the best loan that suits your specific needs. Trusting your lender is essential for a smooth process.

Once you’ve selected the right lender for your hard money loans, it’s also important to review the loan agreement, including any “small print” that you may be tempted to skim past. Remember that once you sign the dotted line, you will be responsible for upholding your end of the bargain — including paying the loan back as scheduled and paying any “hidden fees.” Always read through the entire contact, and even be prepared to have your legal advisor review the document as well.

There is one more thing you should consider when reviewing your options.

Finally, you should review what you are prepared to put up as collateral. In the case of hard money loans, that is really the most important factor that will ultimately determine your approval… or not. While conventional lending institutions like banks will look at a number of factors when reviewing your application — such as your credit score and history, personal and business financial statements and more — that is not the case with alternative lenders, especially in the case of short-term loans. Alternative lenders are mostly looking solely at collateral, which can either be your personal home or vehicle or even the value of the property.

Having a successful loan will happen as long as you take the proper steps to review your loan.

It’s also important to remember that there are multiple options — not just when you are reviewing your loan, but with all the options that it takes to build, grow and improve a business. Having a loan can be very helpful, but if your application gets rejected at first, that is no reason to give up. In addition to being open to “alternative” options when it comes to loans and lenders, it’s important to keep an open mind and be optimism about seeking alternative ideas when it comes to other areas of your business, from grassroots marketing to out-of-the box locations.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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Important Considerations when Choosing a Hard Money Lender

Hard money lenders are many real estate investors choice for funding, yet many just getting into the field know little to nothing about this lending option. Let’s take a look at what this type of lender can bring to the table.

Hard money lenders are not held by the same regulations that banks and credit unions must operate under. Because of this, they can offer loans to individuals and businesses with less than stellar credit. Many are private individuals who specialize in several types of real estate investment strategies from multifamily to office to the fix-and-flip model. These types of loans are asset based, meaning that the lender will look at your collateral as the prominent element of the loan. These types of loans are good for investors just getting in to the real estate investment model.

Another positive to those that operate under less regulation is that they are much quicker to funding. This becomes important when an investor is looking to get into a property, do some quick renovations, raise the property value, and get it on the market or obtain a loan from a traditional lender that is based on the property’s new value. If you end up developing a long-term relation with a hard money lender, you will find that you can often receive the funds you need for that next investment property in as little as a few days, compared to a month or more from other types of lenders.

Be sure to check the small print. Are you working with a hard money lender that offers a no-penalty clause for early payments? A pre-payment penalty states if you pay your loan back in full before the actual due date, a penalty will be assessed. The fee is percentage-based or the amount in interest that you would have paid for a set number of months. This can lead to tens of thousands of dollars. If you have an existing loan with a pre-payment penalty, be sure to assess fees before paying off the loan in full to determine if this is the right strategy for you.

Know Your Exit Strategy

While your property may be acting as collateral, hard money lenders do not want to be in a position of laying claim and having to foreclose on a property due to unpaid debt. For this reason, they will want to know your exit strategy. An exit strategy is how you plan on paying off the debt. Most of these loans are short-term, anywhere from 3 months to five years, making this component an important consideration for both the lender and the borrower. A few options are to refinance with a commercial mortgage, renovate and sell, or pay the debt off with business capital.

Know your exit strategy before considering a hard money lender. Going in with strong collateral and a good exit strategy are keys when considering going after a hard money loan.

At Level 4 Funding, we work with hundreds of private hard money lenders. Our rates start as low as 7.99 percent with terms that run anywhere from 3 months to 5 years. Call us to see if we are the right brokers for your next real estate investment deal.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Prepare Applications for Commercial Real Estate Loans

Not all lenders have precisely the same requirements for commercial real estate loans, but they are very similar. Understanding the documentation which will be required is the first step in a successful loan application.

There are many factors which can dictate your documentation packet contents for commercial real estate loans. These can include the internal policies of the lender, your history with the lender and your financial health. But in general, there is a basic packet of documentation that most lenders will require. Having this information gathered and prepared for all lenders is a good way to create a professional first impression and to reduce your stress level as you pursue your loan.

Information about the size and scope of the project is likely to be the first information that any lender will want to see. This includes but is not limited to a complete description of any improvements or construction, the future use for the structure, drawings and design plans, environmental analysis, potential contractors and a timeline for the completion of the work. Although this might sound like a lot of documentation, it is really only copies of the information you have used to create the project, create the job cost and decide to actively begin the project.

Financial information about the project will also be critical to securing commercial real estate loans. For existing structures, the lender will want to verify the rent roll for apartment type structures or self-storage facilities. Lease schedules will be required for retail, office or warehouse space. In addition to pure occupancy numbers, the lender will want more details about the length of the leases and the types of tenants. This will help to determine the stability of the proposed income from the property.

Full Financial Disclosure

Lenders will also want to understand the borrowers big picture financial position. This is due to the fact that a borrower could hold multiple loans or could own other properties which might be financially challenged. A single poor investment can drag down an entire investment portfolio if not managed correctly. Money generated by one piece of collateral could be syphoned off to pay for the bad investment and put the new loan payments at risk.

Investor Financials

Finally lenders will want to understand the financial position of all investors in the project. This is to see if borrowers would have the personal ability or assets needed to make the loan payments if necessary. In addition, the lender can require investors or company owners to provide a personal guarantee for commercial real estate loans. The lender needs to know that the borrowers providing the guarantee actually have the ability to make good on their promise to pay. Knowing what is required prior to beginning your loan application process will help to reduce your stress and to complete the application more quickly. It will make a very positive and professional first impress to all of the lenders whom you are approaching for a funding.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Arizona Home Loans for bad credit: FHA Loans

The Federal Housing Administration is a authorities entity that may assist safe Arizona Home Loans for bad credit debtors. The federal government backed loans typically provide bad credit score debtors in addition to first time dwelling consumers a viable possibility to help in dwelling possession.
When you have bad credit score, you will have in all probability been turned away by a financial institution for those who utilized for a house loan. It’s possible you’ll assume that proudly owning a house is unimaginable. Nonetheless, there are a variety of applications that may aid you qualify for a house loan. The very best first step is to ditch the financial institution and discover a firm that makes a speciality of serving to people and households determine Arizona home loan for bad credit. A great first cease is a mortgage dealer. In contrast to a financial institution, the dealer doesn’t truly loan out the money for a house loan. As a substitute she or he retailers totally different banks that can assist you discover the most effective loan for your buy and credit score state of affairs. This enables extra flexibility by way of the sorts of loans that the dealer can discover in addition to lenders. A mortgage dealer or mortgage firm can act as your middleman and normally get you higher loans and higher phrases than you might get by going straight to a financial institution, particularly when you have bad credit score.
One loan kind your dealer will suggest is an FHA loan. An FHA loan is a program for Arizona home mortgages for bad credit debtors. When you have bad credit score, an FHA loan could also be an excellent possibility for you to safe a house loan. An FHA loan is a authorities backed loan. Every month you pay additional insurance coverage towards default. The loan is secured by the Federal authorities so lenders usually tend to give them to debtors with bad credit score. With a view to qualify for an FHA loan you will want to have three.5% of the acquisition value to place down. Additionally, you will pay additional for month-to-month mortgage insurance coverage which may range primarily based on the quantity of your loan. For a lot of bad credit score debtors an FHA loan is an efficient path for homeownership.
The Federal Housing Administration doesn’t give out loans. With a view to get hold of an FHA loan you will want to discover a mortgage dealer, financial institution, or funding agency that’s licensed to present out FHA loans. The FHA offers mortgage insurance coverage to the lender on their loans. This mortgage protects the lenders from losses as a consequence of house owner default. The lenders bear much less threat as a result of the FHA pays an insurance coverage declare to the lender if the house owner defaults on their loan the lender has to foreclose on the property. This insurance coverage makes and FHA loan an excellent program for bad credit score debtors as a result of a lender is extra prone to make a loan to a borrower with bad credit score if they’ve FHA insurance coverage.

Historical past of the FHA and Its Position in Arizona dwelling mortgages for bad credit score Debtors

The FHA was established in 1934 throughout the Nice Melancholy. The objective of the company is to assist all People buy properties and to assist stimulate the housing financial system. Within the 1940s the FHA helped finance dwelling loans for veterans and army households. By the 1980s the FHA moved into falling dwelling costs and made it potential for dwelling consumers to get financing throughout wanted throughout the recession. By 2001 homeownership in america was at a file excessive. The FHA has insured over 34 million mortgages since its inception.

As illustrated above, the FHA has been within the dwelling mortgage enterprise for over 80 years. It’s fully self-funding and doesn’t require tax payer money or authorities bail outs. This makes it excellent for Arizona home mortgages for bad credit as a result of lenders know and trust the company. As well as, there are not any surprises by way of rates of interest like there are in adjustable charge mortgages. FHA loans provide mounted rates of interest for 15 to 30 years. Nonetheless, remember that you’ll pay mortgage insurance coverage every month. The quantity of this cost varies relying on the quantity of your loan. You’ll pay this insurance coverage till your loan to worth ratio is lower than 80%. Which means, you’ll have an additional month-to-month cost till you will have paid off 20% of your loan. If the worth of your private home will increase dramatically you possibly can look into refinancing to get rid of this month-to-month cost. As well as, there are particular mortgage preparations that may be made throughout your actual property negotiations to have the vendor pay a portion of this insurance coverage upfront.

Discuss with a mortgage dealer to find out if an FHA home loan is an efficient possibility for you.
The Federal Housing Administration has helped many householders get hold of loans they in any other case could not qualify for. A mortgage dealer can stroll you thru the method of qualify for an FHA loan in addition to describe any funds chances are you’ll want. Name a dealer immediately to take the subsequent steps to buying a house.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Degree four Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112
Phoenix AZ 85027



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Get Yourself a Loan with a Mortgage Broker Arizona

Are you contemplating getting a loan that can assist you repay your mortgage or to flip a piece of property? Are you afraid as a result of your credit score rating isn’t what it must be? There’s no want to fret as a result of there are methods round that. You will get your self a hard money loan from a mortgage broker Arizona.
Arizona Mortgage Broker
Arizona Mortgage Broker, Arduous Cash Loans, Arizona Dwelling Loans, hard money lender arizona
What precisely is a hard money loan going to do for you? It will provide you with a sense of reduction. Your hard money loan shouldn’t be like a conventional financial institution loan that may depart you hanging for upwards of months at a time and even then could not ship the products. Your hard money loan might be given to you quick and you’re going to get what you want with a view to loosen up simply a little.
Financial institution loans can depart you in a lurch. There are piles of paperwork with a conventional loan and even then chances are you’ll not get the money you want. With a hard money loan, the loans are dealt out quick which means that you simply get your money quick. One thing that may make anybody really feel relieved about their monetary scenario. You don’t have to fret about ready to your conventional loan. There’s a approach round it that’s a lot simpler than speaking to a financial institution.
As a substitute, what you need to do is have a speak with your mortgage broker Arizonaabout the potential of getting the money you want with a hard money loan. You don’t should endure anymore, frightened that you simply gained’t have the money to pay to your property. You will get it quick whenever you and your mortgage dealer Arizona plan on getting a hard money loan. Don’t hesitate to offer it a likelihood. It might actually simply change your life for the higher for the higher in solely a second.

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Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC

Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112
Phoenix AZ 85027