Category Archives: Arizona home mortgage

How to Find Hard Money Lenders

There are various reasons that people turn to hard money lenders, but knowing the benefits is only half of the challenge. Now, you have to find the one that is right for you.

Hard money loans are often issued by individuals or companies. At one time, they were considered “last resort” loans for people or businesses with imperfect credit. In today’s world of fix & flip investors and contractors in need of quick funding, they are a part of most businesses and individuals lending portfolios. People often turn to hard money lenders when they are in need of a bridge loan that keeps them afloat until a property sells or is renovated. Other’s use this type of loan due to time constraints and when initial capital is required in a matter of weeks instead of months, such as when a hot property hits the market.

So, just where do you go to get these quick-to-fund loans? Ideally, it’s best to work with a lender that specializes in your specific business model or real estate segment. For instance, a hard money lender that understands construction loans will offer monthly quick-payout draws as well as interest-only payments, both of which are designed to take the stress off you and your company as you progress through the building process.

There are also hard money lenders that specialize in the fix & flip or buy-and-hold real estate segments as well as multifamily, office, warehouse and storage complexes. If you do not have a direct reference from a fellow business associate, you can turn to the many listings on the internet. If using this approach, be sure to look for recommendations from established businesses and don’t be shy when addressing your concerns. If you find a qualified lender that you can trust and has a large rolodex of private lenders to draw on, you will most likely find yourself turning to this funding source time and again for many of your capital needs.

Things to Consider When Interviewing Lenders

There are a few basic questions that you will want to address when undergoing an interview with a potential lender. One of the most important is their loan-to-value ratio (LVR). Because hard money loans are asset based, the loan value is determined by the appraised value of the property. Some lenders will use the potential value of the property once renovation has been completed, otherwise known as the after-repair-value or ARV. This approach, however, is very risky and, for those lenders willing to take this chance on you and your abilities, will often mandate a higher-than-average interest rate. Many lenders stick to about a 70 percent loan on the value of the property.

At Level 4 Funding, our loan-to-value goes as high as 90 percent with 100 percent of rehab for fix & flippers.

Of course, loan-to-value is just part of the equation. The other all-important consideration is the interest you’ll be paying on your loan and the terms the lender offers. At Level 4 Funding, our interest rates start at 7.99 percent with terms anywhere from 3 months to 5 years. Call us today for a no-obligation quote.

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

Risk Less: Choose the Right Lender for your Self Employment Home Loan

Should you personal your personal enterprise, you might discover that you’ve got bother
getting a house loan attributable to strict debt to revenue ratios and different rules
imposed by banks. There are self employment home loans that may make getting a house loan simpler. Selecting the proper lender or mortgage dealer could make all the
distinction and assist make your dwelling possession desires a actuality.
Proudly owning your personal enterprise has many benefits. For one, you get to be
your personal boss and set your personal schedule. You even have the alternative to do
precisely what you wish to do and develop your enterprise in a approach that is sensible
for you and your household. You aren’t a slave to the time clock and also you don’t
should cope with a domineering boss respiratory down your neck. You can also
make the most of many tax write offs and will pay your self what you’re value.
Nonetheless, there may also be a draw back to being self-employed,
particularly relating to qualifying for a house loan. Tax deductions could make
it seem like you’re shedding money when in truth your enterprise is kind of
profitable. Enterprise loans or different debt could make your debt to revenue ratio
look very excessive and having quite a few enterprise loans could even find yourself taking a
toll on your credit score. Inflexible lending requirements may cause banks to take one look
at your tax returns and ship you out the door so quick your head will spin.
This may be very disheartening. You might have spent your life constructing a
profitable enterprise, however the very components that make you profitable make you
seem like a lending legal responsibility. Even in case you have a gradual stream of revenue, it
could also be tough to confirm utilizing conventional lending requirements and the
scenario could seem hopeless. However, don’t fret. There are numerous, many choices for self employment home loans and lots of
lenders who may also help you discover the dwelling loan that you simply want.

4 Benefits of Using a Private Lender for
your
Self Employment Home Loan

If you end up in the unlucky scenario of being denied by a
financial institution, begin serious about a private lender. A private lender is a mortgage
dealer or funding agency that has entry to private funds and collateral that
can be utilized to fund a self employment home loan. A private lender is licensed by the state that he works in and
nonetheless should adhere to federal truthful lending practices and pointers. That is
excellent news for you as a result of it gives safety for your funding and
recourse in the event you really feel you will have been handled unfairly.
There are numerous advantages to utilizing a private lender in comparison with a financial institution.
Listed below are 4 of the commonest advantages private lender can provide.
1.
Simpler qualification course of. Since private
loans are funded by traders, there are much less stringent qualification
necessities. Which means adverse credit, excessive debt to revenue ratios attributable to
enterprise loans or tax deductions, and even earlier foreclosures or enterprise
failures matter a lot much less. A private lender is extra doubtless to take a look at your
complete monetary footage in addition to the potential to make money on an
funding property than a financial institution is. This makes getting a loan simpler. Additionally,
there’s a lot much less paperwork which is usually a large bonus for the busy enterprise
proprietor.
2.
Sooner qualification course of. A financial institution can take 30
to 45 days and in some instances much more to fund a loan. With a private lender,
the course of can take as little as per week. That is nice information if you wish to purchase
a property rapidly or wish to make your provide stand out in a bidding battle. Typically
sellers will take a decrease provide with a sooner shut time to unload the property
rapidly.
three.
Funding alternatives. Non-public lenders and
private self employment dwelling loans
are sometimes tailor-made for funding properties. As a enterprise particular person, you understand
the worth of actual property investing and might make the most of a private lending
agency.
four.
A private lender has entry to loans that banks
don’t. From hard money loans to different private collateral loans, a private
lender can discover the proper loan for you.
Don’t delay, act immediately!

 

Discover a private mortgage lender to get began on your self employment home loan. You may be
glad you probably did! 

Dennis Dahlberg
Dealer/RI/CEO/MLO

Stage four Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:     (512) 516-1177 

www.setabay.com

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


 
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