Category Archives: Hard Money Loan

How to Get Approved: Why Arizona Hard Money Loans Can Help You Get Funded

iStock_000002512608_ExtraSmall copy point calyx 9Arizona Hard Money Loans can build your credit score and get you back on your feet.

Welcome to—The Information Age—an era where the IRS, government, and banking system—even Facebook and Google—are keen at storing away personal data. Your credit score, social security number, and private information, as well as your most frequented websites and purchases, are all categorized within a vast array of databases. 

Like it or not, due to this, you are being judged based upon your data, and when it comes to getting a loan, most likely, you are being judged upon your credit history: good, bad, or ugly. While credit history may not concern an individual with flawless credit, it tends to concern individuals currently building, rebuilding, or acquiring it.

Frequently, people in need of loans want to form or bolster their own security. Despite this, a low credit score or a troublesome credit history may create stress because credit directly influences a person’s ability to build security in the form of a home, business, education, or transportation. If currently you experience credit woes, you are not alone. This is a challenge that concerns many people. Though life is difficult, though you may consider yourself an upstanding person, perhaps like many, you’ve run into some unforeseeable pitfalls:

  • Missing a few payments during a financial drought

  • Going bankrupt

  • Being foreclosed upon

  • Facing unexpected medical misfortune and debt

  • Closing a business due to turbulent market difficulties

If you have been rejected by lenders for any of these reasons, considering Arizona Hard Money Loans may help you out of the rut by establishing the financial security and progress you need.

How Do Arizona Hard Money Loans Work?

Arizona Hard Money Loans are collateral-based loans that mitigate a lender’s risk. For this reason, they are beneficial for individuals unable to obtain conventional lending with credit history alone. Other benefits include: the ease of receiving a loan, the speed of getting funded, and the reduction of paperwork. Before funding a loan, Arizona Hard Money Lenders will appraise collateral to determine the loan-to-value LTV amount and interest rate as well as lending stipulations.

Arizona Hard Money Loans may help you establishing the financial security you need.

If this is the type of lending for you or if you would like additional details, Level 4 Funding is here to help you receive the funding you need. Get in touch today!


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

Can You Work with Hard money lenders in Arizona as a First-Time Investor?

iStock_000067965589_XXXLarge v1One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.

Real estate investors turn to hard money lenders in Arizona for a myriad of reasons. Sometimes their projects simply won’t qualify for a traditional loan at the onset, while other times having cash ready to go helps ensure they can grab the property before someone else does. First-time investors face additional challenges, as banks usually need to see a track record for success before they’ll put their money on the line as well.

Ergo, most seasoned investors work with hard money lenders in Arizona on a regular basis and keep this option in their toolkits for various situations and property types. As a newcomer, you’ll want to become established with professionals you can trust as well, so that you can turn to them as needed and streamline the process for subsequent projects. Getting that first approval can seem daunting, though.

On the bright side, alternative funding options aren’t set up like banks, which means that you don’t necessarily have to have a portfolio of successful projects in order to get approved. With HMLs, the biggest concern is the value of the property, meaning if you can grab real estate for less than it’s worth, the odds of getting approval are relatively high. You’ll often hear the term “loan to value” or “LTV,” which refers to the amount of your loan in relation to the value of the property. For example, if the property is worth $100,000 and you’re requesting a $70,000 loan, your loan to value is 70%. Sometimes, HMLs will go as high as 90% LTV.

If You Have Some Experience, You Can Get Funding More Easily

Naturally, the LTV is only one part of the equation. If you have some kind of experience which relates to the project you’re undertaking and have a strategy to overcome difficulties along the way, that will impact your ability to get funding too. Many first-time investors have backgrounds in the mortgage industry, real estate, appraisals, home repair, or similar, so it’s easier for them to understand the value of a project, what must be done to increase value, and what the property will likely sell for upon completion. This type of experience really shines when an investor is pitching his or her idea and can often help overcome a lack of formal investment experience.

Don’t let lack of funding stand in the way of your success.

Ultimately, the best way to know if hard money lenders in Arizona will work with you is to talk with a broker before applying. A great broker will walk you through the process, let you know what HMLs are looking for, and make suggestions specific to your situation that will improve the chances of getting an approval on the first go. If you’re still denied, ask lots of questions to find out why and learn what you can do to improve the odds next time around. First-time investors absolutely can get funding; having a solid strategy and finding the right HML for your needs are the vehicles that will get you there.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

Tactics to Increase Eligibility with Arizona Hard Money Lenders

iStock_000004067318XSmallIf you intend to rehab single-family homes, you may be wondering what type of financing is right for you.  Consider the benefits of Arizona hard money lenders and learn some tips on how to qualify for this type of loan.

The great recession is a far distant memory. Home prices are on the rise, and this presents a significant opportunity for those who are in the flipping business. Zillow estimates that nationwide home prices will appreciate by 6.4 percent by the end of this year.

However ordinary banks are inconvenient, and the bank application process is certainly not going to keep pace with the overheated housing market.

To be sure conventional banks are lending again but only to the strongest of borrowers. At the very least, anyone who seeks financing from a brick-and-mortar bank should expect to have a credit score of 600. Furthermore, to get the best deal from a conventional lender you need to have a credit score within the range of 700+. So if your credit isn’ t in that range, going to conventional lender is essentially a waste of time.

If you aim to flip homes, even if you have stellar credit, the condition of the property you want to invest in will bar any chance that your loan application will be approved.

So where do you go for financing? Hard money providers.

Why are Arizona Hard Money Lenders the best lenders for House flips?

With hard money, there are no “boxes to check,” when it comes to the condition of the property being financed. In the case of hard money its the potential of the opportunity that counts. The application process typically comes down to an appraisal of the property in which you aim to invest. But above all your eligibility and the terms of your loan will come down to your ability to demonstrate the upside of your flipping project.

With hard money, to get the best deal, you need to do whatever is in your power to demonstrate the potential of your project.

You can increase your eligibility with Arizona hard money lenders with the following tactics
  • Have a sense of the numbers: Before approaching any hard money provider, you should have a clear financial plan when it comes to your specific project. These lenders give loans as a fixed percentage of the property’s value after repairs. Know the purchase price of your property, and have a clear budget for the particular renovations you want to make. These numbers will show you how much financing you need and how much profit your project will earn after resale. These numbers give your hard money provider concrete assurance that there is a real opportunity in your flipping project.

  • Cite relevant statistics:  Be able to talk about the specifics of your deal by pointing to relevant data concerning the local market.  Refer to similar investment properties, and know how much they re-sold for; use this knowledge and demonstrate your wherewithal to a potential lender and increase your chances of qualifying.

Using these strategies will help you prove the potential of your project to your prospective lender.

To truly take advantage of the overheated housing market, you need to avoid conventional banks. If you are in the flipping business, even if your credit score in the stratosphere, a conventional lender is unlikely to give your project a fair hearing because of the properties condition. Avoid all this hassle and see a hard money provider first.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

Spec Home Financing: Tactics to Increase Eligibility

p1_img2The continued recovery of the real-estate market may have you pondering the construction of a spec home. When it comes spec home financing learn some of the basics of how these deals are structured,  what a lender will expect from you and how you can increase your eligibility.

Spec home loans are used to construct homes before an actual buyer has been secured. You get a short-term loan to cover the cost of construction. After you finish construction, you either sell the house or refinance to pay the balance of the initial short-term loan. Naturally, when it comes to spec homes, there are a lot of risks involved.

First the lender has nothing to repossess if you default, expect a hole in the ground. Second you don’t even have a buyer in place. Your finished home might sit there for months on end, crumbling to dust and filling with cob-webs, all the while your loan goes unpaid and your lender is at a loss.

Considering all this risk what do you need to do to increase your eligibility?

Eligibility in the Case of Spec Home Financing Comes Down to how likely is it that the property will sell? How much equity does the borrower have in the deal?

In the first place, your lender will want to know the land you aim to purchase has access to roads and utilities. Obviously, your chance of qualifying will be made far more difficult if you intend to build a multiplex condo development in the middle of the woods.

A similar standard comes into play when it comes to your proposed project. A neoclassical surrealist home complete with faux-fur finishes is not going to qualify for financing. Your proposed home should appeal to the average buyer, which assures your lender that after construction is complete, someone will actually purchase your new home.

Also expect to make substantial down payment. The risk implied in these types of deals means few spec lenders are willing to offer more than 85% of projects projected value after completion, so you as a borrower should have the funds on hand to make up the difference.

Some lenders will also want to look into your savings in case your project runs into any unexpected difficulties. They may scrutinize your credit score, tax returns or other pertinent financial documents.

But above all, you need to prove your worth as a borrower when it comes to financing a spec home.

Try these tactics to increase your eligibility for Arizona spec home financing.

There’s obviously a lot of risk in these sorts of deals, and a lender will need a lot more assurance than just a credit score to approve your loan. Good credit or bad, there is no substitute for a compelling business plan. 

Have a very detailed plan with nearly every aspect of your project worked out ahead of time including blueprints, budgets, and precise timetables. Having a clear timeline of how your project will proceed is of vital importance. Your lender will want to know when your spec home will actually be finished, and when they can expect repayment.

Above all, you should be able to tell your lender the “story of your project.”  This story should not be make-believe and based purely on your own conjecture. Have a clear plan which should include projections of the profit that can be earned based on statistical evidence. Look at similar projects in the immediate area and know how much they sold for, this information can lend credence to your projected valuation.

In short, be sure that your proposed project is in line with the realities of the market. But above all have a clear plan. Use evidence to back up your projections. Employing these strategies will increase your eligibility for financing and help you get your spec home project off of the ground.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

100 LTV Hard Money Lenders: Things to Consider.

Business cardDo 100 LTV Hard Money Lenders offer no money down financing to real-estate investors? The answer is yes, but, only for a certain type of borrower.

Say you want to secure financing for the full market value of your next investment property. This is known as a 100 LTV loan and it is something of a holy grail or unicorn of sorts in the real estate investment community. First you need to understand what LTV is and why its so important to lenders.

Loan-to-value ratio equates to the total size of your loan divided by the fair market value of the property you aim to purchase. Lower LTV equates to less risk for your lender. With a 100 LTV type of deal your basically telling your lender, “no I’d rather not pay a single cent of my own money, I want you dear lender, to take on all the risk for my next deal. So that if my next project goes belly up I wont lose a dime.”

Such a deal is good for you, but not so good for your lender.

Its easy to understand why these types of deals are so rare, but if your heart is set on finding this type of financing, just know that no lender worth their salt is going to get in with you on a long term investment.

100 LTV Hard Money Lenders prefer to fuel the cost of short-term deals

Don’t expect to get a 100 LTV loan if you intend to hold onto the property long-term. In this case, long term investments represent a huge risk for a lender. The longer a property sits on the market, the higher the chance that market conditions will change and that your lender will take a loss.

Therefore, this type of loan is usually reserved for those who intend to rehab a prospective property. A 100 LTV loan which covers the full cost of purchasing a ramshackle, tin-pot house in a pristine neighborhood, actually presents a real short-term opportunity for a lender. If you intend to restore said home to magazine worthy condition, and then resell it, you might be able to get a 100 LTV loan.

So, in 100 LTV type deals, lenders want the assurance of a quick payout. To even consider applying for this type of financing, you need to have a clear plan in place for how you are either going to re-sell or refinance your property in short order.

However, the best way to qualify for 100 percent financing is to have a proven track record of real estate projects. Having experience will give your lender confidence in your ability to generate a return.

The best tactic to increase your eligibility with 100 LTV Hard Money Lenders is to develop a personal relationship with them

Let’s face it this type of deal presents your lender with a lot of risks. Without a down payment your lender basically has nothing to fall back on if you default. If you don’t have a proven track record of successful development projects standing behind you, your chance to qualify for 100% financing are pretty slim. If you are a real estate novice and someone is offering you no money down financing, well beware. Common sense should prove the danger of ‘no money down, zero interest type’ financing.

In the long run, to get 100 percent financing you need to build a personal relationship with your lender, and this takes time. Yes, you could put together the most excellent plan imaginable to show your lender the potential of your project. But there is no supplement for the trust that comes from an established relationship.

As you close more deals and gain more experience, your lender will have more confidence in your abilities which will allow you to capture the benefits 100 LTV, no money down financing.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

Private vs. Hard money lenders: The Differences

page3-img2You may wish to finance your next investment property, but find yourself a bit confused about the differences between private and Phoenix hard money lenders. This article will attempt to clear up some of this confusion and some common misconceptions, so you can get a clear perspective and find the help thats right for you.

Some consider private money and hard money lenders essentially the same thing.  But there are a few fundamental differences you of which you should be aware. It all comes down to the criteria these lenders use to evaluate borrowers, and these considerations can impact the type of deal you can secure.

The main difference between these two types of lenders is how they evaluate individual borrowers. Private lenders might consider all three C’s of lending (credit, capacity, and collateral).  Hard money providers generally only consider the value of the collateral on offer.

Therefore, private lenders may put scrutiny on aspects of your financial history such as your credit score. A private lender may also want to get a sense of your capacity or your ability to repay your loan. They might look into your financial history to ensure your income is sufficient to carry your current debts, usually  this measurement is expressed as a debt to income ratio (DTI). If your credit score or DTI doesn’t meet the private lender’s criteria, you may not qualify.

In contrast, hard money providers mainly look at the value of the collateral on offer, i.e., the value or potential value of the property you aim to finance. However because collateral is the primary consideration in the case of hard money there are some misconceptions when it comes to this type of lending.

The main complaint about Phoenix hard money lenders is that they are less willing to work with borrowers

Because hard money providers mainly look at the collateral offered by the borrower, they assume a higher risk. Because of this assumed risk hard money is often more expensive than private money. 

However, some assume that hard money providers are less flexible than their private counterparts. Because this type of lender only looks at collateral, they might have less confidence in a borrowers ability to repay. Therefore, if a  borrower meets turbulent fiscal headwinds, many assume it’s in a hard money providers best interest to foreclose on the property and resell it at a profit.

But this is a flawed assumption; because any reputable lender wants their borrower to succeed.

Foreclosure is a hassle, and no one wants to deal with it. So don’t assume your hard money provider won’t work with you if you run into financial difficulties.

Arizona Private Money Lenders may offer a better deal, but fewer borrowers may be eligible.

Going the private money route can result in a better deal.  Because most private money providers look into your credit and your capacity to repay,  and therefore they have more confidence in you as a borrower.

This confidence on the part of the private lender could give you the leverage to negotiate a better deal.

While private money may potentially be cheaper,  it may also be less convenient. You may not qualify according to the standards of an individual lender. In addition, underwriting your loan could take a long time, and this application process could cause you to miss out on your investment opportunity.

But there are no hard and fast rules in the case of either private money or hard money, as every individual lender is different.

Just know that the primary difference is that private lenders may consider( may being the operative word here), all three C’s of lending before approving an application, while hard money providers only consider the collateral on offer.

Private lenders might be able to offer cheaper loans, but the application process might also be less convenient when compared with their hard money counterparts. It is a catch 22. Private money might be less expensive but also less convenient. Hard money might be more convenient but it also might be more expensive. 

However, don’t make assumptions, every private or hard money lender is different. Ask any lender you approach about how they evaluate individual borrowers to see what type of deal you might be able to negotiate.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Phoenix Fix and Flip Loans: How to Make Money in Apartments

iStock_000002512608_ExtraSmall copy point calyx 9When it comes to fix and flip loans and apartments you need to have a strategy to pay off the loan as soon as possible. The following article will tell you where to find the best deals, how to value apartments and how you can use simple income boosting strategies, to maximize the value of your apartment property, quickly earn a profit and pay off the balance of your loan.

Before you take out a loan to flip an apartment, you need to find the right property.

Finding apartment properties to flip is a bit tricky, as most apartment buildings are sold off-market. Landlords don’t want to alert tenants to possible changes in ownership, and so they avoid listing their properties outright. So to find apartment properties with the most potential you need to get in touch with local real estate brokers, who can give you a sense of which properties are available.

After finding a potential property to flip, consider the following:

• Is the property is in an exceptionally dilapidated condition: Is there an immediate need for physical improvements, If you can, then make these improvements, and you can quickly boost the properties value and resell it at a profit.

• Consider outside factors that could increase the property’s value in the near-term:  Are new public amenities like hospitals and schools about to be constructed nearby? If the answer is yes, then you may not need to spend any money to see the properties value appreciate.

With Phoenix fix and flip loans and apartments evaluate each deal based on the income potential of the property

The main difference between flipping apartments versus single-family homes is a matter of valuation.  Residential properties are valued based on comparable sales, which limits the potential returns from residential flips. With commercial properties, I.e., apartments, the income generated by the property determines its value. Therefore the potential returns from an apartment renovation can be enormous, depending on how much you can raise the amount of income generated by the property.

When it comes to valuing apartment buildings, the value is usually set based on the market cap rate (annual income/ fair market price) divided by the overall annual revenue generated by the property.

So if your apartment earns 120,000 dollars in income annually and the prevailing cap rate is 5 percent= 120,000/.05= 2.4 million dollars.

This nuances of this valuation process are beyond the scope of this article.

However before taking out any loan you need to have a strategy in place to pay it off quickly. You also want to earn a profit by causing the value of the property to appreciate as quickly as possible. So when it comes to apartments, what’s the fastest way to raise a properties value? Raise rents.

With fix and flip loans and apartments your best bet is raising rents which present a low cost way to boost value and pay back your loan quickly.

With any flipping project, you need a short-term strategy to boost a properties value,  to pay off your loan and earn a profit as quickly as possible. When it comes to apartment flips the best way to boost value is to raise rents. 

Obviously can be amoral or unethical about this, the improvements you make should justify any rent increases. However, in some cases you can still raise rents without paying for any improvements at all. If a property is charging rents that are exceptionally low, you can raise rents to a reasonable standard and quickly earn a profit.

Even a small increase in rent can dramatically boost the value of an apartment building.  Consider the first example where the property was valued at 2.4 million dollars

• 120,000 (annual income) /.05 (cap-rate)= 2.4 million dollars.

This property is a 20 unit building, and each unit brings in 500 dollars in rent per month. If you were to raise rents by 50 dollars the property will earn 1,000 dollars of additional income per month, or 12,000 in extra annual revenue.

While this might not seem like a lot, this small increase in rent, based on a 5 percent cap rate, equates to a new valuation of:

• 120+12=132,000 (annual income)/.05 (cap-rate)= 2.64 million dollars.

So in this case that extra 12,000 dollars in income resulted in a 240,000 dollar increase in the properties value. As you can see, the sky is the limit when it comes to apartment flips. But of course there is math and then there is reality. So things wont always work out according to plan.

Nevertheless, before taking out a loan on an apartment property, find a reputable real estate broker and look for properties with:

• Easy low cost fixes that could raise value,

• Properties where new public amenities are being constructed which will increase the value of the property without any cost to you, and above all,

• Look for properties that are charging below market rents.

Raising exceptionally low rents to a reasonable standard is the fastest, and cheapest way to quickly raise the value of an apartment, allowing you to pay back your loan and earn a profit in the shortest possible amount of time.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Using Hard Money for House Flipping Loans

635975440There are many benefits to using hard money when you need house flipping loans. These nontraditional loans offer all of the flexibility and benefits that will make you profitable.

Traditional loans are designed to be used by home buyers who are going to carry the mortgage for 15, 20 or even 30 years. But house flipping loans should never reach even a year if you are running your business correctly. You want to buy quickly, make the repairs and renovations and then get the house resold for a profit as quickly as possible. And asset-based lending or Arizona Hard Money Loans as they are also called can be the perfect loan for flippers.

Arizona Hard Money Loans are very short-term loans. Many are for only a few months and because of their short-term, the rates are higher than a traditional loan. The rates range from a low of about 7% to as high as 15% or more if the lender is unsure of the deal. There are also additional fees that the borrower will pay such as closing costs and lender fees. But the biggest benefit of hard money is that the application process is very fast and simple. Many loans are fully processed in less than two weeks which is far less than the average 90 to 180 days for a traditional mortgage to process.

The process to qualify for Arizona Hard Money Loans is based more on the value of the property that you are buying than it is on your personal creditworthiness. While the lender might check your credit score and require a score of 550 or better, that is far below more traditional lenders standards. The value of the property is also what will determine the amount that the hard money lender is willing to offer you. The loan to value rate is how this is determined. Each lender has a specific percentage of a property’s value that he or she is willing to loan. In most cases that number is between 70% and 80% of the current value of the property.

Collateral on House Flipping Loans

The reason that the LTV is important is that the lender will require that you use the property as collateral for the loan. This protects the lender in the event that you default on the loan. Bu loaning only a percentage of the property value, the lender will always know that the collateral is worth more than the balance you owe on the loan. If you do default, the lender will take possession of the property and sell it to recover his or her investment in the loan.

Hard Money is a Wise Choice

As long as you make wise choices and are aware of the expenses of an Arizona house flipping loans, hard money is a good selection to fund your purchase. But only when you have a clear renovation plan and time frame for completion of the project. The short timeframe of the hard money loan and the higher interest rates leave little margin for error if you want to earn a good profit.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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 Benefits of Fix and Flip Loans

David ReeseFlipping houses quickly can be a very lucrative business. But the key to being successful is having fast access to fix and flip loans.

Most people are familiar with the traditional mortgage loans offered by banks and mortgage companies. But everyone also knows that securing a mortgage from a bank can take a great deal of time and effort. When time is critical, such as it is when flipping a house for a profit, Arizona Fix and Flip Loans offer all of the benefits that you need including a fast approval and funding time. A standard bank loan can take far over a month just for approval but the private lender will be able to process your documents and have an answer for you in just a few days.

Another benefit to Arizona Fix and Flip Loans is that these loans can be used on any type of property purchase. A traditional lender is not going to be willing to look at bank owned, foreclosure, short sale or a run-down property and make a fair decision. But a private lender is only really interested in the current value of the property. Banks do not like to lend on riskier investments but a private lender is willing to assume a greater risk as long as the borrower is willing to pay a higher interest rate.

Another drawback to a traditional lender is that fact that they are counting on a full interest payment. This means that if you pay the loan off early, the lender is making less money in the form of interest. So to avoid that, the lender will charge an early repayment penalty. Basically, no matter when you pay off the loan, it still costs you the same amount. But a private lender is not going to charge you any early repayment fees in most cases. But it is critical that you read the entire loan document prior to signing it as the lender is free to impose any terms that he or she sees fit. It is your job to catch any issues with the terms before you sign the loan documents.

Costs of Repairs

When you are flipping a property, you understand that a large part of the cost involved is going to be for the materials and labor for repairs. A traditional lender is not interested in this issue and will not always work with you on a loan for repairs. But lenders who specialize in Arizona Fix and Flip Loans normally will set up a loan reserve which helps to cover some of the repair costs for the property in additional interest.

Pick The Right Lender

As you begin to learn more about the process of fixing and flipping houses, you will also learn more about the financial side of the business. But when you first start out, it is important that you select a lender who is familiar with the process and knowledgeable about the real estate market. This will ensure that you have a good resource and a solid partner to guide you through your first loan experiences.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Types of Deals and Properties for Arizona Hard Money Loans

Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150Not every loan is perfect for every type of purchase. But there are many deals work very well within the parameters of Arizona Hard Money Loans.

One of the great features of Arizona Hard Money Loans is that they are funded by private lenders. This means that the borrower often has a great deal more freedom with regard to the type of property being purchased with the funds. The loan is being secured by the property so the lenders do want to be certain that the property value is greater than the loan. He or she will also be interested in the saleability of the property in the event of a default on the loan. But as long as there is a market for the property, most lenders are willing to fund a loan for any type of property. That is not to say that some lenders don’t specialize in a specific property type, but as a rule, any type of property including residential, commercial or industrial can be purchased with hard money.

Some of the features of Arizona Hard Money Loans make this a better loan for certain types of purchases. The short-term of Arizona Hard Money Loans makes them impractical for most home purchases but it also makes them ideal for many investment type purchases. Real estate investors who purchase properties to quickly fix up and resell, flippers, are very fond of hard money simply because it is easy to apply for and secure as well as being one of the fastest funding loans. In the world of real estate flipping, time is a critical element that makes it a perfect fit for hard money.

Hard Money Land Loans

Land can often be harder to purchase with a traditional loan. But a hard money lender is often happy to have the land as collateral on a loan. This allows the borrower to purchase the land and improve it with a building, utilities or other features to make the land more valuable prior to selling it. And with the loan for the land being hard money, there is less of a chance that the purchaser will be denied a construction loan for the addition of a structure.

Hard Money Loans with Bad Credit

Many borrowers find that with bad personal credit or no personal credit history, it is impossible to obtain a traditional loan to purchase real estate. But hard money lenders are basing their decision on the value of the property being purchased and not the creditworthiness of the borrower. So a bad credit score might mean that you pay a slightly higher interest rate, but in most cases, you will be able to get a hard money loan. Hard money can also be your only option if you have gotten into a very expensive project and you have overextended your credit or maxed out all of your other options. Again, the interest might be higher but you can get a hard money loan. Finally, for a busy flipper who might have multiple properties under contract at one time, the hard money lender will not decline your request based on the number of loans that you are carrying. The only really important factor is the value of the property. Knowing how to use these loans correctly can open many doors for someone who wants to enter the real estate industry as a flipper.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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