Category Archives: Private Hone Lender in Texas

When is the right time to cut your losses in the real estate business?

The real estate industry can be extremely tumultuous under normal conditions. If you are doing it correctly, you will run into a few extra problems that come with investing. What separates the inexperienced investor from the pro is knowing when to throw in the towel. Now, we are not saying that as soon as you find a water leak in your property you should give up, but you need to be aware of your investment as all times.

For many investors, this means having a solid exit strategy before you are able to commit to a new project. A solid exit strategy allows you to drop one project and go after another within a few days. For some investors, this could be after a certain number of repairs exceed their comfort level. Along the lines of property renovation, an investor could have a financial cap set in place before they decide to pull out on their investment.

Research makes perfect in real estate

An experienced real estate investor takes their time to thoroughly vet a property and the geographic area before making an offer. They will most likely go through an extensive checklist before making a decision. Sometimes hard money lenders in Texas are able to help you with your research, however, most of the legwork is up to you.

Enough research can tell you the right amount of money you should put into the property. Often many investors bite off more than expected with a property. In the event that the repairs begin to outweigh the possible revenue that you are expecting you should begin implementing your exit strategy.

When is time to step away from your investment?

The moment you feel as though you are not going to make any profit on the property is the time you step away. Some investors will tell you to stick it out a little longer, while most will tell you to stick with it. In the long run, you must do what is right for you. Maybe you have expended all the money you set aside for the project.

Most of the time at this point other investors will not want to or be able to help you in your investment. One of the most important details that you want to remember about real estate is timing. Your timing is everything.

Say you ask your hard money lender in Texas for an additional loan from more construction, however, recently there has been a decline in the demand for homes. Now, you have a home that may not sell for the next two or three months. With a hard money lender, usually you will have a fairly short term loans this will not work.

With an exit strategy, you give yourself more options

Allowing yourself to leave your investment if you need to, till ultimately save you thousands of dollars in the end. It may seem like a loss at first, but a loss will hurt much worse if you are left with debt.

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

Tactics to use a hard money loan for commercial real estate investment

A hard money loan ( or asset-based loan) can act as a bridge to traditional financing and can help you get your next project off the ground.

This type of loan is typically a non-bank loan secured by the value of a”hard” asset. With a conventional loan, a borrowers credit score is usually the main factor that a lender considers. In contrast, asset-based lenders are more concerned with the value of the underlying property.

This type of lending is ideal to finance speculative projects an ordinary bank would consider too risky. Forgoing extensive credit checks allows these lenders to close loans sometimes within a matter of days.

Asset-based lenders can charge loan fees up to three times higher than a traditional lender. Borrowers will usually need more money up front to fully finance a project because this type of lender rarely underwrites the full cost of a project.

An asset based loan may be expensive initially, but their speed and ease in getting approved makes them a great resource to get a project off the ground.

Hard money loans can be the help you need to get your project started and act as a bridge to conventional financing

An asset-based loan can help you get your next investment project off the ground. Say there is a condominium with a purchase price of 400,000 dollars and an estimated repair cost of 50,000. A comparable property recently sold for 650, but the condo you want to purchase sits half empty.

A traditional lender would note the low occupancy and would in most cases avoid financing your project. With an asset-based lender, you could probably qualify for a loan of 60 percent of the projects total cost. You would still need 180,000 dollars of your own money, but with the initial hard money loan, you can get your project started.

Once you have made the repairs and the building reaches full occupancy, in most cases you could now qualify for a regular mortgage. You could then refinance to a mortgage for 75 percent of the property value of 650. Refinancing would then allow you to pay off the hard money loan and in this case leave you with 217,500 left over.

In the end, a hard money loan gives you options down the road and the funds you need to get your project off the ground. After your project is finished, you could sell the property, pay off the initial loan and still achieve a profit. After you refinance you can improve the property, raise rents, lease the property long term or sell the property for a profit.

If you are an Arizona based real estate investor consider Level 4 funding as your go-to

hard

money lender

If you are finding it to qualify for financing an asset based loan is a great way to get your real investment project started. Consider Level 4 Funding if you are an Arizona based real estate investor. Level 4 Funding offers short-term loans with a comparatively low APR of 9.6 to 12.5 percent.

Depending on your project you may qualify for a loan of up to 85 percent of the total project cost (or LTV). The LTV Level 4 offers can help you avoid the high up-front costs usually associated with asset-based loans.

Level 4 Funding can close your loan in as little as 1 to 3 days, which allows you take advantage of immediate opportunities. Level 4’s loans have flexible terms, with a minimum term of less than a month, which means you can the off at your convenience.

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