Category Archives: real estate investing

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.

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What You Need to Know About Non-Performing Notes for Sale

kirahC
Non-performing notes
You might need come throughout non-performing notes for sale lately. These are accounts the place assortment makes an attempt have been unsuccessful. When you suppose this feels like a tough factor to buy, that’s the place chances are you’ll be incorrect. Shopping for these non-performing notes for sale is definitely simpler than you suppose as a result of many lenders are prepared to promote non-performing notes at a loss.
Which means income. You see, non-performing notes for sale are literally secured money owed. What does that imply? Good new for you; even when the loan fails to revive its efficiency, the observe proprietor remains to be entitled to the property. Total, investing in notes for sale will be a wonderful various to excessive depth foreclosures auctions.

What are you able to do to buy a non-performing notes that’s for sale?

It’s straightforward when you observe the following pointers:
  1. Contact a trusted loan dealer in your space. They may enable you to discover non-performing notes for sale.
  2. Assessment the mortgage agreements of any non-performing notes that you simply buy and decide what you want to do after wanting on the fee document. A foreclosures could be the best factor to do on mortgages which are greater than 90 days late on funds.
  3. Provide a modified loan compensation plan to the mortgagor. Since you should have paid such a low value for the non-performing notes that’s for sale, there’s a very good likelihood you may have the opportunity to decrease the minimal month-to-month fee. Moreover, reducing the worth means you should have a better likelihood of getting the loan to carry out.
Furthermore, in case your fee plan does fail, as they generally do, then sadly it’s time to go forward with the foreclosures course of. This course of is difficult and may take anyplace from six weeks to six month relying on what sort of property is held and what actions the mortgagor takes. Whereas that is in fact time consuming and annoying, the solar will seem as soon as the method is over and also you get full authorized possession of the property.
Private Hard Money Lender in Texas
Large Daddy Dennis Exhausting Cash Lender
Texas Hard Money
Degree four Funding LLC
111 Congress Ave Suite 400
Austin TX 78701
512-516-1177

What You Need to Know About Non-Performing Notes for Sale

kirahC
Non-performing notes
You might need come throughout non-performing notes for sale just lately. These are accounts the place assortment makes an attempt have been unsuccessful. In case you assume this feels like a troublesome factor to buy, that’s the place you might be mistaken. Shopping for these non-performing notes for sale is definitely simpler than you assume as a result of many lenders are prepared to promote non-performing notes at a loss.
Which means income. You see, non-performing notes for sale are literally secured money owed. What does that imply? Good new for you; even when the Mortgage fails to revive its efficiency, the be aware proprietor remains to be entitled to the property. Total, investing in notes for sale will be a wonderful various to excessive depth foreclosures auctions.

What are you able to do to buy a non-performing notes that’s for sale?

It’s straightforward in the event you comply with the following pointers:
  1. Contact a trusted Mortgage dealer in your space. They’ll show you how to discover non-performing notes for sale.
  2. Evaluate the mortgage agreements of any non-performing notes that you just buy and decide what you want to do after trying on the fee file. A foreclosures could be the simplest factor to do on mortgages which can be greater than 90 days late on funds.
  3. Supply a modified Mortgage compensation plan to the mortgagor. Since you’ll have paid such a low worth for the non-performing notes that’s for sale, there’s a very good probability you may give you the chance to decrease the minimal month-to-month fee. Moreover, decreasing the value means you’ll have the next probability of getting the Mortgage to carry out.
Furthermore, in case your fee plan does fail, as they generally do, then sadly it’s time to go forward with the foreclosures course of. This course of is difficult and might take wherever from six weeks to six month relying on what sort of property is held and what actions the mortgagor takes. Whereas that is after all time consuming and annoying, the solar will seem as soon as the method is over and also you get full authorized possession of the property.
Private Hard Money Lender in Texas
Massive Daddy Dennis Laborious Cash Lender
Texas Hard Money
Stage four Funding LLC
111 Congress Ave Suite 400
Austin TX 78701
512-516-1177