Category Archives: Texas home loan home loan

What is Hard Money?

Many people have heard the term hard money but they do not have a good understanding of what it is or how to use it. Having this understanding can open up many opportunities for borrowers.

Hard money is a type of loan which is offered to a borrower based on the value of the collateral and not the personal financial position and history of the borrower. This type of loan is sometimes referred to as asset-based loan financing. The collateral is normally real property as opposed to personal funds in a retirement account or other material goods.

Because of the unique nature of a hard money loan, the lender is not the traditional bank or credit union that most borrowers are familiar with. These types of loans are offered by private investors or private investment companies. Being that the loan is from a private entity, the terms, conditions and processing time of the loans is quite different from the traditional bank loan application and process. Lenders are free to tailor each loan as they see fit and to meet the needs of the borrower. This is because the lenders are not regulated by state or federal law as traditional banks and lenders are. But these private lenders are still in business to make money so there are best practices which most hard money lenders follow.

As mentioned before, the loans are secured with collateral which is real property. To assure that the investment is protected, lenders use what is called loan to value when evaluating a loan request. The amount of the loan is determined by the value of the collateral property. Most lenders are willing to loan 65% to 75% of the value of the collateral. This insures that the collateral will always be more valuable than any outstanding balance on the loan.

There are Pro’s and Con’s

Asset based lending offers a borrower opportunities based on criteria other than personal credit and financial standing which can be very helpful. In addition, the terms can be very flexible to meet the borrower’s needs. But the lender is also seeing some benefit from funding the loan. The interest rate on these private loans is normally higher than that of a traditional bank loan. In most cases these private loans offer interest rates above 8% and they can range up to as much as 25%. But borrowers are willing to pay the higher rate to secure the loan that they need.

Shop Around

Just as when applying for a traditional loan from a bank or mortgage lander, it is always a good idea to shop around for the best rate and terms available. There are more private lenders out there than most people are aware of. With the higher interest rates of private loans it is even more important than ever to secure the best rate possible. Investing a little time to find an appealing interest rate on a private loan can save you a great deal of money over the life of the loan.

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

Tips for a Faster Closing on Commercial Loans

Time can be a critical factor in some commercial property purchases. But even when time is not a factor the purchase, your time is valuable and you want to close on commercial loans as quickly as you can.

Commercial loans require a great deal of time and information. Lenders need to verify the borrower’s ability to afford the loan and the payments before they are willing to assume the risk of funding the loan. And the only way for all of this investigation and discovery is to provide detailed documentation to the lender. If you are completing the application process for the first time or it is your first application to a new lender, then you should ask for a very detailed list of documents that the lender will require. This not only shows the lender that you are consciences but also that you are eager and willing to invest the time needed to get them their requested documents. Your lender is likely to work at the same speed at which you do when they make a request from you. Work quickly to set the bar high and have your loan completed in the shortest amount of time possible.

Most lenders have a complete list of the documents that they need to evaluate applications for commercial loans. Requesting that list early will allow you to invest the time necessary to assemble a complete and thorough loan application. Consider this document to be your official introduction to a new business partner. Be certain that it is complete, professional and free of errors. This is your one chance to make a good first impression and demonstrate your overall professionalism.

When submitting documents, be sure that your profit and loss sheets are well labeled and easily understood. Call out any one time expenses clearly so that there is no question of missing information. Included full copies of the past two years of tax returns for the business and for any owners. If anyone has filed for an extension, include a signed copy of that document as well. Also, be sure that any bank statements which have been requested are included in full. Do not omit blank pages.

About the Property

Including photos of the interior and exterior of the building can be very helpful, especially if the lender is not local. But even if you are using a local lender, the pictures are helpful and can offer a more complete view of the property. Also be sure that any health or safety issues are remedied prior to the lenders inspection. Most lenders want these particular issues repaired before the closing. Finally, if the property has current tenants, be sure to include valid copies of each lease in your documentation.

Do It Right the First Time

Lenders only make money when they are fulfilling commercial loans and earning interest. They are as eager to complete the application process as you are. Investing the time to present a complete and accurate set of documents along with your loan application is certain to make the approval process more rapid. In addition, it is the best way to create a strong first impression and foundation upon which to build a long term business relationship with your lender.

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

Benefits of Non-Recourse Commercial Loans

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

As you begin to explore the options for commercial loans you will quickly find that there are two main categories for these loans, recourse and non-recourse. The more common of the two is the recourse loan which requires the borrower or borrowers to personally sign as the guarantor of the loan. This simply means that in the event of business failure or inability of the business to make the loan payments for any reason, then the guarantor is personally responsible to make the payments. Obviously, this presents a significant personal financial risk to the guarantor.

Non-recourse commercial loans do not require the borrowers to become personal guarantors of the loan. Therefore, these loans do not require the risk of the personal assets of the borrowers. This is one of the biggest advantages for any borrower. Knowing that a business failure means the loss of income is bad enough but to also be faced with the responsibility of personal liability on a commercial loan can be devastating. No business owner ever chooses to take out a loan which they believe the business will default on but there is always that rare possibility, and the added stress of personal liability. But a non-recourse loan eliminates that stress and potential issue.

An additional benefit is that non-recourse loans are assumable. This can be a huge advantage if you plan to sell the property in a few years or if a situation changes and you need to sell the property quickly. Currently, commercial lending rates are very favorable, but they are expected to increase. So the current loan rate is likely to be much lower than a rate which will be offered on a loan in a few years. So when you do decide to sell the property, you have the ability to offer to have the buyer assume your loan. This will be a great incentive for the buyers as the interest rate could be significantly lower than the current rate.

The Perfect Non-Recourse Loan Candidate

Non-recourse loans are most often used to purchase properties which provide a strong cash flow as the property is the only collateral. This means that even if the property is not the more visually appealing or if it needs a face lift, it could still be a candidate for a non-recourse loan. The critical factor is the cash flow. As long as the property is generating 1.25 times the proposed payment of the loan then lenders will be eager to offer this financing solution.

Great Benefits if the Fit is Right

Non-recourse commercial loans can offer a huge benefit for the right borrower and the right commercial property. Knowing that the property does generate a strong and steady cash flow allows the borrower to get a great loan and rate without having to personally guarantee the loan in the event of a business failure. It also provides added benefits to the borrower when it is time to sell the building by allowing the buyer to take advantage of a lower interest rate on the assumed loan.

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

Tips to Obtaining Hard Money Loans Fast

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

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

The Time is Now for a Home Loan Texas

Mortgage Broker
Texas Home Loan
Are you wanting for a private investor? Are you hoping that you will discover somebody in time who will provide you with the money you’ll want to make the funds it’s important to make? There needs to be a neater approach. That’s madness to panic on the drop of a hat. It’s time to seek out a private investor who can assist you make the transition over to a non conventional sort of loan that doesn’t have you ever leaping via hoops. It’s time to speak to a private investor about your home loan Texas.
If you wish to get the money for your own home with out having to go to a financial institution and hope that they provide the loan you’re wanting for, then get entangled with a private investor as a result of they would be the ones to provide the money that you just want. A traditional loan has a lot of paperwork and a lot of ready. You may wait a actually very long time and never solely miss the deadline for your cost however you could not even get the loan in spite of everything of that. It’s a lot simpler to look into a private lender if you’re all in favour of getting a home loan Texas. however you don’t have the credit score you’ll want to get hold of it.
Mortgage Broker Texas
Texas Mortgage Dealer,
After all you recognize that it’s important to have a hard asset as collateral. This is the place the time period hard money comes from. It signifies that slightly than your credit score rating, the lender appears over what sort of asset you deliver to the desk because it have been. Don’t let this scare you as a result of you may nonetheless get the Texas home loan that you really want and deserve. Snag your hard money lender and speak about a house loan Texas as quickly as you may and get cozy in your house at the moment.
Texas Mortgage Broker
Texas Mortgage Dealer Workforce, investing in trust deeds Texas
Dennis Dahlberg
Dealer/RI/CEO/MLO
Level 4 Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX eight

Thinking About Getting an Texas Home Loan?

In case you have been serious about asking a hard money lender to offer some monetary alternatives for you, then now’s the time to essentially make this occur. Your hard money lender can provide the Texas home loan that you just
Home Loans
Texas Mortgage Dealer, Texas Home Loans
desperately want. Whether or not your credit score is not what you need it to be or you might be bored with coping with the financial institution system, there’s an Texas home loan for you thru private money lenders that you would be able to get that may change your life. No questions requested.
Don’t assume twice about your Texas home loan wants when you may ask your Texas private money lenders for the money it’s essential to repair your mortgage issues. No questions requested. Don’t fear about your credit score rating. You’ve gotten this on lock down. There are lots of loan varieties out there for hard money financing and particular hard money lenders will assist your want for a brand new Texas home loan.
Your hard money lender can present the monetary assets that you just want on your non-tradition Texas house loan. Don’t fear about your money wants as a result of these loans can be found for hard money financing. That is nothing that may’t be fastened. You don’t have to be foreclosed. Discuss hard money lending in the case of getting your Texas house loan. That is one thing you are able to do simply. Attempt to not get too carried away with fears of debt and low credit score. With a hard money loan, it does not matter.

You have already got all of the assets it’s essential to get the hard money loan you want with a view to get an Texas house loan.

Don’t assume twice about speaking to a consultant a few non-traditional Texas house loan. It simply is likely to be one of the best factor you have ever achieved for your self and your private home.

Texas Hard Money Texas Mortgage Broker

Texas Mortgage Broker
Texas Mortgage Dealer

Dennis Dahlberg
Dealer/RI/CEO/MLO
Level 4 Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701