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How to Make Money with Trust Deed Investing

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 Trust deed investing can
provide substantial rewards with minimal risks for investors. There are a few
different ways to get started in trustdeed investing and finding the right financial professional to help you can
make all the difference.

Most investors know about stocks, bonds, and real estate investing.
Real estate investing can be a very lucrative way to build your investment
portfolio. You can invest in real estate in a number of ways like buying a
fixer-upper, or purchasing a home to rent out. While almost everyone knows
about making money on a fix and flip or as a landlord, there is another, less
common type of real estate investing called trust deed investing. Trust
deed investing involves three parties, the borrower, the bank, and the
trustee. If you are investing in deeds of trust, your role is that of the
trustee and you act as an intermediary between the borrower and the lender. You
hold the legal title to the property until the loan is paid off or unless there
is a foreclosure.

As the trustee, your job is basically to protect the lender in the
event of default. If the borrower defaults on the loan, the lender would have
to take the borrower to court and could not foreclose on the property until
after a lengthy legal process. By using a trustee, the lender has a second
option. The trustee can foreclose on the property on the lender’s behalf and
help the lender recoup its investment. In the event of a foreclosure, some of
the sale proceeds go to you as the trustee to help recoup your investment as
well.
While you can earn back your investment in the event of a foreclosure,
the real benefit of trust deed investing
is when all is going well. The bank or lender will pay you interest rates into
the double digits to hold the title to the property. As long as the borrower is
making on time payments, you are earning interest every month. Once the loan is
paid in full, you also get your initial investment back. You can purchase deeds
of trust through a private lender or other investment professional.

Pitfalls of Trust Deed Investing and How to Risk Less

Trust deed investing is
generally considered a relatively safe investment because it is backed by real
property than can be used as collateral in the event of default. However, like
any investment there are risks. Namely, deeds of trust are not insured by the
FDIC so there is not guarantee that you will get your money back. Also, if the
borrower declares bankruptcy then the home cannot be easily foreclosed on
without a lengthy legal process. Depending on the outcome of this process, it
is possible to lose some or all of your investment.

These risks are not unique to trust deed investing as every type of investment does have some inherent risk.
There are a few ways to minimize these risks and maximize your profits. First
and foremost, work with a private lender or equity firm that is experienced in trust deed investing. Make sure that
your lender has loaned on deeds of trust before and can explain the process to
you, including any and all risks.
You can also help mitigate risks by doing your due diligence. Research
a property’s title status and market value. This will help you make sure there
are no issues with the title that would prevent a foreclosure. Knowing the
market value will help you ensure that the property will be worth the amount of
the loan or more in the event of default. This is especially important because
the bank will get paid back before you do so you want to be sure there is
enough money to recoup your investment.

Find the right lender to guide youthrough the process of trust deedinvesting!

The right lender is key to helping you navigate the world of trust deed investing. Make sure you
choose someone who is experienced and knowledgeable about deeds of trust and
how the investment process works.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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How to Clean up Your Finances to Get a Self Employment Home Loan

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Being self-employed can be both a benefit and liability when it comes
to your financial life. Various tax deductions and business credits can be very
lucrative but they can also bite you when it comes time to get a home loan.
There are several ways that you can get your finances in order so that you can
be sure to qualify for a self employment home loan.
Getting a home loan when you are self-employed can be difficult. Many
business owners take advantage of several tax deductions to lower their tax
liability and write off legitimate business expenses. Unfortunately, when the
bank looks at your tax returns this can make it appear that you lost money on
your business, even if you in fact had a good year. Also, various business
loans or losses can affect your personal credit and lower your score. This can
also be a deal breaker for many traditional lenders who may laugh you out of
the bank when you come in for a loan.
While this may be embarrassing, it is also avoidable. If you are
thinking of purchasing a property, whether for an investment, vacation home, or
primary residence, there are certain steps you can take to clean up your
finances to give you the best shot of qualifying for a self employment home loan.
·      
Clean up your tax returns for two years prior to
attempting to get a loan. Take less deductions to make your taxable income
higher. While you may pay more taxes, it will also make it easier to qualify
for a home loan.
·      
Stash away extra cash. While factors like credit
score and debt to income ratio are important, money talks and often it speaks
the loudest. Having a large down payment and a year of living expenses in the
bank can often make you look like a more attractive loan candidate, even if your
finances are less than ideal on paper.
·      
Separate your personal and business finances.
Think about incorporating your business into an LLC or other entity to keep it
separate from your personal accounts. Pay yourself a salary and charge any and
all business expenses to a business credit card. If you get a business loan,
keep it in your business name, not your personal name. Keep your business
accounts and personal bank accounts separate. This will lower your debt to
income ratio and keep all of your business taxes separate so you can still take
advantage of all the deductions you are entitled to without affecting your
chances of qualifying for a home loan.
·      
Keep meticulous records. One thing that can be a
serious problem for many business owners is that it can be tricky to prove
exactly how much money you make, especially if it is coming from different
sources. Having good records will make it easier to prove your income when it
comes time to get a self employment homeloan.
When all Else Fails….

Even with the above steps, you may still find it difficult to get a
home loan. Don’t give up hope. A traditional loan may not work for you, but
there are many other types of loans that can help you. Find a private mortgage
broker or lender to find the self employment
home loan that you need. A few types of loans that can help you are:

1.      
A traditional loan from a non-traditional
lender. A private lender can often give out 30 year fixed mortgages to
borrowers that would otherwise be turned away by banks. Be aware that you will
most likely pay a higher interest rate but this is often worth it in the long
run.
2.      
Hard money loans and private collateral loans.
Private lenders have access to different types of loans and funding that banks
do. You can take advantage of their private collateral self employment home loans that can work to your benefit.
3.      
Stated income mortgage. These fell out of vogue
with banks during the housing crash but may still be available with a private
lender. There is less paperwork and your income does not require as stringent
of verification, making it ideal if your record keeping is less than perfect.

Find a private broker or lender today to learn more about all of the benefits of a self employment home loan.

Call us a Level 4 Funding today to discuss your home loan options. We
can help you get the loan you need with the terms you deserve. Don’t let being
self-employed hold you back. We can help!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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How to Use an Arizona Bridge Loan to Make Your Dreams Come True

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 If you are trying to buy and sell a home at the same time, an Arizona bridge loan can be a valuable
tool to have. This type of short term learn can help make sure that you get
your dream home with very few risks.
An Arizona bridge loan is a
specialized short term loan that can be useful for real estate transactions. It
is a short term loan that allows you to use the equity in your current home as
a down payment on a new home before your current home sells. As the name
implies, an Arizona bridge loan is
designed to “bridge” the gap by giving you funds for a down payment. The loan
is paid back with the proceeds from you home sale.
An Arizona bridge loan is a
valuable tool because most buyers rely on the sale of their current home to
come up with the down payment for their new home, however, it is not always
feasible or ideal to close on the current home first. In a perfect world, you
close on your home in the morning, have funds available by noon and close on
your second home before the business day is over. But it very rarely works this
way. More often, you close on your current home and have to find a short term
rental for a month or two before you close on a new home. This is not only
expensive, but it causes you to have to move twice and you are literally
throwing money away by renting.
One solution to the problem is an Arizona
bridge loan. A bridge loan bridges the gap by lending you the down payment
for a new home that you then pay back once your home sells. The bridge loan is
secured to the buyer’s existing home. The funds from the bridge loan are then
used as a down payment on the new home. Bridge loans are gaining in popularity
as a down payment option because they offer flexible terms and are relatively
easy to qualify for. Also, many lenders will not allow you to take out a home
equity loan on a home that is listed for sale, so in many cases a bridge loan
is the only option to come up with cash for a down payment.

7 Things to Consider if You are Thinking
About an Arizona Bridge Loan

Like any loan, a bridge loan has certain risks and benefits. Knowing
all your options and going into it fully informed will help you risk less and
benefit more. Here are five important things to keep in mind if you are
thinking about getting an Arizona bridge
loan.
     1.     You will pay a higher interest rate. Like many
short term loans, bridge loans have higher interest rates than 30 year loans.
You usually have a grace period of 1 to 4 months depending on your loan terms
and if you pay the loan back with proceeds from your home sale, you can usually
avoid paying a lot of interest.
     2.   Qualification is usually an easy and painless
process. Most lenders do not have set FICO scores or debt to income ratios for
bridge loans. Instead, qualification is based on a complete picture of your
finances and whether it makes sense to purchase a home before you sell your
current one.
3.      
A bridge loan can save you money. If you wait to
purchase your new home until your old home sells, you may end up needing a
short term rental. This is literally throwing money down the drain. Getting the
right Arizona bridge loan and
selling your current home quickly can actually save you quite a bit of money.
4.      
There will be fees. An Arizona bridge loan has several fees associated with it. You will
pay an administration fee of about $750 and an appraisal fee on your current
home to ensure it is worth what you need to sell it for. In addition, you will
pay wire fees, origination fees, and points which will be dependent on the
amount of your loan. When all is said and done you will probably end up paying
about $2,000 to secure your bridge loan.
5.      
You can find your new dream home without the
stress of having to sell your existing home first. You don’t have to wait or
make unattractive contingency offers. You can purchase your new home
immediately which will usually get you a better price and help make sure you get
the home you want.
6.      
You have to be able to qualify for two
mortgages. A bridge loan can help you with a down payment, but you will still
need to qualify for two mortgages and be able to make monthly payments on both
if push comes to shove. However, most mortgages don’t require a payment for the
first month so if you sell your home quickly, you can usually avoid double
payments.
7.      
A bridge loan can cause stress. If your current
home does not sell quickly, you will end up paying the mortgage on it, the
mortgage on your new home, and the payment on your bridge loan. Make sure to
carefully evaluate your finances to ensure that you can make your payments for
a short time if you need to. You can also help eliminate financial stress by
pricing your current home to sell quickly.

Once
you have evaluated the pros and cons of an Arizonabridge loan, contact the financial professionals at Level 4 Funding to get
your application started!

The sooner you apply for your bridge
loan, the sooner you can get cash in hand for your down payment. Don’t let your
dream home slip away because you are waiting for your current home to sell.
Find out the benefits of bridge loans today! 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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