Tag Archives: alternative funding option for investors

The Top Differences to Watch for with Private Hard Money Lenders

April 2, 2018Uncategorizedalternative funding option for investors, arizona bad credit, arizona bridge loan, Texas Hard Money, Texas hard money lendersbigdaddydennis

While there are over 600 private hard money lenders in the U.S., no two are created equal. Understand the differences and what to look for when choosing a lender for your next project.

Looking for a short-term loan quickly? Need 7 to 10 days? Looking to purchase residential and commercial property for purchase and renovation? Obtaining quick capital via a private hard money lender may be your best option. In fact, this is one of the primary forms of financing for first-time real estate investors. Let’s take a look at what are the marked differences among the various lenders.

Some private hard money lenders focus on properties in relatively good condition, while others will fund properties in poor condition if you come aboard with a good business plan and the numbers to back it up. This includes an in-depth look at renovation costs, time frame, and market. You will also need to include the monthly costs that you’ll incur during the renovation process such as utilities, insurance, loan interest and property tax. Some companies and private investors loan only on the LTV or loan-to-value, while others will consider the ARV or after-repair-value. For instance, some will issue a loan up to 80 percent of the LTV or 70 percent of the ARV. If your model is to rehab properties in poor condition for a fix & flip, you’ll want to be sure to ask your potential investor which value they consider when funding a project.

Buy-and-hold investors, on the other hand, obtain private hard money lenders in order to ensure quick capital. After renovation is complete, they look to more traditional loans for longer terms and lower interest rates. You’ll find many private investors that specialize in one segment of real estate. For instance, there are hard money lenders that invest only in the office or multifamily segments, while others focus on the fix-and-flip model. You’ll want to be sure to find one that is comfortable and knowledgeable in your area. There are even hard money lenders that fund residential loans. These are, in most cases, considered bridge loans—short term loans that bridge from one property to another such as when home owners buy a new home before their old home sells.

Interest Rates and Average Lender Fees

Going into this arena of commercial lending, it’s important to be aware that the interest rates are going to be higher than conventional mortgages because the hard money loans are shorter terms, interest-only payments, and increased risk for lenders. The interest payments are considered “holding costs” and are monthly fees incurred prior to selling or refinancing. These interest-only payments result in lower monthly payments. When you agree to a loan with a hard money lender, there can also be what are known as “loan origination fees” or “points.” Additional fees that the borrower may be required to pay include closing costs, appraisal costs, application fees, prepayment penalties and loan extension penalties.

At Level 4 Funding, we offer loans from 7.99 percent APR with 90 percent LTV.

In addition, we do not charge prepayment penalties and can often fund within days. Because we work with hundreds of private investors, we can usually find an investor in your niche who can offer you the best terms and rates for your project. Call us today for a no-obligation quote.

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

How to Obtain Your Next Commercial Loan in Less Than a Week

March 27, 2018Uncategorizedalternative funding option for investors, arizona bad credit, Arizona bridge loans, Arizona hard money loans, Arizona home loansbigdaddydennis

Traditional commercial loans often take more than a month to obtain when you consider the time to approval and then funding. Find out how you can obtain your next commercial real estate loan in a matter of days.

According to Bob Hope, “A bank is a place that will lend you money if you can prove that you don’t need it.” Investors with less than stellar credit or in need of immediate capital have found this perspective to be right on target. In addition, the type of loan will play a part in a traditional bank’s inclination to put the stamp of approval on your loan request. For instance, since 2008, traditional banks have been less prone to making small business loans and loan-to-value ratios have declined. For investors that are prone to higher-risk models, a traditional bank may not be the best choice when it comes to commercial loans.

In today’s current market, where sellers are experiencing multiple offers in a matter of days, obtaining quick capital for investment purposes has become much more important than in the days of the recovery, when properties could sit on the market for months without an offer. Multiple offers on the table will often place contingency offers to the back of the pile. Quick funding can dispel this dilemma.

So, just what types of lenders can get you the capital you need in the time frame that you need it? Hard money lenders offer short-term commercial loans that are quick to fund in order to facilitate the purchase of your next real estate investment. While traditional banks usually offer longer repayment periods at reduced interest rates, they also require excellent creditworthiness and can take a minimum of 6 months to fund. This does not take into account the length of time that it will take to prepare your business plan, financial projections, and a proposal as well as exit strategy.

Benefits of Obtaining a Hard Money Loan for you Next Investment

Unlike banks, many hard money lenders are private lenders who are not bound by the same rules and regulations that traditional lenders must abide by. They may be a group of lenders pooling their funds together or individuals that make loans on specific types of properties whether multifamily or the fix & flip segment of real estate investing. Their focus is not on your credit history, but rather on the property or collateral involved in the loan. Time to loan varies among the various private lenders.

At Level 4 Funding, we work with hundreds of private investors and can provide loans up to $5 million. We offer approvals within 24 hours and funding within as little as a few days.

Working with a large pool of investors allows us to offer funds for nearly all commercial loans. This includes multifamily, office, warehouse, storage, raw land and even student housing. Call us for a no-obligation quote. We can often say “Yes” when banks and other lenders have said “No.”

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips to Obtaining Hard Money Loans Fast

March 18, 2018Uncategorizedalternative funding option for investors, arizona bad credit, Arizona bridge loans, Arizona hard money loans, Arizona mortgage loans, bad creditbigdaddydennis

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

4 Ways to Make Non-Performing Notes Work for YOU!

November 6, 2015Uncategorizedalternative funding option for investors, how to invest in notes, investing in notes, non-performing notes, non-performing notes for sale, note investing, notes for sale, private money lenderbigdaddydennis

Note investing is a little known investment strategy that allows you to basically be the bank. As a note investor, you purchase debts from financial institutions and then collect interest on the debt until it is repaid. Some types of notes you can purchase are credit card notes, store financing debts, auto loans, and even home mortgages. Once you own the note, you collect the interest. Depending on what type of note you purchase, note investing is a very safe and passive investing strategy. You buy a note and sit back and make money.

However, not all notes are created equal. Credit card notes and store debts are unsecured, meaning there is not collateral to fall back on in the case of default. They usually earn you higher interest but come with a much higher risk. Mortgage notes are usually fairly safe because the physical property can be used as collateral in the event of default.

If you are interested in purchasing mortgage notes, you can make your money work double or even triple by purchasing non-performing notes. Non-performing notes are pretty much exactly what they sound like, debts that are currently in default. While this may sound like a crazy idea, it has many benefits. Here are a few benefits of purchasing non-performing notes that you NEED to consider.

1. Non-performing notes can maximize your profits while minimizing your initial investment. A $200,000 note will cost you significantly less because it is currently in default, meaning the borrower is not repaying their debt.

2. Once you own the note, you can set about the process of rehabbing it. Just like you would fix up a house, you can fix up a note. Depending on your end goals, there are a few ways to go about this. If the note is for a property you would like to own as an investment, you can foreclose and take possession of the property. Since you got the note at a discount this means you get the property for a significant discount as well.

3. If owning the property is not your end goal, you can re-negotiate the terms of the non-performing note with the borrower. This basically involves changing the terms of the note so that the borrower is able to start making payments and get out of default on the note.

4. Once the non-performing note is performing again, you can either hold onto it and earn interest, or you can sell it as a performing note for a considerable profit.

While non-performing notes are a great way to make money, it is important to remember that there is still risk involved, especially if this is your first time investing in notes. The laws and regulations surrounding note investing are complex so don’t try to go it alone. Call the professionals at Level 4 Funding today to get started purchasing non-performing notes.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

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

How to Make Money with Trust Deed Investing

October 9, 2015Uncategorizedaccredited investors, alternative funding option for investors, trust deed investing, trust deed investing Arizona, trust deed investmentbigdaddydennis

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

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

August 27, 2015Uncategorizedaccredited investors, alternative funding option for investors, arizona hard money lenders, private money lenders arizona, self-employed, Stated income mortgage arizonabigdaddydennis

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

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

August 26, 2015Uncategorizedaccredited investors, alternative funding option for investors, Arizona bad credit home mortgage lenders, arizona hard money lenders, bad credit, sub prime mortgagesbigdaddydennis

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

Level 4 Funding Private Hard Money

Arizona, California, Colorado, Florida, Idaho, Oregon, Texas and Washington

Tag Archives: alternative funding option for investors

The Top Differences to Watch for with Private Hard Money Lenders

While there are over 600 private hard money lenders in the U.S., no two are created equal. Understand the differences and what to look for when choosing a lender for your next project.

How to Obtain Your Next Commercial Loan in Less Than a Week

Traditional commercial loans often take more than a month to obtain when you consider the time to approval and then funding. Find out how you can obtain your next commercial real estate loan in a matter of days.

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.

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

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

4 Ways to Make Non-Performing Notes Work for YOU!

How to Make Money with Trust Deed Investing

Pitfalls of Trust Deed Investing and How to Risk Less

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

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

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

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

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

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!

While there are over 600 private hard money lenders in the U.S., no two are created equal. Understand the differences and what to look for when choosing a lender for your next project.

Traditional commercial loans often take more than a month to obtain when you consider the time to approval and then funding. Find out how you can obtain your next commercial real estate loan in a matter of days.

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.

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

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

Pitfalls of Trust Deed Investing and How to Risk Less

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

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!

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!