Tag Archives: hard money Arizona

Why Arizona Hard Money Lenders Can Help You Obtain the Funding You Need

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Who are Arizona Hard Money Lenders? What part do they play in the finance industry?

Arizona Hard Money Lenders are private or individual investors providing asset-based funding. When considering granting a loan, these lenders focus on collateral value and equity rather than creditworthiness. For the most part, Arizona Hard Money Lenders use real estate as collateral, which must be appraised for the lender to ascertain value.

Upon determining a property’s value, Arizona Hard Money Lenders evaluate and mitigate risk by establishing interest and loan-to-value LTV. As an example of LTV, consider that a property’s market value is $100,000, and that the lender is willing to loan money at 60% LTV. This means that the borrower must provide $40,000 to receive a loan of $60,000 at a given interest rate. By requiring a percentage of the property’s value, Arizona Hard Money Lenders are buffered should the debtor fail to make payments. In exchange for cash down, the debtor is granted an asset-based loan, opposed to a credit-based one.

So, who uses Arizona Hard Money Lenders? While traditional lenders such as banks and credit unions loan money based upon credit scores and voluminous stipulations, Arizona Hard Money Lenders fund individuals and businesses: unable to secure traditional funding, looking to acquire shorter terms, struggling to build credit, or needing to consolidate debt built up the form of multiple loans.

Who Benefits from Arizona Hard Money Lenders?

With less red tape, paperwork, and regulations, Arizona Hard Money Lenders offer pragmatic solutions to many clients. Some of these individuals may have had subpar credit, foreclosures, or bankruptcies. On the other hand, other individuals associated with renovating, renting, or selling real estate may frequently use Arizona Hard Money Lenders over conventional lenders to build profit. These include: contractors who buy land and build real estate; flippers who purchase, refurbish, and sell real estate; and leasers who purchase, renovate, and rent real estate. Additionally, other clients turn to Arizona Hard Money Lenders to expand commercial or industrial property to provide more building space for staff, machinery for production, and technology for upgrades. Consistently as well as continually, many of these types of businesses have relied on hard money to acquire more assets and secure more returns. Though businesses receive the initial benefit from the added capital from hard money lending, community also receive a boon as well.

Hard money lending builds local businesses and communities

Indirectly, growth in local business assets and returns benefits local cities, economies, and neighborhoods. As businesses grow, they tend to purchase more equipment, hire more employees, and consume more services in a community. If you are in need of a hard money loan, talk to a representative to day at Level 4 Funding.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

WHERE TO FIND FINANCING FOR AN ARIZONA SPEC HOME

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userHave you been turned down by banks because you don’t have perfect credit? Do you have collateral? Do you need a loan to invest in property?

Many people are not familiar with the term, “spec loan.” A Spec loan is a term used for a loan on a speculative property; meaning it the end game is unpredictable. A speculative property is one that the developer has not sold. And, because the sale has not been finalized, the loan itself is only speculative. Financing a spec home is a process, and it’s a little different than a conventional home loan.

Traditional banks are not quick to approve financing for an Arizona spec home. It is a risk for a lender because it is essentially a loan for a construction project without a committed buyer; and that flags risk to the banks. You’ll work with a mortgage lender when building an Arizona spec home. However, the builder will need the financing from mortgage lenders to purchase the needed materials and pay the construction crews. To prove to the lenders that your income is sufficient to pay back the construction loan. The borrower is expected to have enough funds to pay for the monthly payments on the loan, holding costs, insurance and taxes.

You will also need to write a marketing plan because this loan is to build something that will make a profit in the future. The point of this plan will describe how high you will price your completed home. Remember, a Arizona spec home is a home that hasn’t been built yet.This marketing plan will show who your target buyers will be and how you will inform potential buyers of this home being on the market. One idea would be to hire a realtor to promote your investment.

Where to find financing for an Arizona spec home?

Traditional lenders usually are not willing to provide a borrower with a loan on an Arizona spec home hard money loan due to unreliable lending practices from the past. Arizona hard money lenders are much more eager to lend on an Arizona spec home than a bank. Arizona hard money lenders can adjust the market conditions and advance their products to match trends in the market. Arizona hard money lenders offer loans that are shorter than bank loans. For example, a loan may be six-months, have 4 points and a 13% interest rate. This is quite different than a traditional bank loan.

Arizona hard money lenders can create a unique loan structure. If you’ve been turned down by a traditional lender because of credit a Arizona hard money lender should be your next step.

Arizona hard money lenders can provide funds for builder’s projects that would be next to impossible to acquire from a bank. In most cases applying for a hard money loan is a simple process. Usually, a borrower only needs to fill out a loan application, have a short conversation with a lender and receive a conditional approval right away. If you have a project and traditional banks are turning you down; Arizona hard money loans may be beneficial to you. 


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Construction Loans: How to Risk Less by Avoiding Extension Fees

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Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150If you are in the middle of building a house for yourself or you are in the middle of a renovation project, you need to know that with Arizona construction loans, there is an ugly little thing called extension fees. Learn why you want to avoid extension fees and some strategies to keep your project on track.

With construction projects, loans are distributed through a pay-as-you-go approach. You get a specific amount to pay for each step of the project, but you rarely get the full loan amount up-front. Most loans for residential construction projects last 12 months, but if your project stalls then extension fees come into play.

Extension fees are unfair in principle. You’re basically paying extra money to get access to money that is already yours in the first place. Yes, this practice may seem unjust, but these fees exist nonetheless, and it is in your best interest to learn how to avoid them.

The first way to avoid these fees is to scrutinize the terms of your loan and see if extension fees apply in your case. If they do apply, you need to plan your project carefully.

With Arizona Construction Loan, Extension Fees are a Danger you want to avoid.

Extension fees can eat away at your project’s budget.

If you can’t finish a project on time most often your lender is more than willing to extend the term of your loan. But they will likely charge you X amount of dollars each month until your project is finished. These fees are usually drawn from your remaining loan balance.

Slowly but surely these fees can eat away at your projects remaining budget. Month by month the money you have on hand to actually finish your project slowly withers away. In the worst-case scenario, you might not even have enough money to finish your project. So what are some tips to avoid this nightmare?

With an Arizona Construction Loan plan ahead to avoid the danger of extension fees.

First, you need to plan for the most common reasons any project gets delayed:

  • Permitting problems: Ponderous bureaucrats with clipboards can stall your project for several weeks. Do your best to ensure your property is up to code to avoid this situation.

  • Weather problems: Rain, mud and generally miserable weather can keep any work from getting down on your construction site. There is really no way to avoid this, except for ensuring that work is carried out during a generally favorable season.

  • Contractor issues: grumbling or lazy contractors may not finish the work you asked them to perform on time.  Only work with the most reputable contractors to ensure your project stays on schedule

  • Plan Revisions:  the other issues listed are generally beyond your control. But you can develop a clear plan and stick to it!

No doubt every project will have its delays, so you may want to have little extra money on hand to cover unforeseen costs. But above all, have a clear plan, swear by whatever you hold sacred not to divert from that plan and you can avoid extension fees.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Tactics to Increase Eligibility with Arizona Hard Money Lenders

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iStock_000004067318XSmallIf you intend to rehab single-family homes, you may be wondering what type of financing is right for you.  Consider the benefits of Arizona hard money lenders and learn some tips on how to qualify for this type of loan.

The great recession is a far distant memory. Home prices are on the rise, and this presents a significant opportunity for those who are in the flipping business. Zillow estimates that nationwide home prices will appreciate by 6.4 percent by the end of this year.

However ordinary banks are inconvenient, and the bank application process is certainly not going to keep pace with the overheated housing market.

To be sure conventional banks are lending again but only to the strongest of borrowers. At the very least, anyone who seeks financing from a brick-and-mortar bank should expect to have a credit score of 600. Furthermore, to get the best deal from a conventional lender you need to have a credit score within the range of 700+. So if your credit isn’ t in that range, going to conventional lender is essentially a waste of time.

If you aim to flip homes, even if you have stellar credit, the condition of the property you want to invest in will bar any chance that your loan application will be approved.

So where do you go for financing? Hard money providers.

Why are Arizona Hard Money Lenders the best lenders for House flips?

With hard money, there are no “boxes to check,” when it comes to the condition of the property being financed. In the case of hard money its the potential of the opportunity that counts. The application process typically comes down to an appraisal of the property in which you aim to invest. But above all your eligibility and the terms of your loan will come down to your ability to demonstrate the upside of your flipping project.

With hard money, to get the best deal, you need to do whatever is in your power to demonstrate the potential of your project.

You can increase your eligibility with Arizona hard money lenders with the following tactics

  • Have a sense of the numbers: Before approaching any hard money provider, you should have a clear financial plan when it comes to your specific project. These lenders give loans as a fixed percentage of the property’s value after repairs. Know the purchase price of your property, and have a clear budget for the particular renovations you want to make. These numbers will show you how much financing you need and how much profit your project will earn after resale. These numbers give your hard money provider concrete assurance that there is a real opportunity in your flipping project.

  • Cite relevant statistics:  Be able to talk about the specifics of your deal by pointing to relevant data concerning the local market.  Refer to similar investment properties, and know how much they re-sold for; use this knowledge and demonstrate your wherewithal to a potential lender and increase your chances of qualifying.

Using these strategies will help you prove the potential of your project to your prospective lender.

To truly take advantage of the overheated housing market, you need to avoid conventional banks. If you are in the flipping business, even if your credit score in the stratosphere, a conventional lender is unlikely to give your project a fair hearing because of the properties condition. Avoid all this hassle and see a hard money provider first.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How to Qualify for a Spec Construction Loan

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First-time real estate investors could find spec construction loans a challenge to qualify for and very complicated. Get a sense for how construction loans are different from conventional mortgages and some strategies to maximize your chance of qualifying.

Construction loans differ from ordinary commercial loans in a variety of ways. They are more complicated than regular mortgages and funding is given according to a specific timetable. An initial amount of funding will be given to the borrower, and then the remainder of the loan will be dispersed on a monthly basis, or at the borrower’s request. Most lenders will require verification of a borrower’s expenses over the course of a construction project, which can create complications.

Construction loans are especially tricky to qualify for and are considered too risky by most banks. Most lenders have difficulty underwriting construction loans because they have to rely on the borrower’s assumptions about the cost and profitability of a given project. Most lenders are especially wary of spec loans and consider them too risky because there is no guarantee of a future sale.

A spec loan is usually given on a short-term basis and is not meant to be a long-term mortgage. The aim of the borrower is to sell the property quickly after construction is completed. It is crucial that potential borrowers can demonstrate their expertise in order to qualify for a spec loan.

If you can talk up your expertise to increase your chances of qualifying for a spec construction loan

Your financial projections are what a spec lender will rely on to underwrite your loan and so it is essential to demonstrate your expertise. If a lender doesn’t have faith that you will finish a project, or that you will earn a profit in the end, in most cases your construction loan won’t be approved.

The best way to qualify for a spec loan is to give any potential lender confidence in your knowledge and experience when it comes to real estate. But there are additional strategies you can employ as well.

Specific tactics to help you qualify for a spec construction loan

Seek out lenders located near your construction site. A local lender will have an emotional investment in the area and will have a better understanding of your project’s potential. Ensure you have enough capital up-front to make a sufficient down payment. Lenders will want an assurance that you have a sufficient stake in your construction project. The risk entailed by a spec loan usually entails a significant down payment.

Have a detailed understanding of your builders draw-process, meaning know how much your builder intends to spend at every step of your project and be sure this schedule matches the structure of your loan.

In short to qualify for a spec loan, demonstrate your expertise, find local lenders, have sufficient cash on hand and know your projects timetable. By employing these strategies, you maximize the chances of your spec loan getting approved.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
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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Tactics to secure a larger hard money loan: help your lender look past the LTV

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You may already know that a hard money loan is a loan which is backed by a “hard” asset. The amount of financing you receive is usually a set percentage of the value of that asset, or LTV. Learn some strategies to help your lender look past the LTV in order to qualify for the most financing possible.

Giving loans at the lowest possible LTV is the primary way asset-based lenders protect themselves. A higher LTV means a borrower has less at stake in the event of default, and asset-based loans rarely exceed 75 percent in LTV. What if you need a larger loan which exceeds the standard 75 LTV benchmark? While LTV may be the most critical factor a lender will consider, there are other factors also taken into consideration, which can give you leverage to negotiate a larger loan.

Say you need a 760,000 dollar loan to finance the purchase of a million dollar property , in this case the LTV would be 76 percent. While the LTV on this loan is high, in this instance you would have 240,000 in equity invested which may be an amount significant enough to help your lender look past the LTV. You should also consider any other property you own, which could be used to back the loan ( a practice known as cross-collateralization).

If your home is worth 250,000 and you use it as collateral to secure the loan, in effect you have 490,000 of your own money backing the loan. These are just two specific instances were any reasonable lender could look past the LTV, but you should also take steps to demonstrate your strength as a borrower.

If you can, build your hard money lenders confidence in your strength as a borrower

Any reasonable lender will also consider your strength as a borrower and not just the LTV. Even though private lenders have a less traditional approach, the three C’s of credit, capacity, and collateral still apply. Credit refers to your history of paying your debts on time. A reasonable lender might look past the LTV if you have a solid credit history. Capacity simply refers to your ability to service your debt on a monthly basis, so if you have a good steady income, you may qualify for a larger loan. LTV may be the most important factor when it comes to asset-based loans, but it is just only one factor a lender might consider. Evaluate your financial situation and demonstrate your strength as a borrower.

If you can thoughtfully consider your situation, you can increase your eligibility for a larger hard money loan

First consider the dollar value in terms of equity you have invested, knowing this number you can demonstrate to a lender exactly how much you have at stake. Take into account any other collateral you might have to back the loan and build your lenders faith in your strength as a borrower. Using any one of these strategies might help your lender look past the LTV which could help you qualify for a larger 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

Tactics to secure a larger hard money loan: estimate the ARV

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A hard money loan (i.e.,an asset-based loan) is any loan secured by the value of an underlying asset. Most of these lenders will only give loans of up to 65 percent of an assets market value.

But what if you intend to renovate a distressed property which is significantly undervalued at the time purchase? To secure more in the way of financing you need to understand what your property worth is after you’ve repaired it (the after repair value, or ARV).

Asset-based lenders could offer more financing if you can demonstrate the potential of a project. However, to explain a project’s potential you need to understand property valuations. Relying solely on appraisals will limit your understanding and wont serve you in the long run as a real-estate investor. Professional assessments are also expensive and time-consuming.

Your best bet is to develop your sense of what a property is worth by comparing your estimates with that of a licensed appraiser. Educating yourself this way will develop your understanding of property valuations. An excellent way to start training yourself when it comes to property values is to use the comparable sales method.

You can begin to estimate the ARV yourself by utilizing the comparable sales method, which could help you qualify for a larger hard money loan.

The first step is to assess your subject property, look at its location, what is the neighborhood like and what impact does this have on the properties value? Figure out the lot size and determine the condition of the exterior. Find out essential details about the property, its size in square feet and its amenities (i.e., Number of bedrooms and bathrooms).

Find 5 to 10 properties similar to your subject through local listings. Only consider properties that have sold within the last 3-6 months, are in the same location and have a similar size and similar amenities. It is crucial that you don’t look at distressed properties. Remember you are trying to determine your properties potential after you have made renovations.

After you have enough comparable properties, consider the ones that are the most similar and find the properties with the highest and lowest selling price to estimate a range of value for your subject property. These numbers will give you a sense of what the property will sell for after you make your repairs. With this understanding, you can thoughtfully discuss the potential of your renovation project with a lender and qualify for the best loan.

You can secure a larger hard money loan if you can explain the potential of your project

Even the most informed estimate of a properties value is only an educated guess. If you rely solely on appraisals, you aren’t building your knowledge of property valuations. Using a simple comparable sales method is an easy way to increase your understanding of property valuations and the after repair value of your property. Having this understanding builds your lenders confidence in your project and increases your eligibility for a larger 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

Commercial Real Estate Loan Rates

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Do you have an office building, a rehab, or a multi-unit apartment building? With commercial real estate loan rates at one of their lowest, now may be the right time to consider a loan for your next real estate investment.

If you are an owner or looking to purchase a commercial property, there’s good news to be had: Commercial loan rates remain at an all-time low. With the Federal Reserve promising four rate hikes this year, this may not be so in the future. For this reason, this may be the perfect time for you to purchase or refinance a commercial property. Level 4 Funding has the team that can help guide you through the process and help you feel like a well-informed purchaser. Let’s take a look at how commercial real estate loan rates work and the interest rates the different types of lenders charge.

If your Credit Score is 680, you’ve been in business in 2-plus years, and plan on occupying 51% of the building, you may qualify for a SBA 7 (a) loan. If your project is between $2 and $3 million dollars you may want to explore the opportunities for financing from insurance companies and conduit lenders.

Commercial Real Estate loans have lower interest rates because they are collateralized by the commercial property. There are four factors that affect the interest rates for the Commercial loan. They are:

1) The Business and Customer creditworthiness: Your rate will be determined by the credit score of the customer and business, the higher credit score the lower rate.

2) Is the commercial real estate loan fixed or variable? A fixed rate loan is a loan that has a fixed rate for the term of the loan. The variable rate loan is reset from 1 to 5 years and will be adjusted based on current rates. Most people will not qualify for fixed rates.

3) What is the term and size of the loan? Hard money lenders offer loans with higher rates and shorter terms while conventional lenders offer longer loans with lower rates.

4) Prevailing Market Rates: Interest rates move up and down based on the government bond market. Keep informed about the movement in the government bond market and how they will affect your rate.

The Lender Has the Biggest Impact on your Rate

1) SBA loans–rates run 4.75% to 9.25%, the 504 loans are best for loans over $1, 000,000 and come in three parts: 50% from the bank, 40% from the SBA and 10% from the borrower. You will need a credit score of 680+.

2) Hard Money Loans–Rate run 10% to 18% and covers about 20% of the market. The rates are high because the loan is not based on the credit worthiness of the borrower but the value of the property. The loan-to-value runs around 55% for many hard money lenders.

3) Other Lenders–Only a small amount of loans come from Insurance companies and Conduits.

Commercial loans can be structured in three ways: fully amortized loans, interest rates resets, and balloon payments.

You may want to purchase commercial Real Estate or refinance a commercial property. There are wide varieties available for high credit scores and lower credit scores. Call and counsel with Level 4 Funding to find what works best for you in your situation. We offer rates as low as 7.99 percent.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
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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How to Avoid Phony Hard Money Lenders

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Some phony hard money lenders have ruined it for a lot of lenders in the industry, as now many are looked at as money sharks. It is important to steer clear of the fake lenders and only deal with the real ones that you can trust.

There are many respectable hard money lenders out there and you can easily spot the fakes one if you pay attention to the red flags. Nothing can be a bigger sign than poor grammar and misspellings in the actual documents. This is one of the biggest signs that you are probably not dealing with a lender in the United States. It is always a smart move to work with a local lender. Also, be cautious of the number of types of loans they offer. You want to find a lender that specializes in hard money. It is usually a scam when a lender offers multiple types of loans like business loans, personal loans, home loans and car loans all in one place.

When it comes to a hard money loan, it usually requires some form of collateral to secure the loan. If you get an unsecured loan, that could be a sign of trouble. You never want to deal with those and also be wary of having to pay any large upfront payments. A large amount required at the beginning of the process is always a bad sign. Usually, only a small amount should be required as upfront payment.

A very low interest rate, ranging between 2 percent to 4 percent, along with no requirement of monthly payments, is also a sign that you should probably not deal with those hard money lenders. There is such a thing as too good to be true and these types of terms is usually what that means. Also, avoid lenders who do not have any websites or establish company emails. Scammers are known to use generic emails like Yahoo, Gmail or Hotmail. There should be no reason that you need to search hard for any proof of their reputation.

All reputable lenders will have a website that contains basic information about them.

It is always a good idea to do your research and homework on any company that you decide to work with when it comes to dealing with finances. The website should always include information about where their physical location is, contact information, information about recent loans they have closed on and reviews. Scammers will often not have a website at all, or try to include as little information as possible. If you are still unsure, you can always check on their licensing. It is not a requirement to be licenses with the Better Business Bureau, but it is always a good sign when they are.

Pay attention to all of the documents and offerings.

Reputable hard money lenders will always be upfront about the programs they offer. They usually provide a sheet listing their terms along with a commitment letter. If you are being pressured on the spot to make a decision right away, then you should probably look for another lender. You will usually be given enough time to do your own research to make the right decision.

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.

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Tips From Arizona Hard Money Lenders: How to Choose an Investment Property

Arizona hard money lenders, , ,

Seasoned actual property traders know that so as to make money in your actual property funding, it’s essential that you just select your funding property properly. If you’re a brand new investor, take recommendation from the professionals who’ve been there and accomplished that when it comes to funding properties, Arizona hard money lenders. 



Making money in actual property is one half timing, one half luck, and the remaining is planning. When you might not be ready to management the timing or your luck, you may make a plan to make money. Having a plan makes it extra probably that your funding will turn out to be successful story, reasonably than a cautionary story.

When it comes to funding planning, nobody does it higher than Arizona hard money lenders. Hard money lenders give specialised, money based mostly loans for investments. It might be your first repair and flip, however they’re seasoned professionals who’re used to weathering unhealthy markets and nonetheless popping out on high. Listed below are just a few ideas from Arizona hard money lenders that can assist be sure to come out on high too.

 

  • Choose the situation of your funding property properly. You possibly can change finishes, renovate kitchens, and even knock down partitions. In need of investing in a trailer (which Arizona hard money lenders do not advocate, by the way in which), you possibly can’t transfer a home. Be sure to decide a fascinating location to take advantage of money in your funding.
  • Do not over-extend your self. Do not spend extra on a home than you possibly can moderately make while you promote it. Additionally, do not over-renovate as a result of it will make you lose money in the long term.
  • Get an correct appraisal of any property BEFORE you purchase it. Most flippers get value determinations after they repair up a property, however when you’ve got misplaced money it’s too late at this level. Having the property appraised earlier than you buy it will provide you with an thought of if you happen to’re getting an excellent deal and can assist you gauge what you might have the ability to promote it for.
  • Get an inspection. Whereas most funding properties are offered as is, a house inspection will help you guarantee that there aren’t points which might be past your skill or finances to take care of.

By following the following tips from Arizona hard money lenders, you may make money and save your self time and stress in your first actual property funding venture.

Calling within the assist of hard money lenders, Arizona actual property professionals, and different traders will help you just remember to make money in your funding, reasonably than lose it. Name a hard money lender at this time to get began making actual property investments at this time!

 

Dennis Dahlberg Dealer/RI/CEO/MLO

Stage four Funding LLC
Arizona Tel:  (623) 582-4444 
Arizona Tel:      (512) 516-1177 

dennis@level4funding.com

www.setabay.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Arizona | 78701




 
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Concerning the writer: Dennis has been working in the true property business in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly discovered in regards to the superb funding alternatives supplied by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to focus on different funding for actual property traders who might have hassle getting a conventional financial institution loan. Dennis is keen about different funding sources and sharing his data with others to assist make their goals come true.

Dennis has been married to his fantastic spouse for 38 years. They’ve 2 lovely daughters four superb grandchildren. Dennis has been an Arizona resident for the previous 32 years.