Tag Archives: Hard Money Lenders

Why You Should Repair Your Credit Score to Obtain Commercial Loans

March 24, 2018UncategorizedHard Money Lender phoenix arizona, Hard Money Lenders, Home Loan USDA, Private Hone Lender in Arizona, Texas Hard Money, Texas hard money lendersbigdaddydennis

If you can rebuild your credit score, you have a much higher chance of getting approved for *commercial loans**. Most lenders want to see a clean credit history and a high credit score, so Level 4 Funding offers ways to build and restore your credit to help you get the loan you need.*

Before you can repair your credit, you need to know what state it’s in. First, obtain your current credit report from one of the three recognized credit bureaus. You should be patient and take plenty of time to review your credit report and history. You should also look at your previous business patterns and habits. Do you continue to make the same bad decisions? If you can recognize a pattern with the way you handle your finances, you can change your habits for the better… and begin to improve your credit score. If you have less than desirable credit, it’s going to be a lot tougher to obtain approval for commercial loans, so you should really put all your effort in here. You need to take some time to review your credit history by obtaining your report from one of the three recognized credit bureaus. Really scrutinize your business habits that have led you to earn less than desirable credit. Seeing the report can also help you recognize how you can break these patterns so you can make progress towards improving your credit.

Yes, most people in America have debt and it’s okay — and even good — to have some debt. But too much is… too much. It will make lenders wary about your ability to pay back their loan, and that’s not good when it comes to trying to get loan approval. Try to pay down debts and the amount you owe as much as possible. Take a close look at your financials, your budget and figure out how you can tighten things up so you don’t have to get too far into debt. You can also consider having all your outstanding credit combined onto one card to you can consolidate payments and perhaps even negotiate a better interest rate for your commercial loans. Having just one payment can help you keep track of on-time payments as well.

If you have good business relationships with your suppliers and vendors talk to them about your loan plans and ask them to make a report on your behalf. Make sure you make timely payments to supplier and vendors because being in good standing can help your credit score improve.

If you have any unused, paid off accounts, closing them can affect your credit score too – this can improve your chances of getting approved for your commercial loans needs.

Once again, review your finances, see which accounts you have paid off but that are still open and then for any of those that you are no longer using, send a request letter for those to be closed. You can ask for a return letter from the creditor that proves your account balance is zero and that the account is now closed.

It’s not a quick route to perfect (or near perfect credit).

The bottom line is it takes time to build or repair your credit. However, it’s a lot easier to secure commercial loans via traditional lenders if you have stellar credit. Ultimately, it will benefit you and your business, as you will be in a better position to negotiate better rates. Making some big changes in the way you handle your business finances is a must when repairing poor credit. Start small and make little changes that will eventually pay off in a big way. It’s not impossible and though it may take some time, it is worth it once you’ve got your credit on track and you are able to move head with your business with a loan that you secured with your new high credit score!

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

Why There are Mixed Signals for Commercial Loans in 2018

March 18, 2018UncategorizedArizona Hard Money, arizona hard money lenders, Arizona Home Loan - Vacation Time, Hard Money Lender phoenix arizona, Hard Money Lenders, hard money loanbigdaddydennis

Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Find Reputable Hard Money Lenders

December 5, 2017Uncategorizedhard money lender, Hard Money Lendersbigdaddydennis

When you need cash fast, it’s time for a loan. Fast cash loans are usually handled through private hard money lenders versus traditional banks – but not all lenders are created equal so need to know what to look for.

Hard money lenders can help you get cash in hand fast which can come in handy for real estate investors and small business owners alike. However, not all lenders are as honest and ethical as you’d hope they would be. So there are a few things you should keep in mind before seeking this kind of loan.

First, you need to understand what hard money loans are – short-term loans in which the borrower can generally get cash in hand very quickly, sometimes even in the same day of application approval. When you are looking for a lender, look for someone who specializes in these loans and even within the specific industry or niche that you need the money for. You want to make sure that the lender is licensed. It’s also a good idea to meet with them to ensure they are really going to negotiate the best terms for you. Obviously, they are in business to make money, too, but as a professional they should be looking out for your best interest.

You should also ask questions, such as what types of fees, rates and terms are associated with the loan. Make sure that there are no “hidden fees” that will be uncovered later. You want to be confident that the person that is going to find you the right loan is really intent on doing just that.

Be prepared with what you need to know about the loan – and hard money lenders.

Do your research about your lender but ask questions that you need to know when you meet – about his or her areas of expertise, background, project profiles and any other items you might want to know that will help reassure you that this is indeed the lender that will help you get the loan you need, when you need it.

Be prepared to share what your lender needs to know to be able to help you get the loan you need.

Your lender will need some information, too, to be able to best help you. So bring your business plan, be prepared with your update to date credit history and score information (though in some instances of these types of loans, those won’t be scrutinized as much as a traditional lender or bank might), any information about equity or collateral that are you prepared to put up in the event that you cannot repay the loan, and any other business or personal financials that the lender might need to make an educated decision on how he can best help you get the loan of your dreams. You should also be able to share information about the timeline of your project and be aware of the timeline of the repayment schedule of the loan and if there are any penalties for repaying the loan before the end of the terms.

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

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 Hard Money Lenders Can Help You Become a “Fix and Flip” Expert

December 5, 2017Uncategorizedhard money lender, Hard Money Lendersbigdaddydennis

When you start in any industry, you may need a little help or advice as you get familiar with the tricks and trades of the role. As a real estate investor that wants to “fix and flip” investment or foreclosure properties, hard money lenders can help you get started.

Real estate investing can earn you a pretty penny – but it also takes a few of those pennies to get off the ground. If you don’t have a lump sum of cash to put into this industry, you’re going to need a loan. Many foreclosures or auction properties require cash on the spot – if you don’t have it, you won’t get the property. Bottom line. So be prepare with cash in hand… a lender can help you with that part.

While there is definitely more to fix and flipping homes than people tend to believe due to the glamorize version of the job they see on “reality” shows on TV. If you are thinking about getting into the industry, make sure you know about the nitty gritty aspects of the work involved. Hard money lenders that are experienced in this industry can be the first to tell you that the “fix” portion of the job can entail a lot of fixing up and sometimes total renovation. There is no telling why a property was foreclosed on but sometimes it is subjected to a lot of damage before the homeowners move out … or after.

When you look for a property, hard money lenders will tell you that one of the most important things to look for (even more important than the amount of possible damage to the home) is location. “Location, location, location” are the three biggest things to look for when looking for a home. It is easier to sell a home in a nice neighborhood, one that is not directly on a major road, and other criteria that prospective home owners are looking for when purchasing their “dream home.”

When you get the property, make smart decisions when you start to upgrade.

Professional lenders will tell you that upgrades and remodels are important, but make sure they are budget friendly, and don’t “overshoot” the upgrade. You don’t want to be the worse home on the block, but you don’t want to be the very best either – as homes’ values are relatable to those surrounding them. Try to find a good reliable contractor that you trust to make the necessary and best upgrades for the money – and the ones that won’t depreciate down the line. Do the best you can but without losing money on improvements alone or you might not be able to recoup what you spent. And aren’t you doing this to make money?

Spend some quality time learning about this industry before diving in.

Lenders experienced in this industry can be a huge asset for you if you are just starting out “fixing and flipping.” Many have seen successes and failures in relation to what many people perceive as a fun and easy way to make money, based on reality TV. It definitely can be, but you have to be educated about your best moves. And starting with a hard money loan can be a great start.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Hard Money Lenders Can Solve Your Commercial Loan Needs

November 30, 2017Uncategorizedhard money lender, Hard Money Lendersbigdaddydennis

When it comes to needing to secure financing for your business, hard money lenders are there to guide you through the process. They can help you find the loan you need and fast – read on to find out how.

When you think it might be impossible to get your loan approved in time to finance an investment property you have your eye on or get over a foreclosure property, it’s time to readjust your thinking. With the help of these professionals, you can get a loan fast and just when you need it for your business or investment.

You need to understand that there may be some challenges and situations that you will need to handle when working with lenders, and that there are some are work specifically in certain areas. For example, commercial hard money lenders work exclusively with one property type so you may end up working with lenders that focus more in property niches. If you’re looking for this type of loan, make sure the lender you choose deals with the specific market or property niche that you are in.

Property types that hard money lenders can typically assist with include foreclosures, fix-and-flip properties, short sales, construction loans and land loans. They can also help if you need to relocate your business in a very short amount of time, and when potential buyers’ credit applications are less than desirable.

Understand that hard money lenders are not conventional bank lenders.

With traditional bank loans, the application process is lengthy, sometimes difficult and there is a lot of “red tape” involved. If you’ve already applied for a traditional loan, or know that you won’t qualify for a loan from this type of lender, based on your credit score or history or other issue, then seeking an alternative is the answer.

Finding the right lender is an important first step in successfully obtaining financing.

When you’re in a position to know that you need this type of lender, you need to find the right one for you and your needs. You can start your search online, for lenders in your area that focus on the areas that you need to focus on based on your loan needs or business area. You might be pleasantly surprised by how much good information on reputable lenders that you can find in your initial research. You can also learn more about local lenders by attending seminars that are geared towards how to obtain hard money funding. By attending, you will have direct access to lenders in your area and can speak with them about your needs. They can give you important information about up to date regulations, requirements and answer questions that you may have. These seminars are a good way to network with like-minded people in your industry with needs similar to your own, which is a win-win solution. Once you have decided upon a lender that is right for you, you can make the process quicker by being prepared to prove the amount of equity you have, the collateral you are able to put up and your business plan for the property in question. It’s also a good idea to be prepared to prove how you will be able to pay off the loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Who Are Hard Money Lenders and What Do They Do?

November 29, 2017Uncategorizedhard money lender, Hard Money Lendersbigdaddydennis

A hard money lender is an individual or group of people that invest in various projects based on the collateral or hard asset. These lenders often specialize in a specific type of property and, as private investors, they are not bound by the same regulations that traditional banks face.

A hard money lender provides capital for various types of projects. These include residential, multifamily, businesses, warehouses, industrial, office space and even the growing-in-popularity multi-use projects. Many will not, however, lend on owner-occupied residential properties in part due to the Dodd-Frank Act. Because these investors tend to prefer specific projects, a lender will often develop a working relationship with one lender and turn to them repeatedly for their funding needs.

Hard money lenders tend to provide short-term loans, though these can often be extended for up to five years. They offer the perfect funding scenario for those in the fix and flip business that are looking for quick capital to jump on a promising property when it hits the market, instead of having to wait for a traditional loan to come through—a difference in not just days, but weeks. They can get into the project, complete the rehab, find buyers, and then pay back the loan that usually does not have an early prepayment penalty.

Hard money lenders are also fairly popular among developers. These types of lenders can provide loans with monthly draw programs, perfect for the construction industry. They offer interest only payments for a set period of time while the construction process is proceeding. They will want to see your plan, budget, permits and exit strategy. Not all projects go as planned, sometimes leaving developer’s credit reports with some marks against them. A hard money lender will not place as much emphasis on this aspect of lending as a traditional lender. For those that have some credit issues, they may be the best, and only, option available.

Hard Money Loans offer Quick Financing and Approval

A loan approval is possible the same day that you apply, whereas a traditional bank can take at least a week or more. From that point forward, the underwriting process if fairly straightforward. They will want to know your asset and will place more importance on this collateral than on your credit score or creditworthiness. Because of this, funding can occur in less than a week whereas your bank or credit union can take more than a month.

At Level 4 Funding, we work with a variety of private hard money investors that provide capital for all different types of projects. Our loan-to-value ratios are some of the highest in the industry and we pride ourselves on speed of service. Many investors turn to us when they are looking for capital in order to purchase a foreclosed, bank-owned or short-sale property and time is of the essence. Call us today for a no-obligation quote. Our approval process and funding can occur in as little as 24 hours!

Technorati Tags: commercial loans,commercial lending,commercial mortgage

All You Need to Know About Hard Money Lenders

November 9, 2017UncategorizedHard Money Lendersbigdaddydennis

It is important to understand hard money loans and hard money lenders. Once you have that information you can use this financial tool to your advantage when investing in real estate.

Chances are that you came across the term hard money lenders when you were researching different resources for funding a real estate purchase. And the fact is that the term hard money lenders simply means that the lender is not a financial institution or bank but instead a private lender. And this private lender could be an individual or a group of investors or even a mortgage broker who is supplying funding via personal money. But the most important information to remember is that this is a legitimate lender and not some shady backdoor deal that includes questionable legal aspects or methods.

The criteria that a hard money lender uses to determine if a loan request is granted is a bit different than what a conventional lender would use. A hard money loan is not dependent on the borrower’s credit history or creditworthiness as much as it is on the actual value of the property being purchases. The collateral for the loan is the property and as long as the loan is less than the current property value then the borrower should be able to get a hard money loan. And while that ease of financing is nice, there is a cost associated with it as well. Lenders are willing to take a greater risk than banks would take so they charge the borrowers a larger fee or higher interest rate than a bank would. In some cases borrowers will pay over 10% higher interest rates for a hard money loan.

The borrowers who benefit the most from the use of hard money loans are mostly investors. These short term loans are a great way for an investor to purchase a property, invest in renovations and then quickly sell the property for a profit. Building contractors also use these loans to purchase and flip properties for a profit. And in some cases investors will use hard money loans to purchase a property very quickly. This can be due to the time that is required to process a conventional loan. A great deal on a property can make it sell very quickly so financing quickly with hard money is a viable solution. The investor then refinances with a bank once they purchase the property.

A Solution for Bad Credit

Many times a person who has had credit issues in the past is not able to finance a home through a bank or conventional lender. But hard money loans are a great way for someone with prior credit issue to be able to purchase a home. It also allows the borrower to reestablish good credit.

A Legitimate Resource for Many

Hard money lenders are a legitimate resource for many different people. Not only can it offer a much needed loan to a person with bad credit but it is also a good option for someone who is interested in investing or flipping real estate. The key to getting the maximum benefit from a hard money loan is knowing the terms of the loan and ensuring that you will be able to meet the repayment schedule.

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

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 Win in Real Estate: Tips from the Pros to Lower Taxes and More

April 18, 2017UncategorizedHard Money Lenders, real estate investingbigdaddydennis

How to Win in Real Estate: Tips from the Pros to Lower Taxes and More

Looking to grow your real estate portfolio wisely, reduce taxes, and increase your financial control? Then you won’t want to miss these tips from husband and wife real estate team Bill Slaughter and Laurie Goettl Slaughter.

Meet Bill and Laurie

Bill and Laurie Slaughter started growing their real estate portfolio 40 years ago when Bill purchased their first rental property. Over time they expanded their portfolio to as many as 49 rental houses and learned the ins and outs of real estate and property management. Today they run Clients First Realty, a team of nearly 150 seasoned real estate agents, most of whom have been in the business for over 18 years.

Bill is an active real estate broker who understands the market from the ground up. Before specializing in real estate Bill spent several years in banking and the auto industry. Never one to sit still, Bill was retired from the auto industry exactly 28 days when boredom kicked in and he dove head-first into real estate. He secured his real estate license in 2002, spent 3 years with HomeSmart, then got his broker’s license and launched Clients First Realty . Along the way he picked up several additional credentials and affiliations including Montclair Publishing’s prestigious Who’s Who in Real Estate Platinum Lifetime Member.

Laurie brings an equally impressive resume to the Clients First Realty team, including 30 years experience in bookkeeping, commercial and residential property management and lease accounting. A graduate of Hennepin Technical College in Minnesota with a degree in Management Accounting, Laurie obtained her real estate license 5 years ago and now serves as Vice President and Associate Broker at Clients First Realty. She handles all property management details for the family’s real estate portfolio along with her corporate responsibilities. Laurie also assists her own clientele in buying and selling real estate.

Tips from the Pros

With their team at Clients First Realty, Bill and Laurie have bought, sold, and managed over $1 billion in real estate, handled over 10,000 transactions and never had any negative claims. They proudly run a simple, clean operation and Bill still personally reviews every contract to ensure his clients receive the very best.

“Real estate is a patient investment gig,” says Bill. “People looking to make a quick buck and thousands of dollars in the first 30, 60, or 90 days are in for some disappointment. There are too many variables outside of your control—the business climate, political changes, buyers versus sellers markets, and more.” Real estate is not a get rich quick strategy, and you need to “be in the middle of it” to understand what’s happening.

Bill recommends the same success strategy he and Laurie have used to grow their portfolio. Buy properties and “glean a little income” for a minimum of 5 years per property. Then you can typically sell each property for a profit. The properties pay for themselves via the rental income generated, and your portfolio continues to grow at the right pace, with low risk.

Save on Taxes

One of the inside real estate tips Bill and Laurie use is leveraging a self-directed solo 401K. Many real estate investors are familiar with self-directed IRAs which allow you to add real estate to a retirement portfolio, but few have heard of the enhanced options available through self-directed solo 401Ks.

Self-directed solo 401Ks offer higher contribution limits, greater flexibility, lower costs, and better creditor protection than self-directed IRAs. Bill and Laurie use and recommend Broad Financial in New York for their solo 401K services, and they also opened a C-corp to get everything properly established. “It’s not that hard,” says Bill, “Just a matter of knowing how to do it.”

Speak to your tax and legal advisors to determine what’s right for your specific situation, but benefits of self-directed solo 401Ks include:

1. Higher annual contribution limits. Solo 401K plans allow for both employee and company contributions. For 2017 you can contribute up to $54,000 and up to $60,000 if you’re 50 years or older. Compare that to a self-directed IRA, which caps out at $5,500 this year, $6,500 if you’re over 50.

2. Choose a pre-tax or after-tax (Roth) format. Traditional self-directed IRA contributions can only be made in pre-tax formats. Solo 401Ks offer much more flexibility and can be established as a pre-tax or post-tax vehicle.

3. Tax-free loan option. You can borrow up to $50,000 or 50% of your 401K account value, whichever is less. The loan can be for any purpose. IRAs do not allow loans of any kind.

4. Use nonrecourse leverage and pay no tax. According to the IRA Financial Group, which was founded by tax attorneys, “With a solo 401K plan you can make a real estate investment using nonrecourse funds without triggering the Unrelated Debt Financed Income Rules and the Unrelated Business Taxable Income (UBTI or UBIT) tax (IRC 514). However, the nonrecourse leverage exception found in IRC 514 is only applicable to 401K qualified retirement plans and does not apply to IRAs.” Translation? Using nonrecourse financing legally avoids taxes when used by a solo 401K.

5. No custodian needed. IRAs require custodians, especially for real estate, and the fees can rack up. A solo 401K is a trust account, and you are the trustee. You open your affiliated bank account at any participating bank, like Wells Fargo or Washington Federal, and you control the funds.

6. No need to spend on an LLC. A solo 401K plan can make real estate purchases and other investments without the need of an LLC. The trustee (owner) of the solo 401K trust can take title to a real estate asset without an LLC. LLC fees can get expensive, so this saves both time and money.

7. Better creditor protection. The 2005 Bankruptcy Act protects all 401K plan assets from creditors during bankruptcy proceedings. Most states offer greater creditor protection for 401ks versus IRAs outside of bankruptcy as well.

Bill and Laurie leverage their solo 401K plans for these benefits, and they also say “it allows us to control [our retirement assets] in an area we know best.” They enjoy the tax benefits of borrowing money against their property portfolio through their 401K, and the tax-free earnings features offered by the Roth option.

Treat Business Relationships like Partnerships

Though their solo 401K is a good way to borrow up to $50,000, Bill and Laurie certainly know the benefits of finding the right partner for the majority of their real estate lending needs. For that, they have been working with Level 4 Funding for the past 2 years, and completed 4 real estate lending transactions with them so far.

Bill heard about Level 4 Funding through an online ad, and was “lucky enough to get connected with Matt.” Bill shares these thoughts:

“Matt is really a great asset—he’s quick, knowledgeable, efficient, and we’ve had nothing but good experiences with him and the Level 4 Funding team. They have made it real easy to go to closings—the money is there as expected with no problems. Professionalism is real important. I’m old-school and don’t change horses in mid-stream. So I don’t go anywhere else. Their servicing company Evergreen is easy to deal with and I can always find someone there to get questions answered.”

“It’s a good relationship and that’s what you look at in any business scenario. Business relationships should be treated like a partnership because we need them and they need us and it’s worked out really well. If you need something done, Level 4 Funding is the place to get it done.”

Bill and Laurie experience great success in real estate by practicing smart buy and hold strategies and looking for business and tax advantages like self-directed solo 401Ks. They are also adamant about finding and keeping the right business partners. “We really enjoy the relationships we have” says Bill, “including Level 4 Funding.” Connect with Bill and Laurie’s team at Clients First Realty for your next property purchase, and benefit from their experience and expertise.

Technorati Tags: private lenders,home flippers,hard money loan

The 3 Real Estate Myths Beginning Flippers Believe

March 31, 2017Uncategorizedfinancing for a flip property, flipping properties, Hard Money Lenders, hard money loans, private lendersbigdaddydennis

Real estate flipping offers many benefits to investors, but it is easy for those new to the process to become overwhelmed. From feeling like you need to be rich – or at least have the purchase price of a distressed home saved up – before you start to trying to do it all yourself, these are the most common myths and misconceptions new investors make.

Are you Falling for These Real Estate Investor Myths?

1. You Need to Have a Lot of Seed Money

While you will need some money to get started, the amount is surprisingly small. Once you find a property that you like, you’ll be able to secure hard money loans from a variety of sources, including conventional and private lenders. Most people remember how much trouble they had securing their mortgage for their primary residence; private lenders who are investing in a flip property often require far less information and the process is streamlined.

When you secure financing for a flip property, the investors you use are more concerned about the profitability and potential of the property itself and less concerned about digging through a decade’s worth of your bank statements. While you will need to provide information about the deal and about your financial health, the process is much faster and far simpler than securing a home mortgage.

The money you’ll need will be for putting the property under contract and for closing costs; you may well be able to finance the rest, so you don’t have to delay your dream of flipping homes until you save the full purchase price. Your first project is usually the biggest hurdle – once you have a history of successfully flipping properties, financing will become even easier to secure.

2 DIY Adds up to Big Savings

If you are already a contractor or have a specific skill set, then doing some of the work needed to flip a home yourself can help you save. If you are only available on the weekends, are unsure of your skills or only have a limited time, then going the DIY route may not work as well.

The faster you get a property ready to sell, the better in most cases, so carefully consider both the timing and the true cost of doing things yourself before you decide to DIY. If you want to be involved, then taking on the role of project manager may be better – you can still oversee the work, but you can let a pro get into the home and do what they do best.

3. Wholesaling is the Right Place to Start

Wholesaling, or working to find potential investment properties for others, can be a way to get started or to earn extra capital, but it is not the only way to get started. Wholesaling is low risk, allows you to get to know the investors and hard money lenders in your area, but there are some significant drawbacks.

Depending on where you live, wholesaling may be considered brokering – and you won’t be able to do it legally unless you are a real estate professional. You’ll also be missing out on some amazing potential deals if you are simply playing the middle-man.

Jumping in with both feet does have a learning curve, but there is no better way to learn the ins and outs of flipping a home than by doing it. There is nothing wrong with wholesaling (provided it is legal in your area) but it does not really develop your skills or lead to a long term investment – you find properties, connect buyer and seller and move on.

Technorati Tags: real estate flipping,hard money loans,private lenders,financing for a flip property,flipping properties,hard money lender

Key Factors to Remember When Pursuing Commercial Lending Opportunities

March 21, 2017Uncategorizedcommercial lending, commercial loan, commercial loans, commercial real estate loan, commercial real estate loans, hard money lender, Hard Money Lendersbigdaddydennis

It’s been a year since you decided to be your own boss. The year spent establishing your business venture after bidding adieu to a 9 to 6 routine. Now your mind is working overtime with all the ideas that may elevate your business and its revenue streams. Your market analytics shows a high demand for your product. However, you are unable to move ahead until you address the elephant named capital in the room. Consider the following advices before proceeding ahead:

Commercial lending is an open field

Commercial lending is not the prerogative of any particular financial institution. The majority of commercial banks, mutual companies, private lending businesses and hard money lenders offer a broad range of commercial loans, i.e. bridge loan, hard money loan, commercial real estate loans, joint venture loan, etc.

You have to peruse all the opportunities – what they offer and at what rate they offer – with due diligence to finalize upon the one closest to your commercial lending needs.

Business Credibility

Notwithstanding above, the lending opportunities are primarily linked with the overall health of your business. Before going on a lender finding spree, it’s highly admissible to take a good critical look at your business affairs. If they look credible to you, they will validate the strength and future viability of your business to your lender too!

Good Credibility = Many Options

Once you’ve ascertained that the credibility of your business is in good hands, don’t feel obliged to run to the bank straight away. They may charge less but will persuade you to apply for more than you need. Explore around, if your business credibility is built more on promise than returns then a hard money lender is a realistic commercial lending option.

Go Cyber

Lastly, in a world more connected than we realize, going online and browsing around is also endorsed to see the market offerings and to compare and analyze different commercial loans to find the one that fits your bill.

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Tag Archives: Hard Money Lenders

Why You Should Repair Your Credit Score to Obtain Commercial Loans

If you can rebuild your credit score, you have a much higher chance of getting approved for *commercial loans**. Most lenders want to see a clean credit history and a high credit score, so Level 4 Funding offers ways to build and restore your credit to help you get the loan you need.*

Why There are Mixed Signals for Commercial Loans in 2018

Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

Some bad signs are also hitting office properties and retail stores.

How to Find Reputable Hard Money Lenders

When you need cash fast, it’s time for a loan. Fast cash loans are usually handled through private hard money lenders versus traditional banks – but not all lenders are created equal so need to know what to look for.

Be prepared with what you need to know about the loan – and hard money lenders.

Be prepared to share what your lender needs to know to be able to help you get the loan you need.

How Hard Money Lenders Can Help You Become a “Fix and Flip” Expert

When you start in any industry, you may need a little help or advice as you get familiar with the tricks and trades of the role. As a real estate investor that wants to “fix and flip” investment or foreclosure properties, hard money lenders can help you get started.

When you get the property, make smart decisions when you start to upgrade.

Spend some quality time learning about this industry before diving in.

Hard Money Lenders Can Solve Your Commercial Loan Needs

When it comes to needing to secure financing for your business, hard money lenders are there to guide you through the process. They can help you find the loan you need and fast – read on to find out how.

Understand that hard money lenders are not conventional bank lenders.

Finding the right lender is an important first step in successfully obtaining financing.

Who Are Hard Money Lenders and What Do They Do?

A hard money lender is an individual or group of people that invest in various projects based on the collateral or hard asset. These lenders often specialize in a specific type of property and, as private investors, they are not bound by the same regulations that traditional banks face.

Hard Money Loans offer Quick Financing and Approval