Tag Archives: Austin Hard Money

Spotting a Business Loan Beware of Hidden Fees in Hard Money Loans ArizonaThat Is Too Good To Be True

Certain fees are to be expected when you borrow money. But there can be hidden fees that you will not learn about until the closing unless you are very thorough in reviewing your hard money loans Arizona documentation.

There is always a cost associated with borrowing money. And legitimate lenders will clearly explain the cost prior to the closing date. They don’t want to invest the time and effort in drawing up the documents only to have the borrower refuse to sign on closing day. But the less than reputable lenders will bury these fees deep in the documentation in hopes that the borrower never discovers them until after signing the loan documents.

Points are not considered a junk fee but are more the cost of creating the documents for hard money loans Arizona. But there are other fees such as document preparation fees, underwriting fees and clerical fees which do fall into the junk fee category. The best way to avoid paying any of these fees to to request a written list of all of the fees associated with the hard money loan. In addition verify which fees will be due at the closing. This will let you know exactly how much you will need to pay in addition to the down payment on the property.

Upfront Fee Scams

In addition to hidden fees that can get added into the loan documentation, there is a scam that includes upfront fees. In this situation, the lender explains that they require an application fee or they sometimes refer to it as an administrative fee to process your application. In essence, they are requiring you to pay them before they decide if they will fund your loan or not. In some cases they say that the fee will be applied to your points once the loan application is approved. But this is all a scam. They are not going to approve your loan application. They never approve any applications. This is just a way to collect fees from unsuspecting borrowers. When you try to call or email the lender, you never get a response and your application fee is long gone. You should never be asked to pay fees before you can apply for hard money loans Arizona.

Get a Second Opinion

No legitimate hard money lender would ever be offended if you ask for a copy of the loan documents so that you can have them reviewed by your accountant and lawyer. Hard money loans Arizona are not as tightly regulated as traditional loans so the legal documents can be very confusing to the average borrower. So it is a very wise choice to ask for a full list of all of the loan fees and a copy of the loan documents to have reviewed by a professional. A hard money loan is a serious investment and you should take every precaution to protect your financial interests. A lending professional will not be offended and will often be impressed with your candor for explaining what you are doing and why.

 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Office:  (623) 582-4444
dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

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Which type of Hard money loan is right for you?

The “hard “asset being financed secures a typical hard money loan. But there are different types of asset-based loans, so how can you figure out which one is right for given your specific circumstances?

Asset- based lenders consider the value of the property which secures the loan rather than a borrowers credit score, so this type of loan can be more accessible for some borrowers.

The application process is easier than a traditional bank loan as borrowers don’t need to provide extensive financial documentation in most cases.

Typical types of asset-based loans include commercial, renovation and cash-out refinance loans. Businesses rather than individuals take out commercial loans.This type of loan is short term, and it is not typically used to purchase real estate or to make long-term investments. Instead commercial loans should be used to cover short-term costs like equipment or inventory.

Borrowers use renovation loans to improve a property and then resell it for a profit. Refinance loans allow borrowers to quickly purchase a property and then later refinance to a traditional mortgage.

So what are some specific situations and how do they relate to these particular types of asset-based loans?

Evaluate your situation to determine which type of hard money loan is right for you

An asset-based loan could be a good solution if your business has sufficient collateral and you cant secure financing from a regular bank. If you want to renovate a distressed property, an asset-based lender is your best bet. Few banks are willing to issue renovation loans because raising the required capital is made difficult by government regulations. Traditional lenders also deem such projects too risky because there is a high risk of default if the borrower’s project doesn’t go according to plan.

A cash-out refinance loan can be ideal if you want to purchase an investment property quickly. A traditional mortgage can take several months to close. A cash-out refinance loan allows you to make the initial purchase while giving you the option to refinance to a long-term mortgage at a later date.

Whatever circumstances asset-based loans provide you with flexibility, but any lender you approach should be transparent and willing to offer advice.

Beware of hard money lenders that cant offer you specific advice about which loan is right for you

There are other types of asset-based loans of course, but a good lender will carefully consider your situation to find the option that can best meet your needs. You should look elsewhere if a lender isn’t transparent or is unable to give you insight into your specific situation.

A commercial loan can be great for businesses owners with a lot of collateral, but who are ineligible for regular financing. A renovation loan can allows you to improve and resell a distressed property, and a cash out-refinance loan allows you to complete time-sensitive transactions. In short, asset-based loans are easier to qualify for, can be used to make speculative investments and can close quickly to complete time-sensitive purchases. Carefully consider your specific situation to find the type of loan to meet your financing needs.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Think Like Hard Money Lenders

When you are seeking a private loan, it can be helpful to learn to think like hard money lenders do. This will help you to prepare for the process and to know which information will be critical to the decision to fund or reject your request.

When you are making your first request for hard money, it can appear to be a very odd change from completing the myriad of paperwork required by a traditional lender. It might even feel as though you are ill prepared for the meeting because you are not carting in piles of bank statements, credit reports and income statements. And if you are, then you are going to be surprised and embarrassed when your lender is less than impressed and wants nothing to do with all of your paperwork. Hard money lenders are a different breed and they are looking for completely different information to evaluate your request and determine if they will approved your loan.

The key to securing hard money is nailing the loan to value ratio. This is the ratio between the amount you are requesting and the current value of the property. Most hard money lenders are looking for an LTV of 65-75%. There are some lenders who will also consider the property’s after repair value as well but that is not a standard practice. With that in mind, those lenders will also want to see your business plan to renovate the property and your budget to make sure that the numbers are in line with their estimate for the renovated value of the property.

Know the Critical Term

Knowing that the loan to value ratio of the property is the key to getting a loan, you need to be certain that you have enough of a down payment to make the loan request fall into the desirable range for the lenders. Understand that the lender is protecting his or her investment by only lending up to 75% of the value of the property. In the event that you are unable to make your loan payments, the lender will need to take possession of the property and sell it to get their investment back. And the only way to be sure that they get their full investment back is to know that the property will always be worth more than the balance of the loan. Hard money lenders are not being unfair or trying to take advantage of borrowers, they are simply practicing good business and protecting their investment.

Think like a Lender

Understanding the lenders point of view will only help you to better prepare yourself for requesting a loan. Knowing that the most important factor is the LTV and not your credit score or credit history will save you a lot of time and paperwork. You can then invest that time into researching the current value of the property and procuring funding to make the down payment you will need to meet the LTV ratio. In addition, you can invest your time in creating your renovation schedule and budget to demonstrate that you will be quickly and efficiently adding value to the property as soon as you take possession of it. All of this information will help to ensure that your hard money request gets funded.

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

Hard Money Lenders Texas Are There When You Need Them!

When it involves loans, hard money lenders Texas know how one can assist make your goals come true. Hard money loans Texas are actual property backed loans which can be primarily based on the advantage of your funding concepts, not your private credit score rating or funds. You can get loans from hard money lenders Texas even when your credit score is in the bathroom, so to talk. That is as a result of hard money loans Texas are given by private buyers. If you wish to get a hard money loan, listed below are a couple of straightforward steps to qualify in your loan and get your money.

1. Discover a property you wish to put money into. Most individuals select a repair and flip challenge to take to their hard money lenders Texas. Select a great location and a home that’s effectively priced with room for enchancment.

2. Do your homework. Ensure you know the honest market worth of the renovated home in addition to how shortly you suppose it is possible for you to to promote it. Your hard money lenders Texas prefer to see that you’ve a plan to make money for your self (and them).

three. Create a finances and timeline. Finances for restore prices and have a timeline for completion. This may present your Texas hard money lenders that you’re ready and know what the challenge entails.

four. Go to your lender to fill out your software and reply primary questions. This can be a fast and painless course of and requires a lot lower than a conventional financial institution loan.

5. Get your money, You will normally have money in hand out of your hard money lenders Texas in a few weeks.

6. Full your challenge and promote the house.

7. Revenue! Take pleasure in your revenue and begin planning in your subsequent hard money Texas loan challenge!

See, it is easy! Hard money lenders Texas wish to see you succeed and be a part of your success story! So name them in the present day!

Dennis Dahlberg

Dealer/RI/CEO/MLO

Degree four 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

 
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Real Estate Red Flags? Not According to Hard Money Lenders Texas!

I not too long ago learn an article about “actual property pink flags.” Whereas studying this text, I couldn’t assist however chuckle at among the issues the writer thought have been deal breakers. When it comes to actual property investments, hard money lenders Texas know that usually occasions, a home with some points could be the golden ticket.

three Widespread Points That Ought to Not Deter You From a Property

 

The article about pink flags had a couple of points that they thought ought to scare all patrons away. Nevertheless, if you’re getting a hard money loan from hard money lenders Texas, these points can truly provide help to get a greater deal and make a big revenue. That’s as a result of hard money loans Texas are designed to buy repair and flip properties. The extra that’s “unsuitable” with the house, the decrease the worth and the extra room for enchancment. Listed here are three issues that ought to by no means scare you away if you’re investing with hard money loans Texas.

1. Property is being offered “as is.” For a lot of choosy patrons, this implies that there’s something unsuitable with the house. There could also be however if you’re buying with a Texas hard money loan, you should utilize the loan to repair the issue and promote the house for a revenue. You too can normally get a very good deal if there are beauty points. And, not asking for any repairs from the vendor means you’ve a a lot stronger bargaining place.

2. The house is listed as needing a little bit TLC. The article stated that this meant the house was a shack. If you’d like turnkey, clearly this is able to not be for you, however hard money lenders Texas know that TLC can translate into huge bucks.

three. Money solely affords. Patrons with conventional financing won’t be able to swing this, however with hard money loans Texas from hard money lenders Texas, you’ll be able to come to the desk with money in hand to purchase the home. And, as a bonus, money in hand affords can normally be accepted at a lot lower than the itemizing worth.

So, no matter what the true property “specialists” inform you, hard money lenders Texas know that many of those “issues” shouldn’t be deal breakers and might even be methods to earn extra in your funding.

Dennis Dahlberg

Dealer/RI/CEO/MLO

Stage four 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

 
 You TubeFace Book Active Rain
 Linked In


Austin Hard Money

Austin Hard Money Lenders

Whereas the quantity of distressed stock remains to be excessive above the traditional stage of underneath 5 %, actual property execs should act like superheroes, roll up their sleeves, and deal with the duty of clearing these gross sales as effectively as doable.

What’s a distressed itemizing you ask? A distressed itemizing is a house that usually sells for 15 to 20 % beneath market worth, which may then trigger a drag on dwelling costs total in accordance with information assembled by the NATIONAL ASSOCIATION OF REALTORS®.

There’s an imbalanced housing market in Austin, creating a pointy worth Austin hard money low cost on right now’s distressed gross sales. Again when the market was higher, a distressed property is perhaps snapped up at market worth. Nonetheless, proper now with the intention to stabilize costs, the market wants stronger dwelling gross sales volumes to scale back the variety of houses available on the market. A terrific sale on a house, leading to dwelling worth development, will create confidence available in the market, however proper now, roughly 22 % of mortgaged dwelling homeowners are the wrong way up and refinancing to lift their hopes of coming again round.

One of the best ways to repair the ailing housing market is for a stronger financial system. Shopper confidence is intently tied to job development and inventory market positive aspects as customers are consistently citing job considerations –and subsequently, money worries- as the principle motive for not buying a brand new dwelling.

Behind the Drag Austin Hard Money

Nonetheless, in America, apprehension in regards to the pential unfold of Europe’s debt may cut back home financial development. A scarcity of consensus in Congress over the deficit discount plan, and a significant revision to financial development within the first half of 2011 mixed to ship shares on a curler coaster trip within the second half of 2011. This will instantly have an effect on the longer term emotions on the housing market. In August, shopper confidence fell to its lowest stage because the recession started in 2007. Now, neither companies nor customers seem keen to drive the financial system as a result of they’re afraid, and who can blame them for being afraid of the housing market? Job creation has averaged lower than 150,000 jobs monthly over the past yr, beneath the quantity wanted to soak up school and highschool graduates getting into the workforce.

That being stated, the financial system is not the one issue restraining the demand for housing. Through the years, credit score requirements and down cost necessities have been ratcheted up lately on the FHA and government-sponsored enterprises; nevertheless, banks not less than have raised their requirements even additional in an try to restrict potential lawsuits. A direct results of that is that FICO scores on Mortgages backed by Fannie Mae rose from a mean of 719 in 2005 to a peak common of 756 within the second quarter of 2011. Likewise, FICO scores on Mortgages originated by way of the FHA averaged 632 within the second quarter of 2007 however reached 700 within the second quarter of 2011. Outdoors of the FHA, it’s stated that down funds better than 20 % are the norm. Though conventional credit score requirements are a great factor, the pendulum has swung too far on this path. Punishing high quality debtors for the errors of the previous shouldn’t be good for the well being of the markets or the financial system right now.

 

Phoenix Hard Money

Phoenix Hard Money Lenders

Whereas the quantity of distressed stock remains to be excessive above the conventional stage of underneath 5 %, actual property execs should act like superheroes, roll up their sleeves, and sort out the duty of clearing these gross sales as effectively as potential.

What’s a distressed itemizing you ask? A distressed itemizing is a house that sometimes sells for 15 to 20 % under market worth, which might then trigger a drag on dwelling costs total in response to knowledge assembled by the NATIONAL ASSOCIATION OF REALTORS®.

There’s an imbalanced housing market in Phoenix, creating a pointy value Phoenix hard money low cost on in the present day’s distressed gross sales. Again when the market was higher, a distressed property could be snapped up at market worth. Nevertheless, proper now with a purpose to stabilize costs, the market wants stronger dwelling gross sales volumes to cut back the variety of properties in the marketplace. An excellent sale on a house, leading to dwelling value development, will create confidence out there, however proper now, roughly 22 % of mortgaged dwelling homeowners are the other way up and refinancing to boost their hopes of coming again round.

The easiest way to repair the ailing housing market is for a stronger economic system. Shopper confidence is carefully tied to job development and inventory market features as customers are continually citing job issues –and subsequently, money worries- as the principle motive for not buying a brand new dwelling.

Behind the Drag Phoenix Hard Money

Nevertheless, in America, apprehension in regards to the pential unfold of Europe’s debt may cut back home financial development. An absence of consensus in Congress over the deficit discount plan, and a serious revision to financial development within the first half of 2011 mixed to ship shares on a curler coaster trip within the second half of 2011. This may immediately have an effect on the long run emotions on the housing market. In August, client confidence fell to its lowest stage because the recession started in 2007. Now, neither companies nor customers seem prepared to drive the economic system as a result of they’re afraid, and who can blame them for being afraid of the housing market? Job creation has averaged lower than 150,000 jobs per 30 days over the past 12 months, under the quantity wanted to soak up faculty and highschool graduates getting into the workforce.

That being stated, the economic system is not the one issue restraining the demand for housing. Through the years, credit score requirements and down cost necessities have been ratcheted up in recent times on the FHA and government-sponsored enterprises; nonetheless, banks no less than have raised their requirements even additional in an try and restrict potential lawsuits. A direct results of that is that FICO scores on Mortgages backed by Fannie Mae rose from a median of 719 in 2005 to a peak common of 756 within the second quarter of 2011. Likewise, FICO scores on Mortgages originated by way of the FHA averaged 632 within the second quarter of 2007 however reached 700 within the second quarter of 2011. Outdoors of the FHA, it’s stated that down funds better than 20 % are the norm. Though conventional credit score requirements are a superb factor, the pendulum has swung too far on this path. Punishing high quality debtors for the errors of the previous is just not good for the well being of the markets or the economic system in the present day.

 

Quick Answers to your Texas hard money questions

Quick Answers to your Texas hard money questions

In the event you’re enthusiastic about an Texas hard money Mortgage, you undoubtedly have questions. Listed beneath are seven fast questions with seven fast solutions to enable you to perceive slightly bit extra about Texas hard money.

5 Texas hard money questions and solutions

1. What’s the rate of interest on an Texas hard money Mortgage?

This query relies on the lender. No two lenders are alike and can base their rates of interest on quite a lot of components. Nonetheless, most rates of interest on hard money Mortgages will vary from 10% to 18%.

2. What Mortgage-to-Worth are lenders searching for?

Texas hard money lenders, once more, will base this quantity primarily based on fairly a couple of components. More often than not, the LTV will probably be about 70% of the after-repaired worth. Nonetheless, this quantity can vary anyplace from 65% to 80%.

three. What are the prices of Texas hard money Mortgages?

All hard money Mortgages are going to require a Title coverage, insurance coverage, and appraisal. These providers do price money–even up to a pair thousand . Typically occasions although, this may solely price a couple of hundred .

four. Does my credit score matter?

Sure and no. Your eligibility will not be decided on credit score, so having spotty credit doesn’t harm you an excessive amount of. Nonetheless, in case you have first rate credit score, it could possibly set up your credibility and make sure the lender of your capacity to repay. Nonetheless, the Mortgage is predicated on the worth of the property in the long run. Many individuals search hard money Mortgages primarily due to their poor credit score and incapacity to obtain a lower-interest charge Mortgage from the financial institution.

5. Do I’ve to put money down?

Sure, more often than not. Lenders need to really feel assured of their funding, so that they want to see that you’ve sufficient assets to cowl the prices of the Mortgage. Count on to pay slightly bit out of pocket till the venture is accomplished.

Quick Answers to your Arizona hard money questions

Quick Answers to your Arizona hard money questions

Should you’re fascinated about an Arizona hard money Mortgage, you undoubtedly have questions. Listed beneath are seven fast questions with seven fast solutions to assist you perceive just a little bit extra about Arizona hard money.

5 Arizona hard money questions and solutions

1. What’s the rate of interest on an Arizona hard money Mortgage?

This query will depend on the lender. No two lenders are alike and can base their rates of interest on a wide range of components. Nonetheless, most rates of interest on hard money Mortgages will vary from 10% to 18%.

2. What Mortgage-to-Worth are lenders in search of?

Arizona hard money lenders, once more, will base this quantity primarily based on fairly a number of components. More often than not, the LTV will likely be about 70% of the after-repaired worth. Nonetheless, this quantity can vary anyplace from 65% to 80%.

three. What are the prices of Arizona hard money Mortgages?

All hard money Mortgages are going to require a Title coverage, insurance coverage, and appraisal. These providers do value money–even up to a pair thousand . Usually instances although, this can solely value a number of hundred .

four. Does my credit score matter?

Sure and no. Your eligibility isn’t decided on credit score, so having weak credit doesn’t harm you an excessive amount of. Nonetheless, when you have respectable credit score, it may possibly set up your credibility and make sure the lender of your means to repay. Nonetheless, the Mortgage is predicated on the worth of the property ultimately. Many individuals search hard money Mortgages primarily due to their poor credit score and lack of ability to obtain a lower-interest fee Mortgage from the financial institution.

5. Do I’ve to put money down?

Sure, more often than not. Lenders need to really feel assured of their funding, so that they want to see that you’ve sufficient sources to cowl the prices of the Mortgage. Count on to pay just a little bit out of pocket till the venture is accomplished.

What Matters (and what doesn’t) in Arizona Hard Money Mortgages

What Matters (and what doesn’t) in Arizona Hard Money Mortgages

At first, what issues is that it’s essential to be accredited for a Mortgage rapidly and simply. That’s the excellent news. Thankfully for you, there may be way more excellent news that comes when coping with Arizona hard money Mortgages. You must do your analysis and discover the suitable hard money lender for you. Clearly, you need to discover one with low rates of interest and a fast approval time, however that’s not all that issues in Arizona hard money Mortgages.

It’s good to know that hard money Mortgages are fairness based mostly and are normally accredited for an quantity someplace between 60% and 85% of the worth of the house property. This can be a vital quantity of the mortgage and may help you vastly if you happen to can not get accredited by one other lender. Arizona hard money Mortgages are usually short-term, starting from 6-36 months, in order that’s essential to know too.

It issues that you’re skilled and really striving to make the funds of a hard money Mortgage. Lenders are taking a big threat in Mortgageing the money to you as a result of they’re solely basing their resolution on the worth of the house.You must do all that you would be able to to indicate them you worth their enterprise and are prepared to carry up your finish of the settlement.

What doesn’t matter in an Arizona hard money Mortgage

There are different advantages for you in an Arizona hard money Mortgage. If in case you have had bother getting accredited for a Mortgage in the previous, it could possibly be as a consequence of your incapacity to pay or show that you would be able to deal with the accountability. Nevertheless, when you’ve got turned issues round and are able to tackle one other monetary obligation, you may get accredited for an Arizona hard money Mortgage fairly simply. Lenders don’t test your pay stubs, tax info, and even your credit score.

So principally, it’s fairly straightforward to get accredited. If a lender can see that your private home or venture is worthy of investing in, they may approve you for a Mortgage. Bear in mind although that if you buy your private home, it’s then used as collateral for the lender and can be utilized towards you if you don’t make your funds.

There are professionals and cons in the hard money lending business, as in every other business involving money. You may discover that rates of interest are excessive, however that eligibility is simple. The approval time for an Arizona hard money Mortgage is normally round 24 hours, so the money comes rapidly. In case you are searching for a method to fund your subsequent residence buy or venture, hard money lending could possibly be best for you.