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Understanding the Different Types of Land Loans



When you are purchasing land, it is essential to understand the function of all types of Arizona Land Loans that are available. Applying for the wrong kind of loan could be a costly mistake.

Most people are familiar with the process of securing a loan for a new home. But when it comes to getting a loan for a land purchase, the process is a bit different. There are actually three different types of Land Loans, and each one has a different purpose. Understanding the proper way to sue each loan is critical before you begin the loan application process. Applying for the wrong type of loan will not only waste time, but the application fees could also be lost.

Raw land is a piece of property that has absolutely nothing on it. This means no structures and also no utilities such as electricity, sewers, or city water. In addition, there are no roads on the property. If you are planning on buying land that has no improvements, then you are going to need to apply for a raw Land Loan. These Loans are some of the most challenging to get because lenders are concerned about how long it will take to have the land improved and for construction to begin on the property. The longer the land sits without improvements, the higher the risk to the lender. To counter all of this perceived risk, the interest rates are high, and the down payment can be as much as 50% of the value of the land.


Lot Arizona Land Loansare the next tier above a raw Land Loan. These lots have some of all of the infrastructure in place, such as water or electricity. A lot Land Loan is most often used for residential construction in an established area. Lenders see less risk involved in these Loans, and for that reason, the interest rates are far more reasonable. The interest can be from 10% to 20%, and the term for a lot Land Loan can extend up to 20 years.

Construction Loans Cover More Than Land Loans

A construction loan is a more substantial loan that will cover the cost of both the purchase of the land and the construction of the structure. These Loans require a credit score of 700 or more and a very low debt to income ratio. You will also need proof of a reliable income and the appraisal value of the structure that you intend to build. A construction loan often requires 10% to 20% down in addition to approved construction plans. Most lenders will also need some information about the builder to make sure that the firm is licensed and reputable.

More Critical Information

In many cases, the lender will offer a pre-approved builder list. This can eliminate a great deal of time during the approval process and much paperwork on your part. This also expedited the draw or payment process throughout the construction loan. These payments are made from the lender to the builder as specific milestones are met. Construction Loans only extend through the end of the build process, which is usually about one year. During the term of the loan, you are only responsible for making the interest payment. Once the construction is completed, the loan is converted into a 15 or 30-year traditional mortgage. Knowing how to use each type of Land Loan correctly is sure to save you both time and money.

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
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

16 January, 2020 20:05

[title: How To Make a Profit with Arizona Land Loans]

Making a profit with Arizona Land Loans seems simple: secure a property and sell it at a higher price, right? Turns out, it’s not so easy and there’s a few tips you can take into account to make your investment successful.

Investing in land is an option many people are choosing to aid in their finances. Whether it is to build on the land themselves a modern, updated home or save the property for the opportunity for sale in the future, land investments can be great options for buyers looking to make money in the real estate market.

However, not all land is equal. Before settling down on a property, you should really take the time to consider the location of your land, nearby developments, and the ability to implement amenities, like a sewer system, water line, and power. Investing in land with potential will give you and your potential buyers more options. This means when you take out Arizona Land Loans, you are getting more for your money, rates, and accumulating interest.

You may choose a great property because of its size and potential for development, however, if it is not located near business or school districts, it is less likely to be purchased by a family looking to buy. You also need to consider some technical requirements. What does the city require of the land should it be developed further? Understanding zoning requirements as well as covenants, conditions and requirements are musts before purchasing a vacant lot.

Why You Should Work with a Private Money Lender

Working with a Private Money lender can be helpful because of the time and focus they can give you. Unlike public money lenders, like banks, they can work with you on a much more individualized level. So, if you are looking to invest in land for the first time, you can feel confident you are not receiving generalized advice or even being viewed in a larger perspective.

If you are a first time borrower or have less than perfect credit, a Private Money lender will be more likely to approve your application for Arizona Land Loansthan a bank would. They can look at your plans, property, and resources, if you are planning on building, and take a risk with you that a public lender wouldn’t.

What You Need to Know about the Market

Qualifying forArizona Land Loans with a Private Money lender is much more feasible than with a public lender, however, it comes at a cost. Private Money lenders have higher interest rates, which are a literal cost that come with the speed of their flexible approval process. Before you agree to the terms with your hard money lender, you need to completely understand the financial aspect of it. Don’t rush into it because the pros seem to outweigh the cons. While this is true for some, take your time to make sure it compliments what you wish to do with your land investment.

Always be prepared. Building on land and reaping an investment is possible, but you need to make sure you are working with a qualified team who follows plans and meets deadlines. Ensure that your team believes in you, and you believe in your team. Consider the money lenders at Level 4 Funding today!



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
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 Get an Arizona Land Loan



Getting an Arizona Land Loan is not as simple as securing a mortgage. There are many details you should know before you seek financing for a land purchase.

A Land Loan is used when you are interested in purchasing a lot that does not have a structure on it yet. As with typical home Loans, you can secure these Loans from a bank, savings and loan, or a private lender. Regardless of the type of lender, you will need to have good credit, and the land value must be in line with the purchase price. But unlike the rather simple evaluation to determine the value of a home or building, accessing the value of land can be more challenging.

Most bare land has little value, as compared to what the value would be if it included a structure. This makes an Arizona Land Loan riskier for the lender. Because of the increased risk, or maybe decreased potential for resale is a better term, lenders tend to increase the down payment required for the loan and to charge higher interest rates. The higher down payment is a way for the lender to be sure that there is always equity in the land, and that it can be sold for a high enough price to cover the remaining balance of the loan, should you default.

There are three different types of Arizona Land Loans, which include raw Arizona Land Loans, lot Land Loans, and construction Loans. Each of these Loans has a different purpose and different qualification requirements. You will also find that different lenders can have slightly customized requirements for their Land Loans. As with most Loans, you will need to demonstrate excellent credit, an acceptable debt to income ratio, and a consistent income that will allow you to cover the payment on the loan.

Land Loan Terms To Know

Because of the increased risk of Loans on land only, interest rates can vary from about 4% up to around 6%, depending on the specific type of loan. In addition, the length of the loan will have some impact on the interest rate. The lowest interest rate is traditionally offered on a 10-year fixed-rate loan. The interest rate increases slightly as the term extends to include a 15-year, 20-year, and 30-year fixed rate. You will also notice that rates on a construction loan are higher than a raw loan and that lot rates are the most affordable interest rate.

Selecting A Lot That Lenders Find Attractive

There are certain lot features that lenders will look at when evaluating your loan request. The boundaries of the lot are essential information to the lender. Having the lot surveyed accurately is a bonus to most lenders. In addition, a lot that already has utilities will be more attractive to a lender as the lot holds more potential than just bare land. All lenders will also want to know about any zoning restrictions on the property. Having this information included in your loan request will be helpful to the lender during his or her evaluation process. And that is sure to increase your chances of getting your loan request approved.

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
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

Need an Arizona Construction Loan to Build Your Dreams?

An Arizona Construction Loan’ isdesigned just for development. Read on and let’s find out if they are what you need.

An Arizona Construction Loan, commonly called a ‘self build’ loan, is actually two different loans; the first part will cover your project’s upfront costs. You will pay interest-only payments while your apartment building, string of houses, office complex, etc. is being built. Following this period, the principle will have come due set up in monthly payments on what is termed a permanent loan. The quicker you can finish the construction itself; the less interest has to be paid i.e. the cost of your loan will be smaller.

And speaking of interest, these loans’ rates of interest can go up and down like the temperature, depending on the market interest rates. Normally the amount is the Prime rate with one or two percent tacked on.

A private lender, while unlike traditional lenders in a number of ways, is still going to want to see your books and plan of operation. Once you have chosen your lender, have everything you need in order to avoid delays, get the end result you desire (the money you need) and prove you’re a professional who isn’t wasting the lender’s valuable time.

You will need to account for the following things in order to present the entire cost picture:
1. hard costs: materials and labor needed.
2. land costs: purchasing land and property, occasionally termed ‘soft costs’.
3. soft costs: architect’s designs, taxes, insurance, appraisal(s), permits, etc.
4. contingency fund: reserve funding that is used for interest payments
Generally for an Arizona Construction Loan, private or hard sources of funding are easier to obtain than traditional or government sources. Why is this true?

Banks and other conventional lenders will run your employment history, credit record and how much you already owe (debt-to-income ratio) through a fine screen and check every detail. A past foreclosure, late payments on a loan, even self employment with a good record–all these can stop a conventional application from going through. The time element figures in also since banks and other similar lenders can take 30 days or more to fund your loan once application is made.

Hard money looks at collateral value and your ability to repay a loan more so than traditional lending institutions. This secures the lender’s money since if you cannot repay, the collateral can be sold to cover their losses. Other securities for the lender are a down payment, which is often required, and higher rates of interest.

Often these lenders do case-by-case evaluations and determine the loan amount based on each individual application.

Time is of the essence in the majority of cases and most private lenders make decisions in a very short time.

Sometimes approval and funding can be completed in as short a time as two days, with no credit check or tax information required.

If you think an Arizona Construction Loan is for you, start building your portfolio first, then find a lender who can aid you in creating something more substantial than paper and pictures.


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
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

Private vs. Hard Money – What is the Difference?

Learn the difference between private money and hard money so you can make an informed borrowing decision.

In prior blog posts I’ve discussed the real estate jargon that all investors should be familiar with so you can talk the talk and walk the walk.

There are two more terms that though they may seem interchangeable, they aren’t exactly the same.

Private money and hard money are two different ways to borrow money and I’m going to outline the differences below.

Hard Money

When you meet a hard money lender, it’ll be clear that lending is their bread and butter. It’s their business! That means they are ready to see your proposal and make a quick decision based on its merit. There are qualifications you’ll have to meet, but they are far less strict than those imposed by traditional banks. That means you don’t have to have a fantastic credit score.

Hard money loans are funded just as quickly as the decision is made! You can begin your fix and flip venture in some cases in as short as a week. Don’t miss a good deal when it’s in front of you!

Private Hard Money

Private money loans can come from anyone who has the money to lend. It can be a family member, a friend, or a company. It is a relationship-based lending scenario that can take time to develop because they aren’t a tried and true lender, they just have the means to do so if they so choose.

They may also ask for some stake in the real estate venture because they are taking on a personal risk. Private money loans can also take longer to fund, causing you to lose out on deals.

That’s why we recommend using an Arizona hard money lenderfor your real estate business, whether you’re fixing and flipping or need a short-term loan for your buy and hold property. Contact Level 4 Funding today to discuss your next venture!



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
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

What In The World Is A Fix and Flip Loan?

“What in the world is a fix and flip loan?” my friend Joan asked me as she cleared the table for our regular Saturday night dinner a few weeks back. “Someone came in today and asked if we would set them up with one and I had to admit I didn’t know exactly what they were.”

“It’s a real estate loan, but it comes from private lenders,” I replied. “Remember that house on Delancy Street that I pointed out? Well, this type loan could get me that house.”
Joan shook her head. “I can’t see why you’d want it—it looks like no one has been there for a number of years. It’ll be difficult to get money for that—remember I work for Sun Valley Corporation? They’re so tight you’re lucky to get money on a new place.”

“That’s what fix and flip loans are all about—fixing up a house with the funding and selling it to get money to pay off the loan—that’s the flip, by the way. The idea is to sell it at a profit, of course.”

“Well, yes, of course—you can enlarge the account you already have at SVC and make me happy.” She grinned. “Tell me more—it sounds interesting.”

“Okay. These type loans are short-termers—they are the types that banks don’t go for since there’s no money to be made from the interest. The borrower, if his application is approved, has a year to purchase, repair and sell the property in order to repay the funding. A really good point of these loans is that closing doesn’t take six months—an experienced lender who knows the ropes can close in two weeks.”

“They don’t pick through your credit history with a needle and if there has been a problem or two in the past—you remember that foreclosure I had? It’s not going to stop the entire process or immediately kill the application’s chances. Your credit score doesn’t have to be 850 either.”

“No one’s credit score is 850.” Joan said, laughing. “Go on.”

“Better still, they expect the property to need renovations—they do appraisals before and afterward. Now Arizona Fix and flip loans aren’t perfect nor are they for everyone. The lender is a business professional like everyone else—they need to be confidant that you can get the property in shape and market it into a profitable sale in order for them to get their money back. Liens are attached—I’m probably going to have to use that lot my father left me in case something goes wrong. I don’t want to use my house.”

“And you think you can do it? Have you looked inside the Delancy St. place and seen that it’s fixable?”

“I’ve only looked through the windows and walked around outside, but I called yesterday and made an appointment with the realtor to go have a detailed look. If I’m certain I can fix it up and sell it, I have a list of
several private loan companies to make appointments with.”

“Sounds like you’ve been looking pretty deeply into this,” came the remark.

“You can’t go any other way in this type of thing—all the little fine points count. I want to fix this house up and get it sold—the more experience I have, the less I have to pay in interest on future loans. I don’t want to lose Dad’s property either. A fix and flip loan may sound peculiar, but once I’m through checking into it, I’ll know if it’s for me or not.”


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
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

The Best Deals to Use Commercial Hard Money Lenders



Not every loan is perfect for every type of deal. But some specific deals are ideal for using Commercial Hard Money Lenders.



Commercial Hard Money Lender is not the best choice for the average consumer who is looking to purchase a home. In most cases, these borrowers have a decent to good credit, a reliable and verifiable income. They are planning to keep the house for many years. It only makes sense for these purchasers to use a traditional loan from a bank or mortgage company. And to save a little money with the lower fees and interest rate, but for more nontraditional deals, an alternative option like Commercial Hard Money Lenders is a great match.


Arizona Land Loanand Loans for construction can be complicated to secure from a bank or mortgage company. The land does not work well as collateral because it has no structure or other improvements. Traditional lenders are going to shy away from Arizona Land Loansbecause it can be tough to recover their investment if the borrower defaults on the loan. Arizona Construction Loan present even more challenges because anything can happen when you are building a structure. There can be unexpected cost overruns, time delays for materials or adverse weather, or unforeseen issues with the site or construction process. All of these issues cost time and money. And they can also create financial problems for the borrower who could be forced to default on the loan. These types of Loans represent a higher level of risk that traditional lenders will not take, but a hard money lender will often fund these high-risk deals.

Time-sensitive deals can also be a challenge if you are using a traditional lender. The process of applying for a conventional loan often takes weeks. And then you are forced to wait weeks or even months to find out if the application is approved. This waiting game does not work when you are competing with other buyers on a Fix and Flip project or a property deal that is very desirable. While you are waiting for the bank’s approval, someone else is making the purchase with a loan secured from hard money lenders.

No Credit, No Problem

If you have no credit or have some challenges in your credit history, then you are not going to get a traditional mortgage. But hard money lenders are more interested in the values of the property than they are in your personal credit history. Hard money is also called asset-based lending because the loam request approval is based on the value of the property. Commercial Hard Money Lender will offer about 75 to 80% of the value of the property so that there is instant equity in the property. This process creates the security the lender needs in case you default on the loan, and he or she needs to sell the property to recover the original investment.

Use It Wisely

Just like any other financial investment or deal, hard money is a great choice when it is used correctly. For projects that are time-sensitive or are very unique, hard money is the way to go. And if you have credit issues, then hard money offers you an alternative to banks who will not approve your request. So for all of these deals, hard money is the right choice and a good investment.

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
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 Do Commercial Hard Money Lenders Make Money?



Understanding what hard money Loans are used for and how Commercial Hard Money Lenders determine the terms for the Loans is essential for all borrowers. This information helps you to understand why hard money carries a higher cost.


Commercial Hard Money Lenders are often referred to as nontraditional lenders. This term does not mean that they are operating outside of the law in any way. This entire term means is that these Loans are not from banks or mortgage companies, which are called traditional lenders. These are Loans from a person or small group of people who are in business to fund Loans. And because this is a for-profit business, there are fees and expenses that the borrower must pay.



Commercial Hard Money Lenders can determine their interest rate rather than having it set for them in the same way that banks and mortgage companies are regulated. In most cases, the lender will evaluate the loan application or request to determine how much risk is involved. They can then set the interest rate accordingly. It is not uncommon to see hard money interest rates as high as 10% to 20%. But borrowers are willing to pay the higher rate to get a loan that would never get funded by a traditional lender.

As with most Loans related to the purchase of property, the lender also charges the borrower points on the loan. Each point represents 1% of the loan value. Again, the lender is determining the points on the loan in accordance with the amount of risk he or she feels is involved in funding the loan. If the loan does not appear to be extraordinarily risky, then you could get a much better interest rate and pay fewer points on the loan. This is where your down payment can work in your favor. A very high down payment increases the instant equity in the property. It also greatly decreases the risk to the lender if you default on the loan.

Fees Charged By Commercial Hard Money Lenders

Hard money lenders can charge many different fees. Because they are not scrutinized like banks and mortgage companies, many of these fees can have unique names. But they are all designed to put a little bit of money back in the lender’s hand at the time the loan is funded. Some fees can include a funding fee, an appraisal fee, a processing fee, and an origination fee. If a lender is charging a considerable application fee, be cautious. In most cases, legitimate hard money lenders do not charge hefty application fees. This charge is the one best indication of a scam.

What You Get For the Money

While there are more substantial fees associated with hard money, you are getting a much higher level of service from a private lender. The payment schedule and other terms of the loan are all subject to negotiation with a private lender but not when working with a bank. In addition, private lenders are willing to lend to borrowers who have been turned down by banks and other lenders. If hard money is your only option, then it is worth paying more to get the loan that you need.

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
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

One Nifty Trick for Getting Rental Property Loans in Arizona



Taking that leap and buying your first rental property can see, daunting. Here’s how you can use rental property loans in Arizona to make it easier.

For first timers, making a rental property purchase is a major deal. It’s a lot of money, a huge risk and a ton of work. You need to make sure you do your due diligence in finding a property that’s in good shape, in a good neighborhood and represents a good deal. On top of all that, you’ve got to figure out a reasonable way to pay for it.

Many people decide to turn to the bank to get a loan on a NOO (non-owner occupied) property. This is one way to do it and it’s a solid way, especially if you have great credit, good income and no bankruptcies or foreclosures on your record. It’s also a good route if you can afford to wait; banks can take over a month to get you your money.

There are other options aside from the bank. Private investors will often offer Arizona rental property loans to people who want to get into the “game.” It’s a fair exchange — you get the upfront money for an investment property, plus monthly or short-term rent, the investor collects interest and fees. These private investors can be tracked down with great effort, or you can go to a broker who connects landlords with private investors.

Either way you go, there’s one trick you can use to dip your toes in the rental game without jumping in the deep end.

How to Minimize the Risk of Buying a Rental Property

Here’s one trick many people don’t think about — living in the rental property for 12 months. This offers a range of advantages:

● You can find and fix any problems you find on the property.

● You might be able to qualify for an Arizona owner occupied loan, which usually means better rates and terms.

● You won’t have to make two mortgage payments.

● You’ll be there to watch over the property as other people live there (especially true with a mother-in-law, basement apartment or guest house).

Get into the Landlord Game Now

Right now is a fantastic time to get into the rental property business. If a recession does come, having a place to live and a place to rent (as more people become renters), is an ideal situation. If you’ve decided to give it a try, done your due diligence and found some properties, give us a call at Level 4 Funding to see about a quote for a Arizona rental property loan.

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
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

What It Costs To Work with Commercial Hard Money Lenders and Why



If you are not familiar with Commercial Hard Money Lenders, then you won’t understand why these Loans can be expensive. But there are many benefits that are worth paying the higher cost.

A lot of what you read on the Internet and in financial books and magazines will tell you that working with Commercial Hard Money Lenders are very expensive. And while there are costs involved in these Loans that are greater than the charges you pay for a traditional loan, you get a lot for your money. But most of these resources fail to explain the benefits of hard money and why it is a smart choice for many real estate investors.

The first piece of information that most borrowers ask about is the interest rate they will be paying. And while hard money Loans have a higher interest rate, sometimes as much as 20%, there are some very logical reasons for the increased rate. Commercial Hard Money Lender is private lenders who are free to select the interest rate that they charge their clients. But they do not simply choose a random rate for each loan. They have a process of accessing the amount of risk associated with the loan that is being requested and then charging what they believe is an applicable interest rate. So, the riskier the investment, the higher the interest rate, but when you consider the fact that a bank would not approve or fund a high-risk loan, then paying more for hard money seems like a simple choice. In reality, hard money might be your only choice.

Hard money Loans are usually a much shorter term than a traditional loan, which works perfectly for a real estate investor. Banks and mortgage companies write Loans for 15 or even 30 years. And if you pay the loan off early, you could be charged an early payoff penalty. But Commercial Hard Money Lender will work with you to customize the term of the loan and eliminate the penalty of paying off the loan early.

Down Payment Terms of Hard Money

When you take out a hard money loan, you will be required to make a substantial down payment. This money that you are investing in or putting down on the property creates instant equity. And that instant equity is suitable for both you and the lender. If you default, the lender is sure to recover his or her investment when the property is sold. The equity also works on your behalf. It provides you with the ability to make a more substantial profit when you finish the project and sell it. And even if the project runs into challenges, you have that equity to fall back on for additional financing.

Hard Money Is Worth the Higher Cost

Not every project is suitable for a traditional bank loan. And you might not want to be tied to a loan for an extended term. But when you are working with a hard money lender, you can customize the terms of the loan to meet your needs and the needs of the specific project. These Loans meet a need for many real estate investors who understand that the added benefits are well worth the added cost.

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
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