Private Hard Money Lender in California, Texas and Arizona: May 2016

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The Big Show is Coming to Town.

Don’t do it…it’s a big mistake flipping homes can cost you a lot of money . Every week the house flipping circus comes to town and adve...

Monday, May 23, 2016

The Big Show is Coming to Town.

Don’t do it…it’s a big mistake flipping homes can cost you a lot of money.

Every week the house flipping circus comes to town and advertises on the radio about how to make money flipping homes.  They offer their free 90 minute seminar conveniently located in the valley.  

“Learn from the expert” and they promise that they can tell you “how to make money flipping homes”.  Have you heard them?  The latest one is from Than Merrel, correct that his name, and he been on the radio all week.

I’ve been to many of the seminars, though the past few years, but they all have one thing in common. They want to hook you in and give you extensive training, and you can become a master mind expert.    The last time I check the total cost for becoming a Master Mind is around $45,000. 

I know they are in town because I start getting calls for Hard Money Loans.  They been told that we will give the a loan at 8% for 100% financing, and I know that you being a real estate pro that this not possible. 

What I usually do is politely tell them that this is not possible and start to chat with them about their training  from the Master Minds and then during the conversation they ask we what they should do about making money in flipping homes.  Then I tell them the truth which is, before you get into flipping homes get your Arizona Real Estate License.  You are going to need it to flip homes, access to ARMLS, ability to find and flip your own deals is important.  Sitting though real estate school for those 60-80 hours and you will learn more about real estate then those Master Minds can teach you.

I recently had a young millennial to my office and wanted to talk to me about flipping homes.  This first thing I told him was whatever you do, don’t pay for those $45,000 training classes, then he turned really read and started to sweat. I realized I made a mistake and said please tell me you did not do this?  He said he did, and then we started working on how he can get his money back, which he did.  He eventually went to Westford Schools met Skip (did you train with Skip) for training and got his license.

So my advise is if you want to be a successful flipper, first get your real estate license.  (You probably knew this already.)

Dennis Dahlberg
Broker/RI/CEO/MLOLevel 4 Funding LLC Tel:  (623) 582-4444 | Fax: (888) 279-6917www.Level4Funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378 26601 N 19th Ave Suite 112  Phoenix AZ 85027





How you can fix your credit score.

How do you Fix Your Credit Score?
You want that Arizona Home Mortgage to purchase our dream home but your credit score is low. Your credit score is an indication of what the industry calls your willingness and ability to pay debt.  It's a probability ranking score on the possibility of you defaulting on an Arizona Home Mortgage payment obligation in the next 90 days.  Some people like to think of it as a credit score grade on your payment performance.  The lender will look at your overall grade and see if you are:
1.       willing to pay, based on your history
2.      able to pay the debt, based on your income
3.      capable to pay, based on how many loans you have. 

If you have a failing credit grade (an F), then the lender will assume that you are going to fail again and not pay them back.  It's an overall Grade Point Average on how you passed or failed on prior Mortgage obligations.  If you got an F on an Arizona Home Mortgage in the past your Grade Point Average is going to go down.  Think of it as when you were in school.  Every year the school would give you a Grade Point Average for the years’ work.  Some people got a very high Grade Point Average (all A's) and were the smart kids in school, while others got a few D's and F's on their report card and had a lower Grade Point Average for the year.  This school of credit never ends in your life and you want to have the highest credit score Grade Point Average as possible, and keep it up through your life.   So what do you do to get a high credit score Grade Point Average?  You do the same thing that you did in school.  That is:
1. Take the Test over again and get a better grade.  How do you do this?  You pay back the people you owe money to.  Those items in collection or past due need to be paid off and settled.  The grade on your past due Mortgage is currently an F, but you can make it a C+ if you pay off the debt.
2. Don't get any more F's on your work.  This means that you pay the Mortgages back and on time.  You need to take it seriously, and make the payments and don't be late.  Remember when you turned work in late in school and the teacher deducted points for the work because you were late?  It's the same in the credit school; don't be late on your work.  Also, what type of grade were you given when you did not turn in the work at all?  You would get an F.  This is the same with paying Mortgages, when you DON'T PAY then you get an F and your overall credit score Grade Point Average goes way down. Pay your Mortgages on time and full will give you the best Grade Point Average.
3. Don't take on too may classes.  If you take a safe load of classes, then your work load is easier and you can probably get an A in every class.  But if you take on too many classes, you will not be able to get all the work done for all the classes.  This is the same in the credit world.  Don't take on too many Mortgages and keep the balance owed on the Mortgage to around 30% of your available balance.  The lender will look at your Mortgage load (class load) and think are you never going to get the work done?  You have maxed out all of your credit cards and want another one? The more Mortgages you take on (sign up for) the higher the chance that you are going to fail on one of them and possibly the Mortgage you are now trying to get is the one you will fail on.
4. Get that bad score off your report.  Usually the quickest way to get a bad grade off your report is to dispute the score (Whine to the teacher). Tell the credit bureaus that it's not your grade or that the grader who graded the test was wrong, or that they used the wrong pencil or that they used the wrong answer sheet to grade your work.  If you can get an F off your report card, your overall score and Grade Point Average will go up.  This is usually the first thing you can do to get a better Grade Point Average.  You do this by disputing the items on your credit report for each of the credit bureaus.  If they believe you and you are able to get the score off your credit report your Grade Point Average will go up.  If credit bureaus don't believe you, then work on step 1-3 above.
The good part about the credit score Grade Point Average is it is an Average.  It's calculated over time and time is your friend when you calculate the Grade Point Average.  Your overall score is based on the current work and the work you have done in the past, but usually it's for the last 3-5 years and if you have an F on your credit score report card, it will drop off in a few years. So if you keep your grades up, in a couple of years your credit score Grade Point Average starts to improve and eventually you will have all A's and you can qualify for the Arizona Home Mortgage.
So you have bad credit and want an Arizona Home Mortgage? What are the exact steps?
I recommended that you read the book  Credit Bible - Everything You'll Ever Want To Know About Credit by Phil Turner.  This is a detailed book on the steps and mistakes you can do to fix your credit score.
Arizona Private Hard Money Lender
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
26601 N 19th Ave Suite 112
Phoenix AZ 85027