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Showing posts with label Arizona home loan home loan Arizona. Show all posts
Showing posts with label Arizona home loan home loan Arizona. Show all posts

Wednesday, May 30, 2018

Advantages of Hard Money Loans Arizona

It is true that hard money loans cost more in interest and fees than most traditional loans. But there are several advantages of using hard money loans Arizona.

Most borrowers are focused on trying to find the most affordable lender when they are seeking a loan. And thinking along those lines is likely to keep many borrowers from taking advantage of all of the benefits of hard money loans Arizona. But investing just a few minutes in exploring the advantages of hard money loans could easily change some borrower’s opinion of hard money loans Arizona.

As a business person, your time is very valuable. And hours spent completing traditional loan applications are costing you money. The time could be better spent managing and growing your business. The much simpler application process of hard money loans Arizona is a great way to save yourself time and the stress that is associated with completing forms and compiling bank statements and other documentation.

Another advantage of hard money loans is the fact that you will not need to submit your personal banking and financial statements to the hard money lender as you would if working with a bank. Traditional lenders are interested in business creditworthiness and financial health as well as the personal financial situation of each owner of the business. However, a hard money lender is only focusing on the current market value of the property which will be the collateral for the loan.

Self-Employment is Not an Issue

Many banks and traditional lenders have very specific criteria for funding a loan when the borrower is self-employed. This can make it even harder than normal for a borrower to qualify for a loan. But a hard money lender does not see self-employment as a negative. And in some cases they prefer it as it shows initiative and the desire to commit to hard work to become successful.

Used Correctly Hard Money Is a Great Tool

Hard money loans are not the perfect solution for every borrower. If you are looking for a long term loan, or if you need to borrow the entire purchase price of a property, then hard money lenders will be of no help to you. But if you are looking for a short term loan that can be funded quickly, then hard money is for you. The application process is much less lengthy and the criteria for approval is related more to the actual current market value of the property than it is your credit score. So borrowers with poor credit or no credit will have a fair opportunity to secure a hard money loan.

Not only is applying to many banks time consuming but it is also humiliating to be turned down time after time. But you can avoid the embarrassment and the wasted time by presenting your request to a reputable hard money lender. With a solid plan to purchase and resell for a profit, you have a higher than average chance of getting the funding that you need from a hard money lender.

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 45 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

Wednesday, May 9, 2018

If You Find Experienced Hard Money Lenders, You’ll Have an Easier Time Getting Your Loan Approved

When you are looking to get your loan application approved, working with professional and experienced hard money lenders will ensure a smooth process. Level 4 Funding offers the following tips to find the right lender.

In the world of loans, finding someone that has a reputable name and that you can trust can mean the difference between a smooth application and approval process and a… not so smooth one. When you are putting the fate of your potential new business or property in the hands of a lender, trust is never more important.

Do your due diligence before you sign on any dotted lines. Look for lenders that have experience in your specific niche, and that have testimonials or references they are willing to share with you. Look online or with the Better Business Bureau to see if you can find out anything about the hard money lenders that is not on their website. You want to make sure that the company has the professional experience to do what it takes to get you the best loan for your needs. This will ensure a smooth and easy transaction.

Give credit to the lender that thinks outside the box.

A fresh or different perspective on the way the loan should be done is always worth considering. If your hard money lenders are willing to get creative to get you the best loan, take that into consideration!

It’s not just about getting the best loan rates.

While rates and your repayment schedule are obviously very important, there are other things that are important too. Sometimes it’s true that you get what you pay for, and you want to make sure you feel good about the advice that your lender providing you with. Look for a local company that is available to speak with you and answer any questions until you feel comfortable with all aspects of the loan contract. Ultimately, it will come down to trust and your gut instinct. Oftentimes, just having a “good feeling” about someone is enough to make your decision about the right lender to get your loan with. The process should be a win-win situation for both the borrower and the lender and if you are both open and honest with one another, that is a great way to ensure the agreement is ideal for all parties involved. So depending on your needs, it’s not always experience, or a local company or fresh creative thinking that wins the day — it’s more about trust and who you really feel can get you the best loan for your needs. Level 4 Funding is a reputable and trustworthy company that would love to be your reliable hard money lenders. Level 4 agents are available for online live chats or give them a call to see how they can be of help to you as you navigate the sometimes unchartered waters of trying to obtain a loan.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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Sunday, April 15, 2018

HOW TO GET A HARD MONEY LOAN APPROVAL

You have located the property that seems undervalued. Now, how do you get a hard money loan approval to make your first project a reality?

Hard money loans are loans that are generally available from investors as opposed to banks. They are often used to finance real estate transactions, though businesses and those looking for bridge loans also turn to these types of lenders. If your credit score is not strong enough for you to get a loan from a bank, then this is the option for you. These can be used as “bridge” loans between construction and long-term loans. Others turn to hard money loans that they use for rehabbing projects before turning to long-term lenders that want a completed project or a fully leased project.

Some of the questions you should consider are:

1) Does the company you are considering doing business with have a legitimate web site as compared to the web sites that are designed to just gather names and pass it along to a third party.

2) Are there any lawsuits? Any forclosed properties? Are they in good standing with investors?

3) When considering a lender, what is their area of focus? What kind of project have they financed previously?

4) Is there a physical presence for the company, do they have someone you can talk to?

Hard money loans are designed for one to five years. At this time, you will need to refinance the loan or pay it off. Some lenders have the option to extend the loans for a period of time. Interest rates are higher than loans through banks, generally 10% to 20%. Hard money loans fund quickly, usually in as little as one week. This is much shorter when compared to conventional loans which can take up to 30 to 60 days for an approval.

Collateral

The hard money loan is valued at the collateral value of the property not your credit score. Hard money loans are sometimes given to first time home buyers or to home owners that need a bridge loan so that they can buy the house of their dreams without having to wait for their first home to sell. Some hard money lenders fund 60%-70% of the after-repair-value(ARV). This leaves the remaining 30%-40% that you will need to fund. This generally refers to individual properties and not large commercial projects.

The lenders may ask for additional documents such as W-2s and bank statements. Protect yourself legally.

Most hard money lenders are not subject to government regulations. Have an attorney review all documents before you proceed and have an accountant review your projected cash flows. You should have all your documentation in a row such as the schedules and fees for the contractors and when and what they will be doing. Ultimately, you will need to repay the loan which usually occurs in 1 to 5 years. Have an exit strategy and know your lender. Many will consider extending a loan if you are having difficulty coming up with the final balloon payment. At Level 4 Funding, we’ve been in the business of hard money lending for decades and have a solid reputation behind us. Call us if you have any questions or concerns regarding this lending option.


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

Saturday, March 31, 2018

How to Evaluate Hard Money Lenders

Selecting hard money lenders is very much like finding any other service provider to work with. The success of your loan and business relationship relies on your due diligence.

It can be very easy to get nervous when you are looking for a lender of any type. After all, you are going to ask this person or institution for money and that just makes most people uncomfortable and nervous. But the key to a successful search for conventional lenders or hard money lenders is remembering that you are their customer and that they are in business to offer you a service. Even if you are seeking a private lender because you have been rejected by a traditional bank, do not rush to accept the first loan offer that you get.

Start your search in the same manner that most of the world uses to find anything, the Internet. Does the lender have a legitimate website? Some websites are simply portals which are gathering information and then sending it off to potential lenders. This is not what you are looking for. A legitimate private lender will have a professional site which will provide you with contact information, general information about the lender, information about the type and size of the loans that they offer and their criteria for lending.

Once you have compiled a list of hard money lenders that you would like to speak to, take an additional step and check them out further. Search to see if they have any litigation pending against them or if there are issues pending with any investors which they might have. In some cases you can also learn what other borrowers have said by doing a google search of each lender. There are numerous sites where consumers report poor service or poor business practices by just about any service provider that you can think of.

As long as you have not uncovered any red flags, then contact each lender to set up an appointment to speak in person or a call if they are not local. At this time it is a good idea to have prepared a list of questions to ask each lender. These answers will allow you to compare each lender on the same criteria. You might ask what type of loans they most often fund or what dollar amount is their average loan. You will also want to inquire about their time frame for funding the request and their criteria for approval of the loan request.

Once you have gathered all of your information, you will want to calculate the total cost of each loan offer. Be sure to consider loan origination or processing fees and any other fees such as an early repayment penalty. This total cost should be your main criteria for selecting any hard money lenders. If you have two lenders who’s offers are the same then you can use more personal characteristics in your decision making process such as who you think will be the easiest to work with or who is located closer for more easy access. But be mindful of cost and the fact that you are going to be the customer.


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

Wednesday, March 28, 2018

OCC Study reveals risks from Commercial loans

The OCC warns in its semi-annual risk report that relaxed underwriting standards may be putting some commercial loans at risk of default. Should you be worried?

The report warns that specific influences on the credit market may be causing some banks to lower borrower standards. "The credit market continues to be influenced by strong competition, particularly from non - bank lenders, and heightened asset valuations," the report claims. In effect, strong competition for new loans may be pressuring some banks to lower standards on borrowers.

The report also warns that the recent economic boom may be making some lenders complacent and that lenders may need to take greater caution in case of an economic downturn. "In addition, the long economic recovery and expansion may collectively increase lender complacency. In this environment, lenders need to focus on maintaining sound credit standards within risk tolerances and understanding the potential credit risks that may be exposed under less benign economic conditions."

The report claims banks need to be cautious and may need to diversify their lending activities. The authors of the report, the National Risk Coalition, cite commercial mortgage growth as a specific area of concern. The NRC claims,"increasing concentrations of commercial real estate (CCRE)loans highlight the need for sound risk management processes and the effectiveness in managing concentration risk for some banks."

In spite of the dangers key commercial loan metrics remain are strong

The report claims that key metrics of commercial credit quality such as delinquencies, nonperforming loans, and net charge-offs remain positive. These key measures improved over the second half of last year and remain elevated above historical averages. Commercial credit quality is stronger than any time since the 1980s according to the statistics. New business loans have moderated from the 25% growth levels seen in recent years but remain above GDP according to the report. Non-depository groups such as investment firms and finance companies receive the majority of these new loans.

Smaller banks may be relaxing underwriting standards to fuel commercial loan growth, which could be a dangerous trend should an economic slowdown occur

Assessments by OCC evaluators reveal a gradual easing of borrower standards at many banks. Since the first quarter of 2016, the majority of banks have relaxed lending standards, rather than tightening them. The trend reflects a gradual easing of underwriting standards which began in 2013, as the economy started to recover from the recession. Even though banks are relaxing their standards, the report concludes that the majority of banks are still lending within their risk tolerances and are maintaining relatively safe underwriting practices.

However, there remains a concern that the growth in commercial mortgages may be putting some lenders at risk. Specifically smaller banks with less than a 1 billion dollars or less in assets. While business lending declined overall last year, the majority of new business loans originated from these smaller banks. Data indicates that these groups are supplementing a declining volume of residential mortgages with commercial mortgages. This narrow and specific focus on commercial mortgages may put these smaller financial institutions at risk if economic conditions change and more borrowers default.

However, the report also claims underwriting standards remain reasonable, credit quality is high, and that the economy is strong. Whether banks will heed the conclusions of the report remains to be seen.


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

Monday, March 26, 2018

Leasing vs. Flipping: Two tactics to use your commercial loan

Learn which strategy is right for you when it comes to using commercial loan proceeds.

Leasing and flipping are two of the most common ways to invest in a piece of commercial real estate. Every investor wants to make money, but an investor who leases commercial real estate intends to earn a steady stream of income.

The investor needs to purchase the property, so both approaches have the same upfront costs. Leasing allows investors to maximize the long-term potential of property with minimal risk. If one tenant leaves, another one should be not hard to find in most cases.Renting out commercial real estate is an ideal strategy in areas where the supply of commercial property is low, and demand is high.When it comes to leasing, additional returns can be earned as property values in the area improve, and rents appreciate.

However before committing to leasing as a strategy consider the commitment of time that is involved. Leases can include complex negotiations, require regular property maintenance and resolution of issues among individual tenants. Professional property management companies can alleviate some of these problems, but the added cost can stifle potential returns.

In contrast, flipping commercial property offers a quick profit and a minimal commitment of time

You can use a commercial loan to flip your investment property, but you should throughly understand the market

Flipping is the opposite of leasing commercial property and involves quickly selling a property for maximum profit. With this strategy purchase a commercial property that is substantially undervalued. The lower a properties initial purchase price, the higher the potential for profit.

But commercial real estate valuations are far more nuanced than residential valuations. Savvy investors should know how renovations on commercial property could impact its value. The wrong type of improvements on a property can restrict potential buyers and detract it’s marketability. For example, by converting a storefront into a restaurant space, buyers will be limited only to those who want to open up a restaurant. But the right type of renovations can significantly improve a properties ability to generate income and therefore substantially increase it’s value.

A thorough understanding of the local commercial real estate market, the types of businesses that are opening nearby and other types of due diligence are needed to flip commercial real estate successfully.

There are obvious risks involved in using a commercial loan to flip commercial property, consider these risks before closing an investment strategy

When it comes to commercial real estate leasing is usually a safer investment strategy. Tenants should not be hard to find if the property is in decent shape and in an ideal location. Depending on the terms of the lease tenants can take on the expense of improving the property themselves.

Flipping commercial real estate entails that an investor takes on the cost of the renovations themselves and any improvements can be costly and could restrict potential buyers. Additionally commercial properties are subject to a longer sales cycle. There is a chance that any renovated property could sit on the market for many months, or in the worst case years.

But as with any investment strategy, the higher risks involved with flipping commercial real estate can also offer greater rewards. Consider the market, understand commercial real estate valuations and perform the necessary due diligence when choosing whether to lease or flip a commercial property.

In summary, leasing is a good bet when property values are steadily increasing, while flipping is best in cases where a low-cost renovation can immediately raise a properties value.


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

Sunday, March 25, 2018

Reasons to use a hard money loan for your next fix and flip project

A hard money loan (or an asset-based loan) offers you the benefits of flexible terms and quick approval. Learn why you should consider this type of loan for your next fix and flip project.

Fixing and flipping single-family homes is the subject of many popular television programs and no doubt most readers will be familiar with the process. An investor purchases a single family home, upgrades and repairs it and then sells it for a profit. Every fix and flip project has the same goals, to maximize market value, minimize the cost of renovations and to sell the property in the shortest time possible. But starting any fix and flip project also comes with the added cost of the financing.

Consider using a "hard" money loan to finance your fix and flip project. The value of the investment property secures this type of loan. This type of lender is likely to consider the potential value you can achieve with your project, instead of your credit score. Hard money loans can clear within a matter of days, which makes them ideal when you need to act quickly on a great investment opportunity.

A hard money loan can be the ideal financing solution for your house flipping project

A traditional mortgage will be hard to secure if your investment property is particularly distressed.The majority of regular banks fund their loans by selling them to Fannie Mae or Freddie Mac.More than likely your property will fall short of FHA guidelines, making the sale of the mortgage to Fannie or Freddie impossible.

Traditional lenders are also wary about the potential for default should your project not go according to plan. Generally it is not worth the effort for a regular lender to underwrite your loan or to thoughtfully consider your proposals.

Most asset-based lenders consider the potential of your project rather than your credit score or your properties current condition. If you are a seasoned house flipper, or you can talk up your specific plans, more than likely you can qualify for a asset based loan. Asset-based loans can also close quickly which allows you to take advantage of immediate investment opportunities.

If you intend to flip a home in Arizona consider using Level Four Funding as your hard money lender

Level 4 Funding offers short-term financing which is ideal for house flipping projects. Levels 4 offers interest-only loans which gives you the benefit of lower monthly payments. Level 4 Funding can also finance to 85 percent of your next house flipping project, whereas most other asset-based lenders usually only offer up to 75 percent. With Level 4 Funding you'll need to spend less of your own money up front to get your project started. Level 4 Funding offers flexible loan terms, with a minimum term of less than a month allowing you to pay off the loan at your convenience.Level 4 Funding can also close loans within a matter of days, which will help you get your project started quickly.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tactics for refinancing your commercial loan

When it comes to refinancing commercial loans, you naturally want to qualify for the largest loan with the best terms. Learn some strategies to help you refinance your commercial mortgage

Once your commercial mortgage matures, why should you refinance, rather than selling the property? Refinancing can improve your monthly cash flow and if your property has appreciated in value, refinancing will enable you to pull out additional equity tax-free.

There are some significant differences when comes to refinancing commercial real estate. A Residential mortgage is usually fully amortized and can have terms of up to 30 years. Commercial mortgages have shorter lifespans of 5 to 10 years, and commercial borrowers typically need to refinance their mortgages on a regular basis. But The biggest difference between commercial and residential refinancing is the impact of net operating income on commercial property values.

Improve the income you receive from commercial property to improve the terms of your commercial loan

Net operating income has a considerable impact on commercial real estate values.

The value of commercial property increases if it can generate more income, regardless of property values in the immediate area.

Before refinancing the best strategy is to increase the amount of income your property generates. By maximizing the profit you receive from a property, you increase its value and can refinance to a larger mortgage with better terms. Some strategies to maximize cash flow could include improving the number or quality of your tenants or using renovations to raise rents.

Other things to consider when it comes refinancing you commercial loan

Always seek counsel about your strategy and your specific situation, but the following tactics should help you get the best loan at the best terms.

Use refinancing as a way to reposition your investment strategy or even expand your portfolio. The additional funds you get from refinancing can be used to repay your initial loan, any initial investors, or could be used to improve the property itself. Better yet you can use the additional funds from refinancing to purchase another piece of commercial property. Therefore refinancing can be used as a strategy to expand your investment portfolio and earn more money on a monthly basis.

Refinancing in all cases should improve your monthly cash flow. Refinancing to a loan with higher monthly payments and less favorable terms is of course not a good idea. Refinancing should entail lower monthly payments or should allow you to cash out any additional equity from your investment property.

Strategize to qualify for the best loan with the best terms. Know when your current loan matures and invest in the property accordingly. Over the duration of your loan ensure the condition of your property does not deteriorate. Better yet take consistent steps to improve your property over the term of your mortgage.

You should also aim for full occupancy before refinancing. Most lenders will offer favorable terms on properties with 90 percent occupancy over a period of 90 days. Losing tenants will drastically reduce the income from the property and therefore reduce its value.

In the end, the crux of refinancing a commercial loan is to optimize the profits a property can generate which will enable you to refinance at the best terms.

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

Friday, March 23, 2018

Why potential commercial loan rate increases are making investors nervous

Inflation fears are stoking fears in the minds of investors about potential commercial loan rate increases in the immediate future.

Yields on short-term Treasuries have recently reached new heights, creating new fears that long-term borrowing costs could rise as well. As of February 2nd, short-term yields on US treasuries sat 2.825 percent, the highest since 2014.

So why are these rising bond yields causing so much panic among investors? Their primary concern is related to inflation and the potential for steep rate increases by the Fed.

Steady job growth may be a sign of rising inflation. The rising rate of employment indicated in the recent January jobs report has many concerned that the Fed will raise interest rates to reduce the risk of inflation.

The Fed usually raises interest rates when the economy overheats, increasing borrowing costs to keep up with inflation. The Fed also raises interest rates when it expects inflation in the near future, which has many investors worried.

Investors are wary the danger of steep increase in commercial loan rates

A fundamental question is why investors are so concerned about inflation? The perception that inflation will soon rise rapidly could entail immediate interest rate increases by the Fed. Drastic rate increases in response to potential inflation would obviously hamper any recent economic growth due to higher borrowing costs.

The historically low bond yields of recent years have made risky investments like stocks more attractive. Bond yields impact the cost of borrowing throughout the economy. If bond yields rise too sharply, companies will have the added burden of higher borrowing costs. Should the Fed rapidly raise interest rates, these riskier investments will become considerably more volatile, which could explain the recent stock sell-off.The anticipated steep rate increases by the Fed would have a clear negative impact on corporate performance. A mismatch between the "real" cost of borrowing and long-term bond yields is also raising concerns among investors.

Investors note the danger that attempts by the Fed to raise commercial loan rates and control inflation may not be enough

The fact that long-term borrowing costs have remained low has spawned the greater fear that perhaps is the Fed may not be able to raise rates sufficiently to control inflation. Some are noting the disparity between Fed rates and real long-term borrowing costs. In the past year yields on short-term Treasuries have risen in line with Fed interest rate increases. However, the yields on long-term Treasuries have remained low or unchanged.

Some fear that in the face of rising inflation the Fed could overreact and dramatically raise rates to regain control of the situation.

Still investors panic about the risk of inflation may be premature. The relationship between employment growth and inflation, known as the Phillips Curve, has not matched economic data. Inflation has been relatively moderate of late in spite of recent robust job growth. The Fed could still hold off on the rate increases many investors expect.

These concerns remain speculative the time being and rarely is sound investment strategy founded on speculation.


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

Friday, March 16, 2018

Why You Might Be Getting Denied for Commercial Loans

Getting approved for commercial loans can be tough. Luckily, some small businesses are being able to get a helping hand from lenders and banks. This can lead to a boost in economy and job growth. But some denials are still occurring, so why?

Applying for the loan can be the easy part. Waiting for the answer is what is that hard part. There are many reasons for denials, but one of the most common is insufficient revenue. Showing lack of cash flow is going to turn any lenders or banks away from wanting to help fund you. Your business needs to be able to prove that you have a successful cash flow and are deserving getting extra funding.

Other factors also play a role in approval of commercial loans. Lenders and banks will also take at all equipment that is available or being used. They will also look at the location of your business and the inventory quality. Having issues with any of these things can be reason for denial.

The stability and credibility of your business is also going to play a large role. These things can be proved with an excellent credit score. Coming up with a plan to present to lenders and banks about why the extra funding is needed and how it will boost your revenue is another way to avoid denial. Proving that you have a stellar financial track record and that there is good reason for the funding will almost always guarantee approval on all commercial loans.

Keep in mind that credit always play a large role in approval.

Banks strongly encourage a credit score closer to 700. Lenders are a little less lenient, but still prefer a credit score of at least around 650. If you are having a hard time boosting your credit score. There are many things you can do. Start by making all of your payments on time. Also, start off small. You can try to obtain small loans to help build your credit up so that you won’t get denied when you try applying for larger commercial loans. Planning for the future is always a good idea and you can do this by starting off small and building your way up to larger funding projects.

Really consider if it is the right time to apply because you never want to get denied.

If you aren’t quite ready to apply and get approved for commercial loans, it might be a good idea to wait. It is better to wait for the time to be right than to be denied all the time. Denial can really take a huge hit on your ego. It is best to try and get approved on your first try. So, take your time considering all of the benefits and negatives of applying at this time. Do plenty of research and build a solid foundation. And also, never get a loan when it is not necessary.

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

Monday, April 20, 2015

How to qualify for Arizona Home Loans with Bad Credit

Subprime mortgages in Arizona have been considered a predatory lending practice by many law makers. The facts show otherwise as Arizona home loans with bad credit programs have typically been used by investors as a money making strategy, not by people who have been taken advantage of by banks.)

A subprime mortgage is a lending practice that can benefit borrowers with low credit scores. Typically, subprime mortgages are given to borrowers with a less than stellar credit history or to borrowers with other financial factors that make them too much a liability for a traditional loan. Based on these factors, the borrowers would not qualify for a traditional mortgage so banks give them a subprime loan with a higher than average interest rate. Because subprime borrowers represent a higher risk for the lender, most lenders charge a higher than prime interest rate.

The most common type of subprime mortgages that are offered are adjustable rate mortgages or ARMs. An adjustable rate mortgage initially offers a very low interest rate, usually below the prime rate offered by a traditional loan. For an informed investor who intends to fix and flip or only own a home for a short period of time, an adjustable rate mortgage can be a great investment tool. However, an ARM is somewhat misleading to uninformed borrowers as it initially charges a lower interest rate. After the ARM period the rate adjusts to a significantly higher rate and higher monthly payment. These types of mortgages were given out frequently by banks to un-creditworthy buyers in 2005 and 2006. Once the loan reset to the higher interest rate, many borrowers were unable to afford their new monthly payments and defaulted on their home loans. ARM were largely responsible for the increase of subprime mortgage foreclosure increases in the mid-2000s.

In addition to ARMs, many private equity firms and hedge funds also give subprime loans. Interest rates are usually higher for these loans because the borrowers represent a higher credit risk to the lender. Although there have been some predatory lenders, the majority of these firms want to help create a win-win situation. Investors make money and borrowers are able to purchase homes.
In response to the foreclosure crisis, may law makers want to eliminate Arizona home loans with bad credit programs entirely. They cite these types of loans as being predatory lending practices as the interest rates can reach as high as 9% when a traditional loan hovers around 4%. They also claim that these loans are disproportionately given to people who make less than the median level of income and there is also fear that subprime mortgages could hurt minorities or young people.

The Truth About Subprime Home Loan Arizona

As stated above, there is concern among law makers that Arizona home loans with bad credit are designed by banks to gain the most money from groups who have the least. The foreclosures of the mid-2000s helped fuel this fire. Politicians and loan reform groups make a variety of claims about the unsavory nature of subprime lending in Arizona, however, many of these claims have been proven inaccurate when the numbers are examined.

The first claim by politicians looking to discredit subprime lending in Arizona is that it would unfairly discriminate against low income borrowers. This claim is categorically false. In fact, most subprime borrowers in Arizona are above the median income line. Most subprime mortgages tend to be second mortgages that are purchased as investment properties. Subprime borrowers also tend to own fewer low value homes than traditional mortgage holders.



A second claim against sub prime mortgages Arizona is that subprime loans are unfairly given out to borrowers who are young without a substantial credit history. Subprime mortgages are not given out to mostly young borrowers. In fact, the average age of a borrower for a subprime mortgage was between 35 and 55 years of age. This indicates that subprime mortgages are not being used to penalize borrowers with insufficient credit history due to age.

Finally, another criticism is that minority borrower will be discriminated against and only offered high interest loans. A demographic study indicates that this is untrue. By analyzing zip codes and demographics, it was concluded that subprime mortgages are not more common in zip codes with a Hispanic population concentration.

Subprime mortgages are not being used by banks to unfairly discriminate against borrowers, rather than are a valuable tool for borrowers with low credit scores or as a means to purchase an investment property.

Since subprime mortgages often charge higher interest rates, they have unfortunately been lumped into the same category as title or payday loans. Some politicians see them as predatory practices without having all the facts. Arizona home loans with bad credit programs and loans are not a predatory lending practice by banks. Rather they are a tool that can be used for borrowers that would otherwise not qualify for a mortgage. Whether you are purchasing a second home as investment, or buying a home for your family to live in, don’t let a low credit score determine your fate. Contact a local mortgage broker to determine your options and see if a subprime loan is a good option for you.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Home Loans
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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Wednesday, May 7, 2014

Who Can Give You an Arizona Home Loan?

Arizona Mortgage Broker
Arizona Mortgage Broker

You might have just been saying that you need an Arizona home loan but that you weren't sure how to get it.

We can help you out. If you have been worried about your credit because you recently lost a lot of money due to the economy, then this is the time to figure out how to get a hard money lender to give you an Arizona home loan and this is a great place to start. Forgo the annoyances of the traditional bank loan that has you waiting for forever before they finally turn you down. Bank loans are incredibly difficult to get nowadays just because the economy went so far south that it’s hard to find anyone with a good credit score nowadays.
Star the path towards a hard money lender who can give you a home loan Arizona. If you need a home loan Arizona but you know that getting a loan during this time would be tough, then start your research and find your private lender sooner rather than later. The time is now!
Mortgage Broker Arizona
Mans Best Friend The Arizona Mortgage Broker
Embrace it! Find a lender who wants to help you out. You have the assets they are looking for even if you don’t have the credit. A private lender will be fine with that! They want to help you get the home loan Arizona  that you need to get your life back on track and get the home of your dreams. This is a positive step in the right direction so let’s get it going today!
Get together with your private lender to start going over how to get your home loan ArizonaDon’t wait for the banks to dictate what you can do! Get someone who cares to help you out! You can start as soon as today! Check it out.
Arizona Home Loan
Loan Officer Level 4 Funding
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
23335 N 18th Drive Suite 120
Phoenix AZ