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Showing posts with label California Hard Money lender. Show all posts
Showing posts with label California Hard Money lender. Show all posts

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

Saturday, March 24, 2018

Why Hard Money Lenders Only Fund 75% of a Property’s Value

Understanding why hard money lenders will only finance 75% of a property’s value will allow you to be better prepared for requesting a loan. It will also help you to understand what other factors can make your request more desirable to lenders.

Loan to value ratio is the most critical factor to all hard money lenders when they are evaluating a loan request. In general, the loan amount cannot exceed 75% of the current market value of the property. This is because the property is being used as the collateral for the loan, which is not unusual. Home mortgages are secured by the home being purchased as well. But in the case of commercial properties there is more information that must be taken into consideration.

Unlike home values which are fairly static, commercial property values are much more volatile. There are several events which can impact a commercial property’s value which are not considered to be factors in residential property values. The economy has a much greater impact on commercial properties the residential. A downturn in the economy or a single industry does not extend to every consumer who owns a home, but it does have an impact on every business. And as competitive as industry is in the country, a slight downturn in the economy is certain to cause some businesses to fail.

Likewise, a downturn in a certain industry would not cause all of the homeowners in a neighborhood to sell their homes or abandon them. But it could result in many businesses closing in a single area which would quickly drop the value of commercial properties in the area. All of these factors must be considered when a commercial property is being used as collateral.

The Hard Money Lenders Thought Process

Knowing that the value of commercial properties can fluctuate a great deal and can change very rapidly, the lenders want to be certain to always have a way to recover their investment. This means never having the current balance of the loan near the current market value of a property. Over the years, the 25% margin has become an acceptable industry standard among hard money lenders.

How to Use This Knowledge

Knowing that the market value of a property is critical to getting hard money approved, there are ways that you can build additional confidence with a lender. Selecting a property in an area that is thriving is always smart. Also, selecting a property which is not dependent on a single industry is helpful. Knowing that any business could use the property provides more options to rent or sell the property at a better price in the future. In addition, location can have a huge impact on the perceived value of the property and therefore its actual value. Being easily accessible is important for any business who relies on consumers visiting their location. So a property near an expressway or major street is more desirable than a location in a rural area or one that is difficult to drive to. Consider all of these factors and try to select a property which will hold its value well. This will make your loan request much more appealing to a 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
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

How to Find Hard Money Lenders

There are various reasons that people turn to hard money lenders, but knowing the benefits is only half of the challenge. Now, you have to find the one that is right for you.

Hard money loans are often issued by individuals or companies. At one time, they were considered “last resort” loans for people or businesses with imperfect credit. In today’s world of fix & flip investors and contractors in need of quick funding, they are a part of most businesses and individuals lending portfolios. People often turn to hard money lenders when they are in need of a bridge loan that keeps them afloat until a property sells or is renovated. Other’s use this type of loan due to time constraints and when initial capital is required in a matter of weeks instead of months, such as when a hot property hits the market.

So, just where do you go to get these quick-to-fund loans? Ideally, it’s best to work with a lender that specializes in your specific business model or real estate segment. For instance, a hard money lender that understands construction loans will offer monthly quick-payout draws as well as interest-only payments, both of which are designed to take the stress off you and your company as you progress through the building process.

There are also hard money lenders that specialize in the fix & flip or buy-and-hold real estate segments as well as multifamily, office, warehouse and storage complexes. If you do not have a direct reference from a fellow business associate, you can turn to the many listings on the internet. If using this approach, be sure to look for recommendations from established businesses and don’t be shy when addressing your concerns. If you find a qualified lender that you can trust and has a large rolodex of private lenders to draw on, you will most likely find yourself turning to this funding source time and again for many of your capital needs.

Things to Consider When Interviewing Lenders

There are a few basic questions that you will want to address when undergoing an interview with a potential lender. One of the most important is their loan-to-value ratio (LVR). Because hard money loans are asset based, the loan value is determined by the appraised value of the property. Some lenders will use the potential value of the property once renovation has been completed, otherwise known as the after-repair-value or ARV. This approach, however, is very risky and, for those lenders willing to take this chance on you and your abilities, will often mandate a higher-than-average interest rate. Many lenders stick to about a 70 percent loan on the value of the property.

At Level 4 Funding, our loan-to-value goes as high as 90 percent with 100 percent of rehab for fix & flippers.

Of course, loan-to-value is just part of the equation. The other all-important consideration is the interest you’ll be paying on your loan and the terms the lender offers. At Level 4 Funding, our interest rates start at 7.99 percent with terms anywhere from 3 months to 5 years. Call us today for a no-obligation quote.


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 16, 2018

Why Commercial Real Estate Loans are Beneficial for Small Businesses

It can be exciting when it is time to expand your new business, but it can also be stressful when you need to start looking for extra funding for your expansion. Applying for commercial real estate loans can be a grueling process, but in the end, it is well worth it.

Always do plenty of research and compare all of your options. This way, you will be prepared and know what to expect. Working with a lender you can trust is very important because then you will feel comfortable asking all of the questions you need to ask to ensure you understand everything. Commercial real estate loans can be used for many things like a new location for your business, renovation of your current location or expansion of your current location. Really, you can use it for any of your real estate needs. Especially if you are looking to purchase new property. This can cost a lot, leading to the need of extra financial help.

Find the right lender to work with. They will open with you about the entire process and will discuss the terms and fees that come with borrowing. Reputable and honest lenders will discuss with you what will happen if you decide to pay off the loan early. In this case, you may be responsible for some fees. If you are open and honest with your lender from the beginning, then you will not be hit with any hidden terms or hidden fees.

Interest rates will also vary when it comes to commercial real estate loans. It will depend on many things like your credit history, financial situation and type of business. These loans will usually come with higher interest rates than compared to other types of loans. The interest rates can fluctuate, but the average rate will most likely be between 3.5 percent and 6 percent.

Be prepared to now only pay higher interest rates, but also higher additional fees.

Upfront fees and additional costs aren’t that uncommon for commercial real estate loans. Just like with interest rates, these additional fees are going to be higher with these type of o loans. Some of these fees could include: legal costs, loan application fees, survey fees, property appraisal or even an annual fee.

Higher interest rates and higher fees can be difficult, but working with the right lender will make it worth it in the end.

There are many reasons for why you may need to extra funding. And even though it takes some time, work and a little bit of stress to apply for extra funding, if you work with the right lender and are prepared with what to expect throughout the process, then all of your hard work will pay off.

.

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

Tuesday, May 30, 2017

Builds Relationships to Win in Real Estate and Life

How the Bourque Family Builds Relationships to Win in Real Estate and Life

Looking for inspiration and tips to win in real estate and in life? Chat with AR and Frank Bourque and they’ll fuel your passion for real estate and overall success.

Meet AR and Frank Bourque

AR began his real estate career years ago, helping his father locate, refurbish, and sell fix and flips in Massachusetts. With multiple talents and strong creativity, he branched out into interior design, home staging, and contemporary art. He still uses his interior design talents today to refinish fix and flips and turn them into his buyers’ dream homes.

untitledAR also spent many successful years as a fashion model. Today he enjoys creating contemporary paintings, particularly sunsets. A member of the Scottsdale Arts Association and several other artist communities, AR’s gorgeous contemporary art has been awarded 1st, 2nd, and 3rd place honors at multiple events. His paintings are available for purchase and can often be found displayed in homes staged for sale, thanks to his realtor friends and fans.

An Arizona enthusiast since the late 70s, AR decided to purchase his first Phoenix Fix and Flip area property 8 years ago. Now a contented Phoenician, AR looks forward to enjoying his retirement years in sunny Arizona.

AR and Frank met in Massachusetts and soon realized they were compatible both personally and professionally. Now a happily married couple, Frank handles the financial side of the family’s real estate ventures while AR coordinates property identification, contracts, design, refurbishing, and sale. An MBA graduate from George Washington University, Frank works in the corporate finance field handling a wide range of government and defense contracts in Mesa and elsewhere.

Building their Power Team

AR and Frank’s skills complement each other in a way that makes their business work. But they agree it takes more than just the two of them to build a successful real estate business and portfolio. They share that the key to success in life and business is relationships. To succeed in real estate, you must establish good relationships with real estate agents, financing companies, contractors, and more.

IMG_4007Frank shared that their success strategy revolves around building a real estate “power team.” He knows first-hand that strength in numbers creates wins. When building your team, he advises seeking professionals who are ready and able to assist you with your project with the shortest possible notice. The world of fix and flips requires speed and agility, so quick reliable team members are needed. Each person on the team must consistently put in their best effort, and you must be able to rely on their performance.

Funding your Fix and Flips

As part of their Power Team, Frank found and leverages the expertise of Matt Prosory at Level 4 Funding. Since he handles the financing for the Bourque real estate transactions, Frank knew he needed to locate a Power Team member who was professional, responsive, and could accommodate their business needs and timelines consistently. He found Level 4 Funding when searching the web for options, and says that Matt has been the perfect addition for the Arizona Hard Money finance role on in his team.

The Bourque family has completed 3 real estate loan transactions with Matt so far and is thrilled with the results. “We are extremely happy with Level 4 Funding and loan expert Matt Prosory,” Frank says. “The key to any business is service. And their service has been impeccable.”

"We are very proud and happy to have an individual like Matt on our team,” Frank continued. “He's a joy, and he makes it happen in the timeframe we need. He's part of our power team and saves us money." Frank explained that Matt has always been able to make the speed of the financing transaction match the speed of their purchase, whether it required a swift turn-around or an unexpected delay in securing the real estate occurred. Frank and AR recommend Matt and Level 4 Funding to others, and have given them a solid, well-earned place on their go-forward Power Team.

More Real Estate Pro Tips

When asked for additional real estate success tips, AR and Frank offer this advice:

Stay away from unscrupulous real estate training “gurus.” Many are “rip-offs” and though AR and Frank invested in a few, they didn’t feel any were worth their time or money. They learned best by doing—diving into the industry, and following in the footsteps of AR’s father.

Avoid a “get rich quick” mentality. The Bourques currently follow a deliberate, paced approach to real estate and aren’t rushing to get to the next level. Building your portfolio too quickly can cause financial strain and increase risk. Eventually they plan to boost their rental properties using a buy and hold strategy, as well as venture into commercial properties. But for now they’ll stay focused on building cash flow with fix and flips until they proactively reach their next milestone.

“Use it or lose it.” AR notes that the key to success in any endeavor is consistency. Whether it’s fix and flip real estate or art, you must consistently practice your skills to maintain and improve them. Real estate is no exception, so do the work and the results will follow.

Relationships are everything. The Bourques are proud of being together and building a strong relationship as a couple. Challenges in life come up, but it’s all about how you handle them and move forward that makes you stronger. They build and value their relationship with each other as well as their business partners. Relationships with others that have the same goal and vision and can help you accomplish it will bring lasting satisfaction and success.

Final Advice

Frank and AR agree that having a true passion for what you’re trying to achieve keeps you motivated and on track. It takes a lot of work, time, and patience to find and flip real estate deals. Some days it can be frustrating, but when that happens, look to your Power Team and lean on your relationships and keep moving forward. The HARD money you’ll end up with should boost your motivation too!

Whether it’s rallying their Power Team for their latest real estate find, or relaxing at home with their three Italian Greyhounds—Dove, Maya, and Ari, Frank and AR appreciate great relationships. Get your Power Team going, and start by adding someone like Matt from the Level 4 Funding team to handle your financing. The right relationships equal consistent wins.


Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 


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. 


Saturday, February 25, 2017

California Hard Money Lenders and Personal Loans

By now, you know that California hard money lenders offer a variety of lucrative lending programs for specific residential properties and commercial ventures. But, did you know that California hard money lenders are also in the business of personal loans?

iStock_000002410696_Small (1)Before you run to find your top California Hard money lenders for a personal loan, it helps to get a better understanding of what qualifies as a hard money personal loan in lenders’ eyes. For starters, personal loans that involve hard money financing, unfortunately, cannot be used for whatever your heart desires. Unsurprisingly, there are several regulations as to what you can use your hard money financing for.

For example, a personal loan with hard money financing can be used to purchase a car or provide the necessary capital to start a small business. These particular kinds of loans can also be used for your traditional commercial ventures, mobile home parks, retail stores and multi-family family housing if you so choose. The point here is that the real regulation with hard money and personal loans is more about you as a borrower. Think about it this way, most borrowers seek out hard money financing for hard to finance business endeavors. These endeavors are harder to secure financing for a variety of reasons. For instance, if it is a new business or a startup, then working with lenders that offer hard money financing may be your best option.

Of course, if you are looking to fix and flip a property or make improvements than you may need hard money financing for different reasons such as less than stellar credit. With hard money personal loans, you very well may fall into these above-mentioned categories or borrowing scenarios however the real issue tends to your borrowing fitness if you will. Your borrowing fitness is really just a nice way of saying that you either have the perfect credit score, the right paperwork and so on or you do not. Thus, when you are the verge of dealing with lenders who offer hard money personal loans, you may feel as though you have reached the end of the line; but, the good news is you haven’t.

The Pitfalls of Rotten Credit
So you have determined that your borrowing fitness is less than perfect and traditional as well as non-traditional lending institutions are unwilling to work with you. You may even truly think that there is no way to see your latest business plan or improvement project through. But again, as briefly suggested, you can overcome these pitfalls. This means improving your borrowing fitness in the long run of course, but it also means working with a lender that understand your less than perfect credit or rotten credit and your vision/ endgame.

Your Win-Win Solution
Ultimately, this is where hard money personal loans can help or be the most beneficial. Thus, as you can see, it would behoove you to find a reputable lender of hard money personal loans if you have been turned away from what feels like every lending institution. If you do not know where to start your search for these particular kinds of lenders, it never hurts to ask your local broker or to simply ask around.


Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 
 



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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

Friday, February 24, 2017

How To Make Money With California Hard Money Lenders

fix flip hard money lender level 4 funding llc
The obvious way to make money with California Hard Money Lenders would be to take a loan out so that you can flip a house, but that is not the only way to do so—you can also invest in hard money loans.

The entrepreneurial spirit is alive and well in the United States, but since many people do not have the best credit, the have a hard time getting approved for a loan through traditional channels. Lucky for them, there are other options available—such as California Hard Money Lenders.

But seeking out a loan so you can start a business is not the only way you can make money with a California hard money lender. Rather than take out a loan with one, you can invest in the hard money loans they are approving.

Investing With California Hard Money Lenders
But wait? Don’t most California Hard Money Lenders take on clients that are less than reputable? There has to be a reason why the banks said now. Why should I trust them with my money? Am I really going to see it again?

Yes, there is an element of risk, much like there is with any investment. But it is important to remember that banks are unforgiving in their approval process. If you’ve made one mistake or haven’t got enough income coming in to make them happy, that can be enough to get declined. That doesn’t mean the borrower is untrustworthy. If anything, it just means they are human.

If that actually does concern you, then you can do something about it. When you invest in California Hard Money Lenders you are in control of your money and will get the chance to know everything you need to know to make the right decisions for you:
- You will know exactly what piece of real estate your money is being used for and its worth
- Who the borrowers are.
- What the rate of return will be.
- What safety and security measures that are in place to make sure the investment is safe.

Ready To Make Some Money?
Taking out a hard money loan and opening a business is one way to make money, but what if you don’t really have the entrepreneurial spirit in you? What if you don’t want to have to go through all the work it takes to set up a business and get it running? What if you would rather take advantage of someone else’s hard work and profit from it?

Of course, if you do invest in hard money loans you will still need to do some homework to see what projects and/or people you are going to be interested in investing in. But once you do that, your hard work is over. All you have to do is sit back and watch someone else do all the work making you money.

It’s not as inventive as opening a business, but who cares as long as you make money?

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 




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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

Thursday, February 23, 2017

California Hard Money Lenders and Spec Construction Loans

California hard money lenders seem to be able to help borrowers and investors do the impossible, but what about for builders? If you have been in the business for a while, you know that most lenders do not rush to approve spec construction loans, but can the same be said for California hard money lenders?

Untitled-1The good news is that California hard money lenders are known for providing a helping hand when borrowers need it the most. Of course, this is not to say that every lender in California who offers hard money financing is willing to take a chance on Spec construction. If you do not know what Spec Construction is, it is basically construction that has no guarantee of making a profit once sold. More specifically, Spec loans do not have the requirement of having the debt ratios calculated.

Generally, most construction does not provide a clear indication of a profit, but with Spec construction, the end result is very much unclear. With that being said, you can see how any kind of lender or traditional lending institution would have some reservations about approving such a loan. What’s more, banks typically decline these particular loans without a second. But, as briefly suggested, lenders who work exclusively with hard money financing tend to have a different approach to Spec construction loans.

For instance, you can find hard money Spec construction loans surprisingly easy with competitive terms. The reasons that hard money lenders are willing to go out on a limb where other lenders won’t is because these particular lenders understand the nature of the construction business. In other words, sometimes you secure a Spec construction loan with no real profit margin insight and to your delight, you make more than enough profit. Other times, a builder or investor may barely break even. But, with incremental funding options, that builder or investor will more than likely be able to meet their terms and move on to the next venture that will hopefully allow them to recoup and profit.

Benefits of Hard Money Spec Construction Loans
Besides being able to secure financing for such an endeavor, the real benefit of hard money spec construction loans is that your lender is willing to work with you when it comes to your loan terms. For example, many lenders that offer this particular kind of financing offer no prepayment penalties, no seasoning of funds for closing, 24-month terms and much more. It is also important to note these lenders only care about the loan being paid off, not how you accomplish it. Thus, you have even more flexible than you would normally see with non-traditional lending institution or banks.

Things to Consider
Ultimately, you can see how hard money lenders can be a true lifeline in a variety of ways. Nevertheless, it helps to keep things in perspective i.e. a strong project means better funding, even bank funding if you play your cards right. Therefore, you should really take a look at your future Spec construction project and make an educated guess as to the outcome.


Happy senior business man making his notes at workDennis 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.


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