How to Make Money with Trust Deed Investing

 Trust deed investing can provide substantial rewards with minimal risks for investors. There are a few different ways to get started in trustdeed investing and finding the right financial professional to help you can make all the difference.

Most investors know about stocks, bonds, and real estate investing. Real estate investing can be a very lucrative way to build your investment portfolio. You can invest in real estate in a number of ways like buying a fixer-upper, or purchasing a home to rent out. While almost everyone knows about making money on a fix and flip or as a landlord, there is another, less common type of real estate investing called trust deed investing. Trust deed investing involves three parties, the borrower, the bank, and the trustee. If you are investing in deeds of trust, your role is that of the trustee and you act as an intermediary between the borrower and the lender. You hold the legal title to the property until the loan is paid off or unless there is a foreclosure.

As the trustee, your job is basically to protect the lender in the event of default. If the borrower defaults on the loan, the lender would have to take the borrower to court and could not foreclose on the property until after a lengthy legal process. By using a trustee, the lender has a second option. The trustee can foreclose on the property on the lender’s behalf and help the lender recoup its investment. In the event of a foreclosure, some of the sale proceeds go to you as the trustee to help recoup your investment as well.

While you can earn back your investment in the event of a foreclosure, the real benefit of trust deed investing is when all is going well. The bank or lender will pay you interest rates into the double digits to hold the title to the property. As long as the borrower is making on time payments, you are earning interest every month. Once the loan is paid in full, you also get your initial investment back. You can purchase deeds of trust through a private lender or other investment professional.

Pitfalls of Trust Deed Investing and How to Risk Less

Trust deed investing is generally considered a relatively safe investment because it is backed by real property than can be used as collateral in the event of default. However, like any investment there are risks. Namely, deeds of trust are not insured by the FDIC so there is not guarantee that you will get your money back. Also, if the borrower declares bankruptcy then the home cannot be easily foreclosed on without a lengthy legal process. Depending on the outcome of this process, it is possible to lose some or all of your investment.

These risks are not unique to trust deed investing as every type of investment does have some inherent risk. There are a few ways to minimize these risks and maximize your profits. First and foremost, work with a private lender or equity firm that is experienced in trust deed investing. Make sure that your lender has loaned on deeds of trust before and can explain the process to you, including any and all risks.

You can also help mitigate risks by doing your due diligence. Research a property’s title status and market value. This will help you make sure there are no issues with the title that would prevent a foreclosure. Knowing the market value will help you ensure that the property will be worth the amount of the loan or more in the event of default. This is especially important because the bank will get paid back before you do so you want to be sure there is enough money to recoup your investment.

Find the right lender to guide youthrough the process of trust deedinvesting!

The right lender is key to helping you navigate the world of trust deed investing. Make sure you choose someone who is experienced and knowledgeable about deeds of trust and how the investment process works.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

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

How to Clean up Your Finances to Get a Self Employment Home Loan

Being self-employed can be both a benefit and liability when it comes to your financial life. Various tax deductions and business credits can be very lucrative but they can also bite you when it comes time to get a home loan. There are several ways that you can get your finances in order so that you can be sure to qualify for a self employment home loan.

Getting a home loan when you are self-employed can be difficult. Many business owners take advantage of several tax deductions to lower their tax liability and write off legitimate business expenses. Unfortunately, when the bank looks at your tax returns this can make it appear that you lost money on your business, even if you in fact had a good year. Also, various business loans or losses can affect your personal credit and lower your score. This can also be a deal breaker for many traditional lenders who may laugh you out of the bank when you come in for a loan.

While this may be embarrassing, it is also avoidable. If you are thinking of purchasing a property, whether for an investment, vacation home, or primary residence, there are certain steps you can take to clean up your finances to give you the best shot of qualifying for a self employment home loan.

·       Clean up your tax returns for two years prior to attempting to get a loan. Take less deductions to make your taxable income higher. While you may pay more taxes, it will also make it easier to qualify for a home loan.

·       Stash away extra cash. While factors like credit score and debt to income ratio are important, money talks and often it speaks the loudest. Having a large down payment and a year of living expenses in the bank can often make you look like a more attractive loan candidate, even if your finances are less than ideal on paper.

·       Separate your personal and business finances. Think about incorporating your business into an LLC or other entity to keep it separate from your personal accounts. Pay yourself a salary and charge any and all business expenses to a business credit card. If you get a business loan, keep it in your business name, not your personal name. Keep your business accounts and personal bank accounts separate. This will lower your debt to income ratio and keep all of your business taxes separate so you can still take advantage of all the deductions you are entitled to without affecting your chances of qualifying for a home loan.

·       Keep meticulous records. One thing that can be a serious problem for many business owners is that it can be tricky to prove exactly how much money you make, especially if it is coming from different sources. Having good records will make it easier to prove your income when it comes time to get a self employment homeloan.

When all Else Fails….

Even with the above steps, you may still find it difficult to get a home loan. Don’t give up hope. A traditional loan may not work for you, but there are many other types of loans that can help you. Find a private mortgage broker or lender to find the self employment home loan that you need. A few types of loans that can help you are:

1.       A traditional loan from a non-traditional lender. A private lender can often give out 30 year fixed mortgages to borrowers that would otherwise be turned away by banks. Be aware that you will most likely pay a higher interest rate but this is often worth it in the long run.

2.       Hard money loans and private collateral loans. Private lenders have access to different types of loans and funding that banks do. You can take advantage of their private collateral self employment home loans that can work to your benefit.

3.       Stated income mortgage. These fell out of vogue with banks during the housing crash but may still be available with a private lender. There is less paperwork and your income does not require as stringent of verification, making it ideal if your record keeping is less than perfect.

Find a private broker or lender today to learn more about all of the benefits of a self employment home loan.

Call us a Level 4 Funding today to discuss your home loan options. We can help you get the loan you need with the terms you deserve. Don’t let being self-employed hold you back. We can help!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

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

  

How to Use an Arizona Bridge Loan to Make Your Dreams Come True

 If you are trying to buy and sell a home at the same time, an Arizona bridge loan can be a valuable tool to have. This type of short term learn can help make sure that you get your dream home with very few risks.

An Arizona bridge loan is a specialized short term loan that can be useful for real estate transactions. It is a short term loan that allows you to use the equity in your current home as a down payment on a new home before your current home sells. As the name implies, an Arizona bridge loan is designed to “bridge” the gap by giving you funds for a down payment. The loan is paid back with the proceeds from you home sale.

An Arizona bridge loan is a valuable tool because most buyers rely on the sale of their current home to come up with the down payment for their new home, however, it is not always feasible or ideal to close on the current home first. In a perfect world, you close on your home in the morning, have funds available by noon and close on your second home before the business day is over. But it very rarely works this way. More often, you close on your current home and have to find a short term rental for a month or two before you close on a new home. This is not only expensive, but it causes you to have to move twice and you are literally throwing money away by renting.

One solution to the problem is an Arizona bridge loan. A bridge loan bridges the gap by lending you the down payment for a new home that you then pay back once your home sells. The bridge loan is secured to the buyer's existing home. The funds from the bridge loan are then used as a down payment on the new home. Bridge loans are gaining in popularity as a down payment option because they offer flexible terms and are relatively easy to qualify for. Also, many lenders will not allow you to take out a home equity loan on a home that is listed for sale, so in many cases a bridge loan is the only option to come up with cash for a down payment.

7 Things to Consider if You are Thinking About an Arizona Bridge Loan

Like any loan, a bridge loan has certain risks and benefits. Knowing all your options and going into it fully informed will help you risk less and benefit more. Here are five important things to keep in mind if you are thinking about getting an Arizona bridge loan.

     1.     You will pay a higher interest rate. Like many short term loans, bridge loans have higher interest rates than 30 year loans. You usually have a grace period of 1 to 4 months depending on your loan terms and if you pay the loan back with proceeds from your home sale, you can usually avoid paying a lot of interest.

     2.   Qualification is usually an easy and painless process. Most lenders do not have set FICO scores or debt to income ratios for bridge loans. Instead, qualification is based on a complete picture of your finances and whether it makes sense to purchase a home before you sell your current one.

3.       A bridge loan can save you money. If you wait to purchase your new home until your old home sells, you may end up needing a short term rental. This is literally throwing money down the drain. Getting the right Arizona bridge loan and selling your current home quickly can actually save you quite a bit of money.

4.       There will be fees. An Arizona bridge loan has several fees associated with it. You will pay an administration fee of about $750 and an appraisal fee on your current home to ensure it is worth what you need to sell it for. In addition, you will pay wire fees, origination fees, and points which will be dependent on the amount of your loan. When all is said and done you will probably end up paying about $2,000 to secure your bridge loan.

5.       You can find your new dream home without the stress of having to sell your existing home first. You don’t have to wait or make unattractive contingency offers. You can purchase your new home immediately which will usually get you a better price and help make sure you get the home you want.

6.       You have to be able to qualify for two mortgages. A bridge loan can help you with a down payment, but you will still need to qualify for two mortgages and be able to make monthly payments on both if push comes to shove. However, most mortgages don’t require a payment for the first month so if you sell your home quickly, you can usually avoid double payments.

7.       A bridge loan can cause stress. If your current home does not sell quickly, you will end up paying the mortgage on it, the mortgage on your new home, and the payment on your bridge loan. Make sure to carefully evaluate your finances to ensure that you can make your payments for a short time if you need to. You can also help eliminate financial stress by pricing your current home to sell quickly.

Once you have evaluated the pros and cons of an Arizonabridge loan, contact the financial professionals at Level 4 Funding to get your application started!

The sooner you apply for your bridge loan, the sooner you can get cash in hand for your down payment. Don’t let your dream home slip away because you are waiting for your current home to sell. Find out the benefits of bridge loans today! 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

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

  

5 Things You Need to Know About an Arizona Bridge Loan

An Arizona bridge loan is a special type of short term loan that can help you buy a new home. It is important that you know your options and fully understand the terms of your loan to make an informed decision.

An Arizona bridge loan is a specialized short term loan that can be useful for real estate transactions. It is a short term loan that allows you to use the equity in your current home as a down payment on a new home before your current home sells. As the name implies, an Arizona bridge loan is designed to “bridge” the gap by giving you funds for a down payment. The loan is paid back with the proceeds from you home sale.

A bridge loan can be very beneficial in many ways because it allows you to buy a new home and put yours on the market without any restrictions. When you are living in a home while you are trying to sell it, scheduling showings can be a nightmare, especially if you have pets or kids. It is also difficult to keep your home show ready and leave at a moment’s notice. Many buyers will also have trouble picturing themselves in your home while your stuff is there. A bridge loan can allow you buy another home while yours is still on the market by fronting you the down payment.

An additional benefit of a bridge loan is that it is relatively easy to qualify for. There is not a lot of paperwork and since many borrowers will have a high debt to income ratio because they own two homes for a short period of time, debt and credit scores are not as important as they are in traditional loans.

Important Things to Consider when Thinking About an Arizona Bridge Loan

If an Arizona bridge loan sounds like it might be a good option for you, it is important to know all of the risks and benefits and know the ins and outs of your loan terms. Make sure you are in the driver’s seat and in control of your loan at all times. Here are a few things to keep in mind.

1.       An Arizona bridge loan may have a high interest rate. Since a bridge loan is a short term loan and is secured by the sale of your current home, the lender is taking a fairly significant risk in extending you the credit. The more risky the loan, the higher the interest rate. Although interest rates do fluctuate, you can expect to pay more than the prime rate and your rate could climb as high as the double digits.

2.       You can avoid paying interest. Although the loan itself has a high interest rate, shopping around for the right loan can help you avoid paying any interest at all. Many bridge loans allow you to skip the first few months of payments. If you can sell your home during this time period, you can pay the loan back before any interest accrues.

3.       There will be fees. An Arizona bridge loan has several fees associated with it. You will pay an administration fee of about $750 and an appraisal fee on your current home to ensure it is worth what you need to sell it for. In addition, you will pay wire fees, origination fees, and points which will be dependent on the amount of your loan. When all is said and done you will probably end up paying about $2,000 to secure your bridge loan. For most borrowers this is well worth it to get them into their new home sooner rather than later. Also, keep in mind that the fees will vary depending on your lender so shop around.

4.       A bridge loan can cause stress. If your current home does not sell quickly, you will end up paying the mortgage on it, the mortgage on your new home, and the payment on your bridge loan. Make sure to carefully evaluate your finances to ensure that you can make your payments for a short time if you need to. You can also help eliminate financial stress by pricing your current home to sell quickly.

5.       A bridge loan can save you money. If you wait to purchase your new home until your old home sells, you may end up needing a short term rental. This is literally throwing money down the drain. Getting the right Arizona bridge loan and selling your current home quickly can actually save you quite a bit of money.

If an Arizona bridge loan sounds like a good option for you, start looking at your options today!

An Arizona mortgage broker or private lender can help you get started on getting your bridge loan. Call our office today to schedule an appointment. You will be glad you did!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

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

  

5 Things to Consider If You Need a Self Employment Home Loan

If you are self-employed, you may have difficulty qualifying for a traditional mortgage. However, don’t be disheartened, there are many self-employment home loan options that can help you find the loan you need to buy the home you deserve.

There are many perks to being self-employed. You get to be your own boss, decide your own hours, create your own dress code, and in many cases, answer only to yourself. There are also a host of legitimate tax write offs that can make owning your own business more lucrative than punching a time clock. Everything from home office space to computers to office supplies and sometimes even meals are tax deductible. This can greatly lower your tax burden and help you keep more of your own hard earned money.

However, while many of these tax deductions can be huge benefits come tax time, they can also make it difficult to qualify for a home mortgage. For many business owners, there taxable income and what they actually make can be very different, with the amount that is taxable being relatively low. In some cases, business deductions may actually make it look like your business is in the red when in reality you are making a comfortable income. When you go to buy a home or investment property, this can become a big liability. Many traditional banks will look at your tax returns and give you a loan that is significantly smaller than what you need or can afford. Or, even worse, you may be denied a loan altogether based on your tax returns.

For many business owners, this can be a discouraging experience. You spent years of your life building your business and your personal brand, only to be told that it can actually be a liability. Do not lose hope. While many traditional banks may have their hands tied, there are several self employment home loan options and programs that can help you get the home loan you need.

How to Get a self employment home loan

 If you find yourself in the situation of needing a non-conventional loan due to your self employment status, you need to get organized and find the right company to help you secure your loan. Here are five things to consider when you are in the market for a self employment home loan.

1. Find a mortgage broker and private lending company. Banks are hard to deal with. A mortgage broker will work for you to find the loan that you deserve. A mortgage broker can help you even when a bank has already said no because he has access to multiple lending institutions and loan types whereas a bank can only give out its own loans. A private lending company can also be useful because they can give private investments that banks are not able to offer.
2. Get your financial ducks in a row. Make sure you keep meticulous records and inventory to give a clear picture of what your cash flow looks like.
3. Consider separating your business and personal finances. This way even if your business is in the red due to expenses, your personal income is intact. Pay yourself like you would any other employee. This may mean that you end up paying more in social security taxes or personal income taxes, but may end up being worth it.
4. Look into alternative loan types. Hard money loans, adjustable rate mortgages, FHA loans, and private capital loans can all be good options for self employment home loans.
5. Be persistent. You may hear no a few times before you hear yes. Keep trying. The right loan is out there.

When you are ready to take the plunge and learn the benefits of a self employmenthome loan, call us at Level 4 Funding to get the process started.

Our knowledgeable and friendly staff can help you every step of the way. You will be glad you called. We look forward to the day the title company hands you your keys to your new home.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

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

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Create a custom foam box to ship items frozen.

Make a custom foam cooler from custom foam packaging.

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Videos Links

News and Videos on Arizona Home Loan Servicing and Arizona Home Mortgages.

For Videos and News on Hard Money Arizona Private Arizona Money  go to www.joandidit.com

For Important Videos on investing in Arizona Deeds of Trust  www.westwingaz.com

Hard Money Rates and Information for Arizona  www.dennisazhomes.com

Step by Step Help on Investing in Deeds of Trust Videos and Information for Arizona  www.theboxsupply.com

News and Videos on Arizona Home Loan Service and Arizona Home Mortgages  www.setabayloan.com

Level 4 Funding… The New, One-of-a-Kind Alternative Investment Solution!

PRESS RELEASE

FROM:                                                  Level 4 Funding, 23335 N 18th Drive Suite 120, Phoenix AZ 85027, USA (http://www.level4funding.com)

MEDIA CONTACT:                            Mark Gowlovech, Vice President Acquisitions, 602-413-3930, mark@level4funding.com

FOR IMMEDIATE RELEASE

Level 4 Funding… The New, One-of-a-Kind Alternative Investment Solution!

A new investment company that lends out money to real estate investors and earns investors 8-12% on their investment has today announced a new way show how investors are making money investing in what is called “Level 4 Funding”.

The company, which targets accredited investors or people who want to invest in real estate, also goes by the name ”Level 4 Funding”.

“Level 4 funding is an alternative funding option for investors who are looking for a variation of self-funding, which is a one of a kind investment solution currently available in the marketplace” says Mark Gowlovech, Vice President Acquisitions at Level 4 Funding.

The Level 4 Funding company, which offers investors residential and commercial real property loans,  present clients a one of a kind loan facility that comes with the following features:

• Fast Funding within 24 hours
• Loan Value up to 70%
• Investor or flipper accepted
• Fix-up and rehab projects
• Interest only payments
• Appraisal not necessary
• 90 to 180 Day Note
• No loan form to fill out
• No tax return, pay check stubs
• No Points, Fee, Closing Costs, Application Fees

“Through Level 4 Funding, a whole new breed of real estate investors is making crazy money by investing in Level 4 Funding, where people are earning an average of  8-12  per cent on their investment,” says Mark Gowlovech, Vice President Acquisitions at Level 4 Funding.

“We at Level 4 Funding are committed to helping investors realize their dream of investing safely while earning a great return on their investment,” says Mark.

Asked why potential investors would be interested investing their hard earned money in Level 4 Funding and what were the benefits, Mark points to the fact that not only were persons earing a steady return of 8-12 per cent on investment, but that in today’s troubled economy Level 4 Funding offers investors a newer and safer way for them to invest their money.

“Level 4 Funding comes with unique features that pre-set monthly payments, with a high level of information and control,” he adds.

For further information about Level 4 Funding, please visit the following website:

http://www.level4funding.com