How to Find Reliable Hard Money Lenders Arizona

Finding reliable hard money lenders Arizona is not as easy as driving to a bank or mortgage company. You will need to invest some time to find the best hard money lender to meet your needs.

Most first time hard money borrowers are not very familiar with the process or their options when it comes to selecting a lender. So it can be very tempting to just accept the first lender who is willing to make you an offer. But there are a few key questions that you should answer when you are assessing potential hard money lenders Arizona.

The hard money lenders website is going to tell you a great deal about how they do business and the actual type of service that they offer. Some sites are very basic and are only used to gather your information. They provide no details about the lender or the types of terms that they offer. Often times you learn after the fact that these sites do not belong to actual hard money lenders Arizona, but instead they are operated by an intermediary or broker who is collecting information on potential borrowers and then turning it over to an actual hard money lender. This is not a person that you want to deal with as they are going to add fees and provide you with no real service. You only want to work directly with the lender.

Professionalism is another important factor when selecting hard money lenders Arizona. You want to work with a lender who can meet your financial needs but also your customer service needs. Reliable contact information, a staff that promptly returns calls and emails and clear and professional documentation are all indication of a professional lender and not a fly by night entity.

Finding a Good Match

Not every hard money lender is going to be a good match for every potential borrower. Some lenders focus only on commercial properties while others prefer to focus on residential properties. Selecting a lender who regularly funds projects similar to yours will undoubtedly make the process smoother and faster which is often a driving motivation for using a hard money lender.

Do Your Homework

Any lender, whether a hard money lender or a traditional lender, is simply a service provider. You would never select a builder for your next home, a contractor or even a car mechanic without checking out the business and its reputation. So you need to commit to the same process with a hard money lender. Be certain that they are in good standing with other borrowers and that they are not embroiled in any legal issues. Check out their reputation with previous clients. Did they offer a professional process and service throughout the life of the loan? Were they reasonable to work with one terms and payments? All of this information will give you insight into what your hard money borrowing experience is likely to be when working with that lender.

How to Understand Repayment Terms for Business Loans Arizona

When trying to obtain business loans Arizona and decipher the sometimes complicated jargon in the agreement, it’s critical to know what is of expected of you in terms of paying back the loan. Level 4 Funding breaks it down.

You need to start with a clear reality about what it’s going to take to get a loan approved — and then be able to meet the repayment term schedule. Terms for business loans Arizona are totally different than home mortgage payments, for example, that you might have for 30 years. These loans at loan-term can range from five to 20 years, give or take, and at short-term, between three and six months to three years. However, the latter will also include higher interest rates.

The short-term business loans Arizona are designed for business owners that need cash and they need it now. This could be for a number of reasons (need to make payroll, want to purchase a building, need to do some important renovations or upgrades to pass inspections) — all of which are time sensitive. These loans can be approved and turned around with cash in hand for the borrower within as little as 48 hours, give or take. However, ultimately, these loans can be more difficult to pay off because of the shorter repayment time allotment plus the additional high interest rates.

With long-term business loans Arizona, the time frame for repayment stretches over a much longer course of time, and they are amortized loans, which means that the loan needs to be paid in fixed installments through the duration of the payment terms. This is similar to how homeowners pay their mortgage — with principle and interest all together. But sometimes there is a balloon payment required at the end of the terms, meaning the borrower much pay the remainder of the loan back in one large sum, which can be difficult as well.

Be sure you are aware of any penalties.

While you would think that paying your loan back early would be rewarded, it can actually work against you. Some loan agreements charge a penalty for early payment (likely because they would like to keep receiving that high interest through the term of the agreement).

Give a professional a call to help you understand the intricacies of repayment terms.

When seeking a loan and understanding all the ins and outs of this complicated application and agreement contract, it’s important to work with someone you can trust. Level 4 Funding’s lenders are professional, experienced and they care about finding you the right loan with the repayment terms that work for you and your business. Give us a call today and let us help you discover how easy and simple the loan process can be.

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

Process for Obtaining Commercial Loans

There is really no shortcut when you are seeking commercial loans. But following a tried and true process can help to expedite the response to your application.

Most borrowers fail to understand that a great deal of the success or failure of their commercial loan application rests on their amount of effort in preparation. There is a huge amount of research and due diligence that a borrower must invest in the process in order to be successful when applying for commercial loans. Understanding the loan application process, the desires of specific lenders and their loan approval criteria are all very important and should be researched long before you begin to search for a commercial property to purchase.

Many borrowers are in awe of commercial lenders and fail to see them as a business partner or vendor. They get too caught up in the “bank” aspect and feel as if they are being judged. The lender is making a judgement but only from the perspective that they want to verify that you can afford the loan. They are just making smart business decisions. In that vein, you should also be making smart decisions about who you are interested in borrowing from. There are many options for commercial loans which you should explore including large national banks, medium sized regional banks, a small local bank, a private lender or a mortgage company just to name a few. If you are not familiar with any major lenders or to gain information about your options, begin with a meeting at your current bank to learn about their commercial loan products.

Each lender is going to have a slightly different set of criteria for approving a loan. Learning these requirements can help you to determine which lenders you will actually apply to. Set up a few appointments to speak to loan officers to learn about the lenders and what they have to offer you. Be prepared to discuss your business, the reason you are requesting a loan and how you plan to meet the financial responsibility of repaying the loan. These conversations can glean some very helpful free advice for you from seasoned lending professionals.

Select Lenders Who Best Meet Your Needs

Not all lenders are going to be a great fit for you or even a fit at all. If you are looking for a small loan then a national bank might not be interested in your application. Likewise, if you are seeking a very large loan, then a small local bank might not be your best choice. Try to determine which lenders specialize in the type of commercial loans that you are seeking and then apply only to those lenders. There are costs involved in commercial loan applications as well as a commitment of time. Don’t waste either by applying to a lender who will not be interested in your business.

Make a Great First Impression

Other than a brief introductory meeting, your loan application will be your first contact with many lenders. This is your only opportunity to create a positive and professional first impression. Invest all of the time that you need to research your options and the criteria that each lender uses to evaluate loan applications. Only then should you begin to compile your documentation and complete the loan application. This dedication to completing a high quality loan application and documentation packet will pay great dividends when you learn that you have multiple loan offers at very competitive rates.

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

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

Commercial loan financing: Methods for becoming a commercial real estate investor

Investors with deep pockets could always buy a piece of commercial property outright, but commercial loan financing can help investors diversify. This article will illuminate some common methods of commercial financing.

Most investors will readily understand conventional mortgages. Even if an investor has enough money up front to purchase a property, a mortgage is usually a better option. An investor can take advantage of multiple investment opportunities and achieve greater returns by spreading their savings between multiple down payments. Some mortgage providers resell their loans to a government entity like Fannie Mae or Freddie Mac. This resale to a government entity restricts the mortgage terms these lenders can offer. Portfolio lenders can offer borrowers more flexible terms on a conventional mortgage. Portfolio lenders finance loans directly from their own funds. Without the involvement of a government group, portfolio lenders can offer better terms to borrowers in some cases.

Any mortgage for an investment property usually requires a down payment of 25 to 30 percent. First time real estate investors may not have the savings to afford such a substantial down payment .These investors could borrow against the value of their home in order to raise the money needed for a down payment. Home equity lending offers both tax benefits and considerably lower interest rates than other types of financing. The lender will consider the borrowers home rather than the property being invested in, which can smooth out the approval process. The purchase of the investment property will also be easier, as sellers prefer buyers who can offer money up front.

Still some borrowers won’t qualify for a conventional mortgage. Hard money or private investment may be the only commercial loan financing method available.

Hard money is offered by professional lenders and private money usually comes from individual investors. Hard money providers do not closely scrutinize a borrowers credit references and instead consider the value of the property being borrowed against. While hard money is expensive it may be only option in some cases. This is especially true for particularly distressed properties that an ordinary bank won’t finance. Unlike hard money lenders, private lenders do not regularly issue loans. Private lenders are individuals with savings on hand and an established relationship with a borrower. Private lenders give borrower cash in exchange for repayment at a specific interest rate. There are no hard and fast rules when it comes to private lenders and the terms on private loans will vary on a case by case basis. The personal relationships of an individual investor will most often determine the terms of any private loan.

One type of commercial loan financing isn't actually a loan at all, these are equity partnerships. Partners get a fixed amount of profit from the investment rather than earning a specific interest rate.

A lender is referred to as an equity partner when they buy a share of ownership in a property. These partners can finance the entire purchase price or the down payment on an investment property. The terms of a partnership are usually defined in an operating agreement or in a promissory note. Like private loans the terms of partnership can vary on a case by case basis. The main difference between a partner and private lender is that a partner receives a specific share of the income generated by the property rather than regular interest payments.

Conventional mortgages, hard or private money lenders and equity partners are the most common way to finance the purchase of a commercial property. Crowd funding is another option. Any first time real estate investor should consider their personal contacts and their credit profile. A private loan or an equity partnership may be a better option than a conventional mortgage or a hard money loan.

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

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 Commercial Loan Financing From the Online Marketplace

You shop for your essential items online, your Christmas gifts and even your groceries. So it makes perfect sense that when you are in need of commercial loan financing you look to the online marketplace to start your loan search – read on for tips to get your best loan online.

As with any industry, there are progressions with technology and commercial loan financing is no different. No longer do you just go to your local bank and ask for a loan. There are so many alternative options that borrowers have access to… as long as they have access to the internet! So get comfy, grab your laptop and get ready to find the loan you need!

To get commercial loan financing via an online marketplace lender, it helps to start out by learning exactly what an online marketplace lender is! Online marketplace lenders help borrowers obtain funding in an online format. You don’t eve have to leave the house! Online marketplace lenders are great options to traditional bank lenders, and are great for people that have less than stellar credit history a low credit score or need cash fast.

Most online marketplace lenders specialize in short-term loans, but there are some that do offer longer-term loans. These lenders are perfect for the borrower who has attempted to obtain a loan via other avenues but have been unsuccessful because lenders on the online marketplace have the ability to be a little more lenient.

There are some things you should know about online marketplace lenders.

If you are in need of commercial loan financing and you are seeking funding via online marketplace lenders, you should be knowledgeable about some things. First, it’s important to know that because these lenders are taking a high risk on your loan, the interest rates you pay will likely be fairly high to make it “worth the risk.” However, your loan, which will likely be a short-term loan, will likely be approved fairly quickly, meaning you will have cash in hand quickly.

When you are ready to seek a loan via the online marketplace, simply turn on your computer!

It can be a fun and interesting process to search for the right loan for your needs via the internet. There are many online tools that can help you determine your monthly payment and length of the loan term based on your needs. When you are searching online it’s still very important to ensure the institution is reputable and licensed to be able to get you the loan you need. It’s a nice element if the online company has a live chat aspect so you can talk to a real person if you have any questions throughout the process.

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

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

Commercial Loan Financing

In the world of real estate development, there are very few hard and fast rules. With commercial loan financing, there are number of areas that allow for borrowers and lenders alike to be able to craft the terms of such a loan to their own best interests.

Knowing how to properly negotiate a loan will not only save a borrower a tremendous amount of stress and angst, but it also has the potential to save a borrower quite a bit of money. Commercial loan financing is all about risk and reward. The first thing to keep in mind when dealing with potential lenders is that a borrower is the customer, but they must also be worth the time of the lender.

Lenders do not deal with borrowers who are not prepared and do not have clear goals, as well as a plan, in mind. Commercial loan financing is not a game for the unprepared or the irresponsible and a potential borrower will do well to understand that, while lenders want your business, they have little time for futility or disorganization. That being said, if you show yourself to be well prepared and ready to deal with the rigors of real estate investment, then lenders will welcome your business. If there is one thing that lenders love, it is a knowledgeable, easy borrower. It means less work for them and they are still able to claim their commission.

There are a number of points of negotiation that a borrower can hit upon with lenders that specialize in commercial loan financing. The first is the interest rate. This is especially true for borrowers that are very well qualified. Lenders will be especially keen to want your business if you have a high credit score and an excellent track record with loans. This gives you a tremendous amount of power to attempt to negotiate an interest rate that will work well for you and for your long-term business plan.

Another point of negotiation is the closing costs associated with the commercial loan financing. These are very commonly negotiated, as they are commonly not a part of the loan itself. They can amount to quite a bit of money, however, and it is usually taken directly out of the pocket of the borrower, rather rolled into the amount of the loan. A savvy borrower will be able to negotiate these fees down, or possibly eliminate them altogether. This same tactic also applies to other fees and costs that are associated with the processing of the loan. At the very least, a well-qualified borrower will be able to get all of the costs rolled into the amount of the overall loan.

What are some questions that a borrower could ask about commercial loan financing?

One key element of commercial loan financing is what happens if a borrower is able to pay off the loan ahead of time. If this is part of your plan, you will most definitely want to know the conditions under which you are able to do so. Many lenders have various penalties and fees that are associated with prepayment, but they are always up for negotiation. If you have a solid plan and truly believe that you are able to pay the commercial loan financing off early, then use those terms as a point of negotiation.

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

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