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Showing posts with label private hard money lender. Show all posts
Showing posts with label private hard money lender. Show all posts

Thursday, November 8, 2018

WHY YOU SHOULD WORK WITH AN ARIZONA PRIVATE MONEY LENDER


What is a private money lender? How can I benefit from one?

The definition of a Arizona private money lender is a non-institutional lender that issues short-term loans for the purchase and renovation of an investment property. These loans are secured by the borrower’s assets. An Arizona private money lender can be anyone from a family member to a private lending institution.

Private money lenders are commonly known as Arizona hard money lenders. These are considered the best types of lenders due to their reliability, costs, fees and loan terms.

The interest on a private money loan is an interest-only monthly payment. What that means is that throughout the repayment period the borrower pays only the interest accrued on the loan as their monthly payment. Then, at the end of the loan it is paid in full. Even though the interest rate will be higher than a conventional bank loan, the monthly payment may easily be less. Because of this many house flippers take out loans from private money lenders. In fact, short-term Fix-and-Flippers that want to buy, renovate and sell within 6 months to a year are great candidates for private money loans. Buy-and-Hold Investors looking to purchase and renovate a rental property, prior to refinancing with a conventional loan, also benefit from these loans. However, private money loans will fund a variety of properties such as apartments, condos, commercial real estate, and single family homes.

How do Arizona private money lenders work?

Traditional bank loan approval is based largely off a borrower’s FICO score, revenue stream and employment. Private money lenders are less concerned with your FICO score and more interested in your hard assets. This gives the lender security knowing if the borrower defaults they will be repaid.

After-rehab-value (ARV) and loan-to-value (LTV) are terms borrowers should familiarize themselves with. ARV is what the property will be worth once the renovations are complete. LTV describes the size of the loan you take out compared to the value of the property that is securing the loan. Private lenders will usually loan out an amount that is equal to a percent of a property’s LTV or ARV. Most commonly they will lend 90% of a property’s LTV and 80% of a property’s ARV. That being said, it is pretty common for private lenders to give loans based on ARV for a property in poor condition and a loan based on LTV in fair to good condition.

What to look for in an Arizona private lender.
  1. Interest rates and fees— Private money loan interest rates will vary. Typically, interest rates are somewhere around 8%-15%; lending fees around 1.5%-11%. Make sure you research and find the rates and fees that will work best in your situation.

  2. Experience— Lenders are proud of the years they have been in business and the amount of loans they have approved. Often this type of information is found on their websites. The more deals they have done equals more experience. Having experience on your side will make this process run more smoothly.

3.   Specialization: Private lenders frequently have a specific area of real estate

     they specialize in; this can be residential or commercial. You want to work

     with a lender that has experience in the property type you are financing.

Do your homework; find a lender that will work for you. It can be a scary step. But, once you familiarize yourself with the process it can make your dreams come true!


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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Monday, September 11, 2017

Advice for First-Time Texas Commercial Real Estate Investors

MagazinesTexas Commercial Real Estate investing can be a very lucrative investment strategy. Here are a few tips to help first-time investors succeed.

With the instability in the Asia and the resulting tweets in America, some are wondering if another crisis fueled by instability is at hand. While the politics of the world can be unnerving, those that have been in real estate investing for some time are still betting that the double-digit return that many have seen in the last few years will continue to climb. After all, in an unsteady world, the solid aspect of land can feel a little more secure than the ticker symbols of Wall Street. Here, then, are a few tips for those thinking about entering this investment strategy.

Know your strengths. While that goes for many walks of life, it is particularly true in the Texas Commercial Real Estate industry. Though many investors now sit behind polished mahogany desks, there was a time when these same individuals had hammer in hand or a real estate license under their belt. The key is profits. If you can renovate a distressed property or sell it once it is ready to go on the market, you increase the often slim margins. If you’re considering buying and holding in order to build equity and your portfolio and create multiple streams of income, know your numbers—the rent that particular market will sustain and the bills that are coming out of it, and don’t forget the property taxes. Set a goal of 6 percent returns for your first year and don’t forget maintenance costs which are usually calculated at 1 percent of the property value.

Get the down payment. Texas Commercial Real Estate investments are different than owner-occupied properties and often require higher down payments. Depending on the type of loan and your credit score, you will need anywhere from 10 to 30 percent of the property’s value as a down. When you’re ready to get that first property, don’t plop down your money on the first distressed building you find. Take into account the market and community—is it located in a good school district, a fairly decent neighborhood, and is there a growing job market? These factors are important whether you are planning on buying and holding or fixing and flipping. And remember, change is inherent in this industry.

Some Investors use Hard Money Loans

Texas Commercial Real Estate investors use hard money loans for several reasons. Private hard money lenders are not held to the same restrictions that conventional lenders are inundated by. This leads to quick approval and funding. They are also hard asset-based lenders meaning that they pay less attention to your credit score or creditworthiness and more to the value of your asset or collateral.

Private hard money lenders offer asset-based loans that can be funded in less than a week.

There are several unique programs that those in this industry use on a regular basis. At Level 4 Funding we offer bridge loans and construction loans. Both are short-term loans, anywhere from 3 to 24 months that offer interest only payments, quick access to capital, and no minimum credit score requirements.

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, April 3, 2017

The 5 Benefits of Leveraging with Flip Loans

Whether you are still looking for the perfect prospect or have locked in on a neighborhood or unit you love, you're buying power is substantially increased with you utilize flip loans. Leveraging with flip loans allows you to grow your property investment business at a rate you truly want and allows you to purchase and work on more than one property at a time.

5 Benefits of Leveraging with Flip Loans

Timing

While your ideal dream of growing your investing empire may be to use cash or to leverage your own properties to buy additional locations, it will take time. If you are watching the market for deals or have closed in on a hot market with the right types of properties, you may not be able to afford to wait. Using flip loans from a private hard money lender allows you to acquire multiple properties as the same time. Since so much of your money is made on the purchase deal, being able to buy as many properties as you can allows you to perfectly time your deal and ensures that your ideal property doesn’t get away.

Scaling Made Easy

Once you’ve mastered the art of flipping a home or building, you’ll want to do it again and again. Using flip loans allows you to scale your business model up, once you settle on a plan and course of action that works for you. The ability to purchase and flip multiple dwellings at the same time allows you to quickly scale up your business and truly grow. If you have to wait for one deal to close before you start another, scaling and growing your investment portfolio will be much more difficult and time consuming.

Better Tax Deductions

The more homes you have, the more you’ll be able to take advantage of specific IRS tax breaks designed for investors. Since the IRS allows you to deduct for depreciation each year, you’ll be able to claim this benefit for each property you own. Multiple properties also allow you to take advantage of the 1031 Exchange if you sell a property.

Increased Income

services_bg2When your home is rented out or flipped and sold, you’ll make money. Simple math says the more properties you own that are in habitable condition, the more income you’ll have coming in. Acquiring and rapidly flipping properties allows you to increase the income you receive via rental or sales.

Take Advantage of Low Rates and Prices

Home prices and interest rates won’t be this low forever. Buying now does more than expand your options, it locks in these low rates and prices for you for years to come.

The ability to scale up your business and purchase deals when you find them is a must if you want to make a serious go of it as a real estate investor. Leveraging with flip loans allows you to grow your business at a rate you want to – and to get all of the benefits of owning multiple properties at once.

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.


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






          

Advantages of Fix and Flip Loans compared to Equity Partners

Why using flipping loans gives more freedom than finding equity partners

If you are exploring your finance options for real estate investing, the idea of an equity partnership has likely come up at least once. Understanding what an equity partnership is and how it works is a must if you want to truly weigh your options. With an equity partnership you’ll be sharing more than the risk of the loan, you’ll be handing over at least partial control of the property, too.

Fix & Flip Loans

A hard money fix & flip loan allows you to buy and then restore a property; you are borrowing money from a private hard money lender, but not handing over the decision making or control of the actual property. Once you flip the property and repay the money, your obligation is over.

Equity Partners

main1An equity partner is just what it sounds like – an individual or entity who shares the responsibility and ownership of the property itself. This partner takes on a larger risk than a lender – and also gets a lot more say in how the deal works. As an equity partner, this provider of capital has a say in pretty much everything about the property, so choose your partner very carefully.

Advantages of Loans over Equity Partners

By far, the biggest advantage of using a fix n’ flip loan instead of an equity partnership is the freedom you’ll have as the sole decision maker and owner. Since equity partnership is just that, a true partnership, you will not have sole say in how the property is refurbished, which tenants you put in place if you are renting or how you’ll price and market the home to sell if you are selling.

A true partnership, where you and your business partner have the same approach and goals and combine your money, assets and strengths to make a deal work is one thing. In this type of situation, you have chosen to work together for many reasons, not just money. When you find an equity partner, your biggest reason to be together is money – and you may not share the same vision or approach to properties. This split vision could cause problems at any point, from the buy to the restoration to the rental or sale.

A fix & flip loan puts you in control of the deal and allows you to be the primary decision maker about all aspects of the home. If you find a tenant that feels right, but doesn’t quite meet your standards on paper, you can go with your gut; the opposite is also true. A fix n’ flip loan won’t force you to allow its shiftless brother in law to rent (and trash) one of your properties as part of the deal.

If you want true freedom and to be able to call the shots on your real estate properties, a fix n’ flip loan is a much better option than an equity partner.

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, March 31, 2017

Rehab Investment Property with Second Deed Trust Loan

Second mortgages or home equity lines for a private hard money lender are often used to rehab an investment property. You will need to meet certain asset guidelines to secure a second mortgage. When you don’t meet these guidelines, a second deed trust loan is an option. When you expect the turn around on your property to be quick, or you need additional funds to prepare a property for sale, a second deed trust loan is perfect for you.

Investing Without Spending Your Cash Reserves

credit score at level 4 arizona hard money lenderWhen you are in the business of property rehabilitation for resale purposes, your cash reserves can be more important than your credit score.  Your ability to borrow money at low interest rates can increase your overall profit margin, but if you don’t meet specific cash flow requirements it can be impossible to secure a second mortgage. You don’t have to deplete your financial resources in order to rehab a property, but you need to be creative with your funding sources.

Time Spent on the Project Influences Profits

The longer it takes for you to prepare a home for resale, the more money you will spend on first and second mortgage payments. Knowing that you have monthly payments to make will help keep you motivated to get the job done on time.

Avoid Liquidating Other Assets to Rehab a Property

Some property investors will sell off a smaller property to solve cash flow issues when trying to secure a second mortgage. While this works, you may have to sell a property for less than it’s worth in order to sell quickly. A second deed trust loan is a better alternative that offers a lower financial risk than selling off a property under pressure. When you want to rehab a property and you need extra money, a second deed loan is a great choice.

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