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

Monday, November 5, 2018

Arizona Private Money Lenders: Three Situations Where Private Money is a Win-Win


2page_img3-bigTo truly grown real estate investment business you need two things:  You need capital to expand, and you to need close on the best investment opportunities as quickly as possible. Arizona Private Money Lenders offer both. However, there are some specific instances where private money outshines other forms of financing.

When it comes to financing real estate investment there, are, of course, many financing options out there. Yes, you might ponder going to a traditional bank, but the likely outcome is that your deal will choke to death amid all the red tape.

Some consider online crowdfunding platforms, but as smalltime real estate investors ponder the terms of your deal, your loan will sit unfunded. In fact, online crowd funding is perhaps an even less reliable source of financing than a conventional bank.

To really grow your real estate investment business you need cash. No not a suitcase full of money but a readily accessible source of financing that can allow you to make full offers right away on the best investment properties. 

Private lenders are perhaps the most convenient, flexible and accessible source of financing out there. They are not bound to rules and regulations like traditional banks, and unlike online crowdfunding sites, they have the means to fund your loan fully.

But there are specific instances where private money really is your best option.

The Benefits of Arizona Private Money Lenders Really Shine in these Specific Situations:

Bad Financial Situations:  Private lenders aren't under regulatory scrutiny like banks, and therefore no matter what your credit score is a private lender is at least willing to sit down with you and can thoughtfully consider the terms of your deal.

  • You need financing "yesterday,": Say you want to make a full offer, but you don't have the cash on hand to close the deal. Better yet you might be in a situation where your latest real estate project will crumble without a quick injection of capital. If this is your situation, you don't have time to wait around for the bureaucratic nightmare entailed by the traditional lending process. Private money providers have the flexibility to close loans in a matter of days.

  • There is a "bidding war,": If an especially shiny investment property has just come onto the market, your fellow investors might be chomping at the bit to seal the deal. Once again private money can come through quickly,  and this can enable you to make a full cash offer before your competition does.

In these specific situations, private money outshines other forms of capital.

Regardless of your specific situation private money offers flexibility, speed and convenience to real estate investors.

Private Money Lenders in Arizona offer many benefits to those looking to quickly grow their real estate investment business.

If you need it fast access to capital, are tired of waiting around on banks to fund your deals, or if your financial situation is less than perfect, take advantage of private money and bring your real estate investment business to the next level.


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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Private Money Lenders: Finding the Help that’s Right for You


shutterstock_144470392 smallPrivate money lenders can help take your real estate investment business to the next level. Learn what private money is the most basic sense, how these deal might work and some questions to ask yourself so you can find the help that’s right for your specific situation.

When compared to other types of financing, private money can offer you speed and flexibility. These lenders aren’t tangled in a web of bureaucratic guidelines like traditional banks. As private individuals they set their own rules about who qualifies for financing, how quickly a deal can close and how much a borrower needs to pay in terms of interest and fees. But what is private money exactly?

The simplest way to explain private money is that it's anyone with the funds on hand to finance your project. There are three levels in the hierarchy of private lenders. The first level includes your friends and family and those closest to you. The next level might consist of your fellow real estate investors, coworkers or colleagues. The third level of private lenders includes accredited investors and hard money providers.

It is important to note that in the case of private money, some financiers might act more as investors instead of actual lenders and it is important to understand the implications.

When it comes to Private Money Lenders you need to know the differences between investors and actual lenders.

When it comes to private money, the first two levels in the hierarchy act more like individual investors rather than actual lenders. Basically, in these deals, the investor finances the purchase of your property upfront and then receives a percentage of the returns.

When it comes to the third level, hard money, these financiers act as lenders, in that they offer loans with preset interest rates and fixed terms. So how can you determine which type of private money provider is best for your specific situation?

With private money lenders ask yourself some questions to find the help thats right for you.

To determine which type of private money provider might be right for your next real estate investment deal ask yourself a few questions.

Does your real estate development project require more flexibility?  If so, then a direct private equity investor might offer you a better arrangement. If your worried that your next deal might suffer due to high vacancy rates or that it might sit awhile on the market, a private investor can offer you a bit of deference. An institutional lender will pretty much always expect you to make payments on your loan, regardless of your situation.

Or do you need a reliable source of financing immediately? Individual investors usually don’t have the funds on hand to fully finance your deal. If there is especially attractive investment property up for grabs, you can’t wait around on your rich uncle to liquidate his various assets in an effort to fund your loan. In these cases you’ll likely want funding right away so a hard money provider is likely your best bet.

Whichever type of lender you opt for, private money offers you flexibility and convenience when compared to more conventional financing.


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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Wednesday, August 9, 2017

BofA Gets Nailed with a $45 Million Penalty……Wow!


After years of trying to help home owners it was nice to see that finally the borrower was vindicated in the modification requests. Following is an accounting of Bank of America recent attempt with the modification process.


By Jenny Park | Geraci Law Firm

A California bankruptcy judge handed down a $45 million penalty against Bank of America Corp. (“BofA” or “Bank of America”), decrying the manner in which the bank treated a California couple who attempted to save their property from foreclosure.

Judge Christopher Klein, a federal bankruptcy judge for the United States bankruptcy court, Eastern District, stated the financial institution’s mortgage modification protocol and errant foreclosure on Erik and Renee Sundquist's home rendered them emotionally distressed. The case sheds light on how the mortgage industry’s inadequate loan servicing transactions negatively affect some borrowers. Judge Klein referenced internal procedural failures, claiming that Bank of America had scant incentive to change the loan terms in such a way that would preclude the 6% interest rate the bank was collecting from the Sundquists' loan.

The couple’s problems started in 2008 when the couple’s construction firm went out of business because of the economic collapse, and they purchased a less expensive house outside of Sacramento. They borrowed approximately $590,000 from a financial firm, later acquired by Bank of America, with promises from a loan officer that they could request a reduction in their monthly payments.

The couple ceased making payments in March 2009 following Bank of America’s refusal to consider modifying loan terms for customers who were current on their payment schedules. According to the court’s ruling, the Sundquists’ “sole reason for defaulting was acquiescence in Bank of America’s demand that they default as a precondition for loan modification discussions with Bank of America.” Over the course of the next few years, the plaintiffs submitted around twenty separate requests to modify their loan terms, which Bank of America either lost, deemed inadequate, or denied without explanation all the while repeatedly scheduling foreclosures.

The Sundquists filed for bankruptcy in June 2010. Doing so precluded a foreclosure sale on their property because of the automatic stay, but Judge Klein’s ruling claimed the bank, while knowing of the bankruptcy, unjustly reclaimed the home and issued the couple a three-day eviction deadline. According to the ruling, Bank of America even “staked out the premises, tailed the Sundquists, knocked on doors, knocked on windows, and rang doorbells, all to the terror of the Sundquist family." Eventually, the couple vacated the property, and Ms. Sundquist subsequently suffered stress-related heart attack symptoms that required hospitalization.

Bank of America representatives eventually reversed the sale and transferred title back into the Sundquists’ name without notifying the Sundquists or their attorney of the change. The couple eventually moved back in after several months only to discover that they were charged $20,000 during their absence by the homeowner association for neglected landscaping and maintenance.

Judge Klein’s 107-page ruling incorporated entries from Renee Sundquist’s personal journal that highlighted harassing encounters with Bank of America loan officers, and Mr. Sundquist’s suicide attempt following the couple’s frustrated discussion regarding their mortgage issues. Judge Klein awarded the Sundquists nearly $1.1 million, verified the remaining amount they owe on their loan, and fined Bank of America $45 million.

The $45 million penalty, which will be dispersed via grants to law schools and consumer advocacy groups, is intended to be substantial enough that it will deter future misconduct on behalf of Bank of America. Rick Simon, a spokesperson for Bank of America, claimed the Sundquists' issues originated before the implementation of the new loan procedures and criticized Judge Klien’s ruling for being unsubstantiated and breaking established precedent. Mr. Simon refused to comment when asked if Bank of America will seek an appeal.

However, in April, Bank of America filed papers requesting Judge Klein to reconsider his $45 million fine calling the amount “unprecedented in its magnitude.” In court papers, bank officials asked Judge Klein to amend his 107-page ruling against the bank, arguing that his “excessive” fine amount violates guidance from Supreme Court justices in 2008 meant to prevent outsized awards. The fine stands as the largest punitive damages award for violations of bankruptcy law’s automatic stay rules.

Dennis Notes:

When we were doing loan modifications, "losing paper" was a common problem when we worked with borrowers. It was an persistent and constant problem. But, I would say in BofA favor, it probably was not a deliberate attempt to stop the modification, when you look back at the tremendous volume of paper work that was required for a modification, and the number of people requesting modifications it was easy to get the documents lost. We developed specific procedures to submit the application and eventually solved the paper work problem. Another problem with paper work, was it became out of date after 30 days and had to be resubmitted (that's the story they told us). In the beginning BofA underestimated the amount of staff that was required for modifications, and the long process of modifications.

The second point, of BofA following the customer, as motioned above, is hard to understand. I've never encountered this situation directly from any bank/servicer. During this time there was an army of fix/flippers that wanted to purchase homes, and this is probably the people who were knocking on the windows and doors and following the borrowers. I did have one situation, where the servicer went in and physically took control of the properly by changing the locks and posting on the door. When we objected to this practice, the servicer referred us to the Promissory Note, which stated that the borrower gave the authority to do so. Which they borrower did.

The good part of all of this is that this horrible situation is over. At one time I counted over 1,000+ homes being sold at the court room steps in ONE DAY. Fortunately, now this has dropped to just a few per day. I do understand the pressure the borrowers had on them during this process, and personally I have experienced clients losing their savings, ending their life. It's good that this bad time is behind us and things are improving. I just wish I had all of my teeth that I cracked and ground down dealing with the modification process. Overall during this time we were successful in obtaining about 10% of the modifications. Of those only about 2% still own their homes today.


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. 

BofA Gets Nailed with a $45 Million Penalty……Wow!


After years of trying to help home owners it was nice to see that finally the borrower was vindicated in the modification requests. Following is an accounting of Bank of America recent attempt with the modification process.


By Jenny Park | Geraci Law Firm

A California bankruptcy judge handed down a $45 million penalty against Bank of America Corp. (“BofA” or “Bank of America”), decrying the manner in which the bank treated a California couple who attempted to save their property from foreclosure.

Judge Christopher Klein, a federal bankruptcy judge for the United States bankruptcy court, Eastern District, stated the financial institution’s mortgage modification protocol and errant foreclosure on Erik and Renee Sundquist's home rendered them emotionally distressed. The case sheds light on how the mortgage industry’s inadequate loan servicing transactions negatively affect some borrowers. Judge Klein referenced internal procedural failures, claiming that Bank of America had scant incentive to change the loan terms in such a way that would preclude the 6% interest rate the bank was collecting from the Sundquists' loan.

The couple’s problems started in 2008 when the couple’s construction firm went out of business because of the economic collapse, and they purchased a less expensive house outside of Sacramento. They borrowed approximately $590,000 from a financial firm, later acquired by Bank of America, with promises from a loan officer that they could request a reduction in their monthly payments.

The couple ceased making payments in March 2009 following Bank of America’s refusal to consider modifying loan terms for customers who were current on their payment schedules. According to the court’s ruling, the Sundquists’ “sole reason for defaulting was acquiescence in Bank of America’s demand that they default as a precondition for loan modification discussions with Bank of America.” Over the course of the next few years, the plaintiffs submitted around twenty separate requests to modify their loan terms, which Bank of America either lost, deemed inadequate, or denied without explanation all the while repeatedly scheduling foreclosures.

The Sundquists filed for bankruptcy in June 2010. Doing so precluded a foreclosure sale on their property because of the automatic stay, but Judge Klein’s ruling claimed the bank, while knowing of the bankruptcy, unjustly reclaimed the home and issued the couple a three-day eviction deadline. According to the ruling, Bank of America even “staked out the premises, tailed the Sundquists, knocked on doors, knocked on windows, and rang doorbells, all to the terror of the Sundquist family." Eventually, the couple vacated the property, and Ms. Sundquist subsequently suffered stress-related heart attack symptoms that required hospitalization.

Bank of America representatives eventually reversed the sale and transferred title back into the Sundquists’ name without notifying the Sundquists or their attorney of the change. The couple eventually moved back in after several months only to discover that they were charged $20,000 during their absence by the homeowner association for neglected landscaping and maintenance.

Judge Klein’s 107-page ruling incorporated entries from Renee Sundquist’s personal journal that highlighted harassing encounters with Bank of America loan officers, and Mr. Sundquist’s suicide attempt following the couple’s frustrated discussion regarding their mortgage issues. Judge Klein awarded the Sundquists nearly $1.1 million, verified the remaining amount they owe on their loan, and fined Bank of America $45 million.

The $45 million penalty, which will be dispersed via grants to law schools and consumer advocacy groups, is intended to be substantial enough that it will deter future misconduct on behalf of Bank of America. Rick Simon, a spokesperson for Bank of America, claimed the Sundquists' issues originated before the implementation of the new loan procedures and criticized Judge Klien’s ruling for being unsubstantiated and breaking established precedent. Mr. Simon refused to comment when asked if Bank of America will seek an appeal.

However, in April, Bank of America filed papers requesting Judge Klein to reconsider his $45 million fine calling the amount “unprecedented in its magnitude.” In court papers, bank officials asked Judge Klein to amend his 107-page ruling against the bank, arguing that his “excessive” fine amount violates guidance from Supreme Court justices in 2008 meant to prevent outsized awards. The fine stands as the largest punitive damages award for violations of bankruptcy law’s automatic stay rules.

Dennis Notes:

When we were doing loan modifications, "losing paper" was a common problem when we worked with borrowers. It was an persistent and constant problem. But, I would say in BofA favor, it probably was not a deliberate attempt to stop the modification, when you look back at the tremendous volume of paper work that was required for a modification, and the number of people requesting modifications it was easy to get the documents lost. We developed specific procedures to submit the application and eventually solved the paper work problem. Another problem with paper work, was it became out of date after 30 days and had to be resubmitted (that's the story they told us). In the beginning BofA underestimated the amount of staff that was required for modifications, and the long process of modifications.

The second point, of BofA following the customer, as motioned above, is hard to understand. I've never encountered this situation directly from any bank/servicer. During this time there was an army of fix/flippers that wanted to purchase homes, and this is probably the people who were knocking on the windows and doors and following the borrowers. I did have one situation, where the servicer went in and physically took control of the properly by changing the locks and posting on the door. When we objected to this practice, the servicer referred us to the Promissory Note, which stated that the borrower gave the authority to do so. Which they borrower did.

The good part of all of this is that this horrible situation is over. At one time I counted over 1,000+ homes being sold at the court room steps in ONE DAY. Fortunately, now this has dropped to just a few per day. I do understand the pressure the borrowers had on them during this process, and personally I have experienced clients losing their savings, ending their life. It's good that this bad time is behind us and things are improving. I just wish I had all of my teeth that I cracked and ground down dealing with the modification process. Overall during this time we were successful in obtaining about 10% of the modifications. Of those only about 2% still own their homes today.


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. 

Monday, April 3, 2017

Think Outside the Bank For Private Lending

 

house-construction-1407499_960_720

Think Outside the Bank For Private Lending

At Level 4 Funding, you get flexibility and speed, not red tape and committees. Bottom line: if your strategy is sound and your property has potential, we’ll find a way to make your loan work—without the drama and without the runaround. 

And you can take that to bank.
Our specialty is helping, realtors, and investors purchase or refinance non-owner occupied residential properties. So if you’re looking for a respected lender that offers streamlined services, quick closings, and aggressive rates, you’re in the right place.

Non-conforming mortgage products for Non-Owner Occupied Residential properties

When traditional loan products are not flexible enough to meet your client’s needs, Level 4 Funding can help. We provide investors with quick access to non-conforming mortgage products for Non-Owner Occupied Residential properties whether they want to:

Fix & Flip
Buy & Hold
Rate & Term
Cash Out Refinance
Bridge Financing
Wholesale Lending

Real Estate Agents

You work to help your clients reach their real estate investment goals and so do we. Fast Approvals. Competitive Rates. Quick Closings. How can we do that? Level 4 Funding is a direct private hard money lender with local control from start to finish. We underwrite our own files and provide our own appraisals which makes our loan process transparent and fast, closing deals in as little as 4-10 days.

Imagine Having $50K-$250K Cash In Your Checking Account For Anything Your Business Needs F4F.com www.civicfs.com fundingforflipping.com

 

 

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. 

 

Monday, March 27, 2017

Glenford’s Spec Home Story—Are Spec Homes Right for You?

 

house-construction-1407499_960_720Contemplating adding a spec home to your real estate investment portfolio? Weighing the pros and cons and working with professionals can help.

An Experienced Contractor’s Story

Glenford Branham comes from a long line of savvy real estate investors and general contractors. Starting at just 14 years of age, Glenford has been in the construction industry for 57 years. Originally from Kentucky, he moved to Arizona to enjoy the warmer weather. “Construction and real estate is a family tradition,” he says.

Glenford’s built a few houses in his day—around 40. After his wife passed away last year, he decided to “do something a little different” by tackling a spec house project. He called his go-to contact Tony for assistance with the mortgage loan, but spec home financing is simply not an option at most traditional banks and mortgage brokers.

Tony recommended Glenford work with Private Hard Money Lender, Level 4 Funding, touting the group’s impeccable track record, quick service and competitive pricing. Glenford was sold, picked up the phone and called Mark Gowlovech.

As a general contractor, Glenford also handles commercial construction and is always on the go. He’s actively coordinating several construction projects, all while raising his 12 year old granddaughter by himself. With no time left for added headaches or piles of paperwork Glenford was happy to lean on Mark for the heavy lifting and speedy service his hard money loan request needed.

Speedy Service

Mark swiftly took the reins and got Glenford the financing he needed for his latest real estate project. Glenford smiled as he shared he just received the project permit and would be diving into the construction process shortly.

Glenford was satisfied with his Level 4 Funding spec home loan experience, thanks to Mark. Though this was his first transaction with Level 4 Funding, chances are it won’t be the last. Glenford will be back when his next spec home or specialty project calls.

A Contractor’s Advice

Glenford is a man of few words. When asked to summarize his experience with Level 4 Funding and share advice regarding lending and investments, he said:

“Get with someone you trust to help you

with your lending and your business.”

Pointed advice from a seasoned general contractor, with so much incoming work he has no need to advertise. Glenford trusts his projects to Level 4 Funding, and recommends calling Mark for your next spec project loan.

Are Spec Homes for Right for You?

Speculative homes, commonly referred to as spec homes, are of course houses investors build with the intent to sell for a profit. Some builders prefer to deal in spec homes, and avoid the complications and time needed to customize a project for a specific home buyer.

Review the pros and cons below to help decide if building a spec home is the right investment move for you.

Pros

Moderate Risk: Don’t let their risky-sounding name fool you—spec homes can actually be a fairly conservative investment. Of course you must have or be an experienced builder to confidently secure a tidy profit or conservative turns to risky.

Reputation is Everything: Builders know that spec homes are a reflection on their quality of work and highly visible in the marketplace. Shoddy work will quickly show, and negative news spreads like wildfire. To preserve and showcase their reputation, builders typically take great care to perform their best work on spec homes. Great news for investors and homeowners alike.

Generous Profit: Profits on spec homes vary based on house location, type, and size, but many investors strive to net a 25% profit. Others follow a “sell two, build a third for free” rule of thumb, with a target net of 33% per project. No matter where you fall in this range, spec homes can indeed be lucrative. Just ensure you’re properly estimating and tracking expenses and using the most trustworthy partners you can find.

Cons

Builder Biffs: End up with a disreputable builder and your project stability begins to crumble. Costs can creep up, profits sink down and in a worse-case scenario you’re stuck paying expenses for a property you can’t sell. Or can’t sell for a profit. Do your homework and ask around to ensure a reputable builder is on your side to increase safety and peace of mind.

Customized Competition: Once your spec home is ready to sell, you’ll be competing with custom built homes. Spec homes are intentionally built following rather “vanilla” formats as builders have no idea what customized features the buyer would want. Keeping costs down without sacrificing quality is their primary concern. Your home may lose the battle against a buyer’s ability to choose their specific preferences and build a customized home.

The Great Unknown: Even the most sophisticated and experienced spec home builders can’t predict the future. The real estate market takes twists and turns outside of anyone’s control. One construction company owner built and sold over 20 spec homes in California over a 15 year period. But his spec home profit streak ended when the real estate market headed south and he avoided spec building for 5 years. Now he’s back at it, and his first project sold before it was even finished.

Spec Home Financing Solutions

Decided building a spec home is in your future? Follow Glenford’s lead and call Private Hard Money Lender Level 4 Funding. They can’t guarantee your profits or reduce your project risks, but they can ensure smooth, solid financing solutions available when you need them.

 

 

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. 

  

Wednesday, August 20, 2014

What is hard money? Benefits of a Hard Money Loan.

What kind of Arizona Hard Money do I want?


There are two different kinds of Arizona hard money that is available to you. Both are exceptionally similar, but they each have different benefits to the borrower. The two types of Arizona hard money are Hard money lender Arizona and private money lender Arizona. It is easy to get confused by the two, they are both practical kinds of loans, but the following will explain how they are different.

It shouldn't surprise you to find out that hard money lender Arizona and private money lender Arizona are both based on assets and have more to do with the real estate you want to invest in than with your credit score. These are both also loans that are not bank affiliated, so they are easier to obtain than your traditional bank loan.

However, hard money lender Arizona and private money lender Arizona do have some differences. 

For example, hard money lender Arizona happens to be a group of people, while private money lender Arizona is just one individual who gives out the loan. Typically, with a private money lender Arizona, you know the person loaning you money, but that isn't always the case with the group of investors in a hard money lender Arizona.

Both loans have quick turnaround despite their higher interest rate, but because of this quick turnaround, the interest rate makes little to no difference. The loans are also more flexible than your traditional bank loans, especially when you use a private money lender Arizona.

Consider these types of loans as you decide on rehabbing a property. It could make all the difference to your project and stress you out far less in the interim. Consider the flexible and safe Arizona hard money loans. Whether you go private money lender Arizona or hard money lender Arizona, you will be happy with the outcome.


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

www.level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Thursday, August 14, 2014

What is a Arizona hard money loan?

If you are looking into private financing but you’re confused about what Arizona hard money means then you have come to the right place. You might say that the easiest way to explain what a hard money lender Arizona or a private money lender Arizona is would be that they are both people who have access to money that’s easier to get to than applying for a bank loan. Their money is then used almost exclusively for real estate. However, hard money lender Arizona is usually a group of people while private money lender Arizona is just one person. Arizona hard money can be a great option for someone who doesn't want a bank loan because usually, you don’t have the loan long enough for the high interest to make a very big impact. Hard money Arizona is almost always a short-term loan.

There are  three main reasons why Arizona hard money is termed Arizona hard money and none of them have to deal with difficultly in obtaining the loan because in fact, an Arizona hard money loan isn't difficult to obtain. Instead, it’s called Arizona hard money for these reasons:

  1. Higher interest rates, but you have a fast turnaround time.
  2. Arizona hard money lenders determine what a property is worth in its best condition, but under some circumstances, will finance up to one hundred percent.
  3. Hard money lender Arizona gives money based on the value of the property but include repair costs into the loan. This is very unlike most traditional lenders who do not include the repair costs into the loan. Consider this is a great option for those who are planning on rehabbing the property.

Think of all of these great benefits as you consider Arizona hard money for your next rehab project.


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

www.level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027