How to "Be the Bank" by Investing in Notes

 Note investing is a little know investment strategy that can provide high returns and low risk. You can get started investing in notes by learning the basics of the investment strategy and finding a private lender who specializes in alternative investment strategies.

Have you ever heard of investing in notes? Probably not, but you are most likely already doing it. If you have a credit card, car payment, student loan, or mortgage, you are in the note investing business. But, you are on the wrong side of it. You are paying interest on a note to a bank or note holder instead of earning high interest rates by being the bank. When you purchase a note you become the bank and have many of the advantages like high interest rates and security that the bank has. This includes the ability to renegotiate the terms of the note in some cases, earn higher than average interest rates, and have a consistent interest income that is not dependent on market conditions. If this sounds like it is too good to be true, it is not. Note investing is a little known but very legitimate type of investment that money savvy investors and banks take advantage of regularly.

If you want to get started in note investing, it is important that you learn the basics about the types of notes you can purchase and what your role as the investor is. Note investing has a number of advantages, but perhaps the most appealing is that it creates passive cash flow. This means that you don’t have to do anything to earn the money beyond your initial time commitment to obtain the investment. The capital you invest then begins to work for you, earning you interest each month without requiring time or additional money.

One popular way to start investing in notes is to invest in real estate notes. In this situation you basically buy a promissory note that is part of a mortgage. You hold the note and earn interest. You receive payments each month until the mortgage is paid in full and then you get back your initial investment. You don’t have to work for your payments, you sit back and let the cash flow in.

Benefits of Investing in Notes

Passive cash flow, as mentioned above, is probably the most appealing benefit to most investors who engage in note investing. It is truly a way to let you money work for you, rather than you working for your money which is often the case. In addition, investing in notes is a relatively safe investment because the note you invest in has a fixed interest rate. If you sign on for a 5% note, the rate is always 5%. It is exempt from market fluctuations and you will not lose money if some catastrophe occurs to close the Chinese stock market, or of Wall Street crashes. Your interest is fixed and you can earn high percentages. Think about the interest you pay on your credit card every month. If you own the note, you get paid that instead of paying it to Visa.

Aside from consistent cash flow that you don’t have to work for and high interest rates, note investing is also an easier investment that can be cashed out quickly, if need be. Think about real estate, if you own an investment property you have to maintain it and if you want to sell it, it can take months or even years to find the right buyer. If you own the note on an investment property, you have absolutely no maintenance and a note is easier to sell than a physical piece of property.

Investing in notes is also a versatile investment strategy. You can flip a note like in the case of a non-performing note that is sold as performing, you can rehab a note by working out a loan modification if a borrower is struggling to make payments, or you can even borrow against a note and use it as collateral. Each type of note investing has various advantages that can help you make your money work for you.

Like any investment, there are also risks involved in note investing.

You can help minimize these risks by working with a private lender who specializes in alternative investment strategies. Here at Level 4 Funding we work investors to reap the benefits of note investing while helping to mitigate the risks involved. Call us today to have all your note investing questions answered.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

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

Arizona Bridge Loans: Do the Benefits Outweigh the Risks?

Arizona bridge loans are gaining in popularity as a short term loan options. Like any loan, there are certain inherent risks and benefits. Knowing how to analyze your loan will help you decide if it is a good option for you.

A bridge loan can be the

missing piece of your home

buying puzzle.

Arizona bridge loans are short term loans used when a borrower who has not sold his current home wants to purchase a new home. These loans work to bridge the gap when the borrower plans to use proceeds from the original home as the down payment on his new home. The bridge loan is secured to the original home, the one that's on the market. The funds from that loan are used as the down payment for the mortgage on the new home. 

There are no strict guidelines when it comes to Arizona bridge loans so credit score and debt to income ratio are not usually factors that will automatically disqualify you. This is good news for borrowers with less than stellar credit or who may have a high debt to income ratio once they purchase their new home. Instead, bridge loans are based on a few different factors, including how likely it is that you will sell your current home quickly, and whether or not you can make both mortgage payments for a short time if it becomes necessary. If you default on a bridge loan, the lender has recourse to get their money back using the property you have on the market because it is the one that secured the loan.

The Risks and Benefits of Arizona Bridge Loans

There are several risks that are associated with bridge loans. Like any loan, they are not entirely safe and can lead to some negative consequences if you don’t fully evaluate their terms, conditions, and rates. First and foremost, Arizona bridge loans have fees associated with them. Generally there is an administration fee of about $750, an appraisal feel (for your current home) of about $350. Once notary fees, wire fees, origination fees, and any other lender fees are added in, a bridge loan will end up costing the borrower about $2,000 to obtain. This may seem like a lot, but if is the difference between buying your dream home or losing out, many borrowers find that the fees are more than worth it. Especially since it is much easier to come up with two grand for a bridge loan than it is to find $20,000 for a down payment if your current home has not sold.

Another risk to Arizona bridge loans is high interest rates. Most short term loans are inherently more risky for the lender. You will pay extra for that risk meaning you will have a higher interest rate. Interest rates fluctuate based on the prime rate and how much you need to borrow, but typically speaking the interest rate on bridge loans is usually higher than a traditional home mortgage. You can avoid paying high interest rates by selling your home quickly and paying back the loan as soon as possible.

Along with the risks, there are also several benefits to Arizona bridge loans. Many loans offer terms that allow you to skip the first few months of payments. If you can sell your home during this time, you can avoid paying any interest at all on the loan. In addition, you can use extra proceeds from the loan to do remodel work on your new home and put your own personal stamp on it.

Also, bridge loans allow you to put your current home on the market quickly and without restrictions. Potential buyers will not need to schedule showings because the home will be vacant. A vacant home is easier to show and usually sells more quickly due to ease of access. You can also look into staging your home to give you an extra advantage. And without your family living there, it will be easier for new buyers to picture themselves living in the home.

Bridge loans are also usually fairly easy to qualify for and have flexible underwriting guidelines. This makes them an ideal loan for someone who needs cash for their new home fast.

Call an Arizona mortgage broker or private lender to get started on a bridge loan today.

Once you are settled in your new home, you will be happy that you chose to use Arizona bridge loans to help you get cash fast and with little hassle.

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

Arizona Real Estate is Moving Up Again. Your Making Money Now Baby!

Recent data shows that after a slight down turn in November 2013, home values for the southwest are moving higher again.  There was a slight decrease, however the home values are now showing an upward trend. (Why did it slow down?  Didn't the Government shut down and frighten everyone?)

This is great news and hopefully will continue through the purchase season this summer. 

Click here for a larger image.

Thank You
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC

I have a feeling that YOU are going  

to have a Richer Life in 2014!!  

Great things are going to happen to you!!  

Get ready!! You are blessed!

Tel:  (623) 582-4444 | Fax: (888) 279-6917
Email:  Dennis@Level4Funding.com
WebSite: www.Level4Funding.com
Arizona Mortgage Broker
NMLS 1057378 | AZMB 0923961
23335 N 18th Drive Suite 12
Phoenix AZ 85027

What is a hard money loan Arizona?

arizona hard money

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.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

The Difference Between Hard Money Lending Arizona and Private Money Lender Arizona

arizona hard money

Hard money lender Arizona and private money lender Arizona have so much in common, but there are some difference lenders should be aware of. For example, a private money lender Arizona can be anyone you know or even someone you don’t know. Family member or stranger, if someone with money wants to be a private money lender Arizona and they have the money to do it, they can make loans to people who are in need of Arizona hard money no problem.

Meanwhile, hard money lender Arizona is typically a group of lenders and usually this hard money lender Arizona group has a history as they’ve helped owners get loans that help those owners purchase the property that they want be it a group of condos or a new commercial development opportunity or really any kind of commercial real estate project. These are typically professionals with great lending history and an understanding of the business.

Hard money lender Arizona are often very well experienced and can help with issues or even offer information such as which area is best to buy in, what title company to use or even which appraiser is best for the job. Hard money lender Arizona means you can get started with confidence and the assurance that things will get done properly. Private money lender Arizona is sometimes more convenient however if you know the private money lender Arizona well enough that you can work in tandem as a team or if you get a private money lender Arizona who is motivated and understands what they are doing in the real estate world.

Choose between your hard money lender Arizona and your private money lender Arizona and decide which category best fits your needs. Both parties should have a great understanding of what you’re trying to accomplish, it just depends on which one works best for you! Contact us today to get more information.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Hard Money Lender Arizona is The Best Way To Get the Money You want

arizona hard money

Many people are confused about Arizona hard money loans, but they shouldn’t have to be. Arizona hard money is a loan where the investor receives their financing merely based on the value of the property they have instead of the traditional kind of bank loan that is dependent upon the kind of credit a person has. This can be a difficult loan to obtain for some kinds of people and that is why Arizona hard money can be a truly wonderful thing.

While interest rates can be higher with Arizona hard money versus other kinds of traditional bank loans, one must remember that hard money lender Arizona and private money lender Arizona have very quick turnarounds when it comes to the loans, so the higher interest rate is barely even noticeable. If you are scared of going into bankruptcy or a foreclosure, then the time is not to get into Arizona hard money and save the property that belongs to you.

You can save the property or you can revamp the property while using Arizona hard money. The time is now to get invested with a private money lender Arizona or a hard money lender Arizona. 

It is important to remember that if you are having difficulty finding a traditional bank loan to finance your property, there are other ways. You can bypass the paper work and the hassle of a traditional loan and make good again with your Arizona hard money loan. These Arizona hard money loans will keep your foreclosure at bay or help you flip the house you have been thinking about for years. Don’t let your dreams escape you! Get your hard money lender Arizona today and forget about the traditional lending conditions that have you nervous. You can have everything you always wanted with your private money lender Arizona right away.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

How do I get a private money lender Arizona?

arizona hard money

Private money lender Arizona might just be the best thing that has ever happened to your property wants and needs. Banks can be a huge hassle because they require lots of paper work and agonizing, something that isn’t fun for anyone.

That’s where hard money Arizona comes in. It’s money without the hassle for you. With two different kinds; private money lender Arizona, which is one person you may or may not know giving out the loan, say either a close friend or an investor who is interested in the kind of property you are dealing with, or a hard money lender Arizona which is a group of people who wish to invest in your property. Both will get you the money you want when you want it without any of the usual fussiness that you might get at a bank when they ask you about things like your credit score and what you want to do with the money for which you’re asking.

Skip the pain and skip the embarrassment of maybe getting turned down for a bank loan. With hard money Arizona you have all the tools you need to create the space you want.  While the interest rate may be a bit higher, the turnaround is quick so there isn’t much to worry about.

Don’t even worry about the banks. With a hard money loan Arizona you get exactly what you want exactly when you need it. No more worries and no more paper work. Just get the money you want and grab the property that you want to fix up. You don’t have anything to lose with a private money lender Arizona. Get the money you want when you want it without any of the major annoyances that come with the bank. Good luck while looking into hard money lender Arizona. 

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Arizona Hard Money Might Be the Choice for You

arizona hard money

If you are looking for a way to get the money you need for a property you want to purchase, then Arizona hard money might be the right thing for you. Forget the traditional bank loan that can cause such aggravation. You don’t need to wait around for your money or deal with heavy paperwork. You can have your Arizona hard money quickly without hassle and without any annoyance that a bank might give you.

As banks tighten up their vaults, customers like you really miss out because these banks aren’t willing to take the risk. They want to keep their money, so even if you do get a bank to give you a loan, you may not get the amount you want or even need to make the purchase that you need on the property that you want to either revamp or flat out buy. You shouldn’t have to be at the beck and call of the bank, you should be able to get your Arizona hard money loan and be on your way.

Arizona hard money does not actually require you to sign up with the bank. An Arizona hard money loan is independent of banks and can be distributed by either private money lender Arizona or hard money lender Arizona. They are both similar kinds of loans with only a few differences. For one, private money lender Arizona is just a one person loan. The person who gives you the loan could be somebody that you know or it might just be a private investor who isn’t associated with a bank. Meanwhile, a hard money lender Arizona is a group of people who want to make an investment. Whichever you choose, we know that Arizona hard money will help you get the property that you want right now.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

When Should I Use Arizona Hard Money?

hard money lender arizona

The question always seems to be when should one use Arizona hard money? This is something a beginning investor would ask, especially when they see how difficult it can be to get a traditional bank loan. Not to mention the hours of paperwork you’d have to do to even be considered for one.

Many who use Arizona hard money are people who need to make a big purchase on real estate very quickly and want the money as soon as possible. They may not have the best credit either, but that’s completely fine because with Arizona hard money, credit scores don’t actually matter at all- just the property that you wish to purchase. You just want enough money to fix up the property or purchase a property. The reward of having instant money and quick turnaround far outweighs the potential interest that you might have to pay.

But what kind of Arizona hard money  do you want to borrow? There are two different types, though they are both similar. One is called private money lender Arizona, which is Arizona hard money lent to you by just one person. This could be somebody that you know or just a new investor who wants to do business with you.

The other type of Arizona hard money is hard money lender Arizona. For this type of Arizona hard money, you have a group of people who offer you a loan, not just one person.

Both types of Arizona hard money are worth the bang for your buck, you just have to decide if it is right for you. Find the kind of Arizona hard money lender that works for you. They are aware of how difficult it can be to make the decision and they are ready and willing to work with you.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Is Arizona hard money good for first time investors?

hard money lender arizona

As a first time investor, Arizona hard money might seem really confusing or you might be really curious about what it entails. Arizona hard money is not a traditional loan; it is not based on a bank’s decision but instead based on the real estate property that you wish to purchase.

Typically with Arizona hard money, you can also get much more money than you would with a traditional bank loan. Sometimes Arizona hard money can give you up to one hundred percent of the value of the property you are borrowing against. That is much more than a regular loan issued out by a bank.

Since Arizona hard money comes from people instead of a typical lending institution, you have some more leeway. Private money lender Arizona is an individual who issues you money. It can be from someone you know or even someone you just met who wishes to invest in your real estate endeavor. Meanwhile, hard money lender Arizona is a group of individuals, not just one person, who invests in your real estate property.

While the interest rate is much higher than a traditional loan, that isn’t something you really have to worry about with an Arizona hard money loan because the turnaround goes by so quickly you won’t even have time to rack up interest.

It is good to know these things before you start looking into an Arizona hard money loan or investment because you want to make sure that you’re getting what you wanted out of the deal. An Arizona hard money loan is great for someone who wants to skip the hardship of the bank loan paperwork and get right into the business of flipping property. Don’t be shy, first time investor or not, the time to look into Arizona hard money is definitely today.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

What kind of Arizona Hard Money do I want?

hard money lender arizona

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.

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Why Do I Want Arizona Hard Money?

hard money lender arizona

Hard money lender Arizona and private money lender Arizona are similar, that’s true, but they are also different and sometimes people tend to confuse one with the other because investors sometimes use the terms interchangeably when they really shouldn’t.

While both hard money lender Arizona and private money lender Arizona are asset based loans that have more to do with real estate than the financial stability of the borrower, they are both also from non-traditional lenders, that is to say, they are untraditional loans that are not given out by a bank.

So how are they so different? Well, for one, hard money lender Arizona happens to be a group of people, not just one individual as with private money lender Arizona, but these lenders are all licensed to loan money. It’s just a matter of what kind of lender you want.

However, Private money lender Arizona is just that, private. The private money lender Arizona could be absolutely anyone from family to a friend to your business associate or maybe even just a professional whom you were referred to. How you are funded is agreed to by terms set by the private money lender Arizona and nobody else. That makes the loan easier to obtain than say, a traditional bank loan. However, interest can be higher. However, since these kind of Arizona hard money loans are usually a quick turnaround, you don’t normally need to worry about that.

For this reason, private money lender Arizona can be more flexible than hard money lender Arizona as you typically know the person lending to you and you deal with them directly.

That being said, a lot of hard money lenders Arizona do get their funding from private resources, which is why the interest rate is often higher. Hard money lenders Arizona are also much easier to find. So go out and try to find it!

Big Daddy Dennis Hard Money Lender

Arizona Hard Money

Arizona Mortgage Broker

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444