The Big Show is Coming to Town.

Don’t do it…it’s a big mistake flipping homes can cost you a lot of money.

Every week the house flipping circus comes to town and advertises on the radio about how to make money flipping homes.  They offer their free 90 minute seminar conveniently located in the valley.  

“Learn from the expert” and they promise that they can tell you “how to make money flipping homes”.  Have you heard them?  The latest one is from Than Merrel, correct that his name, and he been on the radio all week.

I’ve been to many of the seminars, though the past few years, but they all have one thing in common. They want to hook you in and give you extensive training, and you can become a master mind expert.    The last time I check the total cost for becoming a Master Mind is around $45,000. 

I know they are in town because I start getting calls for Hard Money Loans.  They been told that we will give the a loan at 8% for 100% financing, and I know that you being a real estate pro that this not possible. 

What I usually do is politely tell them that this is not possible and start to chat with them about their training  from the Master Minds and then during the conversation they ask we what they should do about making money in flipping homes.  Then I tell them the truth which is, before you get into flipping homes get your Arizona Real Estate License.  You are going to need it to flip homes, access to ARMLS, ability to find and flip your own deals is important.  Sitting though real estate school for those 60-80 hours and you will learn more about real estate then those Master Minds can teach you.

I recently had a young millennial to my office and wanted to talk to me about flipping homes.  This first thing I told him was whatever you do, don’t pay for those $45,000 training classes, then he turned really read and started to sweat. I realized I made a mistake and said please tell me you did not do this?  He said he did, and then we started working on how he can get his money back, which he did.  He eventually went to Westford Schools met Skip (did you train with Skip) for training and got his license.

So my advise is if you want to be a successful flipper, first get your real estate license.  (You probably knew this already.)

Arizona Private Hard Money Lender

Dennis Dahlberg
Broker/RI/CEO/MLOLevel 4 Funding LLC Tel:  (623) 582-4444 | Fax: (888) 279-6917www.Level4Funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378 26601 N 19^th Ave Suite 112  Phoenix AZ 85027

How you can fix your credit score.

How do you Fix Your Credit Score?

You want that Arizona Home Mortgage to purchase our dream home but your credit score is low. Your credit score is an indication of what the industry calls your willingness and ability to pay debt.  It's a probability ranking score on the possibility of you defaulting on an Arizona Home Mortgage payment obligation in the next 90 days.  Some people like to think of it as a credit score grade on your payment performance.  The lender will look at your overall grade and see if you are:

1.       willing to pay, based on your history

2.      able to pay the debt, based on your income

3.      capable to pay, based on how many loans you have. 

If you have a failing credit grade (an F), then the lender will assume that you are going to fail again and not pay them back.  It's an overall Grade Point Average on how you passed or failed on prior Mortgage obligations.  If you got an F on an Arizona Home Mortgage in the past your Grade Point Average is going to go down.  Think of it as when you were in school.  Every year the school would give you a Grade Point Average for the years’ work.  Some people got a very high Grade Point Average (all A's) and were the smart kids in school, while others got a few D's and F's on their report card and had a lower Grade Point Average for the year.  This school of credit never ends in your life and you want to have the highest credit score Grade Point Average as possible, and keep it up through your life.   So what do you do to get a high credit score Grade Point Average?  You do the same thing that you did in school.  That is:

1. Take the Test over again and get a better grade.  How do you do this?  You pay back the people you owe money to.  Those items in collection or past due need to be paid off and settled.  The grade on your past due Mortgage is currently an F, but you can make it a C+ if you pay off the debt.

2. Don't get any more F's on your work.  This means that you pay the Mortgages back and on time.  You need to take it seriously, and make the payments and don't be late.  Remember when you turned work in late in school and the teacher deducted points for the work because you were late?  It's the same in the credit school; don't be late on your work.  Also, what type of grade were you given when you did not turn in the work at all?  You would get an F.  This is the same with paying Mortgages, when you DON'T PAY then you get an F and your overall credit score Grade Point Average goes way down. Pay your Mortgages on time and full will give you the best Grade Point Average.

3. Don't take on too may classes.  If you take a safe load of classes, then your work load is easier and you can probably get an A in every class.  But if you take on too many classes, you will not be able to get all the work done for all the classes.  This is the same in the credit world.  Don't take on too many Mortgages and keep the balance owed on the Mortgage to around 30% of your available balance.  The lender will look at your Mortgage load (class load) and think are you never going to get the work done?  You have maxed out all of your credit cards and want another one? The more Mortgages you take on (sign up for) the higher the chance that you are going to fail on one of them and possibly the Mortgage you are now trying to get is the one you will fail on.

4. Get that bad score off your report.  Usually the quickest way to get a bad grade off your report is to dispute the score (Whine to the teacher). Tell the credit bureaus that it's not your grade or that the grader who graded the test was wrong, or that they used the wrong pencil or that they used the wrong answer sheet to grade your work.  If you can get an F off your report card, your overall score and Grade Point Average will go up.  This is usually the first thing you can do to get a better Grade Point Average.  You do this by disputing the items on your credit report for each of the credit bureaus.  If they believe you and you are able to get the score off your credit report your Grade Point Average will go up.  If credit bureaus don't believe you, then work on step 1-3 above.

The good part about the credit score Grade Point Average is it is an Average.  It's calculated over time and time is your friend when you calculate the Grade Point Average.  Your overall score is based on the current work and the work you have done in the past, but usually it's for the last 3-5 years and if you have an F on your credit score report card, it will drop off in a few years. So if you keep your grades up, in a couple of years your credit score Grade Point Average starts to improve and eventually you will have all A's and you can qualify for the Arizona Home Mortgage.

So you have bad credit and want an Arizona Home Mortgage? What are the exact steps?

I recommended that you read the book  Credit Bible - Everything You'll Ever Want To Know About Credit by Phil Turner.  This is a detailed book on the steps and mistakes you can do to fix your credit score.

Arizona Private Hard Money Lender

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
26601 N 19^th Ave Suite 112
Phoenix AZ 85027

How to Buy and Sell a House With an Arizona Bridge Loan

When you are needing to move, buying a new home while selling your existing home can be a stressful and complicated process.  A Short term Arizona bridge loan can be a valuable took to ensure you are able to buy the home you want and sell yours more easily.

 When you buy your first home, you probably don’t think too much about the timing other than issues like no one wants to move in the summer or when your lease is up at your current rental. However, once you are looking to upgrade from your starter home to something larger, timing become essential. Most buyers need to use funds from their current home to fund the down payment on their new home. In an ideal world, you would be able to close on your home in the morning and close on your new home the afternoon of the same day. This sounds ideal but it rarely happens. Due to market conditions and the stress of showing a home, trying to sell and buy at the same time can seem almost impossible.

You may find yourself stuck between a rock and a hard place. Although you can qualify for both home loans, you can’t produce a down payment for the new home without selling your existing home. Your home may not be getting any offers because a lived in home does not show as well as a vacant or staged home, but you need somewhere to live until you can purchase a new home. An Arizona Bridge loan is a specialized type of short term loan that can help.

Arizona Bridge loans are short term loans meant to help bridge the gap between selling your home and buying a new property. A bridge loan is a short term loan that you can get in addition to a home mortgage to cover the down payment. You will make payments on the bridge loan until you sell your first property and can pay the loan back in full. The bridge loan is contingent on the equity in the home that you are selling. An Arizona Bridge Loan has low debt to income ratios and no set amount of paperwork for closing. Rather than being based on a FICO score or income number, bridge loans are based on what makes sense for each financial situation.

               

Benefits of  An Arizona Bridge Loan

Bridge loans have several benefits for the borrower. Namely, they allow them to put their existing home on the market without being inconvenienced with appointments for showings. Because the owners have already purchased and moved into their new home the home on the market can be de-cluttered and staged for optimum showing. Staged homes sell more quickly and for higher dollar amounts that homes that are lived in during showings. If getting top dollar for your home is your goal, a bridge loan may help you move into your new home so that your existing home shows at its best.

Another benefit of a bridge loan is that many do not require payments for a couple months. Some mortgage brokers can get deals where you won’t make payments on a bridge loan for up to four months. If you are able to sell your home during that time you won’t ever have to make a monthly payment on the bridge loan as you can use the cash you get from selling your home to pay it off.

If a an Arizona bridge loan sounds like a good option for you, find a mortgage broker in Arizona to get started on the application process. 

Bridge loans can help you find and buy “the one” before your home sells. You can always make a contingency offer, meaning that you will purchase the home when yours sells. However, if you are in a multiple offer situation or a seller’s market, having a contingency offer accepted can be tricky. A bridge loan gives you the cash you need to buy the home before your home sells.

Call our office today to learn more about how bridge loans can help make your dreams come true!

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

3 Ways an Arizona Bridge Loan Can Lend a Helping Hand

If you find yourself in a situation where there is a gap between expected income and current expenses, an Arizona bridge loan  can help. Designed to be a short term loan, there are many ways that bridge loans can lend a helping hand when you find yourself in a financial bind. 

An Arizona bridge loan is a short term loan that is designed to "bridge" the gap between expected income and a current expense. Bridge loans are a little known loan type that can be very helpful in a variety of financial situations. Here are three ways that an Arizona bridge loan can help you.

1. You need a down payment. If you are selling a home while concurrently purchasing a new one, you are probably relying on the sale of your current home to finance your down payment. This makes it impossible to move before you home sells, even if you can qualify for both mortgages. You can use an Arizona bridge loan to borrow your down payment. You would use the equity in your current house (the one on the market) to secure you bridge loan. The loan would then be used as a down payment and paid back after your home sells. This allows you to move before your home sells.

2. You own a business and have an expense before expected income comes in. If you are waiting on a big check but have an immediate expense, a bridge loan can be a great short term option to pay debts you owe. Once your income materializes, you use it to pay back your bridge loan.

3. You are expecting a windfall but have expenses before it gets there. Whether it is an equity payment, lottery payment, or even an inheritance, a bridge loan can help you pay what you need to while you wait for it to come in. Once it does, you use the funds to repay the loan.

If you find yourself in a situation where you would benefit from an Arizona bridge loan, call a mortgage broker today!

We can help you with all of your bridge financing needs. Call our experienced loan officers to get started today!

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

3 Things You Need to Know About an Arizona Bridge Mortgage

If you are trying to sell your home while simultaneously buying a new one, an Arizona bridge mortgage might be an option that you need to look into. A bridge mortgage is a short term loan that can help you purchase a new home while yours is still on the market. 

Selling a home while you still live there can be stressful. Many homeowners feel they do not have the option to buy a new home before they sell theirs because they are relying on the sale of their home to finance the down payment on a new home. If you find yourself in this situation you may want to evaluate the risks and benefits of an Arizona bridge mortgage.

A bridge mortgage, or bridge loan, is a short term loan that is designed to bridge the gap between an expense (like a new down payment) and expected income from the sale of your home. Bridge loans are quickly gaining popularity among borrowers because they are low risk and high reward. With an Arizona bridge mortgage you can borrow the down payment on a new home using the equity in the home you currently own. It is similar to a home equity loan but it can be taken out on a home that is actively on the market.

One of the key advantages of an Arizona bridge mortgage is that it allows you to move while your home is still on the market. This is ideal for families with kids whose homes may not show well, or can also be ideal if you need to move quickly for work. Once your home sells you use the proceeds to pay off your bridge loan.

What You Need to Know If You are Considering an Arizona Bridge Mortgage

If you are thinking about getting a bridge loan, there are a few things you need to know so that you can make an informed decisions. 

1. A bridge loan has higher interest rates. Short term financing like bridge loans are high risk loans for lenders, meaning you will pay more for them. However, many lenders offer grace periods of up to three months. If you can sell your home and pay off your loan in that amount of time you won't end up paying any interest. 

2. You have to have good credit. Not to get a bridge loan per say, but you will need to be able to qualify for both mortgages since you will own both homes, at least for a short time. 

3. There are fees. All in all, a bridge mortgage will end up costing about $2,000 for appraisals, lender fees, and closing costs. Keep this in mind when you are budgeting so you aren't caught off guard. 

Once you have evaluated the risks and benefits of an Arizona bridge mortgage, find an Arizona private lender to get the loan process started today.

Call our qualified staff at Level 4 Funding to get your bridge mortgage approved today! 

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Evaluate the Risks and Benefits of an Arizona Bridge Loan

An Arizona bridge loan is gaining in popularity as a short term loan option. 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 an Arizona bridge loan 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 an Arizona Bridge Loan

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, an Arizona bridge loan had fees associated with it. 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 an Arizona bridge loan 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 an Arizona bridge loan. 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 an Arizona bridge loan 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 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | 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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Save Money and Buy a House With an Arizona Bridge Loan

An Arizona bridge loan is a special type of loan that can help you buy a new home. It is important that you know your options and what the risks and benefits of a bridge loan are so that you can make an informed financial decision. 

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

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

An additional benefit of a bridge loan is that it is relatively easy to qualify for. There is not a lot of paperwork and since many borrowers will have a high debt to income ratio because they own two homes for a short period of time, debt and credit scores are not as important as they are in traditional loans. However, keep in mind that you will still need to qualify for two mortgages so make sure all of your financial ducks are in a row. 

Important Things to Consider when Thinking About an Arizona Bridge Loan

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

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

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

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

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

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

Dennis Dahlberg Broker/RI/CEO/MLO

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | 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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.