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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 adve...

Monday, June 20, 2016

Is Having Commercial Real Estate A Viable Option?


commercial real estate
We live in a digital era where a couple of keystrokes are much quicker than going to a store. Will your business profit from having commercial real estate?

For the last couple of years, the market has seen a boom of entrepreneurs and various startup companies. According to data from the Kauffman Index, there has been a steady rise of startups since 2011. With constant upgrades and new digital merchant software on the internet already, is it a good idea to have commercial real estate for your business?

In a perfect world, we would all have our own businesses. Stores on the main street in a bustling downtown area. As great as this may sound not all entrepreneurs need to have commercial real estate. Of course, there are certain businesses that you need to go to bakeries, restaurants, etc. But most of the new companies that are here now are best represented on a digital platform.

In fact, most companies that are in the market would greatly benefit without having commercial real estate. That means no monthly bills or rent. Having commercial real estate can also mean less money in your pocket. For some business owners taking out a loan on the property, they want to use. Depending on the type of the loan you may have to commit for the three to five years on a property that may or may not give you a return on your money.


Short answer: of course there are. First and foremost, the feeling you get from owning a place that your business calls home is un-measurable. Having a physical place to call your shop or store gives you the confidence to go out and search for more customers. You build different connections that could not be made online. You also get that face to face interaction with your clientele; in turn, this helps your business thrive. Personal relationships are good for business. The relationships you build are for tomorrow, not for today.

Depending on your property you could potentially get a great appreciation of your assets. Things such as making the proper managerial decisions can help the value of your property increase exponentially.  Doing things like making renovations help your business grow in value over time. Whether it is replacing the sign or an awning, or you knock out a wall in your space to make it larger, every bit counts.

Maybe you want to rent out the space instead of using it for your own business. This means you have full control over the tenants you want using it. You also have the power to create rules based on what type of image you want to represent. Having investor control can also help with annual fees. For example, if you manage your commercial real estate you can charge a management fee that your tenant would have to pay for.

Having great commercial real estate also means great publicity

Publicity is also one of the biggest reasons you might consider have some commercial realestate. We are constantly bombarded with new ideas and businesses that try their best to catch the eye of potential clients. There is no telling how many different advertisements you see online a day for a new business. Having a storefront or even a small hole in the wall makes you tangible. Customers can go in and see the jewelry that you make. They can check to see if it fits them correctly. Customers can go into your boutique and feel the type of fabric that you have; they can be correctly measured for one of your designs they like. 

Alas, you have to judge based on your needs. Would you fair better on a digital platform, or can you benefit from having commercial real estate?




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
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701    


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About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.





The Real Deal When It Comes To Hard Money Loans


hard money loans
there are many different ways to get a loan for your new business. This article is going to give you the pros and cons of applying for hard money loans.

Hard money loans are a great option when you are thinking about borrowing money for your business or new property. Like most things it has its drawbacks. Hard money loans are great if you are denied a loan from a bank. While most loans usually take a long time to get approved, hard money loans are turned around quickly.

Hard money loans are classified as loans that are given by a private company. Traditional loans from banks take longer because they are interested in how you can repay the loan back. For example, if your credit score is not great it may take some convincing to receive your loan. The same goes for your job; if you are a freelancer, for example, a bank may not view your profession as reliable. 
When it comes to hard money loans, however, they really are not worried about that. Lenders are more interested in what you already have. Collateral is taken into consideration when you are applying for a loan from a private company. If you cannot pay your loan off, then your collateral is taken and sold off to cover your debt. The value of your collateral is taken into consideration more than your credit score or job.

Many people favor a hard money loan because of its short duration. Usually, these loans last one to five years. For those of you who are in the fix and flip business, this type of loan would be very beneficial to you. Say you find a property fix it up and then rent it out to a few tenants. After a short period of time, the money you receive from the property can be used to repay your loan.

Here is the crux of hard money loans


hard money loan
So far hard money loans have been the best option for someone to get the money they need quickly. Usually, lenders do not care too much about your credit status or how money you have. Getting approved all around much easier than going the traditional route. So what are the cons of a hard money loan? Well, the biggest one is the cost of the loan itself. As stated these loans are slated for a short amount of time. This means the interest rate that you have to pay is high than one from a bank. Usually, the APR is over 10%.

Also, your credit may be something you have to worry about. You may be thinking, “but you just said it may not matter.” In most cases it won’t, however, some lenders may pull your credit report to see if you have red flags. Most of the time this does not happen but you want to make sure you do your research with all the companies you are considering.


Bottom Line Are Hard Money Loans Worth It?



In short depending on your property and what you want to do with it, yes. If you see a great property that is in a great location that you believe can turn a great profit fast, this is something you want to do. Most properties that are in great locations are bought quickly if you do not have the liquid assets this is a great option for you. Always make sure to weigh the pros and cons of any loan that you are thinking of applying for.



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
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701    


 You Tube Face 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.





How to Qualify for A Commercial Real Estate Loan


commercial real estate loanIn this brief write-up you will learn the basic ins and outs in regards to a commercial real estate loan. We will primarily cover the different institutions that are available to you; we will also cover different payment methods as well.

The transition from an online business to having a physical location is a very daunting task. One problem that many business owners run into besides finding the right location is finding the money they need. This article will help you with the basics of getting your loan.

You want to make sure you look in different places before you commit to an institution. Basically, when it comes down to it, you have four options; large banks, small community banks, life insurance companies and private hard money lenders.

When it comes to going the bank route, you have two options large banks--we’ll use the Bank of America as an example--or a smaller local bank in your city. Most bigger banks have a minimum and maximum loan amount. The Bank of America has a maximum of $2 million, but will make exceptions for higher amounts if certain criteria are met. Adversely if you are applying for a commercial real estate loan with a smaller bank you do not want to go that high. You should always do your research with the local bank in your city, and be sure to compare all the features thoroughly.


You have to weigh all of your options when looking for a commercial real estate loan


The other two options you have are life insurance agencies and private hard money lenders. Life insurance companies have pretty good rates, however, they tend to grant loans to businesses that are in good locations. Private hard money lenders outsource a lot of the money used from investors. This method of getting a loan is usually the fastest, however, the interest rates are a little higher than banks and life insurance companies.


Qualifying for and paying off your commercial real estate loan.


commercial real estate loans
Now that you know where you could apply for a commercial real estate loan, you are probably asking yourself, what do I need to qualify? Having a plan on what you want to accomplish with your business is key. Make sure before you go into your consultation you have a concise and clear business plan. For some companies, a solid business plan will be enough to get you the loan that you are seeking.

So you have figured out what lender you are going to go with, and you have a clear plan on the business that you are trying to your potential lender. Your lender has taken an interest in your proposal and is looking to go forward with your commercialreal estate loan. The next thing you have to decide on is how you want to pay back your loan. You have two options when it comes to this: an interest rate reset or a balloon payment.

With an interest rate reset payment plan for the initial years of your loan you have a fixed interest rate. After that period is over the rate can decrease or increase depending on the economy. In regards to a balloon payment over a time period, the debt that you owe gradually reduces over time. After the initial years, you have to pay a lump sum of the remaining balance.


Now that you have the basics, you should feel confident in getting your first commercial real estate loan, giving your business a physical location.





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
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701    


 You Tube Face 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, May 23, 2016

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.)

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 19th 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 19th Ave Suite 112
Phoenix AZ 85027

Monday, February 1, 2016

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    







 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 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    







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