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Monday, March 6, 2017

Private Money Lenders—California Values


           Angel Oak

Deciding to be a part of the business of lending is a big step for anyone, especially private money lenders. California based lenders, in particular, have to deal with a variety of competitors while still learning the ropes, thus it can be helpful to know what values or disciplines will help you stand out as a lender.

Whether you are just getting into the business or looking to work with reputable lenders, a few key components need to present. For starters, if you are California based, then you need to work with locally based private money lenders. California investors and borrowers, actually, benefit more from loans that are within 100 miles of their office or potential property. Thus, in short, this means everyone needs to stay local.

Of course, the thought-process behind staying local is not revolutionary rather it is based on the assumptions that people tend to trust what they know. In addition to working with your neighbors, you need to carve out your niche. Again, this is a two-way street—if you are a soon-to-be lender, you need to find the area of this industry you can invest in while still seeing a sizable return. On the other hand, if you are a borrower, your vision needs to be understood by your potential private money lenders. California lenders, in fact, are some of the more diverse lenders you will come across, thus if you are looking to break into that particular market you will also need to stay focused in your approach.

The best way to stay focused here is to know your strengths as a lender and as a borrower. There is no need to make promises you cannot live up to period. Therefore, stick to your niche, spread the word about your niche and be as transparent as possible while you do it.

Tips for Staying Successful as a Lender

Besides the above-mentioned California values, as a lender, you should always remember two key tips. The first tip for success is to remember to refer instead of brokering. It is important to refer when you come across a borrower or potential loan outside of your focus or niche. By choosing to refer, you will save both yourself and your borrower a lot of time. Moreover, if you get in the business of referring you will like see other lenders returning the favor. The second tip for success is to invest in yourself, which should include everything from mentoring, consulting, coaching, seminars and more. Remember, you as well as your business can only grow if you make time to invest in yourself and your goals.

A Win-Win Solution

Ultimately, these values can apply to any and all lenders. The point, here is that becoming an investor, growing and creating a successful private money practice will not happen overnight or by sheer luck. Moreover, working with the right borrowers will take skill as well as drive, which can only happen when you have clear set values that streamline the lending process and create a reputation that demonstrates you mean business.

Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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Friday, March 3, 2017

Business Purpose Loans – Is using your home as collateral a good idea?

It can be scary to put all your eggs in one business basket so to speak and it can be even scarier to use your home as collateral to finance that business or to purchase a commercial building in order to run your business. But, just because something is scary doesn’t necessary make it a bad idea or rather a bad business decision.

hard money loan at level 4 funding llcBusiness purpose loans, not too many people are familiar with what exactly they need to do in order to secure these particular kinds of loans. Moreover, even the people that do have an idea of what makes business purpose loans unique, they are often still on the fence about whether or not they are a good business decision at the end of the day. The truth is it is risky business to offering up one’s house as collateral for a business. So, how do you if business purpose loans are right for you and your particular industry? Well, that’s a wonderful question.

In order to determine if these kinds of loans are right for you, you have to ask yourself a few questions. For starters, you need to figure out if you are actually comfortable with using the equity in your home. The truth is if you are starting out as a smaller business you really want to weigh your pros and cons. Yes, you need commercial financing, but at what cost? Remember, it is important to be completely realistic with your assets and your company’s needs.

Other questions you want to ask yourself include have you consider all your options i.e. have you already looked into peer-to-peer lending? Have you spoken with your financial advisor? Is your home’s equity the best option i.e. have you looked into using cash savings or deposits or company equipment as collateral? What about business inventory and accounts receivable? Of course, this is not to say that you should never consider a commercial purpose loan, but rather that you should go into it with your eyes wide open.

Things to Consider with any form of Collateral

At the end of the day, regardless of whether or not you decide to secure a business/commercial purpose loan with your home equity, it is important to do as much as possible to mitigate the risks that are associated with defaulting on any commercial loan. This means keeping details of your home or asset’s worth. It also means figuring out which form of collateral is the right option for you. The good news is that the housing market is finally recovering so using your home’s equity is not only possible now, but it may just be the right option for you.

How to secure your Loan and be Comfortable with the Terms

As previously mentioned, you need to do what’s in your and your company’s best interest i.e. no one can truly tell you what you should be comfortable with. Nevertheless, once you’ve thoroughly considered your options, the best way to secure a commercial loan that you are comfortable in the long run is to walk in the situation know the real deal and, of course, negotiating whenever possible.

Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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Searching Online for a Business Loan

When it comes to getting a business loan, there’s more than one way to secure one. In other words, gone are the days of traditional financing methods i.e. the next phase is all about getting loans online.

Business CardIf this is your first looking into online loans, it is understandable that you may feel like a fish out of water. But, much like it is more convenient to open a checking or savings account online, versus going to a bank these days, applying for a business loan online often takes out a lot of the legwork. For instance, there are dozens of reputable lenders that offer quick solutions to a person commercial or business financing needs.

So, at this point, you may be wondering if it is simply out of convenience that online lending became available? Well, the truth is with the ever-changing economy traditional lenders or rather banking institutions have become increasing wary of lending to small business. Yet, what many larger banks seem to not realize is that any major corporation once started out small and in order to have our economy grow leaving small business to fend for themselves is simply bad business for everyone.

Thus, with that being said, if you own a small or smaller business and are looking for a business loan then it is your best interest to check online lending. Of course, online lending is not for every business, these particular lenders still look for specific requirements that generally newer small businesses, i.e. businesses that have been open for less than a year, simply are unable to meet. If your business has been up and running for more than a year, however, then there is really no reason not to explore all your lending options.

Online Lending and Traditional Lending—The Differences

Besides the online lenders being more flexible with small businesses, they typically require or rather factor in different things than traditional lenders do. For instance, online lenders will take into consideration a company’s social media presence, payments to vendor and so on. Clearly, traditional lenders do not factor these things into their final decision to approve a person for a loan. Moreover, online lenders tend to quickly approve loans, sometimes same day, in comparison to traditional lenders. Ultimately, these are just a few key differences, but, you can see how online lenders often appeal to small businesses.

How to stay Safe and Secure

Lastly, if you are still mulling over the idea of applying online for a commercial loan, it may be because you have safety and security concerns. Well, this is perfectly normal. In order to ensure that you are dealing with a reputable online lender, of course, it almost goes without saying that doing your research will save you a lot of trouble down the line as well as help you determine if online lenders are truly right for you. Thus, if you are looking for a commercial loan that ranges from $5000 to $500,000 over a 3-36 month period quickly and without a lot of hassle, do your research and get your commercial loan.

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.


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Business Purpose Loans – Providing a Helping Hand

If you are trying to get any business up and running, the one thing you simply cannot do without is money or rather commercial financing in this instance. So you might be asking yourself, at this point, where exactly do you even start?

Whether you are trying to secure business purpose loans for a larger start-up or trying to get your small business where it needs to be, you can always benefit from a practical guide to all things business. So, let’s quickly cover a few of the basics. For starters, business purpose loans may or may not be your solutions to your financing problem. In other words, business purpose loans typically involve using the equity in one’s home as collateral.

credit score at level 4 arizona hard money lenderIf you are wondering why you need collateral or should consider using your house as collateral the answer is very simple—collateral makes it much easier to not only get approved for your loan but to secure a loan option that might otherwise be out of reach without said collateral. Generally, business owners that choose this particular commercial loan do so because who in their right mind doesn’t like lower interest and quick approvals?

Thus, if you have the ability to move forward on a potential commercial loan with the equity in your home then it almost goes without say that you need to make sure you are leveraging your collateral with your best interest in mind. This means keeping detail records of assets and being clear on the true value of assets or collateral i.e. do not guestimate. You would be surprised how many bright-eyed entrepreneurs rely on outdated information. Do not be one of those entrepreneurs instead do yourself a favor and contact an appraiser for an accurate as well as an up-to-date record of your property’s value.

Advice on Collateral

Now, that you have a rough idea of what and why collateral matters with these particular kinds of loans, let’s go over you next move when you simply do not have enough collateral or rather not enough equity in your home. In the event that you cannot get approved with your current collateral, you need to start thinking creatively. This means finding exactly what your other lender options are, researching online lending, comparing your offers, thoroughly vetting your potential lenders and so on. Ultimately, the goal is to get the right kind of financing for your needs, therefore you should never let a lack of collateral or equity stop you from accomplishing your goals.

Long-term Benefits

By now you know that more research you do, the better you under the risks and the better prepared you are to pitch your plans to your potential lenders, the better off you will be in the long run. Moreover, you do not have to do any of this alone and more importantly, you shouldn’t so use all the resources at your disposal. The truth is starting a business or expanding a business is never easy and you need to stay on your toes every step of the way.

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.


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Is It Time for a Business Loan?

You probably know several successful business people who decide it was time for a business loan one day and the next day their business took off. You may also know people who decided it was time for a loan and absolutely regretted it down the line, so how do you really know when it’s time?

You would be surprised at how many people in your life will have an opinion on you securing a business loan. So who do you listen to? How do you know the time is right? Well, despite having probably dozens of people to discuss these things with, the real answer is you need to know when the time is right for you and your business, which is often easier said than done. Moreover, it is important to remember that the people you should be listening to are those with your and your business best interest in mind, which may or may not be other people in your industry.

hard money personal at phoenix arizona hard moneyClearly, the best option is to speak with your potential lenders, your business attorney and your accountant since this is not an everyday kind of decision. But, nevertheless, you more than likely came here for some clear cut guidance so let’s get to it then. For starters, the best way to know if it is time for a business loan is to ask yourself, why you are even considering securing additional financing in the first place? Are you not sure? Well, then back away from the application.

Typically, there are at least six good reasons to get additional financing for your business and they include your company or business is ready to expand its physical location, you want to start actively building credit for the future, you are in need of additional equipment for your day-to-day operations, you are interested in purchasing more inventory, your business needs fresh talent or maybe you have stumbled upon a business venture that you simply cannot miss as the benefits will ultimately outweigh the incurred debt. Ultimately, this is when it is in your best interest to seek additional financing. Of course, that’s not to say these are the only reasons but rather the most beneficial reasons.

Staying Successful

Deciding it is time for a commercial loan or more financing is obviously a big step that if taken wrong can make or break a small company. Thus, it cannot be stressed enough that in order to stay successful as a small or larger business you need to take your time with this decision. Remember, the main and only goal of securing additional financing for your business should be improving your bottom line. If you can clearly see that this financing will help you achieve that goal then by all means full-steam ahead.

Reap the Benefits and Risk Less

With that being said, you still want to ensure that you will have the ability to pay back your secured additional financing when the time comes regardless of the outcome. So, be confident in your business decisions but remember to always be thinking long-term.

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.


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Thursday, March 2, 2017

The Pitfalls of a Short-term Business Loan

Are you thinking about getting a short-term business loan in the near future? If the answer is yes then it’s important to know just you are getting into.

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Practically, every business at some point or another needs additional financing or a business loan. But, what many business owners simply do not realize is the important differences between short-term loans, standard bridge loans, hard money loans, etc. In fact, many business owners often go into the situation relying solely on what their potential lenders tell them or have promised; this, of course, can lead to confusion down the line as lending, at the end of the day, is also a business.

Clearly, you do not want to be one of those business owners who secure additional financing without all the facts i.e. you will do the necessary research to find the most advantageous business loan you can. If you have already done your research then congrats, you are one step ahead of the game. But, ask yourself this— are you sure that you know everything you need to know about short-term financing for businesses? The truth is, obviously, you cannot know all there is to know about anything. But, that’s why the question asks if you know everything YOU need to know. In other words, do you have enough information to make an advantageous and informed decision that is right for you as well as your company? Do you understand the pitfalls of short-term financing? Well, these are things you absolutely need to know in order to move forward with this particularly kind of business financing.

Of course, if you need financing sooner rather than later and do not necessarily have loads of time to spend comparing offers, interest rates, and terms then the very least you can do is become clear on the potential pitfalls. Thus, without further ado, let’s go over the major pitfalls of short-term loans for businesses.

The Real Deal on Short-term Financing

The major pitfalls of short-term financing are unsurprisingly the over-the-top interest rates and ultimately how this extremely expensive financing will affect your company’s bottom line. For example, you will see fairly quickly how needing even an extra month or two can significantly impact the amount of interest you will end up owing i.e. a loan of $50,000 at a three percent interest rate not only will run about $1,500 in interest but with that extra month or two the number quickly increases. Moreover, many lenders often penalize or add additional fees for extensions. In regards to your company’s bottom line, if for whatever reason you are unable to meet the terms or obligations of your short-term loan you can very easily put your business and its future at risk.

A Little Business Advice

Ultimately, if you are the position to secure a short-term loan and you are fairly positive that you will be able to cover future terms or obligations in spite of very high-interest rates and you have explored all your options then this kind of financing may be, in fact, right for you.

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.


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