Learn To Be A Fix & Flip Investor

Monday, March 27, 2017

Violin Soloist and Attorney Share Success via Level 4 Funding

When Sharon Chen and her husband William needed a hard money business purpose loan, they knew just where to go—Level 4 Funding. Busy professionals don’t have time to “play around” to find the right loan, William explained. And Sharon and William are successful, busy professionals indeed.

Success on Stage

Sharon was born and raised in Maryland, to parents originally from Taiwan. Her father is a well-respected physician and both of Sharon’s brothers followed proudly in his footsteps—one works for Johns Hopkins University, the other became a gynecologist.

The only girl in her family, Sharon opted out of medical school but took an equally prestigious path. She started playing the violin at just 2 ½ years of age, and eventually went on to attend Harvard College.

Sharon played the violin in the Harvard symphony and became a concertmaster, which is the highest ranking violinist in an orchestra. As a concertmaster, Sharon led the violin section in maintaining unity, and typically played all of the violin solos during a performance. When it comes to Sharon’s musical talents, her adoring husband William says “she is a genius.”

William is a successful banking attorney handling business investors, legal contracts, and legal consultant work. Originally from Switzerland, he and Sharon met and married in New York. Starting 10 years ago, Sharon unfortunately began suffering from an unusual medical condition, and together she and William have traveled throughout Europe and the US in search of the best medical care and cure. They visited Arizona as one of their destinations, prior to heading back home to New York.

After the New York tragedy on September 11, 2001, William and Sharon decided to head west and make Arizona their home. The couple have been proud Phoenix residents ever since.

Nothing but the Best

When it comes to Sharon’s medical care, William settles for nothing less than the best. Their travels around the world are proof that he puts his money where his mouth is.

William’s high-quality philosophy translates into his family’s financial transactions as well. He originally heard about Level 4 Funding from his trusted colleagues in the real estate industry. Unwilling to waste time or risk his personal finance transactions being handled by a mediocre team, he dealt directly with Mark Gowlovech at Level 4 Funding.

“We can’t afford to take shortcuts. Good work is worth paying for,” says William. “Go where service and quality count, like Level 4 Funding.”

William speaks from experience, and just wrapped up his second transaction with Level 4 Funding. He is impressed with Mark Gowlovech professionalism and expertise, and glad he took his colleagues’ advice to reach out to Mark when he needed a quick response on his first loan.

“He’s very easy to work with,” says William, “and he takes time to understand your story and situation. He’s great at putting everything together, and finding ways to make solutions fit your needs.”

Like many of us, William knows that some traditional lenders can be extremely slow to make decisions, and require hours of time to wade through large stacks of paperwork. William prefers the private client boutique-style experience he’s received with Mark and team.

Success Tips from the Professionals

William and Sharon’s track record as successful professionals speaks for itself. Among the best of the best at what they do, they shared additional tips for life and lending.

“Life is made up of two things,” advises William, “your occupation and your hobbies and leisure pursuits. Work hard to get paid well at your career. Then pay someone to work hard and give quality service and results to you.” The cost of incredible service and better quality is worth paying for, William stated firmly. Getting a high-quality loan has just as much value as buying reliable quality clothes and dining at the best restaurants.

“Hard Money Loans are serious business,” William continued. When you need something done, find a professional who can help you get the job done right, and go with them. It’s the same as a critical home repair. If you have a plumbing issue, you find the best plumber and have them handle the job. If you try to do it yourself, you risk errors and waste time—time you could be spending making more money in your area of expertise, or time you could be spending enjoying leisure pursuits. “Don’t play around to try to find the [least expensive] deal,” he advised. “Go where service and quality count, like Level 4 Funding.”

William and Sharon continue to be highly complementary of Mark and team. As two-time clients and connoisseurs who settle for nothing less than the best, they should know. In summary William stated:

“Excellent work, Level 4 Funding makes things a lot easier. I’m busy, Sharon’s sick, and we can’t afford to take shortcuts. Good work is worth paying for.”

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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Wednesday, March 22, 2017

Self-Assessment: Evaluating your commercial lending needs using five questions

Business expansion often relies on commercial lending and commercial loans but is it necessary? Find out if your business is prepared.

I am Bill, owner of a Pizza restaurant located within the vicinity or a large-scale university with many potential customers. My key competitor in the region decided to forego his share of the market and closed doors. With no competition and a larger market, I finally felt I can dominate the region without engaging in price wars, meaning greater profits.

Since I would need to cater to a larger population, my first impression was to buy out the competitors place, which still had the equipment and considered commercial real estate loans as a viable solution.

My brother-in-law, who also happens to be a finance professional, advised me to carry out a self-assessment using 5 questions before reaching out to commercial lending organizations. He proclaimed that any lender in a professional category would put me to test with these questions so I had to plan ahead and be prepared if I needed to qualify for commercial loans.

The questions, which, I need to answer before seeking commercial lending assistance, are:

What is the amount of finance required?

The worst preventable outcome is acquiring a commercial loan unable to fulfill its objective. While it seems easy to determine the amount of loan required, working up a well accounted commercial lending may seem quite tedious. I had to determine if the buy-cost included the equipment or if I need to pay extra for that.

How will it be used?

Its critical to know what the funds acquired through commercial lending (in my case commercial real estate loan) would be used against. It is pointless to acquire a loan if you are unsure how to spend it. In my case, equipment was included in the buy-out amount.

When is it required and if you require all of it?

Not all deals require an upfront full payment, some deals have room to make an initial investment and other costs can be taken care of later. Do I need commercial real estate loans or do I need commercial loans as well i.e. to buy-out the place and manage other costs on the go is a question that should be answered.

What is my personal credit History?

Commercial lending organizations take keen interest in your financial management skills as well as your personal and commercial lending history. If your credit history is positive, you might be off the hook.

What would be my Return on Investment (ROI):

Commercial lending business need to know their money is invested in a reliable business in order to receive a payback on time. It needs more than a convincing attitude to bag commercial loans. Well, needless to mention, everybody loves pizza. It was a sure winner; an award-winning pizza with a large population to feed. While my initial speculations suspected a larger crowd to feed, I realized that the competitor quit due to lack of profits. Hence, I have to feed a relatively large crowd but not big enough that it could not be managed at my current place. Hence, I went for smaller commercials loans to enhance my current place.

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Are You Afraid Of The Risks Associated With Commercial Lending Options?—Try Nontraditional Ones!

Commercial lending options are followed by different level of risks. Sometimes, you are not sure what option needs to be considered for financing your venture; especially if it is of importance to your business.

Financing is usually visualized with bank loans and credit card payments. These are necessarily traditional types of lending and most of the people are familiar to these methods only. On the other hand, traditional methods are not the only way out for people with entrepreneurial engagement.

Irrespective of the methods chosen, the risks involved in commercial lending options are high. If you feel trapped in choosing the traditional lending options, there are many substitutes and inexpensive methods of financing that you can use.

Credit cards: Sounds insane when you think about the interest rate, isn’t it? But it can be one of the most secure options for financing, depending on investment you need. If your commercial lending is small, credit cards are secure. Many of them charge 16% APRs and is quite reasonable when a lender is demanding 40% APRs.

PayPal working capital: Yes it exists! Many people aren’t familiar with it though. Rather than dragging you to conventional methods of checking credits, they examine your PayPal’s sales history and can lend you up to 15% of PayPal sales. PayPal works on simple process of taking a cut from the daily sales of your account.

Business line of credit: It is another secure option to minimize the risk and interest on your commercial loans. The interest is only applicable to the money you have used but you will have access to the money you need. It can be a life saver in case of unexpected expense.

Square Capital: It is an efficient option for retail businesses as they offer commercial loans for smaller businesses. Square Capital go through your past sales history to identify the limit of approval and like PayPal, makes necessary deductions from your sales on daily basis.

You need not to worry if you are bringing a new idea. You can think out of the box especially when you are sure about your goals. So when traditional commercial lending options are not workable, go for the nontraditional ones.

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Tuesday, March 21, 2017

FIVE TIPS FOR FINANCING INVESTMENT PROPERTIES

According to a study conducted by the online real estate site Trulia.com, becoming a homeowner is still as important as ever among consumers. In 2016, 75% of those surveyed dream of becoming a homeowner one day, although twenty-two percent of respondents expect it to become increasingly harder to acquire a mortgage.

If you are one of the lucky Americans who already own a home, yet is considering buying an investment property, pay attention to these five important ideas for financing your real estate investment transaction.

How to Find Financing

If you are new to the real estate investment world and have a clean credit report and low debt ratios, a traditional bank is your best bet for financing. Many of the large banks can offer low rates on mortgages to investors with good credit. While investment money is typically a little more expensive, you can still expect great rates that can increase your buying power.

According to Bankrate.com, the average interest rate on a conventional 30-year home loan is 3.65%, with 15-year rates hovering around 2.50%. These rates are some of the lowest in the history of mortgage lending. If there was ever a better time to finance real estate, we haven’t seen it.

Alternative Lending Private Hard Money In California

Portfolio loans are mortgages that a bank keeps on their books, rather than selling on the secondary investment market. Many credit unions or smaller banks offer these types of loans to investors with multiple properties. The loans are typically a little higher priced than their big bank counterparts but have easier qualifying terms.

Portfolio loans are useful; having comparatively fewer regulations associated with them and higher credit limits. You can find portfolio lenders by reaching out to local investment communities or asking your real estate agent. Real estate agents have an extensive network of lenders with which they work, and many have nurtured those relationships specifically for the benefit of their clients.

Seller Carrybacks

A “seller carryback” is a loan, or portion of a loan, that the seller provides and holds. For real estate investors, seller financing is one of the best options available. A property that is seller-financed means that the seller has agreed to personally finance the mortgage at a “market” interest rate with a specified down payment. These loans typically have a shorter term but are a great option for investors who look to re-sell the property in the near future.

The seller has the possibility to either finance the entire property or the difference between the real estate value and the loan available to the consumer. These loans are an excellent opportunity to get immediate financing with a minimum amount of documentation and regulatory headaches. A realtor or escrow company can assist with drawing up the mortgage docs.

Low Capital? Pursue a FHA 203K Loan

FHA loans are a great strategy for fledgling investors with little start-up capital. With a down payment of only 3.5%, an investor can finance the purchase balance, and with repair costs allowed to be calculated into the loan balance. The only downside to 203K loans is that the buyer will have to live in the property for one year before they can rent it or place it on the market.

There are important details to consider when enlisting these types of high-LTV loans. With a smaller down payment, your loan balance will be higher, which means it is vital to determine your cash flow before considering it as a rental property.

Private Hard Money Lending Solutions

Successful and savvy real estate investors are always seeking to build up their portfolio of properties. A financing strategy many of these investors utilize is private hard money capital. Private lending can come from family or friends, but there are also private money lenders that can provide quick financing at comparative rates.

House flippers and fixers typically use this type of funding to snap up below-marked priced rehab properties quickly. The rate may be high, but if you plan to quickly turn around and sell the property, you can cut the annual percentage rate in half

Private Hard Money Pools

Private lenders use funds pooled from investors to provide real estate borrowers with quick access to the capital needed to finance their properties. There has also been an explosion in this market with the addition of crowdfunding for real estate. According to current regulations, accredited investors with more than $ 1 million (excluding their home value) are eligible to participate in such crowdfunding endeavors.

Putting Your Retirement Funds to Work

If you own a Solo 401K or SEP IRA, you can legally use those funds to finance an investment opportunity. For years, people have been using their retirement funds to start a retail business or invest in one, but you can also use it to finance your real estate investment.

Why Use Solo 401K for Property Investment?

• Access to tax-free capital from the sale of investment property

• You have tax-deferral benefits associated with the capital

• You can invest freely with the capital

• Financing of real estate projects with tax-free, non-recourse loans

• Ability to choose from a wide variety of investments

Using a Solo 401K plan to invest in real estate comes with a few restrictions. First, you must put the capital gains or net income back into your 401K plan. Second, all costs and expenses involved with the investment property should originate from the retirement account.

While it does require a fair bit of due-diligence, investing into real estate is a great opportunity to take advantage of record-low mortgage rates and use them to make money. There are few better advantages in life than earning profits with “OPM” – Other People’s Money.

With the popularity of real estate crowdfunding sites and an extensive selection of private money lenders to choose from, access to capital should not be an issue, as long as you are a responsible investor who has done his or her homework in advance.

By Nema Daghbandan, Esq. | Geraci Law Firm || 21-Mar-2017

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Key Factors to Remember When Pursuing Commercial Lending Opportunities

It’s been a year since you decided to be your own boss. The year spent establishing your business venture after bidding adieu to a 9 to 6 routine. Now your mind is working overtime with all the ideas that may elevate your business and its revenue streams. Your market analytics shows a high demand for your product. However, you are unable to move ahead until you address the elephant named capital in the room. Consider the following advices before proceeding ahead:

Commercial lending is an open field

Commercial lending is not the prerogative of any particular financial institution. The majority of commercial banks, mutual companies, private lending businesses and hard money lenders offer a broad range of commercial loans, i.e. bridge loan, hard money loan, commercial real estate loans, joint venture loan, etc.

You have to peruse all the opportunities - what they offer and at what rate they offer - with due diligence to finalize upon the one closest to your commercial lending needs.

Business Credibility

Notwithstanding above, the lending opportunities are primarily linked with the overall health of your business. Before going on a lender finding spree, it’s highly admissible to take a good critical look at your business affairs. If they look credible to you, they will validate the strength and future viability of your business to your lender too!

Good Credibility = Many Options

Once you’ve ascertained that the credibility of your business is in good hands, don’t feel obliged to run to the bank straight away. They may charge less but will persuade you to apply for more than you need. Explore around, if your business credibility is built more on promise than returns then a hard money lender is a realistic commercial lending option.

Go Cyber

Lastly, in a world more connected than we realize, going online and browsing around is also endorsed to see the market offerings and to compare and analyze different commercial loans to find the one that fits your bill.

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Give Your Pot Business a Push with Options Other Than Hard Money Loans In California

All the financial establishments that are insured federally are not permitted to work with marijuana dispensaries. However, getting into the business is a personal choice, and if you need capital, there are hard money loans in California that can suffice your need.

Personally, I am not comfortable with the idea of a pot dispensary, but depending on the state you are living in, you might be able to sell marijuana easily. As the media has built our perception, there is much money that can be made through retailing legalized pot. However, the issue with pot is that the Federal government will not treat it as legal, or even accept it. Thus, taking loans would be rather difficult.

You can take a commercial loan referred as Hard Money Loans in California to get you started. This is one of the most conventional methods. However, this is not the “only” method to get your pot business on a roll.

Hard Money Loan is everything that you need to get things started however it is not as easy as it seems. It might be possible that the conditions and negotiations for the Hard Money Loan are not in your favor, or maybe the commercial lending option does not want to accept the loan. What is next?

There are a few options other than Hard Money Loans in California to give your pot business a push:

· You can go to your friends and family and ask for an investment. It might be a challenging and an impossible task to do, but they might be the only one who would not charge high-interest rates or maybe no interest at all.

· You can build up your network by attending the industry events which will grow your presence. Attend conferences, trade shows, and any gathering where you can meet the subject matter expert. It is not necessary that they will be there to invest in businesses, but they might know someone who is interested in running up such businesses.

· You can get hold of the foreign investors, especially Chinese people, who are very much interested in investing in Cannabis.

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