Learn To Be A Fix & Flip Investor

Saturday, April 14, 2018

Commercial Real Estate Loan Rates

Do you have an office building, a rehab, or a multi-unit apartment building? With commercial real estate loan rates at one of their lowest, now may be the right time to consider a loan for your next real estate investment.

If you are an owner or looking to purchase a commercial property, there’s good news to be had: Commercial loan rates remain at an all-time low. With the Federal Reserve promising four rate hikes this year, this may not be so in the future. For this reason, this may be the perfect time for you to purchase or refinance a commercial property. Level 4 Funding has the team that can help guide you through the process and help you feel like a well-informed purchaser. Let’s take a look at how commercial real estate loan rates work and the interest rates the different types of lenders charge.

If your Credit Score is 680, you’ve been in business in 2-plus years, and plan on occupying 51% of the building, you may qualify for a SBA 7 (a) loan. If your project is between $2 and $3 million dollars you may want to explore the opportunities for financing from insurance companies and conduit lenders.

Commercial Real Estate loans have lower interest rates because they are collateralized by the commercial property. There are four factors that affect the interest rates for the Commercial loan. They are:

1) The Business and Customer creditworthiness: Your rate will be determined by the credit score of the customer and business, the higher credit score the lower rate.

2) Is the commercial real estate loan fixed or variable? A fixed rate loan is a loan that has a fixed rate for the term of the loan. The variable rate loan is reset from 1 to 5 years and will be adjusted based on current rates. Most people will not qualify for fixed rates.

3) What is the term and size of the loan? Hard money lenders offer loans with higher rates and shorter terms while conventional lenders offer longer loans with lower rates.

4) Prevailing Market Rates: Interest rates move up and down based on the government bond market. Keep informed about the movement in the government bond market and how they will affect your rate.

The Lender Has the Biggest Impact on your Rate

1) SBA loans--rates run 4.75% to 9.25%, the 504 loans are best for loans over $1, 000,000 and come in three parts: 50% from the bank, 40% from the SBA and 10% from the borrower. You will need a credit score of 680+.

2) Hard Money Loans--Rate run 10% to 18% and covers about 20% of the market. The rates are high because the loan is not based on the credit worthiness of the borrower but the value of the property. The loan-to-value runs around 55% for many hard money lenders.

3) Other Lenders--Only a small amount of loans come from Insurance companies and Conduits.

Commercial loans can be structured in three ways: fully amortized loans, interest rates resets, and balloon payments.

You may want to purchase commercial Real Estate or refinance a commercial property. There are wide varieties available for high credit scores and lower credit scores. Call and counsel with Level 4 Funding to find what works best for you in your situation. We offer rates as low as 7.99 percent.

Thursday, April 12, 2018

Alternative Business Loans Arizona Entrepreneurs Best Option

Exploring alternative business loans, Arizona start up and small business owners could be surprised by their options. There are many reasons that an alternative loan could be your best choice.

Traditionally, when a business owner needs money to fund a startup or to grow a fledgling business, the first stop is their local bank. But there can be many hurdles to overcome when seeking a loan from a traditional lender. Alternative lenders provide business loans Arizona small business owners actually have a chance of securing and that is just one of the many benefits that they offer.

There are two main benefits to working with an alternative lender. The first is that the approval rates are much higher than a traditional lenders and the second is the fast approval and funding time frame. As an independent entity, there is not the mile of red tape to slog through with most alternative resources so borrowers enjoy a much better customer service experience for the most part and a higher success rate.

When alternative lenders offer business loans, Arizona borrowers will discover that the lenders tend to be more flexible on terms as well as qualifications for the loans. Alternative loans are therefore a good option for a business looking to finance inventory or for working capital which is not something that banks will approve. In addition, the alternative lender is not as likely to require that the business owner use personal assets as collateral for the loan. Which offers the borrowers more confidence in the lender and personal security as well.

Personal Credit is Not an Issue

Poor personal credit is often a factor that will derail business loans Arizona business owners are seeking. Banks are not willing to process a business loan without a deep dive into the personal financial status of the company owners and even some of the other major officers of the company. That is not an issue for alternative lenders as they are primarily interested in the merits of the business and not the owner’s personal finances.

Time is On Your Side

Anyone who has applied for any type of loan from a bank knows that the process can be long and arduous. A personal mortgage loan can take weeks to process. But a business loan application can actually drag out for more than three months. By the time a bank is willing to fund a business loan, the need for the money could be gone, the opportunity could be lost and the business could even be floundering. Business deals are often time sensitive, but traditional lenders tend to overlook that fact. Great opportunities to grow a business don’t appear every day, so business owners need to be prepared to act when the opportunity arises. Securing a loan from an alternative lender is a great way for an Arizona business owner to maximize an opportunity to expand, diversify or land a huge client that might otherwise have gotten away.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, April 10, 2018

Important Considerations when Choosing a Hard Money Lender

Hard money lenders are many real estate investors choice for funding, yet many just getting into the field know little to nothing about this lending option. Let’s take a look at what this type of lender can bring to the table.

Hard money lenders are not held by the same regulations that banks and credit unions must operate under. Because of this, they can offer loans to individuals and businesses with less than stellar credit. Many are private individuals who specialize in several types of real estate investment strategies from multifamily to office to the fix-and-flip model. These types of loans are asset based, meaning that the lender will look at your collateral as the prominent element of the loan. These types of loans are good for investors just getting in to the real estate investment model.

Another positive to those that operate under less regulation is that they are much quicker to funding. This becomes important when an investor is looking to get into a property, do some quick renovations, raise the property value, and get it on the market or obtain a loan from a traditional lender that is based on the property’s new value. If you end up developing a long-term relation with a hard money lender, you will find that you can often receive the funds you need for that next investment property in as little as a few days, compared to a month or more from other types of lenders.

Be sure to check the small print. Are you working with a hard money lender that offers a no-penalty clause for early payments? A pre-payment penalty states if you pay your loan back in full before the actual due date, a penalty will be assessed. The fee is percentage-based or the amount in interest that you would have paid for a set number of months. This can lead to tens of thousands of dollars. If you have an existing loan with a pre-payment penalty, be sure to assess fees before paying off the loan in full to determine if this is the right strategy for you.

Know Your Exit Strategy

While your property may be acting as collateral, hard money lenders do not want to be in a position of laying claim and having to foreclose on a property due to unpaid debt. For this reason, they will want to know your exit strategy. An exit strategy is how you plan on paying off the debt. Most of these loans are short-term, anywhere from 3 months to five years, making this component an important consideration for both the lender and the borrower. A few options are to refinance with a commercial mortgage, renovate and sell, or pay the debt off with business capital.

Know your exit strategy before considering a hard money lender. Going in with strong collateral and a good exit strategy are keys when considering going after a hard money loan.

At Level 4 Funding, we work with hundreds of private hard money lenders. Our rates start as low as 7.99 percent with terms that run anywhere from 3 months to 5 years. Call us to see if we are the right brokers for your next real estate investment deal.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, April 7, 2018

The Difference in Hard Money Loans

Many people, before they delve into the world of real estate investments, think of hard money loans as those you obtain only if you have poor credit and are desperate. Those that have been in the business for a while understand that they are an important lender to have in your lending portfolio and that many have different requirements and protocol.

Hard money loans are often obtained from private individuals that specialize in various types of real estate loans. The rates they offer vary dramatically and can range anywhere from 10 percent and 1- or 2-point origination fees, depending on your terms, to 18 percent interest on a short term loan with a 5- percent origination fee. An origination fee is designed to cover the cost of entering into and processing the loan agreement. Some lenders will roll your origination fee into the loan balance while others require payment upfront. Compare loan APRs along with fees in order to determine who is offering you the best loan.

You’ll find underwriting processes, or loan determinations, very different among lenders of hard money loans. For many, creditworthiness and credit scores are not even considered in the approval process. For others, it is an important consideration. When evaluating what you bring to the table, which includes your down payment as well as your collateral, some will only consider the LTV or loan-to-value ratio while others consider the ARV or after-repair-value. If you’re looking for a loan amount based on the after-value, you will need to come to the table with a solid background in your chosen real estate investment as well as budget and expenses that includes contractor fees.

Some hard money lenders specialize in specific types of properties. For instance, you will find hard money loans specifically for fix-and-flip models while others are solely investing in manufactured homes with land. Obviously, it’s important to find out what types of investments they are willing to loan on before wasting any time with a lender that does not specialize in the type of loan that you need. Generally speaking, most will not lend on an owner-occupied residential property thanks to Dodd-Frank regulations.

The Main Reason Real Estate Investors Choose Hard Money Loans

One of the main reasons real estate investors choose hard money loans is because they are often quick to fund. Many of these types of lenders will fund in as little as a week or less, in comparison to the month or two that traditional lenders take due to underwriting processes and extended time to funding. If an investor finds themselves in a bidding war, having cash on hand can often mean the difference between starting their next renovation or still searching for that ideal property.

At Level 4 funding, we provide funding for all types of real estate investments including multifamily, construction, business and office.

We offer loans with no prepayment penalties and with terms that can be extended. Our popular construction loans start at 9.5 percent APR with 24-month terms and convenient monthly draws. Call us for a no-obligation quote.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, April 4, 2018

Real Estate Values Are Continuing to Climb Up to Record Levels Again! You’re Making Moola Again!

Technorati Tags: Private Hard Money lender,fix and flip,hard money lender

With a booming economy and a strong GDP coupled with low
interest rates, home values in the South West are marching to
new record highs. Southern California home values are approaching
the boom prices that last occurred in 2006. Many home owners
are selling their homes within days, and the demand is continuing.
Some home owners are receiving multiple offers and builders are
experiencing very strong demand. Although the demand is not as
it was in 2006, with home builders using a lottery system to pick the
buyers and buyers camping at the sales office for days, there has
been a steady increase in demand.

Las Vegas had the biggest dramatic swing in prices. From the
peak in 2006 to the bottom in 2002 sellers were getting out of their
homes by the 1,000’s. However, over the past 5 years prices have
increased an average of 14%/year with the last 12 month's average around 12%.
San Francisco is the hottest market with prices rising like a rocket and demand
is at a very hot pace.

Over the past 5 years San Francisco price increased a
whopping 15%/year. However the past 12 months have slowed
a little with an appreciation of 10%.

(For a PDF of this Graph Click Here)

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

310-756-8418 or 818-404-6208 Lew Stone Danger Beware Danger 3107568418 8184046208

Got a strange call from 'Lew Stone'.

Seemed like a crank call and was not very nice on the the phone.

Was rude and disconnected without any courtesy or professionalism.

My recommendation is that if you get a call from this dude "LEW STONE"

Is that you do not call him back or work with him.

Block "LEW STONE" on your phone.

Danger Beware Danger

Dont Know if the "LEW STONE" is the correct name.

310-756-8418 or 818-404-6208 Lew Stone

Tuesday, April 3, 2018

When is the right time to cut your losses in the real estate business?

The real estate industry can be extremely tumultuous under normal conditions. If you are doing it correctly, you will run into a few extra problems that come with investing. What separates the inexperienced investor from the pro is knowing when to throw in the towel. Now, we are not saying that as soon as you find a water leak in your property you should give up, but you need to be aware of your investment as all times.

For many investors, this means having a solid exit strategy before you are able to commit to a new project. A solid exit strategy allows you to drop one project and go after another within a few days. For some investors, this could be after a certain number of repairs exceed their comfort level. Along the lines of property renovation, an investor could have a financial cap set in place before they decide to pull out on their investment.

Research makes perfect in real estate

An experienced real estate investor takes their time to thoroughly vet a property and the geographic area before making an offer. They will most likely go through an extensive checklist before making a decision. Sometimes hard money lenders in Texas are able to help you with your research, however, most of the legwork is up to you.

Enough research can tell you the right amount of money you should put into the property. Often many investors bite off more than expected with a property. In the event that the repairs begin to outweigh the possible revenue that you are expecting you should begin implementing your exit strategy.

When is time to step away from your investment?

The moment you feel as though you are not going to make any profit on the property is the time you step away. Some investors will tell you to stick it out a little longer, while most will tell you to stick with it. In the long run, you must do what is right for you. Maybe you have expended all the money you set aside for the project.

Most of the time at this point other investors will not want to or be able to help you in your investment. One of the most important details that you want to remember about real estate is timing. Your timing is everything.

Say you ask your hard money lender in Texas for an additional loan from more construction, however, recently there has been a decline in the demand for homes. Now, you have a home that may not sell for the next two or three months. With a hard money lender, usually you will have a fairly short term loans this will not work.

With an exit strategy, you give yourself more options

Allowing yourself to leave your investment if you need to, till ultimately save you thousands of dollars in the end. It may seem like a loss at first, but a loss will hurt much worse if you are left with debt.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Learn To Be A Fix & Flip Investor

Featured Post

The Big Show is Coming to Town.

Saturday, April 14, 2018

Commercial Real Estate Loan Rates

Thursday, April 12, 2018

Alternative Business Loans Arizona Entrepreneurs Best Option

Exploring alternative business loans, Arizona start up and small business owners could be surprised by their options. There are many reasons that an alternative loan could be your best choice.

Personal Credit is Not an Issue

Time is On Your Side

Tuesday, April 10, 2018

Important Considerations when Choosing a Hard Money Lender

Saturday, April 7, 2018

The Difference in Hard Money Loans

Wednesday, April 4, 2018

Real Estate Values Are Continuing to Climb Up to Record Levels Again! You’re Making Moola Again!

310-756-8418 or 818-404-6208 Lew Stone Danger Beware Danger 3107568418 8184046208

Tuesday, April 3, 2018

When is the right time to cut your losses in the real estate business?

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