Learn To Be A Fix & Flip Investor

Sunday, May 26, 2019

4 Things You Must Know Before Finding a Arizona Hard Money Lender

Whether you're doing a buy and hold or a fix and flip, if you're going to use a Arizona Hard Money Lenders to get funding, there are a few things you'll want to know that will make the process quicker and smoother. Let's dive in!

Since the Dodd-Frank Act tightened regulations on the banks and big financial institutions in the country, real estate investors have turned more and more to Arizona Hard Money Loans for funding. This is a good thing — just like competition in business is good the consumer, the real estate market can only benefit from having multiple funding options for potential investors.

That said, hard money is still foreign to some, either because they've bought into the stigma of it or they've just always gone through the bank for one reason or another. Don't worry if you fall into this category. Hard money isn't anything scary or even complicated; it's simply private lenders (outside the system) lending money to people buying or rehabbing real estate. In fact, if you're used to the banks, with their extensive credit checks and mountains of paperwork, you might be surprised at how simple things are with Arizona Hard Money Lenders.

What You Should Know Before Going In

There are four things you should absolutely know before applying for a Arizona Hard Money Loan:

How much you need. You'll need to crunch some numbers for the property you're hoping to buy and figure out how much you need. Include all the little things, too, like closing costs, insurance and title fees.
How much your collateral is worth. Because you'll secure your loan with collateral — this can be the property you're buying or another property you already own — you'll need as accurate a number as possible when it comes to value.
The after-repair value. If you're planning a fix and flip, you'll want to do your best to come up with a realistic value for the property after you've done the rehab.
Your exit strategy. Perhaps most importantly, the lender will want to know your exit strategy because that's when they'll see their money again. Before going in, have a budget and schedule for the purchase, the flip and the resale.

Finding the Right Hard Money lender in Arizona

If all of that seems daunting, don't worry. The right Arizona Hard Money Lenders in Arizona can sit down with you and help you solidify your plans and let you know everything you need to gather for your application. Here's how we look at it here at Level 4 Funding — your success is our success so anything we can do to help you be successful is a win-win situation! When you're ready to talk, give us a call!

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

A Commercial Arizona Hard Money Lender Might Be the Ticket

Most of us are fed up with the rat race, but most of us do it because we think there's no other way. There is, and speaking with commercial Arizona Hard Money Lender is the first step.

If you're like we were, you were probably sick of the 9-to-5 daily grind. You get out of bed, clock in at a job you don't like, working for a company you don't like and pleasing bosses you don't like. You get home in time to eat and collapse. You keep going on this hamster wheel because it seems like the only option that's within reach.

Here's the good news — working in corporate America isn't the only way to make a living. Owning your own business puts you in charge. As goes your business, so goes your finances; no begging for raises, no groveling to bosses, and no being undervalued as you work your way up the ladder. You might be saying to yourself, "I don't have good credit, so I can't get a loan to start a business." That kind of thinking is what's kept many of us from taking that leap, but it doesn't have to.

Getting a Commercial Arizona Hard Money Loan is Easier Than You Think

Even if you've been turned down by the banks, you may still be able to get a Arizona Hard Money Loan. Here's why.

Banks are beholden to all sorts of regulations and they're cautious when it comes to risk. It makes sense — if they violate regulations, their going to be in hot water and if they just handed out money to anyone who promised to pay it back, they'd be out of business before you can say "bankruptcy."

Colorado Hard Money Loans use private funds, essentially hooking up an investor who wants a return with an aspiring business owner who has a dream and needs some capital to get started. Typically, the property being purchased is put up as collateral, so commercial Colorado Hard Money Loans are usually less concerned with your credit score and past history. And, since they use private money, they aren't regulated to within an inch of their lives, which gives them more freedom to be flexible on terms.

Arizona Commercial Hard Money Loans

If you're ready to hang up your 9-to-5 gig and start being your own boss, you've come to the right place. Level 4 Funding is a commercial Arizona Hard Money Lender with a wide range of options for aspiring business owners. Give us a call or send us

Top 7 Reasons to Get Into Trust Deed Investing

These days, there are myriad places to invest your money. One of the least know but potentially most profitable is Trust Deed Investing. Let's look at what this is and the top ways you can benefit from it.

Here's the ultimate goal — putting your money to work for you instead of working for your money. How do you do this? You can deposit your money in a bank. Your money will be safe there, but your return will also be almost nonexistent. You can invest in bonds or the stock market as well. With the stock market, you have the chance to get a really great return but you can also lose it all and there's not much you can do to mitigate that volatility.

Here's another idea that's been around forever but isn't given enough press: Trust Deed Investing. How does Trust Deed Investing work? It's simple — investing in deeds of trust makes YOU the bank. In the most common example, you invest your money with a borrower who then purchases real estate and gives you the deed as collateral. Every month, you collect payments. If the borrower fails to pay back the loan, you have the real estate as a backup.

Sounds good, right? Let's look at some of the top reasons to go with this type of investing.

Why Investing in Deeds of Trust is Good Bet

Your investment is backed by a real property, not just a promise from the government.
Your return on investment is high — usually between 10% and 29%.
You receive payments directly at scheduled intervals
You are in control from Day 1
Your collateral ensures you can get your money back in a worst-case scenario
Hazard insurance protects the property, so not even acts of God can derail your investment
A Title Policy protects the property as well, so you don't need to worry about liens, encumbrances or defects

Finding Trust Deed Investment Opportunities in Arizona

So how do you find these types of investment opportunities? You can hustle on your own, but you might open yourself up to all sorts of legal and logistical issues. A better way is to go through a company like Level 4 Funding. We have the experience and know-how to connect you to a worthy Trust Deed Investing opportunity. Give us a call today at 623-582-4444.

Saturday, May 25, 2019

Three Factors Texas Hard Money Lenders Use to Determine Rates and Points

Points and rates in the hard money world aren't regulated, so Texas Hard Money Loans set them themselves. Here we'll look at how they determine rates and points, and what you can do to get the numbers on your side.

Most people understand interest rates, but points can be a little tougher to pin down, so before we get started, let's look at what points are. It's fairly simple — points are a percentage of the loan the lender charges to close on the loan. They typically range between 2% and 10% and they're determined by the same thing that the interest rates are usually determined by — risk.

Let's unpack that concept of risk and break it down into three factors — equity, borrower experience and exit strategy.

Some of the Ways in Which Colorado Hard Money Loans Determine Risk

Equity. The property's equity plays a big role in rates and points. If the property is being put up as collateral, the lender wants to know exactly how much it's worth and, sometimes more importantly, how much it might be worth in the future. Being able to show solid evidence of a property's equity may be able to help you secure a lower rate.
Borrower experience. This is especially important when it comes to fix-and-flips. If this is your first time wading into those waters, a Texas Hard Money Lender may see higher risk and thus ask for a higher reward. Conversely, if you've flipped 10 homes successfully, there's less risk for the lender and you may be able to negotiate lower rates.
Exit strategy. In the end, this is what it's all about. You want to pay off the loan with your profits and the lender wants to have the loan paid off. That's why going into it, you should have a solid plan for getting out. A fix-and-flipper might have a rehab plan backed by contractor estimates that says they can do all the work in three months and then put the home on the market. With this, the lender knows that the money will probably be at risk for a shorter period of time and he or she may be able to offer lower rates.

Getting Great Rates from an Arizona Hard Money Lender

At Level 4 Funding, we have fixed-rate APRs as low as 5.99% and flexible terms from 3 to 60 months on a wide range of loans, including fix-and-flip, construction, cash out and rental property. Want to see what rates you can get? Give us a call today!

Can Builders Still Get Arizona spec home financing?

Getting Arizona spec home financing might not be as easy as it was in the past, but it's still within reach, even if your financial situation isn't stellar. Let's look at how to get started and examine a few things to think about.

We harp on it a lot in this blog, but the housing crisis — and the subsequent Dodd-Frank Act — was a monumental turning point in the industry. New regulations designed to prevent another recession made big financial institutions really wary of taking risks. In spec home construction, that's meant funding has become really difficult to come by, at least through traditional routes.

Does that mean that getting Arizona spec home financing is impossible these days? Nope. But you may have to get creative or think outside the box to make it happen. It's not as daunting as it seems — Texas Hard Money Loans in Arizona may be able to help you through the process.

How to Get Hard Money Arizona spec home financing

One of the advantages of going with a Arizona Hard Money Lender is that, unlike the banks, you can sit down with an actual human being who has the power to make decisions. If you're looking for a spec home loan, use this to your advantage by talking about some of these topics:

● Discuss your options. A Arizona Hard Money Lenders will listen to your plan and brainstorm ideas to help make it happen.

● Discuss the process. Talk about how the process will go, from the initial meeting and the application procedures to how fast you'll have funding and when you'll need to start paying it back.

● Discuss the terms of the loan. Texas Hard Money Loans aren't bound by the same restrictions of the bank, so they have wiggle room to structure the loan in a way that makes sense for both of you.

● Discuss fees and interest rates. Good, honest lenders will tell you upfront how much everything is going to cost, including the interest rates, points and any requisite fees.

Getting Spec Home Financing in Arizona

The new housing market in Arizona is booming, so it's a fantastic time for builders to cash in on the trend. If you're thinking about building a spec home or you need Arizona spec home financing to help finish a spec home project, you've come to the right place. Give Level 4 Funding a call today to talk about your options!

Why Knowing Your Office Building's Class Can Help with Arizona Commercial Private Loan

Got an office building in your sights and need a Arizona Commercial Private Loan to make the sale happen? Knowing its class can help you in more ways than one. Here's how.

A huge part of due diligence in the real estate game — from applying for a Arizona Commercial Private Loan and putting in an offer to getting insurance and eventually listing it — is determining value. This can be even more true when it comes to commercial real estate. Things like buying in the wrong part of town or not catching a red flag can doom that commercial purchase and kill any potential profit it might have yielded.

One of the ways in which real estate professionals work to determine value is by putting commercial spaces into classes. It's a subjective process, but it's a tool to help you compare comparable buildings that will be competing for tenants. To help you get a better idea of the concept, let's look at the classifications for commercial buildings.

How Are Commercial Properties Classified?

Class A commercial properties are typically relatively large and relatively new and boast a wider range of amenities. They might have upgraded elevator systems, a concierge or security service, and technological enhancements that attract a more prestigious type of tenant. And, Class A buildings generally feature stunning architectural details and have that unnamable "wow" factor. Owners can charge a premium for the upgraded amenities and prime location.
Class B buildings are typically a bit older — perhaps 10 to 20 years — and may be a touch outdated or not equipped with the highest-end amenities. Class B buildings may feature less covered parking or be located on a side street adjacent to a main thoroughfare. This class of commercial property usually fetches the market average for rents.
Class C commercial buildings may be even older and more outdated, with previous tenants who have left their office or retail space a little rundown. Parking and security might be less present or even nonexistent, and maintenance may be lacking. This class might attract business looking for a more economical option and may get below-average rents.

Using Building Class to Get a Commercial Private Loan

There's nothing inherently "wrong" with any of these building classes, but being armed with this information is an important step in applying for a Arizona commercial private loan. Build this info into the plan and budget you present to the lender and he or she will see that you've got your ducks in a row.