Hard Money Arizona business loans: A Tale of Two Businesses

When it comes to Arizona hard money loans you take out for your business, consider carefully, whatever your pledging.

Sally Jones lives in a beautiful picturesque tourist town, where she owns and operates a restaurant.  Then the especially ponderous local city council demands Sally make some extensive cosmetic changes to the exterior of her restaurant, “to preserve the historic character” of the neighborhood they say. If she doesn't make these changes, she will have to shutter her business right in the midst of peak tourist season.

She needs money yesterday. She's heard about hard money does a quick cursory search online,  to find a "hard money provider," and the one she finds offers her a merchant cash advance instead.  She doesn't think much of it, applies, and the money quickly comes in. She makes the necessary cosmetic changes. Business goes well extremely well during tourist season.

However, the loan she took out was paid back with 40% of all her profits.  She breathes a sigh of relief ‘at least the loan is paid off,’ she tells herself. But her margins are razor thin, and she has absolutely nothing in savings.

Should be okay right?  Well, then the city council demands that the siding on her restaurant isn't the right color and she'll have to change it. With absolutely nothing in savings, Sally has to take out another MCA loan to resolve the issue.

When it comes to hard money Arizona business loans, real hard money providers don’t use your income to secure their loans.

Across the street, Ralph was under similar threat from the city council.  He too needs fast money, he goes online and finds a hard money provider. His lender asks him to pledge his restaurant as collateral for the loan, and he's a bit nervous about the interest payments.  Nevertheless, he goes ahead and makes the necessary changes. All the extra income he earns throughout tourist season, allows him to pay back the loan he took out and also enables him to save up the additional revenue.

So when the Birkenstock wearing, tofu munching city council demands that he also needs to change the color of the siding on his building he has some extra money on hand and he doesn't need to take out another loan.

Risk less by seeking out real Arizona Hard Money Lenders.

The moral of this story is don't put your businesses long-term income on the line to fix a short-term problem.  A real hard money deal allows you to leverage the equity you have your business' real property as collateral. Yes, there's some risk  and you'll want to carefully consider whether or not you can pay back the loan. However, if the prospect of quickly paying back the loan is in sight than this type of deal offers little to no danger.

However some there are hard money providers online, that are merchant cash advance lenders.  These loans are especially dangerous as seen in the story above because they hamper your business's ability to save income. Your business's cash flow is eroded,  and slowly but surely another short-term problem comes up. Because of your MCA, you have little to no savings on hand, and you have to take out another loan.

So when it comes to alternative financing,  know precisely what you're pledging. Be sure your hard money provider is the real deal.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Business Loans: Does God Want Your Company to Survive?

Surviving as a start-up is difficult. Considering Arizona Business Loans could keep you in the game.

The short-term survival rate for a business is 50%. Confirming this, the US Bureau of Labor states, “About half of all new establishments survive 5 years or more.” This means: start a business and flip a coin—you’ll find heads or tails to be your odds of survival.

While this statistic is daunting, how do you break the chain? Many experts claim that a healthy cash flow is one of the main indicators of a business’s survival. Regarding this, a recent article from Forbes states that “cash is king, and cash-flow management is the deciding factor whether or not your business succeeds or fails.” While this is good to know, how do you obtain cash flow when you have been down on luck, your market has made an unpredictable shift, or you have not yet qualified for a loan?

Struggles in obtaining lending may be due to:

1. Low credit score

2. Limited credit experience

3. Bankruptcy

4. Foreclosure

Don’t let the challenges of your past impede your future potential. You’ve put skin in the game to be in business. You want to survive and thrive. Level 4 Funding’s Arizona Business Loans may be able to help you obtain the necessary cash flow to outlast the first five 5 years.

Other Reasons for Seeking Business Loans

Perhaps your business is up and running the way you want it. However, you may need more cash to improve upon what you’ve created.

Other reasons for obtaining Arizona Business Loans may include:

1. Expansion real estate, inventory, space

2. Debt consolidation

Expansion may be crucial to getting an edge up your competition. Many times, for businesses that have been established for many years, acquiring property without diminishing cash flow is a dilemma. To add to this, traditional loans may be hard to acquire for some. Hard money Arizona Business Loans may be the answer to buying more property for office space, inventory management, or additional manufacturing. These investments increase the potential output and profit your company is capable of achieving.

Why Not Consolidate Many Loans into One?

Debt consolidation may be another concern. Multiple credit card payments, property loans, and interest rates may be a burden. E Plurbus Unum—Hard money Arizona Business Loans may allow you to consolidate many debts into one payment and one interest rate. 

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Real Estate Lines of Credit in Arizona are Getting More Attention

Real estate lines of credit are growing in popularity. If you’re involved in investing, adding them to your toolkit can help ensure your success.

Generally speaking, savvy investors find out what works for them and repeat the same processes time and time again to ensure success. That said, they also create a toolkit of various options and tailor their approach depending on the project. One of the tricks of the trade seasoned investors apply is to be familiar with several forms of lending and choose the best one for each project. That way, financing and favorable terms are always just a call away.

Real Estate Lines of Credit in Arizona fit into this toolkit as well, right alongside things like conventional loans and Arizona Hard Money Loans. However, instead of taking a large portion of cash all at once, the investor uses it like a credit card, only taking what he needs as he needs it and paying back the balance. The funds made available can sometimes be enough to cover the cost of purchasing a property, though they’re generally in line with what someone might pay to do repairs or a full rehab on a property.

There are both single property and multiple property Arizona real estate lines of credit. With a single property line, the amount made available will generally be based on the value of the home. In these cases, most investors will use them to take money out to complete individual repairs. However, those with larger portfolios can have much larger lines made available, based on the value of multiple properties. In these cases, the investor may still use the funds for rehabs and repairs. However, because the cash can be tapped into at any time, many use this to purchase new properties and add to their portfolios.

When Time is of the Essence, Real Estate Lines of Credit are There for You

Being able to jump on an Arizona investment property with cash ready to go makes it easier to grab it before others do. It can also help sway a seller in your direction if there are multiple offers because they know your deal will go through and isn’t going to get hung up waiting for outside financing.

Know the eligibility requirements ahead of time to ensure approval.

Some lenders will determine eligibility largely based on credit scores, which can make it difficult to get approval. However, asset-based lending looks more at the value of the property or properties involved. In other words, if you’ve got a good amount of equity in a single property, you may be able to tap into most of it even if you have rotten credit. Moreover, conventional lenders tend to look for credit scores of 720+ once your portfolio hits a certain size, whereas asset-based lending actually rewards you for the extra equity and can often offer up more cash. Ergo, there are multiple situations and stages in your portfolio growth in which this could be ideal. If you don’t already have a specialist on hand who offers LOCs, talk with a broker who can go over all the options now, so you can have the cash you need when you need it.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

3 Ways to Get More from Your Arizona rental property Loans

If you’re taking out Arizona rental property loans, finding ways to improve your ROI is essential. However, most advice you’ll hear could wind up costing you money, so stick to the tried-and-true methods to keep your cash flowing.

Maximizing the return on your investment should always be a priority, but if you’re paying on Arizona rental property loans, that monthly check serves as a constant reminder that it takes money to make money. It also likely makes you want to work that much harder to improve your gains. Here’s how to do it without unintentionally sabotaging yourself.

1. Focus on staying full. Oftentimes, landlords come in with the intent to make improvements and then bump up rents to generate more cash. This can actually backfire because it frustrates tenants and often places their existing home outside their budget. Before you make a move to hike up rates, consider what it will cost you to replace your tenants. Chances are, you’ll make more money by keeping their rents as-is and increasing rates as people move on. This is especially true if you have really great tenants who pay on time and make life easy, so always work out what costs you might incur by having to fill vacancies.

2. Allow tenants to sublet for a fee. The Airbnb craze is here to stay. Some landlords detest it because of the potential for damage and uncertainty of who will be renting, but it’s worth noting that your tenant is still ultimately responsible for what happens in the home. Consider including a clause in your contracts that allows your tenants to use services like Airbnb, but only if they sign up for it and agree to an additional monthly fee for the duration of their lease.

3. Have a late fee clause. Nobody likes to be the bad guy, but the reality is you rely on your tenants to pay in a timely manner in order for you to make good on your obligations. Having a late fee clause can help get them to have better payment habits and will give you a small revenue boost when they don’t. Follow-through is paramount, though. If you’re uncomfortable requesting the fee face-to-face, consider using a service to process payments instead. You might find that this saves you time and money as well.

Hard Money Can Help You Add to Your Portfolio

Getting approval for Arizona rental property loans isn’t always easy, especially if you don’t have great credit or don’t have much experience with property management. If you’re in the process of picking up your first property or you already have one and want to have more but traditional funding won’t work, the more relaxed approval process offered by alternative lenders can help you pursue your dreams.

Find out if alternative Arizona rental property loans are right for you.

There are lots of ways to grow your portfolio, but finding the best terms and the right options are key in ensuring your ROI is all that it should be. Have a chat with a broker about your goals and portfolio plans to learn which options are best for your needs.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How to Get Arizona Business Loans with Rotten Credit

Getting Arizona Business Loans when your company is growing can be difficult to begin with, but those without excellent credit scores face additional challenges. Thankfully, lack of cash on hand doesn’t have to halt your plans, provided you know where to look.

Credit Cards: Although few would consider credit cards to be the ideal choice, they can work if you’re trying to bridge a gap and have confidence your revenue will continue to grow. Without being able to demonstrate your business is solid, lenders will typically expect you to get cards in your name instead of the business name. Poor personal credit may give them reason to pause, but oftentimes there are options with higher interest rates or annual fees that can be tapped into. Use these sparingly and pay off the balances ASAP, so they improve your credit and you can apply for more favorable terms in the future.

Factoring: Technically, invoice factoring isn’t a form of lending, but it can help you bring in cash faster if your inflows are sluggish and you’re missing payments by a small margin. It works well if you send out invoices to clients for work completed or goods delivered, but your clients sometimes take too long to pay. When you work with a factoring company, they purchase the invoices from you and pay right away. Then, your clients pay them. Factoring companies aren’t overly concerned with your credit, but they will only buy select invoices from you when the person who owes you has good credit.

Collateralized Business Loans: One of the more popular ways to go is to obtain collateralized Arizona business loans. In these cases, you’ll offer an asset or assets as collateral, giving the lender confidence that they have recourse even if you don’t make good on your payments. These are easier to obtain as well because the lenders aren’t worried about your credit score quite as much; they’re looking at the value of the asset more. Some lenders will accept land, inventory, or equipment as collateral, though most prefer to use the business owner’s home. Terms vary, but you can sometimes get up to 90% of the value of your asset, which makes this a good choice if you require a large lump sum for startup costs, equipment, real estate, or to cover a surge in growth.

How Can I Tell Which Options I’ll Qualify For?

Applying for financing repeatedly can damage your credit too, so it’s not wise to apply for everything all at once. That’s because lenders will typically assume you may well get all the credit you’ve applied for, and if you do, the chances are slim you’ll pay them. Instead, you have to make an educated guess as to which options will fit your needs and then inquire what each lender is looking for. Do a little research before you apply to ensure credit checks aren’t being done when you aren’t likely to be approved.

If You Own a Home, Collateralized Arizona Business Loans Can Supercharge Your Company

Various forms of lending exist because people and businesses have unique needs. If your credit isn’t good, but you own your home, a collateralized option can put a substantial amount of cash in your hands now, so you can grow your business and thrive.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions