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Showing posts with label hard money. Show all posts
Showing posts with label hard money. Show all posts

Monday, October 22, 2018

5 Reasons Hard Money Lenders are the Right Choice for Your Investment Dreams


If your credit score is not where it needs to be to receive a loan from a traditional broker, reaching out to hard money lenders can help you achieve your real estate goals more quickly. Learn how these lending opportunities can help you start your real estate investment journey sooner than later.

Regardless of your credit score or credit history, you may still be eligible to receive a hard money loan from. A private lender. Hard Money loans Arizona leaves the property you invest in as collateral so that you are not subject to the same requirements that are expected of you when seeking lending opportunities at a traditional bank setting.

If you are considering beginning to start going after your real estate investment goals, these five benefits of Hard Money loans Arizona may be perfect for you and the needs of your financial situation:

  1. Obtain a loan much more quickly that you would with a more traditional broker. Acquiring a loan at a bank is often a long process that requires severe qualifications that may take some time to get together.

  2. Be eligible for lending opportunities even if you have a low credit score or a poor credit history. A solid debt-to-income is all that is need to get a hard money loan.

  3. Begin investing in real estate as quickly as possible. A faster approval process means that you can begin going after your real estate investment goals in the near future with the assistance of hard money.

  4. Network with lenders to open more doors for yourself in the real estate market. The networking process will help you meet new investors and potentially lead you to more opportunities within the real estate industry.

  5. Build more lines of credit and rebuild your credit score to achieve more financial freedom. This can help you build your credit score so that you can be open to other opportunities in the future when it comes to investing and other financial goals.

How Do I Find Hard Money Lenders Near Me?

Researching lending opportunities near you could be as easy as attending local networking events or searching for private brokers in your area. The right lender will be able to work with your budget to find the perfect lending opportunity that satisfies the need of your financial situation.

Networking is a crucial business strategy that will help potentially meet new clients or investors that are as exciting about your financial goals as you are.

Networking begins with establishing strong communication skills. Don't be afraid to show your true personality. Private lending with hard money is a much more personal experience than what you would see at a traditional bank. This means you are developing real bonds with your lender which could open doors for further advancement and other investment opportunities in the future. Achieve financial freedom by getting started with real estate investment with the assistance of hard money loans.

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

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.
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Thursday, December 7, 2017

What is hard money?

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Hard money is a catch all term for asset based loans issued by private groups or individuals. This article discusses some of the advantages and potential drawbacks involved with this type of lending.

Most commercial lending requires a tedious approval process. A borrower’s credit history is carefully reviewed, their income is verified and in many cases a substantial down payment is needed to qualify for a regular commercial loan.

Hard money is different. Hard money is a general term for loans that are secured by the collateral i.e. the property being borrowed against. These types of loans are issued by private groups or lenders, who consider the value of a subject property as being of greater importance than a borrower’s financial situation. Should a borrower default, the hard money lender simply resells the property at a profit to make up for the outstanding loan. As a rule, hard money loans are short term and often come with double digit interest rates.

While hard money may seem expensive it is still a sensible option in certain cases. Hard money is an excellent option for immediate investment opportunities that need to be taken advantage of quickly and which cannot be deferred by the traditional loan approval process. Fix and Flip real estate investors will find hard money particularly useful. This type of borrower can use hard money to purchase a property, quickly improve its value, sell the property for a profit and then quickly pay off outstanding loan. Hard money can also serve as a bridge loan to other types of more conventional financing. Borrowers can purchase a property with a hard money loan and then refinance once their credit situation improves.

Considering its expense what are the main benefits to hard money?

Hard money is above all a much faster method of financing than traditional lending. A hard money lender won’t spend many hours combing through potential borrowers financial records. Instead they will look mainly at the potential value of the subject property. This greatly speeds up the approval process. Borrowers with an outstanding relationship with a hard money lender can see the process move even faster. Hard money lenders are private groups or individuals and can offer more flexible terms when compared to traditional banks.
Traditional banks have a strict, highly formalized underwriting process which restricts their ability to offer better terms to borrowers. Hard money lenders can look at each deal on a case by case basis. If an investment opportunity is particularly attractive, a hard money lender can potentially offer lower interest rates and better repayment schedules to borrowers which would be impossible to get at a regular bank.

Hard money is easier to qualify for, but there are some drawbacks.

Because the value of the subject property is more important to hard money lenders than a borrower’s credit history, unqualified borrowers can still be approved for a hard money loan. However because of this risk hard money lenders often limit the amount of the loans that they issue. Hard money loans are usually offered at between 50 to 70 percent of the value of the subject property. Borrowers should therefore have substantial assets on hand to make up the difference. Borrowers can also be expecting to pay several percentage points of the total loan amount in origination fees.

The first step to finding a hard money lender is to connect with the local real estate investment community or to look for collateral based lenders in your area. Borrowers should strive to develop a good relationship with any hard money lender they approach in order to secure the best terms on their loan.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, November 29, 2017

What is Hard Money?

Attending a conferenceHard money is, simply put, money that is backed by a “hard” asset. Individuals and companies often turn to hard money lenders when capital is required to bridge assets or rapid funding is required.

At one time, hard money was thought to be synonymous with back-alley dealings with less-than-stellar individuals offering loans in exchange for 50 percent of your business, or your first born, whichever was worth more. Fortunately, that misconception is long gone. The truth is that many contractors, developers, businesses and even home owners turn to these types of loans for various purposes and in a wide variety of circumstances. These are some of the most common reasons people turn to hard money loans.

· The time to funding for a traditional lender can be painfully slow, taking up to several months in some instances. For real estate investors, contractors and developers, this time lapse could lead to missing out on that one-of-a-kind property that just hit the markets and is perfect for a build-out, rent and hold or their next fix and flip. Time is of the essence in some real estate dealings. This type of loan also allows real estate investors to move on to their next project while waiting for traditional funding or to obtain a traditional loan after the rehab has taken place.

· Home owners often find the home of their dreams before their previous home sells. In today’s market, a contingent offer based on a sale often takes a backseat to an offer without any contingencies. A hard money bridge loan can provide these individuals the capital they need to purchase their new home instead of waiting for their previous home to sell. This type of loan acts as a bridge from one asset to another, is backed by collateral, and often funds in less than a week.

· If you have negative items on our credit report or are self-employed, making it sometimes difficult to prove your income, this type of loan can be easier to obtain than a traditional loan. These lenders are more concerned with the collateral or hard asset that you will be using to back your loan. They will also want to know your exit strategy, or how you plan on repaying them once the project is completed.

A Few More Facts about Hard Money Loans

Hard money loans are usually short-term loans, anywhere from 3 months to 5 years. Because these types of loans are often funded by private individuals, they do not have to adhere to the same restrictions and regulations that banks do, making these lenders more flexible and often easier to work with. The loan-to-value ratio varies widely among lenders and is usually somewhere in the range of 50 to 70 percent.

At Level 4 Funding, we work with hundreds of private hard money lenders who choose to invest in varied projects based on their interests.

Because of our rolodex of investors, we can often find the right investor for your project with the best rate possible. Call us today to discuss your needs and for a no-obligation quote.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, November 21, 2017

Hard Money Commercial Loans

Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-300x199When traditional loans are unavailable or will take too long to complete, hard money commercial loans will often suit the needs of borrowers quite nicely. Because they are easier to obtain for borrowers who do not qualify for traditional loans because of their credit, these loans are often an excellent short-term solution.

If you are a commercial developer and have recently hit a rough patch in terms of your personal or business credit, it is still very possible to obtain a loan to improve your properties or even purchase new ones. Hard money commercial loans have been filling in the gaps where traditional lending outlets have been failing.

These loans are typically financed at a higher interest rate, but they also have much lower requirements than traditional lender. Often, they do not even require the borrower to be credit worthy at all. Instead, the lenders will look at the value of the property itself. The lender will use the value of a potential resale of your commercial property as security toward the loan. That way, if something were to go wrong with the hard money commercial loan, they know that they could at least recuperate some of their investment by selling your property.

Another important aspect of these loans is that they are typically much shorter terms than a traditional loan. While the exact timeline of each loan is going to be different, and up for negotiation with the lender, most hard money commercial loans fall under three years. The most common timeframe, however, is right around a year. For smart developers, this is plenty of time to put that money to use, turn a profit and quickly pay it back. When done correctly, using a commercial loan in this way is essentially using someone else’s money to boost your revenue stream.

One characteristic of a loan of this type is the large balloon payment that is due at the end of the term. Many commercial loans offer terms that will allow a borrower to only pay interest during the term of the loan, with the balance then being due in full in one large payment at the end of the term. This allows for a borrower to utilize the entire amount of the loan and gives the borrower plenty of time to increase their revenue stream to cover the expense further down the road. However, this has the potential to be dangerous is the borrower runs into trouble.

What are the benefits of hard money commercial loans to the borrower?

Even though you are going to pay more in interest with a loan of this type, the true strength of it lies in the speed at which it is available, as well as the ease of securing one for all types of borrowers. While traditional loans can take weeks or months to acquire, hard money commercial loans can often be settled within a week. This allows for borrowers to be able to capitalize on opportunities that arise or to quickly access funds for the improvement of a property.

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
clip_image002clip_image004clip_image006clip_image008
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

Monday, November 20, 2017

What Is Hard Money?

4page_img2-bigIn the complex world of real estate investment, there are often terms that beginning investors are not familiar with. Hard Money is an integral part of many commercial real estate projects and understanding how it fits into the overall financing of real estate is critical.

Hard Money is a source of funding that falls outside of the traditional methods of receiving loans for commercial real estate investors. In many cases, the time that is required and many strict guidelines for acceptance prevent borrowers from being able to have access to traditional funds. Banks and other lending agencies can take weeks or months to come through with a loan and some borrowers need access to fund much more quickly. These loans can often be accessed in a matter of days, as opposed to the much longer waiting period for a traditional loan.

This is where hard money steps in. These loans are often from individuals or smaller groups, which gives them a great deal of flexibility in both terms and security. These loans do not depend on the credit worthiness of the borrower, instead these loans are asset-based and are often secured by the value of the property that is being purchased with the loan. In some cases, the hard money loan will be secured with assets that the borrower already has on hand, such as other properties.

Typically, hard money loans are for very short terms and are at a higher interest rate than a traditional longer-term loan. It is also common for a borrower to be granted terms that allow them to only pay the interest during the term of the loan and then pay the balance of the loan off in one balloon payment at the end of the term. This method allows the borrower to utilize the entire amount of the loan for improvements, instead of having to worry about monthly payments that include both principle and interest.

Another benefit of this type of loan is that borrowers usually have access to the entire amount required, whereas in a traditional loan, the borrower will have to put down a certain amount to secure the remainder of the loan. For borrowers who have little cash on hand, this can often be a lifesaver and might mean the difference between a successful development or an absolute bust.

What type of investor would benefit the most from hard money?

Hard money loans are not for everyone. Sure, they provide easy access to funding and cuts through a lot of the bureaucracy of traditional lenders, but not everyone is cut out for it. Those who are planning on improving and quickly selling a property will find a great deal of value in a hard money loan, as they will essentially be making a profit off of other people’s money. If a developer can improve a property very quickly, this is an excellent use of the loan, but it is dangerous, as the property might not have sold by the time the hard money loan comes due.

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
clip_image002clip_image004clip_image006clip_image008
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