What to Expect With Hard Money Loans Arizona

Hard money loans Arizona offers real estate investors a great tool. But, that tool is only useful if the investor understand the process and knows what to expect.

Hard money loans Arizona represent a good opportunity for many real estate investors. But knowing what to expect from the process and how to prepare are critical to a successful request and having the loan funded. Knowing what the lender is looking for will let you present him or her with the desired information and be prepared to meet the requirements of getting the loan.

Hard money lenders are going to want to see that the borrower has some money in the bank as a safety net in case there are issues with the property or the future transaction. Being cash poor is going to make it difficult for you to pay insurance, invest in repairs to the property or even maintain the property. So it is always wise to create a nest egg before beginning your search for hard money loans Arizona.

As a first time hard money borrower, it is also important that you do your homework. Understanding the terms for hard money loans Arizona is very important. The interest rate is definitely going to be higher than a traditional loan and the terms are going to be much shorter. But that is the price of doing business in the hard money world. However, the advantage for you is that all of the terms on hard money loans Arizona are negotiable. You simply need to work with the lender to agree to terms that meet both your needs and his or her needs.

What to Ask For

The loan to value rate is simple the comparison of the amount that you are asking for and the current market value of the property. In most cases a hard money lender will never fund over 70% of the cost of the property. So you need to be aware of this “magic” number and limit your request accordingly. In addition, you will need to be able to demonstrate your ability to provide the remaining amount of the purchase price for the down payment on the property.

Have a Planed Exit Strategy

All that the lender is really interested in is recovering his or her investment and interest on the hard money loan. But the lender understands that for you to pay off such a large loan in a short period of time, then you will most likely need to resell the property for a profit. So the lender will want to know how you plan to accomplish that task. And because it is only on a very rare occasion that things go perfectly, it is best for the lender and for you, to have more than one exit plan. You might want to do a quick flip on a residential property. But if you can’t find a buyer then a reasonable backup plan it to rent the property and seek a traditional loan to pay off the hard money loan.

Knowing what to expect and being prepared will not only help you to secure a hard money loan but it will also help you to be successful in profiting from that loan.

Try These Tactics if You Want to Get Your Hard Money Business Loans to Close Quickly

There is nothing like the painstaking process of waiting to see if your loan application has been approved by a conventional lender. Instead of playing the waiting game, Level 4 Funding offers ways to get your hard money business loans to close and fast!

Traditional loan applications are known for being super-complicated to complete, and then the process for the bank or lender to approve can be an even longer, more complicated process! When you’re in need of a loan, time of often of the essence, which is why hard money business loans are the way to go if you need cash in hand and you need it… like yesterday! There are some things you can do to ensure the process goes even quick and more smoothly, even with a short-term loan application which are known to be less cumbersome than conventional loan applications.

For example, being prepared can help get the process off on the right foot. Be prepared to put up some collateral. That is typically one of the most important things you can do to ensure your hard money business loans get approved, and fast! If you are prepared to show that you have the value of the loan (or more) in personal assets (such as a home or car) or you can use the property or business that you are intending to use the loan for as the collateral, that is usually a sure-fire way to ensure a quick process, too. While you likely won’t need to have you credit report, score or a lot of financial statements, it’s a good idea to have those items in order, just in case that documentation becomes needed for the application process.

Working together with your lender to get your hard money business loans approved is another way to ensure a quick turnaround. Remember that although the process can seem daunting, unfamiliar or even a little intimidating, your lender is on your side and there to help you get the loan you need. So work together to get all you ducks in a row or provide the proper documentation he asks for to move the process along. If you are helpful and make the process easy for him, he’ll want to make the process as easy and successful for you, too.

Find a reputable lender

It’s also a good idea to take some time to research some lenders to ensure that you are starting the process of right – with the right lender. You would hate to get down the line with an untrustworthy lender only to have to scratch the process before the loan is approved and start fresh with another lender. Work smarter, not harder! Find the right lender, and the right loan will follow.

Finally, call Level 4 Funding!

Level 4 Funding offers the professional, experienced lenders that will help make the loan process quick and easy. We know that time is crucial when waiting for a loan approval and we do our best to ensure a smooth and simple process!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

Hard Money Lenders—California Dreams Come True

If you are like most first-time borrowers, you may have asked yourself, why California has so many hard money lenders? California lenders of hard money are so popular, if you will because they understand the vital role they play in making people’s business and real estate dreams come true—plain and simple.

Once you embark on your general lender search, you may be surprised to find so many hard money lenders. California, in particular, has a wealth of hard money lenders. California being the place where dreams often come true, however, does not have a lot to do with the large quantity of lenders. The real reason you see so many lenders who offer hard money financing is because these lenders are in high-demand.

Hard money lenders are in high demand because traditional lending institutions in recent years have become more and more regulated, which means they have become more likely to turn borrowers away. Nonetheless, this does not mean traditional lending institutions are impermeable rather it means they are extremely selective in who they approve. Thus, many small business owners, startups, first-time flippers and so on have felt like they are fresh out of luck when it comes to financing their dreams.

Consequently, the hard money market saw a real opportunity to help countless people move forward with their ventures. Moreover, with so many niches and flexible options, these particular lenders have been able to hone in on their specific skills and strengths. Of course, at this point, you may be wondering. What exactly are those specific skills or roles that make lenders of hard money so vital? Well, let us go over the general role of these lenders as well as lenders in general.

Lenders Are There When You Need Them

Lenders often handle a variety of important component of the lending process. For instance, lenders are often the individuals who are creating your loan packages and ensuring that the right documentation is included. Moreover, lenders assist in the title ordering as well as other processes such as verifying payoff, appraisals, providing disclosures. Your lender should also take the time to help you find the best hard money financing program and walk you through all the details. In addition to all these roles, your lender can also help you with the underwriting process, finding investors, matching you with the right investor, finding the reputable loan servicers along with loan-doc creation and managing the closing. Thus, as you can see, your lender has his or her work cut out for them and it does not stop there. As briefly, suggested, your lender can also help you in specific areas that pertinent to your particular industry and venture or project.

The Real Deal

Ultimately, your lender should be the real deal. In other words, you should be able to expect these things, especially if you are working with a seasoned California lender who offers hard money financing. If you are not working with a California lender that does not mean you are at a disadvantage. Remember, at the end of the day, you need to find a lender that is right for you.

Dennis Dahlberg 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
 

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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Hard Money Lenders—California Underwriting Guidelines

You may be asking yourself what are the benefits to working with hard money lenders? California underwriting guidelines, in short, is one of the main benefits to working with lenders who offer hard money financing.

The underwriting process for any lender is a vital part of securing financing, which even more so true for hard money lenders. California lenders of hard money, in fact, have been so focused on what borrowers have to offer that for a quite some time the underwriting portion of the program was either overlooked or at best sub par.

The reason that the underwriting process has been essentially overlooked in most cases is because the potential value of collateral often overshadowed a borrower’s ability to meet repayment terms. Of course, this is not necessarily the borrower’s fault nor is it exclusively the lender’s lack of foresight rather it is the reality of the real estate market. Hard money financing is often thought of as a borrower’s, investor’s or builder’s saving grace for hard to finance projects and ventures.

Therefore, when both borrower and lender see the light at the end of the tunnel, some important details tend to be overlooked. So, at this point, you may be wondering, what exactly does this all mean when it comes to hard money lenders? California lenders, much like other lenders, have underwriting guidelines that need to be met regardless of the underlying situation. Thus, lenders of hard money also need to meet these regulations or guidelines. The good news is that there is a viable solution to this problem that ensures that everyone’s best interests are kept in mind.

How to Meet Underwriting Guidelines
The clear and obvious solution to this issue that lenders of hard money financing appear to have is simply put—outsourcing. Much like any other business or industry, outsourcing vital components of a larger process can ensure quality and so much more. In this particular instance, outsourcing can be used for a variety of underwriting components. For example, a lender of hard money can choose to outsource the loan package creation, document retrieval, document review, ordering appraisals, appraisal review, closing coordination, final document creation and so on. With that being said, it is still important to highlight the fact that there are some guidelines that simply should not be outsourced such the building of a lender –borrower relationships. For instance, both you as the borrower and your lender need to have a clear sense of one another; this means understanding each other’s character, business or credit history, etc. It is also important for the lender to have a firsthand understanding of your stake in the deal.

Going Beyond Regulations
Lastly, your lender should also make it a point to personally ensure that your collateral is adequate and easy to sell, all the while making sure that you have the ability to meet your repayment terms. If by chance, you feel as though your lender is more focused on your collateral, you may want to take a step back and ask if this is the right lender for you. Ultimately, you want a lender that can help you securing hard money financing and provide you will achievable loan terms as well as a seamless underwriting process.


Dennis Dahlberg 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
  



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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Hard Money Lenders—California Draw Request Basics

If this is your first time around working with hard money financing, you may not be too clear on what is allowed by hard money lenders. California lenders, for instance, do allow you to be paid for repairs if you complete the necessary paperwork.

When using hard money financing, you may have a few questions here and there, which is perfectly normal. One question, in particular, that most borrower or builders have is, can they be paid for repairs? Well, the short answer is yes. Generally, most lenders will allow this if you fill out what is known as a draw request.

A draw request, in essence, is a form that details the completed repair work. It is your job to ensure it is properly filled out and that any necessary copies are given to sub-contractors as well as submit the original form to your hard money lenders. California lenders will allow for payment or rather disbursement of funds after the work is properly inspected. It is important to note that payment is typically never in advance, as most lenders want to ensure the quality of the repair work first.

So now that you know that you can submit a draw request to hard money lenders, California especially, let us go over the draw request basics. For starters, some lenders will make this caveat a part of the loan itself. In other words, a select few lenders will allow for a 10% upfront disbursement during the loan closing. This small percentage is so that you can get started on the necessary repairs with proper funding. However, after this initial payment or disbursement, the rest of the repair work payments are traditionally paid to the contractors upon completion of the work.

Draw Request Expectations
If your lender does allow for the initial 10% when the loan closes, then moving forward it is important to know how to submit additional draw requests. For instance, it is highly recommended that you submit around four draw request each in 25% increments. Each draw request should include a detailed description of the work completed, the necessary amount needed, as well as any additional instructions for accessing the property for inspection. This will allow you to pay for completed work as it occurs and ensure that the entirely of the repair work that passes inspection is paid for. Moreover, you should submit all invoices and receipt for all work you or your contractors complete. It is important that these documents match or are in the neighborhood of the original bid. After all of this, you will have to complete a lien release and indicate where you want the funds to be disbursed. The draw request process from start to finish generally takes five to ten business days.

Final Advice
Ultimately, these draw requests will help you complete your rehab or construction project in a timely and seamless fashion. Thus, it is important to stay organized, keep all pertinent receipts, and plan ahead for the actual date of disbursement so that you do not experience any hiccups along the way.


Dennis Dahlberg 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
  



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: california hard money lender,california hard money lenders

How To Be Successful Using Hard Money Lenders in California To Flip Houses

The thought of making money can be intoxicating. It can make people believe nothing will go wrong or could go wrong. So to get the ball rolling, they use Hard Money Lenders in California rather than banks to fund multiple projects. But then the unexpected happens and trouble ensues.

Hard Money Lenders California--After you pound out the details of your business plan, it is easy to envision success. It is easy to see your plans being carried out and all the money you are going to make. So, when it comes down to getting started, it is not hard to be too excited and try to do too much. Your plan I spot on and can’t fail so why not hit the ground running?

Easy—because you never know what is going to happen. All sorts of problems can arise that make the best project turn into a dud. Sometimes, when one turns into a dud, there can be a domino effect. As you work to save one, you neglect the other, and it too fails.

An Investment Tale With Hard Money Lenders in California Gone Wrong

Bob and Jim are best friends living in Santa Barbara, California. After going to a weekend seminar on flipping houses, they feel confident that they can succeed and make a lot of money flipping houses. So, they call a friend in the real estate industry, and she presents them with three properties that would be perfect. They can’t make up their mind which to take so they decide to take all three.

After all, they know what they are doing so what can go wrong?

The deals have to be done now and can’t wait for a bank loan to be approved, so they decide to go with hard money lenders. Both recommend the friends stick with one house at a time, but they are determined to follow through on all three.

They complete the first one, but it takes longer to sell than they anticipated—and the offer was for a lot less. The buyer insists that a couple of repairs be made as well. With the cost of the additional repairs and the lowball offer, they end up only making a few hundred dollars.

Before they got to work on the first project, they gave a contractor a check to do the work on the second. After finishing the first, they go to inspect what they think is going to be a finished project to find out the contractor ripped them off. So now they have to pay another to get the work done. Upon completion, they find a buyer, but thanks to the first contractor, half the profit is eaten up.

At this point, they are not as excited, but neither likes to quit, and they want to see the final project through even though they are behind on every timetable they created. They find someone willing to take it off their hands as is, but they are going to lose a few hundred dollars.

Determined to succeed, they push through. The project takes longer, it costs more, and they end up taking a loss just to get rid of it (and the interest on the loan).

And The Lesson Is…

When you get started in real estate investing and working with Hard Money Lenders in California, take it easy. Don’t try to do too much too fast. Take your time getting your feet wet, so you don’t end up regretting it in the end.

Dennis Dahlberg 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
 
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: hard money lenders in california,hard money lenders california

There’s Danger In Trying To Do Too Much Too Quick With Hard Money Lenders in California

The thought of making money can be intoxicating. It can make people believe nothing will go wrong or could go wrong. So to get the ball rolling, they use Hard Money Lenders in California rather than banks to fund multiple projects. But then the unexpected happens and trouble ensues.

Hard Money Lenders California--After you pound out the details of your business plan, it is easy to envision success. It is easy to see your plans being carried out and all the money you are going to make. So, when it comes down to getting started, it is not hard to be too excited and try to do too much. Your plan I spot on and can’t fail so why not hit the ground running?

Easy—because you never know what is going to happen. All sorts of problems can arise that make the best project turn into a dud. Sometimes, when one turns into a dud, there can be a domino effect. As you work to save one, you neglect the other, and it too fails.

An Investment Tale With Hard Money Lenders in California Gone Wrong

Bob and Jim are best friends living in Santa Barbara, California. After going to a weekend seminar on flipping houses, they feel confident that they can succeed and make a lot of money flipping houses. So, they call a friend in the real estate industry, and she presents them with three properties that would be perfect. They can’t make up their mind which to take so they decide to take all three.

After all, they know what they are doing so what can go wrong?

The deals have to be done now and can’t wait for a bank loan to be approved, so they decide to go with hard money lenders. Both recommend the friends stick with one house at a time, but they are determined to follow through on all three.

They complete the first one, but it takes longer to sell than they anticipated—and the offer was for a lot less. The buyer insists that a couple of repairs be made as well. With the cost of the additional repairs and the lowball offer, they end up only making a few hundred dollars.

Before they got to work on the first project, they gave a contractor a check to do the work on the second. After finishing the first, they go to inspect what they think is going to be a finished project to find out the contractor ripped them off. So now they have to pay another to get the work done. Upon completion, they find a buyer, but thanks to the first contractor, half the profit is eaten up.

At this point, they are not as excited, but neither likes to quit, and they want to see the final project through even though they are behind on every timetable they created. They find someone willing to take it off their hands as is, but they are going to lose a few hundred dollars.

Determined to succeed, they push through. The project takes longer, it costs more, and they end up taking a loss just to get rid of it (and the interest on the loan).

And The Lesson Is…

When you get started in real estate investing and working with Hard Money Lenders in California, take it easy. Don’t try to do too much too fast. Take your time getting your feet wet, so you don’t end up regretting it in the end.

Dennis Dahlberg 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
 
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: california hard money lenders,hard money lenders in california,hard money lenders california

Hard Money Lenders—California is Calling

If you are like most, you probably think that all lenders are alike; well, you might want to think again, when it comes to hard money lenders. California is no stranger to these particular kinds of lenders and is the best place to really note the distinction between private money and hard money lenders.
Clearly, when dealing with private money, you are for the most part dealing with private money lenders and not necessarily hard money lenders. California based lenders, however, make it a point to make a clear distinction between these two kinds of financing. For instance, private money is generally obtained through close personal working relationships and is used for investment properties and ventures. Thus, California lenders who offer private money tend to be more flexible with repayment options and more tailored to a specific group of borrowers.
On the other hand, hard money is almost always obtained via hard money lenders. California lenders of hard money look at the actual property being purchased and essentially determine if there is enough value for them to loan you funds. Moreover, these particular lenders tend to cut through the red tape in comparison to private money lenders and traditional lending institutions. The reasoning being that, again, these particular lenders (hard money) are more focused on the property value and in reality, the approval is just the beginning for these kinds of lenders.
This means that hard money lenders take things a step further and typically manage many of the processes necessary to get your loan closed. For example, it is not shocking to see your lender create your loan package, order the necessary forms such as your title and appraisal report. Hard money lenders will also generally verify payoffs and/or restatements advise you on the best loan program as well as provide all your disclosures. Furthermore, your lender will likely handle underwriting responsibilities, investor matching, decide on a loan servicers for your loan and create/manage pertinent documents (loan docs, loan settlement and/or closing). Of course, this is just a quick overview of everything your hard money lender can do for you. So, let us discuss a more in-depth explanation of one of the main services—the loan package.
Beyond Approval
Creating your loan package is no minor tasks. In other words, your lender will spend some time making sure that you have everything you need to secure an investor. It is important to let your lender take the lead on your loan package for several reasons. The main reason being that a tailor-made package that knows the market and is well documented/organized is what will attract quality investors. In your loan package, you will have a credit report, financial statements, statement of information, tax returns, proof of relevant liabilities and assets—just to name a few.
A Win- Win Solution
Ultimately, all of the above is what sets hard money lenders apart from the pack. Moreover, an reputable and highly experience lender of hard money will make sure the entire process from start to finish is as seamless as possible, which gets you one step closer to making your real estate dreams a reality.

Dennis Dahlberg 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
 
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: hard money lender california,hard money lenders california